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24 August 2021
Justice Department Enters Agreement to Ensure Public Transportation for Passengers with Disabilities in the County of HawaiiRead the Press Release
HONOLULU – The Justice Department entered into a settlement agreement with the County of Hawaii and the County’s Mass Transit Agency (MTA) to resolve an investigation conducted under Title II of the Americans with Disabilities Act (ADA).
Under the agreement, the County and MTA must make their transit services, including Hele-On, the buses used by the majority of riders, accessible to passengers with disabilities. The agreement requires the County and MTA to ensure that passengers with disabilities have lifts to board buses; paratransit users are provided timely pick-ups and drop-offs; and bus stops are accessible. In addition, the County and MTA must ensure that transit system drivers undergo ADA training and that disability-related complaints are addressed fairly. The County and MTA also must report to the department regarding their compliance with these requirements. Both the County and MTA cooperated in this matter.
“Ensuring the availability of public transit for individuals with disabilities is a key promise of the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Accessible transportation is critical to independence and engagement in civic life, and this agreement helps to make that promise a reality.”
“This agreement will remove accessibility barriers in transit for countless individuals with disabilities living on the Big Island,” said Acting U.S. Attorney Judith Philips for the District of Hawaii. “Our office strongly supports efforts to improve access and inclusion under the ADA.”
This matter was handled by the Disability Rights Section of the Department’s Civil Rights Division. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Justice Department Approves Remission of over $32 Million in Forfeited Funds to Victims in the FIFA Corruption CaseRead the Press Release
The Department of Justice announced today that it will begin the process of remitting forfeited funds to FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other regions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”). The department granted a joint petition for remission filed by the Victims, recognizing losses and granting remission up to a total of more than $201 million, of which $32.3 million in forfeited funds has been approved for an initial distribution. In total, well over the amount granted has been seized and has been or is expected to be forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer.
To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events.
This announcement is the beginning of the process for returning funds to the victims of the FIFA bribery scandal and marks the department’s continued commitment to ensuring justice for those victims harmed by this scheme.
“The approval of this remission of funds illegally obtained in the FIFA scandal marks another important milestone in these prosecutions and the department’s commitment to use all tools at its disposal to prosecute corruption and to deprive perpetrators of ill-gotten gains,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This remission highlights the importance of asset forfeiture as a critical tool for the recovery of criminal proceeds and the pursuit of justice.”
“Today’s announcement confirms that money stolen by corrupt soccer officials and sports marketing executives through fraud and greed will be returned to where it belongs and used to benefit the sport,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “From the start, this investigation and prosecution have been focused on bringing wrongdoers to justice and restoring ill-gotten gains to those who work for the benefit of the beautiful game. Our office, together with our law enforcement partners, will always work to compensate victims of crime.”
“Kickbacks and bribes have a way of spreading like a disease through corrupt groups; pure and simple greed keeps the graft going,” said Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office. “Not one official in this investigation seemed to care about the damage being done to a sport that millions around the world revere. The only silver lining is the money will now help underprivileged people who need it, not the wealthy executives who just wanted it to get richer. Our work isn’t finished, and our promise to those who love the game – we won’t give up until everyone sees justice for what they’ve done.”
“For years, corrupt soccer officials and greedy sports marketing executives engaged in dozens of multimillion-dollar bribe and kickback schemes,” said Special Agent-in-Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI). “These individuals and companies lined their pockets with millions that were supposed to be used for the development and betterment of soccer worldwide. Agents with IRS-CI and their partners at the U.S. Attorney’s Office and the FBI relentlessly pursued this corruption and seized these ill-gotten gains. Now these funds can be used as they were intended, to promote and develop the world’s most popular game.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On Dec. 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. Additional defendants were charged by indictment and information. During the course of the prosecutions to date, 27 individual defendants have pleaded guilty for their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout, of Paraguay, and José Maria Marin, of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banking institutions, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements. The government’s prosecutions and investigation are ongoing.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process to and through a newly created World Football Remission Fund (the “Fund”), to be established under the FIFA Foundation, an independent foundation focused on youth programs, community outreach and humanitarian needs. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
The government’s case is being handled by the U.S. Attorney’s Office’s FIFA Task Force. Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, Brian D. Morris and Kaitlin T. Farrell are in charge of the prosecution and coordination of the victim remission process. The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the FBI’s New York Field Office and IRS-CI.
Justice Department Approves Remission of over $32 Million in Forfeited Funds to Victims in the FIFA Corruption CaseRead the Press Release
BROOKLYN, NY - The Department of Justice announced today that it will begin the process of remitting forfeited funds to FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other regions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”). The Department granted a joint petition for remission filed by the Victims, recognizing losses and granting remission up to a total of more than $201 million, of which $32.3 million in forfeited funds has been approved for an initial distribution. In total, well over the amount granted has been seized and has been or is expected to be forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer.
To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events.
This announcement is the beginning of the process for returning funds to the victims of the FIFA bribery scandal and marks the Department’s continued commitment to ensuring justice for those victims harmed by this scheme.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, made the announcement.
“Today’s announcement confirms that money stolen by corrupt soccer officials and sports marketing executives through fraud and greed will be returned to where it belongs and used to benefit the sport,” stated Acting United States Attorney Kasulis. “From the start, this investigation and prosecution have been focused on bringing wrongdoers to justice and restoring ill-gotten gains to those who work for the benefit of the beautiful game. Our Office, together with our law enforcement partners, will always work to compensate victims of crime.”
“The approval of this remission of funds illegally obtained in the FIFA scandal marks another important milestone in these prosecutions and the department’s commitment to use all tools at its disposal to prosecute corruption and to deprive perpetrators of ill-gotten gains,” stated Assistant Attorney General Polite. “This remission highlights the importance of asset forfeiture as a critical tool for the recovery of criminal proceeds and the pursuit of justice.”
“Kickbacks and bribes have a way of spreading like a disease through corrupt groups; pure and simple greed keeps the graft going. Not one official in this investigation seemed to care about the damage being done to a sport that millions around the world revere. The only silver lining is the money will now help underprivileged people who need it, not the wealthy executives who just wanted it to get richer. Our work isn’t finished, and our promise to those who love the game – we won’t give up until everyone sees justice for what they’ve done,” stated FBI Assistant Director-in-Charge Driscoll.
“For years, corrupt soccer officials and greedy sports marketing executives engaged in dozens of multimillion-dollar bribe and kickback schemes,” said Special Agent-in-Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI). “These individuals and companies lined their pockets with millions that were supposed to be used for the development and betterment of soccer worldwide. Agents with IRS-CI and their partners at the U.S. Attorney’s Office and the FBI relentlessly pursued this corruption and seized these ill-gotten gains. Now these funds can be used as they were intended, to promote and develop the world’s most popular game.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On December 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. Additional defendants were later charged by indictment and information. During the course of the prosecutions to date, 26 individual defendants have pleaded guilty for their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout of Paraguay and José Maria Marin of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banking institutions, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements. The government’s prosecutions and investigation are ongoing.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF and CONMEBOL have committed to distributing funds received through the remission process to and through a newly created World Football Remission Fund (the “Fund”), to be established under the FIFA Foundation, an independent foundation focused on youth programs, community outreach and humanitarian needs. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
The government’s case is being handled by the Office’s FIFA Task Force. Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, Brian D. Morris, and Kaitlin T. Farrell are in charge of the prosecution and coordination of the victim remission process. The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section, the FBI’s New York Field Office and the IRS-CI.
Joint Statement from Acting U.S. Attorney Mary Jane Stewart and Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field OfficeRead the Press Release
NASHVILLE – To our neighbors who have been severely impacted by the catastrophic flooding-particularly to those in Humphreys County:
“We are devastated by the unprecedented level of destruction that has occurred and can barely fathom the pain and suffering inflicted on so many. As the rebuilding of these impacted communities begins, please be aware of scammers who will attempt to profit from the pain and suffering of others. If you suspect that you are a potential victim of a scam relating to this disaster, please call the Disaster Fraud Hotline or visit https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form to report fraudulent activity.
A warning to scammers who are already at work - the U.S. Attorney’s Office and the FBI will be vigilantly supporting our local law enforcement partners in identifying and apprehending anyone engaged in fraudulent activity designed to further victimize those who have suffered so much from this catastrophe. We will maintain a zero-tolerance approach and bring federal charges whenever appropriate.”
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Jacksonville Husband and Wife Plead Guilty to Transporting Illegal Aliens onto Camp Lejeune Marine Base by BoatRead the Press Release
WILMINGTON, N.C. – A Jacksonville husband and wife duo pleaded guilty today to transporting illegal aliens onto Camp Lejeune Marine Base by boat.
According to court documents, Timothy Scott Belcher, 56 and Georgina Belcher 63 orchestrated the transportation of three foreign nationals illegally residing in the United States onto Camp Lejeune Marine Base by circumventing the base gate and transporting them from Jacksonville, NC, to the Wilson Boat dock on base. The three aliens were employed by a drywall company owned by Georgina Belcher, which had a contract with the U.S. Military.
The Belcher’s pleaded guilty to Bringing in and Harboring Certain Aliens and face a possible sentence of not more than five years imprisonment, $250,000 fine, and three years’ supervised release at the time of sentencing, scheduled for the November 16, 2021 term of court.
“The Nation's critical infrastructure provides the essential services that underpin American society. Proactive and coordinated efforts are necessary to strengthen and maintain secure, functioning, and resilient critical infrastructure – including our Military Bases, Airports, and other areas that are vital to public confidence and the Nation's safety,” said G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina who made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. Homeland Security Investigations and the Marine Criminal Investigation Division are investigating the case and Assistant U.S. Attorney Gabriel J. Diaz is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-86-1M and 7:21-CR-86-2M.
Inver Grove Heights Man Sentenced to 180 Months in Prison for Producing Child PornographyRead the Press Release
ST. PAUL, Minn. – An Inver Grove Heights man was sentenced today to 180 months in prison followed by 15 years of supervised release for producing sexually explicit images of a minor.
According to court documents, Antonio Eric Torres Maldonado, 34, admitted to sexually abusing a minor over a multiple year period. During this time, Maldonado used his cell phone to take sexually explicit photographs of the minor.
On April 21, 2021, Maldonado pleaded guilty in U.S. District Court to one count of production and attempted production of child pornography. Maldonado was also charged and convicted in Dakota County of first degree criminal sexual conduct and was sentenced to 172 months in prison, which will be served concurrent to the federal sentence.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was the result of an investigation conducted by the FBI and the Lakeville Police Department.
This case was prosecuted by Assistant U.S. Attorneys Angela M. Munoz.
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Illegal possession of firearm, ammunition sends Browning man to prisonRead the Press Release
GREAT FALLS — A Browning man who admitted to illegally possessing a firearm and ammunition on the Blackfeet Indian Reservation was sentenced on Monday to 27 months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said today.
Wesley Allen Cross Guns, Jr., 32, pleaded guilty April 6 to prohibited person in possession of a firearm and ammunition.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that on Oct. 8, 2020, Blackfeet Law Enforcement Services had been looking for Cross Guns, Jr., in relation to recent criminal activity including two police chases. Officers arrested Cross Guns, Jr., after he was seen walking with two juveniles. In a search of Cross Guns, Jr., officers found methamphetamine and bullets for a .22-caliber firearm. One of the companions, who was detained, told officers he had a firearm and asked them to get it. Officers pulled a .22-caliber rifle with a broken off stock from under the individual’s clothing. The name, Cross Guns, was on the rifle, and the individual said it was for the defendant. The individual told officers he had bought the rifle and shared it with Cross Guns, Jr. The defendant was prohibited from possessing firearms and ammunition because of previous felony convictions.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Hattiesburg Man Pleads Guilty to Drug ChargesRead the Press Release
Gulfport, Miss. – A Hattiesburg man pleaded guilty to possession with intent to distribute narcotics, announced Acting U.S. Attorney Darren LaMarca and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA).
According to court documents, in January, 2021, Lester Brown, 51, was apprehended throwing packages containing narcotics over the fence at the South Mississippi Regional Correctional Institution in Leaksville, Mississippi.
Brown is scheduled to be sentenced on November 23, 2021, and faces a maximum penalty of 5 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA in Gulfport is investigating the case.
Assistant U.S. Attorney Annette Williams is prosecuting the case.
Former Preschool Teacher Pleads Guilty to Receipt of Child PornographyRead the Press Release
A former preschool teacher pleaded guilty today to purchasing sexually explicit images of children, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jason Sherod Baldwin, 29, was charged via criminal complaint in July 2020 and indicted less than a month later. He pleaded guilty Tuesday to one count of receipt of child pornography.
In plea papers, Mr. Baldwin, a former teacher at Dallas’ Hockaday School, admitted that he used Kik, an encrypted messaging app popular among teenagers, to purchase links to child pornography from another Kik user. In chats, Mr. Baldwin requested “mainly preteen boy-on-boy vid[eo]s.”
According to court documents, the investigation into Mr. Baldwin began after FBI agents executed a federal search warrant at the home of a convicted sex offender in Philadelphia. A search of the offender’s phone revealed that he routinely used Kik to solicit payment for links child pornography. One of the accounts with which the offender communicated traced back to Mr. Baldwin.
On Oct. 29, Mr. Baldwin messaged the sex offender about purchasing child pornography. The offender shared a link to a “preview” folder and indicated the complete file set would cost $27. Mr. Baldwin sent the money through PayPal and received links to the files a few minutes later.
The investigation showed that Mr. Baldwin purchased child pornography from the offender several times over the ensuing months, on Nov. 11 ($13 for two videos of minor males), Dec. 8 ($10 for a video and more than 100 images), Dec. 18 ($12 for two videos), and Jan. 21 ($31 for seven videos).
In an interview with law enforcement after he was arrested, Mr. Baldwin admitted that he’d used Kik to purchase sexually explicit images of children. He said he had hundreds of sexually explicit images and videos of children stored on his cell phones, and that he had been viewing child porn for approximately eight years.
He now faces between five and 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Bureau’s Philadelphia Field Office. Assistant U.S. Attorney Nicole Dana prosecuted the case.
Former Owner of S&D Gun Show Sentenced to Federal Prison for Illegal Possession of Firearms and Ammunition by a Convicted FelonRead the Press Release
NEW BERN, N.C. – A Pamlico County man was sentenced on August 24, 2021, to 12 months and one day in prison followed by 3 years of supervised release for possession of firearms and ammunition by a convicted felon. Additionally, he was fined $10,000 and ordered to forfeit all of his firearms and ammunition. On July 11, 2019, Sherwood Watson Caraway pled guilty to the charges.
According to court documents and other information presented in court, Caraway, 62, had previously been convicted in federal court for illegally dealing firearms without a license in 2005. Caraway at that time owned and operated S&D Show Promotions, Inc., a gun and knife show production company that holds events throughout Eastern North Carolina. Despite his conviction, Caraway continued to operate gun shows in the area. Investigation in 2016 and 2017 revealed that Caraway continued to possess multiple firearms in his home in Merritt, North Carolina. On September 2, 2017, detectives with the Pamlico County Sheriff’s Office executed a search warrant on Caraway’s home. They located numerous rifles, shotguns, and handguns, along with thousands of rounds of ammunition. Agents also searched a residence owned by Caraway’s daughter, where they seized another 33 firearms that had previously been kept at Caraway’s house. In total, the Pamlico County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) seized over forty firearms. After pleading guilty to these charges, Caraway sold his interest in the gun shows in 2020.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Pamlico County Sheriff’s Office and ATF investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-00032-FL.
Former Norfolk Sheriff Convicted of Public Corruption ChargesRead the Press Release
NORFOLK, Va. – A federal jury convicted a former Norfolk City Sheriff today on eleven counts, including conspiracy to commit honest services mail fraud, honest services mail fraud, conspiracy to obtain property under color of official right, obtaining property under color of official right, and conspiracy to commit money laundering.
“As the evidence at trial demonstrated, former Sheriff McCabe brazenly abused his position of power as an elected official and accepted bribes to enrich himself in exchange for granting city contracts,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The jury’s guilty verdict on all counts sends a strong message that government officials who corrupt their oaths and betray the community’s trust will be held accountable in the Eastern District of Virginia. We are deeply grateful to trial team, our law enforcement partners, and the witnesses who came forward to help bring this defendant to justice on behalf of the citizens of Norfolk.”
According to court records and evidence presented at trial, Robert James McCabe, 63, who currently resides in West Palm Beach, Florida, engaged in illicit quid pro quo relationships with vendors while McCabe served as the Sheriff of the City of Norfolk.
Evidence presented at trial showed that, from 1994 through 2016, vendors provided McCabe with cash, travel, entertainment, gift cards, catering, personal gifts, and campaign contributions, in exchange for official actions that favored the vendors and their contracts with the Norfolk City Jail. These favorable actions included changing the terms of the contracts to favor certain companies, granting extensions and renewals, and providing inside bidding information. In exchange, ABL Management, Inc., the company that provided food services for the Norfolk City Jail, regularly provided free catering at the defendant’s home, for his annual golf tournaments, and for other political events. ABL’s former CEO also gave the defendant free trips – including a trip to the 2004 BCS National Championship game in Louisiana – and a ride in a glass-bottomed helicopter in San Francisco.
Evidence further demonstrated that the defendant met with one vendor at a hotel in Philadelphia where he received $6,000 in cash, which he described during his testimony at trial as a “loan.” However, the defendant never executed any loan documents, never made any payments on this “loan,” and never disclosed the existence of this “loan” on his Statement of Economic Interest forms. Evidence presented at trial also showed that, despite receiving a multitude of gifts from these vendors, the defendant never disclosed any of these items in his required campaign disclosures.
“Robert McCabe betrayed his oath to the citizens of Norfolk out of greed and self-interest. Instead of living up to his promise to serve the community, he abused his official position to serve himself,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “There is no place in public service for this kind of self-dealing, and this case demonstrates the FBI’s continued commitment to rooting out and exposing public corruption.”
“Elected officials should be the standard bearers for the rule of law and be the model of integrity to their constituency. McCabe was neither. Instead, he used his position of public trust for personal enrichment,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office. “We will continue to dedicate resources to investigate crimes of this nature to ensure those who exploit their powers are held accountable.”
McCabe faces a maximum penalty of 20 years in prison for each count when sentenced on January 21, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Darrell J. Waldon, Acting Special Agent in Charge of the Criminal Investigations Unit of the Internal Revenue Service, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict.
Assistant U.S. Attorneys Melissa E. O’Boyle, Randy C. Stoker, and Anthony Mozzi are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-171.
Former Klamath Falls Police Officer Pleads Guilty for Stealing Methamphetamine and Fentanyl from Evidence RoomRead the Press Release
MEDFORD, Ore.—A former Klamath Falls police officer pleaded guilty today in federal court after stealing methamphetamine and fentanyl from an evidence room.
Thomas Dwayne Reif, 28, pleaded guilty to possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
According to court documents, on or about November 27, 2020, Reif is alleged to have entered the Klamath Falls Police Department’s temporary evidence room using an unauthorized key and removed an evidence item containing methamphetamine and fentanyl. Reif briefly left the evidence room before returning the evidence item to the evidence locker and leaving the facility.
Shortly thereafter, Reif overdosed while operating his police car. The car jumped a median, travelled into oncoming traffic, and caused a multiple-vehicle accident. Reif was rushed to the hospital and successfully revived by medical personnel. Toxicology reports showed that Reif was under the influence of substances including methamphetamine and fentanyl.
Investigators searched the personal locker assigned to Reif at the Klamath Falls Police Department. Inside the locker, investigators found that Reif had concealed an evidence bag containing methamphetamine.
On May 20, 2021, a federal grand jury in Medford returned a two-count indictment charging Reif with possession of a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
Reif faces a maximum sentence of four years in prison, a $250,000 fine and one year of supervised release. He will be sentenced on November 23, 2021 before U.S. District Court Judge Michael J. McShane.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from Oregon State Police. It is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon. Klamath Falls Police Department cooperated and provided assistance throughout the investigation.
Former Jacksonville Second Grade Teacher Pleads Guilty to Distributing Child Sexual Abuse Videos Using Social Media AppRead the Press Release
Jacksonville, Florida – Thomas Lester Hazouri, Jr. (41, Jacksonville) today
pleaded guilty to distributing child sexual abuse videos over the internet using a social media messaging application (app). He faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison and a potential life term of supervised release. Hazouri’s sentencing hearing has not yet been scheduled. Hazouri has been detained since his arrest on September 4, 2020.
According to court documents, a company that owns and hosts a particular online social media messaging app notified the National Center for Missing and Exploited Children that on March 26, 2020, one of its users, who was later identified as Thomas Lester Hazouri, Jr., had uploaded and distributed four videos depicting children being sexually abused to several users in a public chat room. Further investigation by the Jacksonville Sheriff’s Office (JSO) traced the internet protocol address used to distribute these videos to Hazouri’s residence in Jacksonville Beach. At that time, Hazouri was employed as a second grade teacher at Mayport Elementary School in Jacksonville.
JSO obtained search warrants for the social messaging app account for user “mybfsgaynotme” as well as for another email account used by Hazouri. Hazouri’s “mybfsgaynotme” account contained 19 images and 45 videos depicting children engaged in sexually explicit conduct. Hazouri’s email account contained several photos depicting child erotica. On August 6, 2020, JSO detectives and other personnel executed a search warrant at Hazouri’s residence and seized Hazouri’s iPhone and two laptop computers. Forensic examination of the iPhone revealed that it contained 123 images and three videos depicting child sexual abuse. The three videos on Hazouri’s iPhone appeared to depict the same content as three of the videos distributed by Hazouri using the app on March 26, 2020. Hazouri was subsequently arrested.
This case was investigated by the Jacksonville Sheriff’s Office, the Duval County School Police Department, and the Federal Bureau of Investigation, with assistance from the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Essex County Postal Employee Admits Stealing Credit Cards from Mail in Access Device Fraud SchemeRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) employee today admitted stealing credit cards sent through the mail as part of a conspiracy to commit access device fraud, Acting U.S. Attorney Rachael A. Honig announced.
Kyle Williams, 36, of Vauxhall, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit access device fraud.
According to documents filed in this case and statements made in court:
Williams was employed by the USPS. From July 2019 to August 2020, Williams stole from the mail credit cards issued by financial institutions outside of New Jersey and provided those credit cards to his conspirators, who fraudulently activated them and used them to make and attempt to make purchases without the cardholders’ authorization, including buying gift cards and electronics. The investigation to date has revealed that the victims have incurred over approximately $100,000 in intended and actual losses from fraudulent purchases made using their stolen credit cards. In addition to stealing and illegally using credit cards, Williams and his conspirators also schemed to fraudulently use over $11,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of the EIP card fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards, in amounts ranging from approximately $400 to approximately $2,400.
The conspiracy charge is punishable by a maximum potential penalty of 90 months in prison in prison and a maximum fine of up to $250,000. Sentencing is scheduled for Jan. 12, 2022.
Williams was charged with Jarid Brooks, 27, Justin Brooks, 21, and Kyjuan Hutchins, 22, also of Vauxhall, in October 2020. Jarid Brooks and Justin Brooks were charged in an indictment with conspiracy to receive stolen mail, commit bank fraud, and defraud the USPS and the U.S. Department of Treasury, theft of stolen mail, bank fraud, aggravated identity theft, possession with intent to distribute narcotics (Jarid Brooks only), and possession of a firearm with an obliterated serial number (Justin Brooks only). The indictment is pending before Judge Cecchi. Hutchins has pleaded guilty to conspiring to commit access device fraud and is awaiting sentencing.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
The charges and allegations against Jarid Brooks and Justin Brooks are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Former Airline Pilot from Kenosha County Sentenced to 15 Years in Federal Prison for Attempted Sexual Exploitation of a MinorRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on August 24, 2021, Devery Moses (age:29), a former airline pilot from Kenosha, Wisconsin, was sentenced to 180 months in federal prison by United States District Judge Lynn Adelman.
According to court records, Moses engaged in online “sextortion” with several underage girls from across the United States, United Kingdom, and Canada. Some of the victims were as young as twelve years old. Filings indicate that after Moses received sexually explicit photographs and videos from his victims, he threatened to expose them on social media if they did not comply with his demand for increasingly outrageous and outlandish sexual acts.
Filings in the case reveal that many of the victims suffered significant, ongoing emotional trauma from his actions, including one victim reporting serious suicidal thoughts.
This successful prosecution of this case was the result of the extraordinary efforts of the Wisconsin Department of Justice’s Division of Criminal Investigation, in collaboration with the Federal Bureau of Investigation’s Milwaukee Division, and the Kenosha County District Attorney’s Office. It was prosecuted by Assistant United States Attorneys Megan J. Paulson and Abbey Marzick.
Moses’s federal sentence will run concurrently with a -year sentence previously imposed for a state conviction for possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
Florida Man Sentenced for Selling Counterfeit Drugs on the Dark NetRead the Press Release
ALEXANDRIA, Va. – An Inverness, Florida, man was sentenced today to three years in prison for selling hundreds of thousands of counterfeit prescription drug pills through the Internet.
“By selling counterfeit drugs through the Darknet, the defendant recklessly endangered the community and placed his own personal gain over the health and safety of the public,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working closely with our partners through the Hi-Tech Opioid Task Force, EDVA will continue to investigate, prosecute, and hold accountable those who contribute to the proliferation of illegal pharmaceuticals on dark web marketplaces.”
According to court documents, from at least April 2019 until October 2020, Benjamin Burdick, 55, sold at least 249,700 counterfeit Xanax pills through online hidden marketplaces. From his residence in Florida, Burdick used a pill press to manufacture pills that he stamped with the letters ‘Xanax.’ The pills that Burdick created did not contain just alprazolam, which genuine Xanax contains, but also contained substances such as flualprazolam, etizolam, adinazolam, and microcrystalline cellulose.
“The FBI works every day with our law enforcement partners to stop the sale of illegal drugs on the Dark Web. These drugs are not only illegal but can be extremely dangerous because these drug dealers are not selling the drugs they claim to be. The counterfeit pills that Burdick was selling online could have deadly consequences in our communities across the country,” said Acting Special Agent in Charge Robert E. Bornstein of the FBI Washington Field Office Criminal Division. “The FBI Washington Field Office’s Hi-Tech Opioid Task Force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.”
“Selling counterfeit prescription drugs in the U.S. marketplace puts consumers’ health at risk,” said Special Agent in Charge Mark S. McCormack of the FDA Office of Criminal Investigations Metro Washington Field Office. “The FDA remains fully committed to disrupting and dismantling illegal prescription drug distribution networks that place profits ahead of public health and safety.”
“Whenever someone uses the U.S. Mail to send anything that is counterfeit, illegal or potentially dangerous, Postal Inspectors will find them and bring them to justice,” said Daniel A. Adame, Inspector in Charge of the Washington Division, U.S. Postal Inspection Service. “Together with our partners at the Hi-Tech Opioid Task Force we continue to investigate those who misuse the mail in furtherance of their criminal activity. We remain committed to keeping the mail safe for our customers and our employees.”
Between June 2019 and August 2020, undercover federal agents purchased multiple packages of counterfeit pills from Burdick. When his home was searched pursuant to a federal search warrant in October 2020, agents recovered 16,000 counterfeit pills, a pill press, and almost $150,000 in cash. Law enforcement also discovered six firearms and miscellaneous ammunition in Burdick’s residence.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Alexander P. Berrang and Jay V. Prabhu and former Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case. Trial Attorney Josh Rothman and Senior Litigation Counsel Linda Marks of the Civil Division’s Consumer Protection Branch provided significant assistance on this case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-47.
First of 3 Brothers Sentenced for Attempting to Steal Guns from Federal Firearms LicenseesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced to 18 months’ imprisonment on a charge of conspiracy, United States Attorney Stephen R. Kaufman announced today.
United States District Judge W. Scott Hardy imposed the sentence on Jerwahn Atkins, 24, formerly of Buente Street, Pittsburgh, PA 15212.
In connection with the guilty plea of brothers Jerwahn Atkins, Jamir Atkins and Jerquay Atkins, the court was advised that on May 31, 2020, the Atkins brothers conspired to steal firearms from federal firearm licensee, Allegheny Arms and Gun Works. The Atkins’s used a crowbar in an attempt to gain entry to the gun store which triggered a burglary alarm. This alarmed caused the brothers to run away to which Jerquay and Jerwahn left the scene in the same vehicle while Jamir departed in a separate vehicle, not arriving at the next crime scene. Jerquay Atkins and Jerwahn Atkins then drove to the National Armory in Moon Township, also a federal firearm licensee. A crowbar was again used to pry open the door triggering the burglary alarm causing the two brothers to flee once more.
Before the sentencing, the defendant, Jerwahn Atkins, requested a downward variance. Judge Hardy denied said variance and imposed an 18-month term of imprisonment, three years of supervised release and $2,000 in restitution.
Judge Hardy scheduled sentencing for Jerquay Atkins on August 25, 2021, at 10:00 a.m. and Jamir Atkins on September 2, 2021, at 10:00 a.m., The law provides for a total sentence of not more than five years imprisonment, a term of supervised release not more than three years, and/or a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Jerwahn Atkins to the custody of the United States Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Jerwahn Atkins, Jamir Atkins and Jerquay Atkins.
Federal Grand Jury Expands RICO Indictment Against MS-13 by Adding Defendants and 4 Previously Unsolved MurdersRead the Press Release
LOS ANGELES – Nine new defendants and a series of previously uncharged murders are included in a federal grand jury indictment unsealed today that significantly expands a wide-ranging racketeering indictment targeting an arm of the MS-13 transnational street gang.
The 18-count Third Superseding Indictment, which was unsealed following the arrests of four defendants this week, alleges that members and associates of MS-13 murdered 11 people, five of whom were hacked to death with machetes or knives in the Angeles National Forest. The indictment, which was filed on August 5, adds nine defendants to the previous version of the indictment and nearly doubles the number of charged murders.
Mara Salvatrucha was formed in Los Angeles in the mid-1980s, and the street gang is now comprised of tens of thousands of individuals in at least 10 states and several Central American countries, notably El Salvador. In the mid-1990s, Mara Salvatrucha became associated with the Mexican Mafia and added the number 13 to its name (“M” is the 13th letter of the alphabet). To become a new member of a Mexican Mafia-affiliated gang, an individual underwent a 13-second beating by other members of the gang.
This case focuses on MS-13 Los Angeles’ Fulton clique, a particularly violent subset of MS-13 that operates in the San Fernando Valley and has been bolstered by an influx of young immigrants from Central America.
“In 2016, the Fulton clique decided to break from MS-13’s traditional program in Los Angeles in favor of a traditional Salvadoran Mara Salvatrucha program,” according to the new indictment. “The key difference between MS-13’s traditional Los Angeles program and MS-13’s Salvadoran program was that the Salvadoran program required a prospective member to have committed at least one homicide before becoming a homeboy,” or full-fledged member.
In addition to murders previously charged in this case – including one in which the victim was dismembered – the new indictment charges the January 2019 murder of a man who was fatally shot in a remote area near Santa Clarita and whose remains were not recovered until the Tick Fire burned the area 10 months later.
Of the 11 murders alleged in the indictment, five victims allegedly were killed with machetes or knives, while six allegedly were shot to death. All 11 murders are alleged to have been committed “for the purpose of gaining entry to and maintaining and increasing position in MS-13 Los Angeles.”
The 111-page Third Superseding Indictment names 31 defendants, 21 of whom are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. The RICO charge alleges nearly 300 “overt acts,” including acts involving murder, drug trafficking and extortion.
The new indictment was unsealed just before scheduled arraignments for three new defendants who were taken into custody in the Los Angeles area. The fourth new defendant was arrested in Colorado. Two new defendants were already in federal custody, and three new defendants were already in state custody.
The RICO case is the product of an investigation by the Federal Bureau of Investigation, the Los Angeles Police Department, and the Los Angeles County Sheriff’s Department.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case is being prosecuted by Assistant United States Attorney Joanna Curtis, Chief of the Violent and Organized Crime Section, and Special Assistant United States Attorney Eric W. Siddall, a Deputy District Attorney for the Los Angeles County District Attorney’s Office.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Effingham County man sentenced to federal prison for aiming laser at commercial aircraftRead the Press Release
SAVANNAH, GA: An Effingham County resident has been sentenced to federal prison after admitting he aimed a powerful laser at commercial aircraft.
Roger Floyd Hendricks, 48, of Rincon, was sentenced to 18 months in prison after pleading guilty to Aiming a Laser Pointer at an Aircraft, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge William T. Moore Jr. also ordered Hendricks to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“With the public’s assistance, the FBI did an outstanding job of identifying Roger Hendricks as the man responsible for aiming a powerful laser at inbound Savannah aircraft,” said Acting U.S. Attorney Estes. “Laser strikes are potentially deadly not only for pilots blinded by the lasers, but also for air travelers and residents in the path of aircraft. Hendricks is being held accountable for his criminal actions.”
The investigation began in February 2020 when the Federal Aviation Administration asked the FBI in February for assistance in locating the source of three separate green laser strikes on aircraft inbound to the Savannah-Hilton Head International Airport. A victim pilot, who is a retired Marine Corps officer, helped pinpoint the origin of the strikes, and after Hendricks was identified and questioned by FBI agents, he later admitted responsibility and pled guilty May 3 in U.S. District Court.
“Hendricks needlessly threatened the safety of the passengers and crew of a commercial aircraft. It is important for the public to understand that pointing any laser, even a small one, at an aircraft can obscure the pilot’s view and jeopardize the safe operations of the aircraft,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Hopefully this sentencing will send a message that the FBI will not tolerate those engaging in this dangerous behavior and that they will be aggressively investigated and prosecuted to the full extent of the law.”
The case was investigated by the FBI, and is being prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Joshua S. Bearden.
East Haven Man Who Stole Social Security Benefits in SentencedRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOVON GAMBLE, 40, of East Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation, the first three months of which Gamble must spend in home confinement, for stealing Social Security benefits.
According to court documents and statements made in court, Gamble’s mother lawfully received Social Security Administration (“SSA”) monthly benefit payments. Gamble’s mother died in June 2007. The SSA was never informed her death and Gamble continued to access the SSA funds that were deposited into his mother’s account. Between 2007 and 2017, the SSA deposited more than $88,000 into Gamble’s mother’s account.
Judge Shea ordered Gamble to pay $88,150.78 in restitution.
Gamble also must perform 75 hours of community service while on supervised release.
On May 10, 2021, Gamble pleaded guilty to one count of theft of public funds.
This matter was investigated by the Social Security Administration Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Brendan Keefe and Elena Coronado.
East Chicago Woman Charged Wire FraudRead the Press Release
HAMMOND- Natasha Weeks, age 29, of East Chicago, Indiana, has been charged by way of an Indictment with wire fraud, announced Acting U.S. Attorney Tina L. Nommay.
According to documents in this case, it is alleged that Ms. Weeks fraudulently obtained disaster-related benefits in the form of a Small Business Administration Economic Injury Disaster Loan (SBI-EIDL) by falsely claiming to be an Illinois business owner of a hair salon allegedly located in Chicago Heights, Illinois. It is alleged the business was called Weeks Hair Braiding/Weeks Hair Shop while no such business was found to have existed at the address identified on her application. The loan was applied for from an IP address in East Chicago, Indiana. It is alleged the application contained false statements and misrepresentations that the hair salon existed since 2017 and that Ms. Weeks owned the business since May 2020, employed 20 people and that her cost of goods sold was $150,000. On July 7, 2020, Ms. Weeks received a $10,000 SBA EIDL loan because of her application. Ms. Weeks is also charged with fraudulently seeking Arizona unemployment benefits despite never having lived or worked in that State.
The United States Attorney’s Office emphasizes that an indictment is merely an allegation, and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation, US Department of Labor-Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Duluth Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Duluth man pleaded guilty today to illegally possessing a firearm as a felon, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, Jesse William Peterson, 40, admitted to possessing a .38-caliber Smith and Wesson revolver with an obliterated serial number. On October 25, 2020, officers with the Duluth Police Department attempted to arrest Peterson at a residence on an outstanding warrant. Peterson refused to exit the residence and comply with officers’ attempts to arrest him. After a two-hour stand-off, Peterson was taken into custody. Officers found the loaded .38-caliber Smith and Wesson revolver in the bathroom where Peterson was located during the stand-off. A subsequent analysis revealed Peterson’s DNA on the firearm. Directly adjacent to the firearm, officers found 13.76 grams of methamphetamine, 11.13 grams of cocaine, 38 doses of LSD, $5,826 in cash, and 11 live rounds of .38-caliber ammunition. Because Peterson has prior felony convictions in St. Louis County, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the Drug Enforcement Administration (DEA), the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.
Assistant U.S. Attorney Joseph S. Teirab is prosecuting the case.
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Detroit Man Pleads Guilty to Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man pleaded guilty yesterday to federal drug crimes.
According to court documents, Durran Merille Garland, 28, sold an ounce of cocaine to a confidential informant for $1,000 on March 13, 2018 in Huntington. Garland admitted to selling methamphetamine to the same confidential informant on two other occasions. During a search of Garland’s Huntington residence in April 2018, law enforcement officers recovered an M&P .40 Caliber Shield handgun.
Garland pleaded guilty to two counts of an indictment charging him with distribution of cocaine and methamphetamine. He faces a sentence of up to 40 years in prison when he is sentenced on November 29, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Patrick Jeffrey is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00004.
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Dallas County Man Sentenced for East Texas Bank Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A Wylie man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Noble Nwachukwu, 26, pleaded guilty on Oct. 23, 2019, to conspiracy to commit bank fraud and was sentenced to 15 months in federal prison today by U.S. District Judge Amos L. Mazzant. The district court additionally ordered that Nwachukwu forfeit $56,921.40.
“An act of fraud against a FDIC-insured banking institution is ultimately a fraud on the American taxpayer,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX, along with its federal and local law enforcement partners, will do whatever it takes to keep our local financial institutions free from fraud and other criminal opportunism.”
According to information presented in court, in January 2019 law enforcement officers responded to a suspicious activity call and found Nwachukwu with $18,960 in cash in his vehicle. A consent search of Nwachukwu’s cellular phone revealed a fraudulent check cashing scheme where fraudulent checks were drawn on Key Bank HELOC (home equity line of credit) accounts belonging to unrelated victims. These checks were deposited into the account of Nwachukwu and another individual. A total of three checks were deposited. The bank froze the funds from one check totaling $29,900. A second check for $37,900 was also deposited, with $37,200 subsequently withdrawn in cash. A third check for $37,200 was deposited but the funds were frozen by the bank. Nwachukwu and his accomplice Chijioke Maduewesi were indicted by a federal grand jury on July 9, 2019. Maduewesi pleaded guilty on July 29, 2021 and is awaiting sentencing.
This case was investigated by the U.S. Secret Service and the Wylie Police Department and prosecuted by Assistant U.S. Attorney Kevin McClendon.
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Charleston Rioter Who Livestreamed Looting and Firing Gun Sentenced to 24 Months in Federal PrisonRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Orlando Shalrocko King, 32, of North Charleston, was sentenced to 24 months in federal prison after pleading guilty to unlawful travel to incite destructive riots in downtown Charleston on May 30, 2020, as well as a possession of a firearm by a prohibited felon.
“Last summer’s riots were a dark day in Charleston’s history,” said Acting U.S. Attorney DeHart. “Prison time is appropriate in this case and sends a message that this behavior will not be tolerated in South Carolina.”
Information presented to the court established that, during a large riot following the death of George Floyd, numerous suspects including King forced entry into the College Market store in downtown Charleston. The looters stole approximately $80,000 in store merchandise and shattered the store windows.
King filmed, narrated, and livestreamed the looting on his Facebook page. At one point of the video, King yelled, “We’re in the corner store! Stealing sh*t!” In another part of the video, King announced that he was searching the store for Angry Orchard. The video showed that, after stealing a 6-pack of Angry Orchard hard cider, King left the store and stated, “We just broke into the corner store and I got my Angry Orchard, ya’ll know I love my sh*t.”
Evidence presented to the court further showed that, just after midnight on April 25, 2020, North Charleston Police officers were attempting to locate a firearm that was discarded during a vehicle pursuit. While officers were canvassing the area of Read Street for the gun, they were advised of a disturbance that possibly involved a firearm. During the investigation of the disturbance, officers encountered King, whom they recognized from a Facebook live video he posted showing him firing a gun outside a driver’s side car window.
King continually frequented the area on several occasions, while the officers were attempting to locate the missing firearm. When officers contacted King, he became uncooperative and attempted to get away. Officers noticed an item in King’s jacket pocket that appeared to be the shape of a grip of a handgun. King was then placed in handcuffs, and a Sig Sauer 9mm caliber pistol with an extended magazine with 27 rounds of ammunition was recovered.
A National Crime Information Center (NCIC) inquiry revealed that the recovered gun was reported stolen. Further, it was discovered that the defendant was prohibited from possessing a gun due to a 2008-Armed Robbery conviction.
United States District Judge Richard M. Gergel sentenced King to 24 months imprisonment to be followed by 36 months of supervised release. There is no parole in the federal system.
King is the fourth of six defendants to be sentenced on federal charges stemming from participation of actions including arson, inciting riots, and other civil disorder in Columbia and Charleston on May 30 and 31, 2020.
The case was investigated by the FBI, ATF, Charleston Police Department, North Charleston Police Department, and South Carolina Law Enforcement Division (SLED). Numerous other local police departments and Solicitors’ Offices across the states have also assisted in the investigations of civil unrest in May 2020.
Assistant United States Attorneys Emily Limehouse and Nathan Williams prosecuted the case.
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Carroll County Sex Offender Pleads Guilty to Federal Charge for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Matthew Curtis, age 24, of Hampstead, Maryland, pleaded guilty today to the federal charge of possession of child pornography. In September 2017, Curtis was convicted of possession of child pornography in the Circuit Court of Carroll County, Maryland and was sentenced to one year and six months in prison and three years’ probation.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees, and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to Curtis’ guilty plea, from November 2019 through May 28, 2020, while on state probation for his conviction for possession of child pornography, Curtis downloaded, possessed and distributed child pornography. Specifically, Curtis used an internet-based messaging application to repeatedly share and distribute depictions of prepubescent minors engaging in sexually explicit conduct.
The investigation revealed that within messaging chatrooms, Curtis frequently posed as the mother of an infant or toddler and discussed the sexual abuse of his purported children. Curtis also distributed images documenting the sexual abuse of what he claimed were his children. In some instances, Curtis and other online users frequently discussed their sexual abuse of children and their desire to abuse Curtis’s purported children.
As stated in the plea agreement, on March 5, 2020, a cloud-based storage provider sent a CyberTip to the National Center for Missing and Exploited Children (NCMEC) reporting that a user had uploaded 22 files of suspected child pornography. The IP address used to login to the cloud-based application was assigned to Curtis’s Hampstead residence and the email address was an address used by Curtis.
On May 28, 2020, law enforcement executed a search warrant at Curtis’s residence and seized electronic devices, including two cell phones. A forensic review of Curtis’s cell phones revealed a total of 429 images and 129 videos of child pornography. Some of the images and videos depicted prepubescent minors and sado-masochistic conduct.
As stated in his plea agreement, upon his release from prison, Curtis must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Curtis and the government have agreed that, if the Court accepts the guilty plea, Curtis will be sentenced to 10 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for October 22, 2021.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Caneadea Woman Sentenced for Preparing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Amanda L. Rickard, 41, of Caneadea, NY, who was convicted of aiding and assisting in the preparation of a false and fraudulent tax return, was sentenced to serve 36 months’ imprisonment by U.S. District Judge John L. Sinatra, Jr. Rickard was also ordered to pay $58,819 in restitution to the IRS and $19,772 in restitution to the New York State Department of Taxation and Finance.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that between 2011 and 2018, the defendant prepared income tax returns for friends and acquaintances. During that time, Rickard reported materially false information on her clients’ individual income tax returns.
For example, in April 2018, the defendant prepared and filed a tax return for Client 1, which identified a child, Dependent 1, as Client 1’s nephew and dependent. However, Dependent 1 was not Client 1’s nephew, and Client 1 did not provide support for Dependent 1 during 2017. As a result of the false statement, Client 1 claimed an entitlement to a tax refund to which Client 1 was not entitled.
Between 2011 and 2018, Rickard prepared and filed 23 individual tax returns which identified dependents that the taxpayer was not entitled to claim. The defendant maintained a notebook identifying the names, dates of birth, and Social Security numbers of a number of children—including Dependent 1—whose parents had not claimed them as dependents on their own tax returns. Rickard then used this information to prepare the materially false tax returns on her clients’ behalf. During that same time period, the defendant also prepared and submitted individual tax returns on behalf of taxpayers who had not authorized her to do so.
The sentencing is the result of an investigation by the Internal Revenue Service Criminal Investigation, under the direction of Acting Special Agent-in-Charge Thomas Fattorusso, and the New York State Department of Taxation and Finance.
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California Restaurant Owners Plead Guilty to Conspiracy to Commit Forced LaborRead the Press Release
A California couple pleaded guilty to conspiracy to commit forced labor. According to court documents, Nery A. Martinez Vasquez, 53, and his wife Maura N. Martinez, 53, both of Shasta Lake, are naturalized United States citizens, originally from Guatemala. They owned and operated Latino’s, a restaurant, and Redding Carpet Cleaning & Janitorial Services, a cleaning company that serviced various businesses, including multiple car dealerships, in the Shasta Lake area.
In their plea agreement filed in federal court, the defendants admitted that if the matter proceeded to trial, the government would prove beyond a reasonable doubt that they convinced a Guatemalan relative and her two minor daughters to come to the United States in August 2016 by falsely promising them a better life. The defendants arranged for the victims to enter the United States using temporary visitor visas and then compelled them to overstay their visas and work long hours at Latino’s restaurant and Redding Carpet Cleaning & Janitorial Services for minimal to no pay between September 2016 and February 2018. The defendants conspired with one another to manufacture an inflated debt that they told the victims they owed and instructed them that they could not leave until they repaid this fictious debt. The defendants also abused the legal system by threatening to call the authorities on the victims and have them arrested for overstaying their visas if they did not comply with their requests. Similarly, the defendants forbid the minor children from attending school because they claimed that immigration authorities were looking to arrest and deport non-citizen children. Instead of attending school, the children worked for the defendants’ businesses. The defendants housed the victims in a dilapidated, unheated trailer with no running water, and degraded and humiliated them in front of others. Finally, the defendants used force and threats of force to intimidate the victims, with Nery Martinez Vasquez even going as far as hitting the minor victims with a stick when angry.
“These defendants used the promise of America to lure the victim and her children to the United States in search of a better life, only to turn around and use that hope to exploit their dreams under cruel conditions,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “There is no place for such cruel conduct in our society, and the Department of Justice remains committed to eradicating human trafficking.”
“These defendants exploited vulnerable victims, forcing them to work in their businesses, failing to pay wages, and depriving them of basic human rights,” said Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”
“This case highlights how the dream of coming to the United States to begin a new, promising life can become a nightmare,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The family worked in public view yet were imprisoned by fear and the lies they had been told by their exploiters. No human being — let alone a family — should be forced to work and live as these victims did. The FBI is committed to identifying and investigating human trafficking. We seek justice for victims, regardless of immigration status. We ask the public to report suspected human trafficking and encourage victims to come forward to escape the cycle of exploitation they may feel trapped within."
The defendants are scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 8. The defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. As part of the defendants’ plea, they have agreed to pay $300,000 in restitution to the victims.
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed and Civil Rights Division Trial Attorney Avner Shapiro are prosecuting the case.
Butler, PA Man Pleads Guilty to Drug Possession ChargeRead the Press Release
PITTSBURGH, PA - A resident of Butler, Pennsylvania, has pleaded guilty in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Charles Perkins, 27, pleaded guilty to one count of possession with intent to distribute a quantity of fentanyl and a quantity of cocaine base, in the form commonly known as crack, before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on August 6, 2020, the Pennsylvania State Police conducted a traffic stop on a silver Ford sedan due to non-functioning brake lights at South Duffy Road and New Castle Road in Butler, Pennsylvania. Law enforcement identified Charles Perkins as the driver and sole occupant of the vehicle. Mr. Perkins informed the trooper that the car belonged to his friend. While speaking with Mr. Perkins, the trooper observed, in plain view, marijuana on the front passenger seat and several stamp bags in a plastic bag on the floor behind the driver’s seat. Mr. Perkins admitted that the plastic bag behind the front passenger seat was his.
Subsequently, the trooper detained Mr. Perkins and conducted a search of the vehicle, discovering approximately 2.5 net grams of crack cocaine, approximately 5.2 net grams of fentanyl packaged within 300 stamp bags marked “Dr. Pepper,” $965.00, and drug use paraphernalia. A search incident to Mr. Perkins’ arrest resulted in the discovery of several additional stamp bags in his underwear. The Greensburg Regional Laboratory subsequently confirmed that the packaged narcotics tested positive for Schedule II controlled substances.
Law enforcement advised Mr. Perkins of his rights, which he waived. Mr. Perkins admitted to “having 30 bricks in his glove box” the last time that he was stopped by the Pennsylvania State Police. He also admitted to being on his way to Butler City to sell the seized substances.
Judge Conti scheduled sentencing for on December 16, 2021 at 11:00 a.m. The law provides for a maximum total sentence of not less than three years supervised release, not more than 20 years’ imprisonment and a fine up to $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the defendant was remanded into the custody of the U.S. Marshals.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
Bulls Gap Man Sentenced to 235 Months for Possession of a Firearm and AmmunitionRead the Press Release
Greeneville, Tenn. – On August 23, 2021, Harold Vernon Smith, currently of Bulls Gap, Tennessee, was sentenced to serve 235 months in prison by the Honorable J. Ronnie Greer in the United States District Court for the Eastern District of Tennessee at Greeneville. In March of 2021, Smith was convicted after a jury trial of being a felon in possession of a firearm and ammunition in violation of U.S.C. §92(g)(1).
According to the trial testimony, on May 11, 2018, the Greene County Sheriff’s Office began an investigation related to Leaving the Scene of an Accident with Personal Injury. Witnesses described the vehicle involved, and, a short time later, a Hawkins County Sheriff’s Office deputy saw a car matching the description in a nearby area. After a pursuit, law enforcement located the car, which was abandoned. The investigation identified Smith as the suspect. On May 13, 2018, the Greene County Sheriff’s Office charged Smith with filing a false report related to the May 11, 2018, incident. On June 21, 2018, the Greene County Sheriff’s Office and the Third Judicial Drug and Violent Crime Task Force arrested Smith in a wooded area on Sunrise Church Road, near Interstate 81 and Highway 11E/W, off Andrew Johnson Highway. At the time of his arrest, Smith was armed with a loaded revolver. A bag that he owned was located nearby and contained his personal items as well as a box of ammunition for the revolver.
Judge Greer determined that Smith was an Armed Career Criminal, subject to a mandatory minimum of 180 months, up to life imprisonment. Smith was sentenced to 235 months in prison followed by three years on supervised release.
Acting U.S. Attorney Trey Hamilton of the Eastern District of Tennessee; and the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The criminal indictment was the result of an investigation by the Greene County Sheriff’s Office, the Third Judicial Drug and Violent Crime Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This investigation was led by ATF Special Agent Bryan Williams.
Assistant United States Attorneys B. Todd Martin and Emily Swecker represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Buffalo Man Sentenced for Breaking into A Railroad CarRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that Ray Chrostowski, 26, of Buffalo, who was convicted of breaking into and larceny from interstate carrier facilities, was sentenced to serve 18 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that between May and June of 2018, the defendant entered on railroad cars containing interstate shipments of freight in transit on nine separate occasions with co-defendants Paul Krieger and Nicholas Birdwell. Working together, they broke into railcars and removed the property therefrom. On one occasion they broke into a railcar carrying automobiles and removed the tires and rims off of two vehicles. As a result of this conduct, the total loss relating to these vehicles was over $4,718.16. A large quantity of Jefferson bourbon valued at $3,118.80 was also stolen.
Defendants Birdwell and Krieger were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the CSX Police, under the direction of Chief Sean Douris.
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Brunswick men await sentencing after admitting to six armed robberiesRead the Press Release
BRUNSWICK, Ga: Two Brunswick men face substantial federal prison terms after admitting to the armed robberies of six Brunswick area businesses in August 2020.
Zaeveon Deveon Cooper, 21, and Marquese Bolden, 20, both of Brunswick, await sentencing in U.S. District Court after pleading guilty to Conspiracy to Interfere with Commerce by Robbery, and Brandishing a Firearm in Furtherance of a Crime of Violence, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Their guilty pleas subject the two to a minimum of seven years and maximum of life in federal prison for the firearms charge, in addition to up to 20 years for the robbery charge, along with restitution and a period of supervised release after completion of their prison terms.
There is no parole in the federal system.
“These two men terrorized store employees and customers during their three-week robbery spree, halted thanks to excellent work from the FBI and police officers from Glynn County and Brunswick,” said Acting U.S. Attorney Estes. “Along with our law enforcement partners, we will relentlessly pursue violent criminals who threaten the safety of our communities.”
As described in court documents and testimony, Cooper and Bolden admitted carrying firearms during robberies of two fast-food restaurants and four convenience stores in Brunswick from Aug. 10 to Aug. 30, 2020. In each robbery, the men brandished guns and took money from the store employees and cash registers at gun point. After the two were identified and arrested, investigators recovered one 9mm pistol used in the robberies.
Bolden is scheduled for sentencing Oct. 4; sentencing for Cooper has not yet been set.
“These two men terrorized innocent businesses and were a threat to the community every day they were on our streets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Once again, these arrests would not have been possible without a joint effort with our law enforcement partners. Those partnerships are invaluable when violent criminals spread fear throughout our communities.”
The FBI, Brunswick Police Department, and Glynn County Police Department investigated the case, which is being prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Browning man admits aggravated sexual abuse crimesRead the Press Release
GREAT FALLS – A Browning man accused of sexually abusing two children on the Blackfeet Indian Reservation admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Jonathan Cadotte, 60, pleaded guilty to a superseding information charging him with aggravated sexual abuse and aggravated sexual abuse of a child. Cadotte faces a maximum of life in prison, a $250,000 fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 8. Cadotte was detained pending further proceedings.
The government alleged in court documents that from about September 2019 to September 2020 in the Browning area on the Blackfeet Indian Reservation, Cadotte engaged in a sexual act by force against a victim, identified as Jane Doe 1, and that from 1993 to about 1998, also in the Browning area, Cadotte engaged in a sexual act with a victim, identified as Jane Doe 2, who had not yet reached 12 years of age.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case, which was investigated by the FBI, Bureau of Indian Affairs and Blackfeet Law Enforcement Services.
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Brooklyn Business Owner Charged with Bank Fraud, Identity Theft and Witness TamperingRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging David Motovich, principal of a lumber and construction materials business, with bank fraud, aggravated identity theft and witness tampering. Motovich was arrested this morning and will make his initial appearance before United States Magistrate Judge Roanne L. Mann this afternoon.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the arrest and charges.
“As alleged, the defendant used a seemingly legitimate, family-run business as a front for engaging in a $55 million check cashing scheme that deliberately flouted federal banking and anti-money laundering laws. Further, as law enforcement was closing in on his schemes, Motovich attempted to derail the government's investigation by tampering with witnesses,” stated Acting U.S. Attorney Kasulis. “Today's arrest demonstrates that this Office will take down and vigorously prosecute defendants like Motovich, who circumvent compliance with federal financial laws out of greed, just to line his own pockets and live a life of luxury.” Ms. Kasulis also expressed her appreciation to the U.S. Attorney’s Office for the District of New Jersey for their assistance with the case.
“Federal banking laws exist to protect the industry from fraud and the general public from money laundering schemes that often further criminal activity. Motovich, as alleged, broke these laws in order to advance his own monetary interests,” stated FBI Assistant Director-in-Charge Driscoll. “To make matters worse, he’s also accused of tampering with government witnesses. Rest assured this type of illegal behavior will be aggressively pursued by the FBI and our partners.”
“The multiple schemes Mr. Motovich allegedly devised has great impact on both his clients and the United States treasury,” stated IRS-CI Acting Special Agent-in-Charge Fattorusso. “In our current environment, the services provided by federal and local governments are sorely needed. The allegations in this complaint require the financial expertise IRS-CI provides in order to unravel the complexities of such crimes.”
As alleged in the complaint, since at least 2012, Motovich has operated an illegal check cashing business from his office at his family-run lumber business located in the Midwood section of Brooklyn. The customers of Motovich’s illegal check cashing business are primarily the owners and operators of construction companies who pay their employees in cash to avoid having to pay state and federal employment taxes, including taxes owed under the Federal Income Contributions Act. As part of the scheme, Motovich cashed millions of dollars of checks for his customers in exchange for a fee or a percentage of the face amount of the checks, ranging between four and 10 percent. Motovich’s customers paid a higher fee to Motovich than the fees charged by licensed check cashing businesses because the customers understood that Motovich would not file Currency Transaction Reports for cash transactions in amounts greater than $10,000 or Suspicious Activity Reports, as required by federal anti-money laundering statutes. Motovich supplied his check cashing customers with fraudulent documents that they could use to disguise the transactions as payments by the customers for materials and/or subcontracting work if the customers were audited by the New York State Workers Compensation Board or tax authorities.
In furtherance of his scheme, Motovich created shell companies for the sole purpose of facilitating his illegal check cashing business and instructed his customers to issue checks drawn against their business accounts and make the checks payable to one of the companies. Motovich then deposited the checks into bank accounts that he created at several financial institutions. To conceal his control and ownership of the funds in the accounts, and to avoid detection of his scheme, Motovich opened the accounts in the names of other individuals.
In total, between 2012 and 2019, Motovich deposited more than $55 million into the accounts that he had opened in the names of other individuals and used the funds to purchase real estate; pay personal and corporate credit card accounts; purchase luxury items, including millions of dollars of diamonds, watches, jewelry and clothing; make lease and purchase payments for Porsche and Lexus luxury vehicles; pay premiums on multi-million dollar life insurance policies for himself, his wife and others; make renovations to his penthouse apartment; and to fund other business ventures.
When Motovich became aware of the government’s investigation, he tampered with witnesses by encouraging them not to cooperate with the government, including encouraging them to fire their attorneys and retain attorneys that he had handpicked for them, and by paying at least one witness and that witness’s family members so that the witness would not cooperate with law enforcement.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni, Erik Paulsen and Kaitlin T. Farrell are in charge of the prosecution, with assistance from EDNY Special Agents George Dietz and Martin Sullivan.
The Defendant
DAVID MOTOVICH
Age: 46
New York, New YorkE.D.N.Y. Docket No. 21-MJ-979
Billings man admits sex trafficking, drug and firearms crimesRead the Press Release
BILLINGS – A Billings man accused in a sex and drug trafficking conspiracy and of brandishing a firearm during an assault over a botched drug deal admitted multiple crimes today, Acting U.S. Attorney Leif M. Johnson said.
Mario Juan Drake, 32, pleaded guilty to a second superseding information charging him with conspiracy to possess with intent to distribute cocaine and ecstasy, possession of a firearm in furtherance of a drug trafficking offense and use of a facility in interstate commerce in aid of racketeering. Drake faces a maximum 20 years in prison, a $1 million fine and at least three years of supervised release on the drug crime and a mandatory minimum seven years in prison, a $250,000 fine and five years of supervised release consecutive to any other sentence on the firearms crime.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date is pending before U.S. District Judge Susan P. Watters. Drake was detained pending further proceedings.
In court documents, the government alleged that in 2019, Drake, co-defendant D’Javon King and others conspired to distribute illegal narcotics, including cocaine and ecstasy. Multiple witnesses and social media involved Drake, King and others in this conspiracy. On April 24, 2019, a struggle ensued between a buyer, identified as A.L., and two distributors, identified as A.R. and K.H., during an attempted distribution of ecstasy at a Billings motel. The buyer assaulted A.R. and left the scene. In response, Drake, King and others arranged a meeting with A.L. during which they assaulted A.L. while holding firearms. Drake brandished a firearm during the assault and later he, King and others informed A.R. and K.H. that they had retaliated against A.L. in response to the failed drug transaction. King pleaded guilty to charges in the case and is pending sentencing.
The government further alleged that in April and May 2019, two women, identified as Jane Doe 3 and Jane Doe 5, were both engaged in commercial sex with Drake and also were intimately involved with him. Drake used his cell phone to assist with commercial sex dates for Jane Does 3 and 5 by receiving and posting photos of the Does for advertisements, setting pricing for calls and communicating with sex date customers for both Does. Drake would accompany the Does to hotels and would use a timer during the calls. If the calls went past the time, Drake would enter the room.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the FBI.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Beaver Falls Man Admits to Drug OffensesRead the Press Release
PITTSBURGH, PA– A former resident of Beaver County, PA, pleaded guilty in federal court to violations of the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Brandon Quinn, 33, formerly of Beaver Falls, PA, pleaded guilty to a two-count Indictment charging him with conspiracy to distribute 500 grams or more of cocaine, and with possessing 28 grams or more of cocaine base with the intent to distribute it, before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that Quinn’s criminal conduct was uncovered during a Title III wiretap investigation targeting a drug trafficking organization operated by Donald Epps. That investigation resulted in the indictment of Epps and 11 other alleged co-conspirators, all of whom are charged in the Western District of Pennsylvania with conspiracy to distribute five kilograms or more of cocaine from November 2019 until June 2020. The government advised the Court that its evidence showed that Epps distributed kilogram quantities of cocaine to alleged codefendant Michael Turner who, in turn, redistributed 500 grams or more of that cocaine to Defendant Quinn. The government further advised the Court that in November 2020, agents searched a residence utilized by Quinn where they seized over 28 grams of cocaine base (in the form commonly known as “crack”). In connection with his plea, Quinn admitted he possessed the cocaine base for redistribution.
Judge Haines scheduled sentencing for Jan. 5, 2022, at 11:00 a.m. The law provides for a total sentence of not less than five years and not more than forty years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Pending sentencing, the court remanded Mr. Quinn to the custody of the United States Marshal.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Bureau of Police (Bureau of Narcotics Investigations) led the multi-agency investigation in this case, which also included the Allegheny County Sheriff’s Office and the Pennsylvania Office of the Attorney General. This Greater Pittsburgh Safe Streets Task Force investigation was a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Baltimore Drug Trafficking Organization Leader and Supplier Sentenced to over 12 Years in Federal Prison for Conspiracy to Distribute Cocaine BaseRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Adam Martin, a/k/a “Fats”, age 38, of Baltimore, to 150 months in federal prison, followed by five years of supervised release, for conspiracy to distribute 280 grams or more of cocaine base.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, from at least September 2018 to June 2019, Martin participated in a drug trafficking organization (“DTO”) operating near Edmonson Village in Baltimore, Maryland. The DTO sold cocaine and other narcotics on a daily basis in street-level quantities. During this period of time, the FBI and other law enforcement investigators intercepted phone communications of DTO members, conducted physical and electronic surveillance, purchased narcotics from DTO members, and executed multiple search warrants at locations used by the DTO to store and process narcotics.
From November 2018 to February 2019, FBI investigators intercepted phone calls from Martin and his co-conspirators where they discussed the distribution of narcotics at a DTO controlled drug shop. Surveillance conducted by FBI investigators also revealed that Martin controlled the cocaine base supply and other narcotics to the DTO’s street-level distributors.
As stated in his plea agreement, on April 10, 2019, the FBI executed a search warrant at a West Franklin Street residence where Martin stored narcotics. During the search of the residence, agents recovered four firearms, multiple vials of cocaine base packaged for sale, and other narcotics. On the same day, agents searched a Walbrook Avenue residence where Martin stored cocaine base. As a result of the second search and seizure, law enforcement recovered a loaded firearm and over 200 grams of cocaine base.
Martin agrees that he possessed the narcotics with the intent to distribute and that he possessed the firearms in relation to the drug conspiracy. Martin also agrees that over the course of the conspiracy, he distributed over 280 grams of cocaine base.
Acting United States Attorney Jonathan F. Lenzner praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta who prosecuted the case.
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Arch Family Dentistry Office Managers Charged in Superseding IndictmentRead the Press Release
HAMMOND- Justyn Arch, age 34, and Trystan Arch, age 31, both of Valparaiso, Indiana were both charged in a Superseding Indictment unsealed today. The Superseding Indictment contains 29 counts alleging various violations of federal law against these two individuals announced Acting U.S. Attorney Tina L. Nommay.
According to documents in this case, Arch Complete Family Dentistry, with offices located in Chesterton, Crown Point, and briefly in Knox, Indiana, was an authorized Indiana Medicaid provider of dental procedures. In October 2017, Justyn Arch, Vice President of Arch Complete Family Dentistry, also managed the Crown Point office. Trystan Arch managed the Chesterton office.
The Superseding Indictment alleged that Justyn and Trystan Arch executed a scheme to defraud Indiana Medicaid by causing false and fictitious entries in patient files, and using the names and information related to these patients, to reflect that Arch dentists performed dental surgery when in fact no surgery had been performed. The claims totaled more than $350,000 in false and fictitious claims to Indiana Medicaid.
Additionally, the Superseding indictment alleges that Justyn Arch committed tax evasion and money laundering related to the funds obtained from this fraud and that Trystan Arch committed false tax filings, bankruptcy fraud and bankruptcy obstruction, related to the funds obtained from this fraud. Both are also charged with multiple instances of aggravated identity theft.
The United States Attorney’s Office emphasizes that a Superseding Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of an investigation by the Federal Bureau of Investigation, Indiana Attorney General’s Office Medicaid Fraud Control Unit, Internal Revenue Service-Criminal Investigation Division, U.S. Department of Health and Human Services, Porter County Prosecutor’s Office, and the Northern Indiana Region 10 Office of the U.S. Trustee, Nancy J. Gargula. This case is being prosecuted by Assistant United States Attorney Philip C. Benson.
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Anaheim Man Pleads Guilty to Drug Conspiracy in Stanislaus and San Joaquin CountiesRead the Press Release
FRESNO, Calif. — Jose Reyes-Pineda, 48, of Anaheim, pleaded guilty today to conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Reyes and co-defendants Genaro Serrato-Calles, 51, and Antonio Valencia-Hernandez, 65, both of Modesto, and Antonio Castellanos, 38, of Whittier, were charged with conspiring over a two-year period to distribute drugs in Stanislaus and San Joaquin Counties. As part of the drug conspiracy, Reyes delivered over 11 pounds of methamphetamine to Valencia for distribution in Modesto.
Reyes is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Nov. 15, 2021. Castellanos, Serrato, and Valencia previously pleaded guilty. Castellanos is scheduled for sentencing on Oct. 18, 2021, and Serrato and Valencia are both scheduled for sentencing on Nov. 8, 2021. Each defendant faces a maximum statutory penalty of 20 years in prison and a fine up to $10 million. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorneys Karen Escobar and Melanie Alsworth are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
ATM Fraud Duo Sentenced to 48 Months in Prison for Conspiracy, Bank Fraud, and Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Isaleb Anofils, 32, of Vero Beach, Florida, and Donyell Garland, 32, of Tallahassee, Florida, were each sentenced on Friday and last month, respectively, to 48 months in federal prison after pleading guilty to conspiracy to commit bank fraud, multiple counts of bank fraud, and aggravated identity theft. The sentences, following the defendants’ guilty pleas last October, were announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“As our citizens become more reliant on web-based banking, it is paramount that our financial institutions are not defrauded and their customers’ personal identifiable information is secure,” stated Acting U.S. Attorney Coody. “The volume of fraudulent ATM transactions and the sophistication employed here demonstrate the significant threat posed by this type of activity. Given the cooperative efforts of our local, state, and federal law enforcement partners, these criminals were arrested within weeks of the commencement of their crime spree, thereby safeguarding the personal identifying information and assets of countless other victims.”
Court documents reflect, that between January 1, 2018, and April 9, 2018, Anofils and Garland conspired to defraud multiple federally insured financial institutions. The defendants used a combination of a cell phone spoofing app and various Internet websites to obtain personally identifiable information of victims. Anofils and Garland then used that information to conduct 285 fraudulent ATM transactions at Tallahassee-area financial institutions. In total, Anofils and Garland stole or attempted to steal over $151,000 from 47 different banking customers.
“The collaborative and efficient effort between our agencies has again resulted in the arrest and conviction of those preying on innocent and hardworking citizens,” said Leon County Sheriff Walt McNeil.
“This successful investigation and resulting prosecution stand as a testament to the high level of competence and excellence in law enforcement displayed by the men and women who serve at all levels of federal, state and local law enforcement in the North Florida district,” said Resident Agent in Charge Seth Reister, Tallahassee Resident U.S. Secret Service. “As criminals and their enterprises have evolved both in sophistication and technical proficiency, the district’s investigative agencies have met the challenge through agility and dedication to continued innovations in both deterrent and proactive technological solutions to cyber and other emerging technology crime trends.”
Both defendants’ 48-month prison sentences will be followed by 5 years supervised release. Both defendants were also ordered to pay restitution to the victims.
This case resulted from a joint investigation by the Leon County Sheriff’s Office, the Florida Department of Law Enforcement, and the United States Secret Service. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
23 August 2021
William D. Wood Jr. Enters Federal Guilty Plea in Chili’s Double Homicide CaseRead the Press Release
SYRACUSE, NEW YORK – William D. Wood, Jr. pled guilty today to federal charges related to the September 2018 robbery and murders he committed at the Chili’s Grill and Bar in Dewitt, New York, announced Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Wood, age 35, of Syracuse, entered guilty pleas to three federal felonies: one count of robbery and two counts of using a firearm in furtherance of a crime of violence and murder. He admitted that in September 2018, he planned and carried out an armed robbery of the Chili’s in Dewitt, and that during the commission of the robbery he directly caused the deaths of two people by use of a firearm.
Wood further admitted that during the early morning hours of September 15, 2018, armed with a loaded handgun, he forced his way into the back door of Chili’s, where four employees remained to close the restaurant. Wood admitted that he held all four employees on the ground at gunpoint, and after obtaining the available cash from the restaurant’s safe, shot and killed Stephen Gudknecht and Kristopher Hicks. Wood admitted that his gun malfunctioned as he attempted to shoot another employee, allowing time for that employee and a fourth employee to hide and flee from Wood.
Wood’s sentencing is scheduled for December 29, 2021 before Senior United States District Judge Thomas J. McAvoy in Binghamton, New York. He faces maximum sentences of 20 years on the robbery conviction, and life on each of the two firearms offenses. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors; however, by statute, the sentences imposed on each count of conviction in this case must run consecutively to one another.
Wood was previously sentenced in Onondaga County Court to life without parole following his plea of guilty to related state crimes, including two counts of Murder in the First Degree. Wood will serve his state sentence first, and if ever released by New York State, he would be surrendered to federal custody to serve any undischarged portion of his federal term of imprisonment.
This case was investigated by the ATF, the Town of Dewitt Police Department, and the New York State Police, and is being prosecuted by Assistant U.S. Attorneys Lisa M. Fletcher and Michael D. Gadarian.
Wesson Man Sentenced to Seven Years in Prison for Possession of Child PornographyRead the Press Release
Jackson, Miss. – A Wesson man was sentenced to seven years in prison for possession of child pornography, announced Acting U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Jack Staton of Homeland Security Investigations in New Orleans.
According to court documents, Gunner Nathaniel Speed, 25, was stopped by the Flowood Police Department on November 15, 2019, for a traffic violation. He was found to have over 150 pictures and videos portraying children having sex and simulated sex with adult males on his cell phone.
Speed was charged in a federal criminal indictment on June 10, 2020. He pled guilty on March 1, 2021, to possession of child pornography.
Speed was sentenced today to serve 84 months in federal prison, followed by 8 years of supervised release. He was also ordered to pay $214,301.43 in restitution.
The case is part of a joint investigation by Homeland Security Investigations and the Flowood Police Department. The case was prosecuted by Assistant United States Attorney Erin Chalk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Union City Man Sentenced to 4 Years for a Child Exploitation OffenseRead the Press Release
ERIE, Pa. - A resident of Erie County, Pennsylvania, has been sentenced in federal court to 4 years in jail and 10 years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Matthew Swanson, 30, of Union City, Pennsylvania.
According to information presented to the court, in and around August 2020, Swanson possessed computer images depicting prepubescent minors engaging in sexually explicit conduct. Swanson came to the attention of law enforcement after Kik reported that a Kik user was engaged in child exploitation activity. That user was ultimately determined to be Swanson, who confessed to the FBI that he had been downloading child sexual abuse material for years and had recently used Kik to obtain illegal material.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Swanson.
U.S. Minerals, Inc. admits Clean Air Act violation for exposing employees to arsenic at Anaconda plantRead the Press Release
MISSOULA – U.S. Minerals, Inc., a corporation accused of exposing employees to elevated levels of arsenic at its Anaconda facility, today admitted violating the Clean Air Act, said Acting U.S. Attorney Leif M. Johnson.
In addition, U.S. Minerals has agreed to settle a related civil case regarding violations brought by the Department of Labor’s Occupational Safety and Health Administration (OSHA).
U.S. Minerals pleaded guilty to one count of negligent endangerment, a misdemeanor, under the Clean Air Act as charged in a criminal information. The corporation faces a maximum penalty of five years of probation and a fine as determined through statute.
Under the terms of a plea agreement in the criminal case, the government and U.S. Minerals will jointly recommend to the Court that the company be placed on probation for five years and pay a $393,200 fine. The agreement recommends probationary conditions in which U.S. Minerals will implement a nationwide environmental health and safety plan that applies to all of U.S. Minerals’ facilities throughout the United States and a medical monitoring program for current and former employees who have been exposed to elevated levels of arsenic during their work at the Anaconda plant, which has ceased operations.
U.S. Minerals also has agreed to resolve a related civil case brought by OSHA, alleging 19 serious health and safety violations with a total penalty of $106,800. Under the terms of that agreement, U.S. Minerals will accept all citations as issued and pay the penalty as assessed.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing in the criminal case was set for Dec. 10 in Butte before U.S. District Judge Dana L. Christensen.
“Throughout Montana’s long history with mining, operators like U.S. Minerals have sacrificed worker safety for profit. These operators need to know that there are severe consequences to this kind of callous behavior. This is an important case because it not only holds the operator criminally responsible for poisoning its own workers, but it also prevents U.S. Minerals from doing this again anywhere in the country. I want to thank Assistant U.S. Attorney Ryan G. Weldon, Special Assistant U.S. Attorney Eric E. Nelson, the Environmental Protection Agency’s Criminal Investigation Division, the Department of Labor, Office of Safety and Health Administration, the National Institute for Occupational Safety and Health, and the Montana Department of Public Health and Human Services for their diligent work on investigating this case and bringing these wrongdoers to justice,” Acting U.S. Attorney Johnson said.
“This case demonstrates that EPA and its federal law enforcement partners will hold companies accountable when they engage in conduct that places their employees in danger from exposure to airborne releases of hazardous air pollutants such as arsenic,” said Lance Ehrig, Special Agent in Charge of EPA’s criminal enforcement program in Montana. “The criminal and civil penalties serve to provide deterrence, and the 5-year national compliance plan requires U.S. Minerals to implement an inspections, training and auditing program to ensure a safer working environment at all its facilities. Finally, and importantly, health monitoring will be assured for current and former employees at the U.S Minerals Anaconda facility that were exposed to airborne arsenic.”
“The employees of U.S. Minerals were finally given the justice they deserved through a joint effort between the Environmental Protection Agency, the United States Department of Justice, and our staff at the Occupational Safety and Health Administration. Working together, we were able to leverage our resources and hold U.S. Minerals accountable for overexposing employees to inorganic arsenic and violating multiple federal laws,” said Galen Blanton, Regional Administrator for OSHA’s Denver Region 8.
The government alleged in court documents that U.S. Minerals, which has multiple facilities throughout the United States, manufactured silicate abrasive, a substance sold to industrial and governmental customers. Raw materials used in the production process were obtained from a copper slag pile located within the Anaconda Superfund site. The government further alleged that from July 2015 until February 2019, U.S. Minerals negligently released into the air inorganic arsenic, a hazardous air pollutant, and exposed employees. Exposure to arsenic is known to cause lung and skin diseases, including an increased risk of skin cancer, and may also cause cardiovascular effects and other cancers.
The government further alleged that in July 2015, National Institute for Occupational Safety and Health (NIOSH) inspected the site, collected air samples from throughout the outdoor facility and conducted personal monitoring of employees on site. An analysis determined employees were exposed to levels of arsenic and lead, which exceeded both NIOSH and OSHA exposure limits, and that there were high levels of arsenic and lead in the ambient air.
In late 2015, OSHA inspected the facility and found numerous violations of health and safety standards. The violations included employees being exposed to inorganic arsenic at levels that ranged between 1.25 and 4.75 times the OSHA permissible exposure limits. As a result of the inspection, OSHA issued 19 serious violations with penalties totaling $106,800.
The government also alleged that in April 2018, the Montana Department of Public Health and Human Services learned of a U.S. Minerals employee diagnosed with arsenic poisoning at a local hospital. Over the next few days, the state learned of three additional U.S. Minerals employees who had high levels of arsenic in their urine. State officials conducted a site visit in June 2018, noted “apparent inhalation hazards” and shared their findings with U.S. Minerals. A second inspection in October 2018 found the previous violations had not been addressed and that employees were still exposed to hazards.
In addition, the government alleged that on Feb. 20, 2019, after the investigation discovered numerous employees with high levels of arsenic, the state issued an order for U.S. Minerals to cease and desist operations until it implemented controls and protected its workers. The state lifted the order and allowed U.S. Minerals to resume operating in March 2019 under certain conditions. One of those conditions required U.S. Minerals to provide the state with quarterly medical monitoring reports related to arsenic and lead testing results on employees. Documents provided by U.S. Minerals to the state showed there were still employees who periodically tested high for arsenic and lead.
Assistant U.S. Attorney Ryan G. Weldon and Special Assistant U.S. Attorney Eric E. Nelson are prosecuting the criminal case, which was investigated by the Environmental Protection Agency’s Criminal Investigation Division, OSHA, NIOSH, and the Montana Department of Public Health and Human Services. The U.S. Department of Labor’s Office of the Solicitor is litigating the OSHA matter.
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Three South Lake Tahoe Residents Charged with Drug Trafficking and Texas Man Charged with Trafficking FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments on Aug. 19, charging four individuals with drug and gun crimes committed in and around South Lake Tahoe, Acting U.S. Attorney Phillip A. Talbert announced
The indictment against Joshua Daniel Wilson, 34, of South Lake Tahoe, and Cody Lee Cramer, 39, of Lampasas, Texas, charges them together with one count of dealing firearms without a license. The indictment also Wilson with one count of distributing at least 500 grams of methamphetamine, four counts of distributing at least 50 grams of methamphetamine, and one count of dealing firearms without a license.
According to court documents, Wilson sold methamphetamine to an informant multiple times over the course of five months. During this course of dealing, Wilson also offered to sell the informant other drugs, including LSD and MDMA. During that same period, Wilson and Cramer sold the informant firearms, including an AR-15 style rifle, a shotgun, and several handguns. Some of the weapons had been manufactured without serial numbers. Such weapons are often referred to as “ghost guns,” and the lack of a serial number impairs the ability of law enforcement agencies to trace them.
The grand jury also returned a four-count indictment against Patricia Louise Ekizian, 69, of South Lake Tahoe, charging her with distribution of at least 50 grams of methamphetamine. According to court documents, Ekizian sold methamphetamine to an informant on multiple occasions over several months.
Finally, the grand jury returned a two-count indictment against Frank Ray Bacon, 53, of South Lake Tahoe, charging him with distribution of at least 50 grams of methamphetamine. According to court documents, Bacon sold methamphetamine to an informant on two occasions.
This case is the product of an investigation by the Federal Bureau of Investigation, South Lake Tahoe Police Department, El Dorado County Sheriff’s Office, El Dorado County District Attorney’s Office, Douglas County Sheriff’s Office, U.S. Postal Inspection Service, and U.S. Drug Enforcement Administration. During a coordinated law enforcement operation earlier this month, agents and officers executed arrest warrants in South Lake Tahoe, related to the illicit interstate drug and weapons trafficking that ultimately resulted in the three indictments. Assistant United States Attorney James Conolly is prosecuting the case.
If convicted, Wilson faces a 10-year mandatory minimum prison sentence, a maximum statutory penalty of life in prison, and a $10 million fine for the count of distributing at least 500 grams of methamphetamine. If convicted of distributing at least 50 grams of methamphetamine, Wilson faces a five-year mandatory minimum prison sentence , a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million. If convicted of the charge of dealing firearms without a license, Wilson and Cramer each face a maximum of five years in prison and a fine of up to $250,000.
If convicted, Ekizian faces a five-year mandatory minimum prison sentence, a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million.
If convicted, Bacon faces a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million for each count. Each count also carries a mandatory minimum sentence of five years in prison.
Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Texas Man Pleads Guilty to Wire Fraud for Foreign Exchange Investment Fraud SchemeRead the Press Release
A Texas man pleaded guilty today in the Southern District of Texas to defrauding investors that he solicited via social media by falsely promising high rates of return and low or no-risk returns on foreign exchange investments.
According to court documents, Kelvin Ramirez, 25, of Houston, used social media platforms to falsely promote himself as a successful trader of foreign exchange investments or “forex” and attract investors. Through his Instagram accounts, Ramirez marketed “investment groups” and “private accounts” that purportedly traded in forex and were managed by Ramirez. For both types of investments, Ramirez solicited individuals by falsely promising high returns on investments, making false representations about the risk associated with the investments and falsely guaranteeing returns on investment. Through his scheme, Ramirez fraudulently obtained more than $650,000 from over 100 individuals, and then used investors’ funds for personal expenses.
Ramirez pleaded guilty to wire fraud. He is scheduled to be sentenced on Nov. 9 and faces a maximum penalty of 20 years in prison. In addition, he has agreed to pay full restitution to victims, including a monetary loss of at least $687,792.93. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
The FDIC’s Office of Inspector General and the FBI are investigating the case.
Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section is prosecuting the case.
Individuals who believe they may be a victim should visit https://www.justice.gov/criminal-vns/case/Kelvin-Ramirez for more information.
Six Southern California Companies Convicted of Scheming to Avoid Payment of $1.8 Billion in Duties on Imported Chinese AluminumRead the Press Release
LOS ANGELES – A federal jury today found six corporate entities guilty of participating in a wide-ranging conspiracy to defraud the United States via a wire-and-customs fraud scheme in which huge amounts of aluminum – disguised as “pallets” to avoid $1.8 billion in customs duties – were exported to the United States and were “sold” to fraudulently inflate a China-based company’s revenues and deceive investors worldwide.
The jury found the following two aluminum businesses and four warehousing companies – all of which were related to one another – guilty of one count of conspiracy, nine counts of wire fraud and seven counts of passing false and fraudulent papers through a customhouse:
- Perfectus Aluminium Inc., an Ontario-based business;
- Perfectus Aluminium Acquisitions LLC, a subsidiary of Perfectus Aluminium formed in 2014 to oversee several companies that received aluminum pallets shipped to the United States after duties were imposed on Chinese aluminum in 2011;
- Scuderia Development LLC, which owns a warehouse in Riverside;
- 1001 Doubleday LLC, which owns a warehouse in Ontario;
- Von Karman – Main Street LLC, which owns a warehouse in Irvine;
- 10681 Production Avenue LLC, which owns a warehouse in Fontana.
The two Perfectus companies also were found guilty of seven additional counts of international promotional money laundering.
According to evidence presented at the nine-day trial, China Zhongwang Holdings Ltd., Asia’s largest manufacturer of aluminum extrusions, Zhongtian Liu, the company’s former president and chairman, several individual defendants and the corporate defendants found guilty today lied to U.S. Customs and Border Protection to avoid paying the United States $1.8 billion in anti-dumping and countervailing duties (AD/CVD) that were imposed in 2011 on certain types of extruded aluminum imported into the United States from China.
The aluminum sold to United States-based companies controlled by Liu was simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets. In fact, there were no customers for the 2.2 million pallets imported by the Liu-controlled companies between 2011 and 2014, and no pallets were ever sold.
The vast majority of the pallets were imported through the Ports of Los Angeles and Long Beach and then stockpiled at four large warehouses in Southern California, all of which were purchased at Liu’s direction.
Liu and his co-defendants orchestrated the bogus sales of aluminum to Liu-controlled companies in Southern California to falsely inflate China Zhongwang’s value. Liu was the majority owner of China Zhongwang, which has been listed on the Stock Exchange of Hong Kong since a 2009 initial public offering that raised $1.26 billion.
After the AD/CVD duties were put in place in 2011, the company’s annual reports falsely claimed that there was a robust demand for the aluminum pallets in the United States. Although the annual reports asserted that the aluminum pallets were being sold to independent third parties, and defendants used these reported “sales” to inflate China Zhongwang’s reported sales volume and purported volume of exports to the United States, in fact the aluminum was being stockpiled by Liu-controlled entities in more than 2 million square feet of warehouse space owned by the warehouse defendants in Southern California, as well as at Liu’s New Jersey facility.
Since there was no actual demand for the pallets, defendants Liu and China Zhongwang arranged for aluminum melting facilities to be built and acquired, which were to be used to reconfigure the aluminum imported as pallets into a form with commercial value.
The defendants facilitated their schemes by laundering hundreds of millions of dollars through shell companies to the U.S.-based aluminum companies controlled by Liu. The funds were then transferred to China Zhongwang and the other shell companies as payments for the aluminum.
United States District Judge R. Gary Klausner has scheduled a December 13 sentencing hearing in this case.
The remaining four defendants charged in the 2019 federal grand jury indictment in this case have yet to appear in court in the United States to face the criminal charges in this matter:
- Zhongtian Liu, 57, a billionaire Chinese citizen who is a former Tustin resident, and who is the former president and former chairman of the board of China Zhongwang Holdings Ltd.;
- China Zhongwang Holdings Ltd., a publicly traded aluminum company based in Liaoyang City that at the time of the indictment was the largest aluminum extrusion manufacturer in Asia and the second largest in the world;
- Zhaohua Chen, 62, a Chinese national who allegedly was a close friend of Liu and a key player in the scheme; and
- Xiang Chun Shao, a.k.a. “Johnson Shao,” 60, most recently of Irvine, who allegedly managed a collection of Southern California businesses that pretended to be independent third parties importing the Chinese aluminum.
In 2017, the United States Attorney’s Office filed civil forfeiture actions against the four Southern California warehouses used by Perfectus to store the pallets. In 2018, the government filed a fifth civil forfeiture complaint against “approximately 279,808 Aluminum Structures in the Shape of Pallets,” about half of which were seized in early 2017 at the Ports of Los Angeles and Long Beach, and the other half were seized from three other warehouses Perfectus was using to store the pallets. Those civil asset forfeiture cases have been stayed pending the completion of the criminal prosecution, in which the government is seeking the criminal forfeiture of the warehouses and seized aluminum.
Homeland Security Investigations and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Poonam G. Kumar and Roger A. Hsieh of the Major Frauds Section and Gregory D. Bernstein of the General Crimes Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, is handling the asset forfeiture-related portion of this case.
Sioux City Man Sentenced to Federal Prison for Illegally Possessing Guns.Read the Press Release
A man from Sioux City, Iowa who admitted being a user of illegal drugs, and who was found in possession of guns, was sentenced to federal prison for firearms charges.
Jason Mota, age 27, from Sioux City, Iowa received the prison term after pleading guilty to possession of a firearm by a drug user.
Evidence at his detention, change of plea, and sentencing hearings revealed Mota was an unlawful user and trafficker of cocaine and marijuana, and illegally in possession of five guns. On May 3, 2020, Mota’s crime was discovered when officers responded to a shots fired call. Citizen witnesses described a male walking on the sidewalk firing handguns into the air. They were able to inform law enforcement of where the shooter went after he fired the weapons. When police approached Mota’s apartment, Mota walked out and confessed to being the shooter. Mota gave consent to search his home, and officers found guns, $2,000 in cash, packaging materials, a digital scale, pounds of marijuana and 100 grams of cocaine.
At his sentencing, Mota claimed he had been hording drugs to support his own personal use in a time of pandemic. The district court did not credit the claim and instead concluded he had possessed his guns in connection with his drug trafficking activity.
Mota was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mota was sentenced to 51 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mota is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4034.
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Sioux Center Man Sentenced to over Four Years in Federal Prison for Firearms OffenseRead the Press Release
An unlawful drug user who possessed more than a dozen guns was sentenced August 18, 2021 to more than four years in federal prison.
Derrick Jager, age 19, from Sioux Center, Iowa, received the prison term after a March 19, 2021 guilty plea to one count of being an unlawful drug user in possession of a firearm.
Evidence at Jager’s detention, change of plea, and sentencing hearings revealed that Jager, who was an unlawful user of marijuana and cocaine, stole a dozen guns from a local licensed firearms dealer in three separate burglaries. Jager illegally disposed of these guns while also trafficking illegal drugs.
Jager was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Jager was sentenced to 54 months’ imprisonment. He was ordered to pay $4,400 in restitution. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Jager is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the O’Brien County Sheriff’s Office, Sioux Center, Iowa Police Department, Sioux County Sheriff’s Office and the U.S. Department of Justice – Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4070.
Follow us on Twitter @USAO_NDIA.
Scottsdale Man Sentenced to Eight Years for AssaultRead the Press Release
PHOENIX, Ariz. – Lawrence Lorenzo Blackshire, 39, of Scottsdale, Arizona, was sentenced earlier this month by U.S. District Judge Susan Brnovich to eight years in prison, followed by three years of supervised release. A jury previously convicted Blackshire of Assault Resulting in Serious Bodily Injury, Assault Resulting in Substantial Bodily Injury of an Intimate Partner, Simple Assault, and Unlawful Imprisonment.
On September 11, 2018, on the Salt River Pima-Maricopa Indian Community, Blackshire assaulted the victim. The assault resulted in the victim having a broken nose and various contusions on her head and body. Blackshire prevented the victim from leaving the residence for approximately twelve hours. Blackshire is an enrolled member of the Pascua Yaqui Tribe.
The Federal Bureau of Investigation and the Salt River Pima-Maricopa Police Department conducted the investigation in this case. Sharon Sexton, Assistant U.S. Attorney and Kevin Pooley, Special Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-1033-PHX-SMB
RELEASE NUMBER: 2021- 053_Blackshire# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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