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19 August 2021
Previously Deported Man Pleads Guilty to Child Exploitation Crimes and Illegal ReentryRead the Press Release
Miami, Florida – A 29-year-old Mexican national living in South Florida who pretended to be a nine-year-old girl during on-line chats and solicited minors to produce child sexual abuse material pled guilty today in federal district court in West Palm Beach to committing child exploitation crimes and being in the United States illegally following deportation.
Andres Rivera Reyes, who has lived both in Boca Raton and Pompano Beach, Florida, admitted that over the past two years, he posed as a nine-year-old girl on social media to try to obtain child sexual abuse material from girls in the United States as young as eight. Rivera Reyes used social media networking platforms to share and receive child sexual abuse material and kept videos on his cellular phone of children under 12 engaged in sexually explicit acts. Rivera Reyes also admitted that he is in the United States illegally and that the United States had previously deported him twice.
Rivera Reyes pled guilty to one count of attempted production of child pornography, two counts of receipt of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. U.S. District Judge Robin L. Rosenberg, who sits in West Palm Beach, will sentence Rivera Reyes on October 20, at 11:00 a.m. Rivera Reyes faces up to 112 years’ imprisonment.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI ), Miami Field Office, announced the guilty plea.
FBI Miami investigated the case. Homeland Security Investigations (HSI), Miami Field Office, assisted. Assistant U.S. Attorney Gregory Schiller is prosecuting this case.
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 (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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-80064.
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Portland Area Identity Thief Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man pleaded guilty today for stealing financial and identification documents from more than 100 people in and around Portland.
Robert Loren Finanders, 40, pleaded guilty to unauthorized access device fraud, aggravated identity theft, illegally possessing a firearm as a convicted felon, and possessing with intent to distribute methamphetamine.
According to court documents, between April 2019 and April 2020, Finanders is alleged to have stolen financial and identification documents from dozens of people in the Portland area with the intent to steal money from them and from local businesses. Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the identity material recovered had been located in wallets and purses stolen from vehicles.
The Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders in late September 2019 after finding a fraudulent Oregon driver’s license in the name of an adult victim during an arrest. The license had Finanders’ photo on it in place of the named victim. Investigators learned that around the same time, police officers in Bend, Oregon had arrested Finanders and a co-conspirator after receiving a report of a person using a stolen credit card at a local restaurant.
Bend police searched the vehicle driven by Finanders’ co-conspirator and found a passport, W2s, and a retail credit card matching the name of the victim whose stolen driver’s license was recovered by PPB. A search of Finanders’ Bend hotel room returned several additional W2s in the name of another victim and a victim profile notebook.
PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon and, on January 22, 2020, executed a search warrant at his Gresham residence. Officers seized stolen profiles of more than 80 individuals; dozens of stolen and fraudulent identification and personal documents including passports, government-issued identification cards, and driver’s licenses; an embosser; a card reader; stolen mail; additional victim profile notebooks; three handguns; a dismantled AR-15; body armor; and evidence of drug trafficking.
On March 12, 2020, a federal grand jury in Portland returned a nine-count indictment charging Finanders. On April 1, 2020, he was arrested by PPB.
Finanders will be sentenced on December 6, 2021 by U.S. District Court Judge Karin J. Immergut.
As part of his plea agreement, Finanders has agreed to pay restitution in full to his victims.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the PPB East Precinct Street Crimes Unit with assistance from Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S Postal Inspection Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Pineville Man Sentenced for Illegal Possession of FirearmsRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Billy Ray Jones, Jr., 39, of Pineville, was sentenced by United States District Judge Dee D. Drell to 57 months in prison, followed by 3 years of supervised release.
Jones pleaded guilty on May 18, 2021 to one count of being a convicted felon in possession of a firearm. The charges stem from an incident in November 2019 when law enforcement officers from the Rapides Parish Sheriff’s Office and Lecompte Police Department began investigating a burglary at a Burger King in the Lecompte area. Information obtained by law enforcement led them to suspect that Jones, who was the boyfriend of the restaurant manager, committed the burglary. Officers obtained a search warrant for the residence where Jones was living. Upon execution of the warrant, officers found the burglar’s attire and mask in a bag in the master bedroom closet, along with a wallet with identification belonging to Jones. Also in the closet were six firearms and two homemade silencers.
While searching the residence, an adult and juvenile approached from the nearby woods wearing camouflage hunting attire and both had rifles with scopes. Not knowing the adult male was Jones, officers directed them away from the residence. When they learned it was Jones, the female in the residence called them back and he arrived without the rifle that he had been previously carrying. Jones initially denied that the firearms, burglar’s attire and mask in the closet belonged to him, and that he had been carrying the rifle previously. Another search warrant was obtained for the rifle that Jones had been carrying and it was found hidden in a nearby field under tree limbs and pine straw. Jones was interviewed again and admitted to committing the burglary at Burger King and that he had purchased the rifle with money obtained during the burglary, as well as the fact that he had control of the six firearms and silencers in the closet.
Jones has prior convictions for attempted possession of a firearm by a convicted felon (2018), illegal possession of stolen things (2018), and simple burglary (2008) and was prohibited from possessing any firearms.
The ATF, Rapides Parish Sheriff’s Office and Lecompte Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Parolee Pleads Guilty to Theft of Government Property for Stealing Humvee from Army Reserve Center in UplandRead the Press Release
LOS ANGELES – A Pomona man who stole a military Humvee from the Army Reserve Center in Upland and briefly led police on a chase through Pomona’s residential streets pleaded guilty today to a federal criminal charge.
Armando Garcia, 30, pleaded guilty to one count of theft of government property. At the time of the offense, Garcia was on parole after being convicted in 2019 in state court on theft and burglary charges.
According to court documents, on November 9, 2020, Garcia stole a militarized High Mobility Multipurpose Wheeled Vehicle – commonly known as a Humvee – that had been secured by a padlock at the Reserve Center in Upland.
Soon after Garcia drove off with the semi-armored combat vehicle with a turret mount, Pomona Police officers saw the Humvee and attempted to make a traffic stop of the unlicensed vehicle, according to a complaint affidavit previously filed in this case.
“During the pursuit, which lasted approximately four minutes, the Humvee traveled at excessive speeds, drove on the wrong side of the street (in the direction of oncoming traffic), failed to stop at multiple red lights and stops signs, and failed to signal for turns,” according to the affidavit. Garcia stopped the Humvee in front of a home on a residential street in Pomona and was arrested at the scene.
Inside the Humvee, police found a large pair of bolt cutters and an Army-approved padlock that appeared to have been cut, according to the complaint, which notes the padlock had secured a steel wire put in place to prevent the turning of the steering wheel inside the vehicle.
United States District Judge John A. Kronstadt has scheduled a December 2 sentencing hearing, at which time Garcia will face a statutory maximum sentence of 10 years in federal prison.
The FBI’s San Gabriel Valley Safe Streets Task Force investigated this matter. The Pomona Police Department is the sponsoring agency of the Task Force and has hosted the task force since its inception in 2008.
Assistant United States Attorney Juan M. Rodríguez of the General Crimes Section is prosecuting this case.
Operation Leads to Conviction of 26 Brunswick County Defendants, Including Highest-Ranking Member of Bloods Street Gang in Brunswick CountyRead the Press Release
BOLIVIA, N.C. – Beginning in 2017, the United States Attorney’s Office for the Eastern District of North Carolina partnered with the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to investigate and prosecute violent Bloods gang members and high-volume drug traffickers operating in the Brunswick County area.
The ensuing investigation, named Operation Hell Swamp, led to the successful investigation, prosecution, and conviction of 26 defendants from the Brunswick County area.
During the investigation, agents seized fentanyl, heroin, crack cocaine, and multiple kilograms of cocaine. Agents also seized more than a dozen firearms.
Some of the defendants are described in detail below.
Nicholas Shamar Griffin described himself as the highest-ranking member of the Bloods street gang in Brunswick County. He was a significant cocaine and crack cocaine trafficker, who was also willing to use violence. While on federal supervised release for a prior federal conviction, Griffin shot a man during a gang-related dispute. Griffin was sentenced to more than 29 years’ imprisonment.
Covia Dzell Smith was a violent, high-level member of the Bloods street gang. The investigation showed that Smith committed several acts of violence, including a shooting. He was charged with drug trafficking offenses, was convicted at trial of all counts. He was sentenced to 25 years’ imprisonment.
Spencer Bryant was found responsible for distributing approximately fourteen kilograms of cocaine base in the Brunswick County area, and he was sentenced to more than 17 years’ imprisonment.
Andreis Jenrette was found in possession of cocaine, crack cocaine, fentanyl, marijuana, and a loaded firearm. He was sentenced to 15 years’ imprisonment.
Deonte Bigelow and Courtnae Wiley were arrested while transporting one kilogram of cocaine, which had a street value of approximately $35,000. In total, Bigelow was found responsible for trafficking approximately 28 kilograms of cocaine. Bigelow was sentenced to 10 years’ imprisonment.
Below is a summary of the results of the cases in this investigation:
- Nicholas Shamar Griffin, 7:18-CR-00174-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine and 280 grams or more of cocaine base (crack)
- Sentence: 350 months’ imprisonment
- Covia Dzell Smith, 7:18-cr-00093-D-1:
- Convicted at trial of distribution of cocaine, marijuana
- Sentence: 300 months’ imprisonment
- Freeman Hankins Jr., 7:17-cr-00110-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base (crack), and possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 75 months’ imprisonment
- Deontray Tremell Bryant, 7:17-cr-00150-FL-1:
- Pled guilty to possession with intent to distribute a quantity of heroin
- Sentence: 70 months’ imprisonment
- Deonte Xavier Bigelow, 7:17-cr-00165-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute cocaine, and possession with intent to distribute 500 grams or more of cocaine
- Sentence: 120 months’ imprisonment
- Courtnae Shantae Wiley, 7:17-cr-00165-BR-2:
- Pled guilty to possession with intent to distribute 500 grams or more of cocaine
- Sentence: 5 years’ probation
- Delmas C. Gause, 7:18-cr-00005-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a quantity of cocaine
- Sentence: 71 months’ imprisonment
- Michael Montray Frink, 7:18-cr-00033-BO-1:
- Pled guilty to possession with intent to distribute a quantity of heroin, possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 117 months’ imprisonment
- Alex Alterick Hamilton, 7:18-cr-00034-BO-1:
- Pled guilty to distribution of a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 262 months’ imprisonment
- Ryan Alexander Stewart, 7:18-cr-00040-D-1:
- Pled guilty to possession with intent to distribute 28 grams or more of cocaine base
- Sentence: 60 months’ imprisonment
- Victor Demetrious Watson, 7:18-cr-00035-BO-1:
- Pled guilty to possession with intent to distribute a quantity of heroin; possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 120 months’ imprisonment
- Terrance Leon Washington, 7:18-cr-00039-D-1:
- Pled guilty to distribution of cocaine and cocaine base (crack); possession with intent to distribute a quantity of cocaine
- Sentence: 60 months’ imprisonment
- Wayne Levanughn King, 7:18-cr-00056-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack)
- Sentence: 120 months’ imprisonment
- Rodrick Bryant, 7:18-cr-00081-BO-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of marijuana
- Sentence: 42 months’ imprisonment
- Zane Alan Williams, 7:18-cr-00146-D-1:
- Pled guilty to distribution of a quantity of cocaine
- Sentence: 120 months’ imprisonment
- Andreis Jenrette, 7:18-cr-00175-BO-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine and 280 grams or more of cocaine base (crack); possession with intent to distribute a quantity of cocaine and a quantity of cocaine base (crack); possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 180 months’ imprisonment
- Hester Griffin, 7:18-cr-00174-D-2:
- Pled guilty to possession with intent to distribute a quantity of cocaine
- Sentence: time served, then six months’ imprisonment for violation of supervised release
- Gregory Orlando Gause, 7:19-cr-00041-FL-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack); distribution of a quantity of cocaine base (crack)
- Sentence: 28 months’ imprisonment
- Spencer Lamont Bryant, 5:19-cr-00113-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base; distribution of a quantity of cocaine base
- Sentence: 210 months’ imprisonment
- Bruce James Daniels, Sr.:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base; distribute of a quantity of cocaine base
- Sentence: 39 months’ imprisonment
- Anthony Junior Bell, 7:19-cr-00095-FL-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base; possession with intent to distribute 28 grams or more of cocaine base; possession of a firearm by a felon
- Sentence: 66 months’ imprisonment
- Malcolm Jackson, 7:19-cr-00113-BO-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack); possession with intent to distribute a quantity of cocaine base (crack)
- Sentence: 144 months’ imprisonment
- Dev Vontrai Bland, 7:20-CR-00082-D-1:
- Pled guilty to distribution of a quantity of cocaine; possession of a firearm by a convicted felon
- Sentence: 151 months’ imprisonment
- Shawn Deontae Hewett, 7:20-cr-00162-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute cocaine and 280 grams or more of cocaine base (crack); possession with intent to distribute a quantity of cocaine and a quantity of cocaine base (crack); possession of a firearm in furtherance of a drug trafficking crime
- Not yet sentenced
- Oneisha Williams, 7:20-cr-00162-D-2:
- Pled guilty to possession with intent to distribute cocaine and cocaine base (crack)
- Not yet sentenced
- Gregory Lee Bellamy, 7:20-cr-00164-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine; distribution of a quantity of heroin, cocaine base (crack); possession with intent to distribute a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon
- Not yet sentenced
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the cases and Assistant U.S. Attorney Scott A. Lemmon prosecuted the cases.
Valuable assistance was also provided by the District Attorney’s office for Brunswick, Columbus, and Bladen counties.
Operation Hell Swamp is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is also part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
A copy of this press release is located on our website. 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 the case numbers listed above.
- Nicholas Shamar Griffin, 7:18-CR-00174-D-1:
Omar Amanat Sentenced to Prison for Multiple Fraud Schemes After Conviction at Trial During Which He Fabricated EvidenceRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that OMAR AMANAT, an associate of codefendant Kaleil Isaza Tuzman, the former chairman and chief executive officer of the technology start-up company KIT digital, Inc. (“KITD”), was sentenced today by U.S. District Judge Paul G. Gardephe to five years in prison for participating in various securities fraud-related offenses. AMANAT and Tuzman were found guilty in 2017 after a two-month trial presided over by Judge Gardephe. AMANAT was convicted of conspiracy to commit wire fraud, wire fraud, aiding and abetting investment advisor fraud, and conspiracy to commit securities fraud.
U.S. Attorney Audrey Strauss said: “Omar Amanat defrauded investors of millions of dollars through years of lies and deceit. Among his many fraudulent tactics, Amanat teamed up with Kaleil Tuzman and others to manipulate stock prices and hide investment losses through years of false account statements. When finally caught, Amanat doubled down on his lies by introducing fake emails into the trial record as ‘exculpatory’ evidence. Neither the Government nor the jury was fooled. Amanat was convicted on all counts and remanded by the Court into federal custody, where he will remain until his sentence is served.”
According to the Indictment and other filings in Manhattan federal court and the evidence presented at trial:
The Scheme to Defraud Maiden Capital Investors
Stephen Maiden[1] was the managing member of Maiden Capital, a hedge fund that managed portfolios of securities. Between in or about February 2009 and in or about June 2012, AMANAT, along with Maiden and others, devised and carried out a scheme to hide from Maiden Capital investors the fact that Maiden Capital’s investments in Enable – an investment fund run by AMANAT’s brother and codefendant, Irfan Amanat, for which AMANAT raised money (based, in part, on false and misleading representations) – had been lost. To facilitate the scheme, Maiden, with the knowledge and approval of AMANAT, generated false client account statements that failed to disclose the Enable losses. In addition, AMANAT wired hundreds of thousands of dollars to a Maiden Capital bank account to support Maiden Capital, including to allow Maiden to repay investors whose redemption requests could not be forestalled and thus to continue to keep secret from Maiden Capital investors the Enable losses for over three years.
The Market Manipulation Scheme
Between in or about December 2008 and in or about September 2011, AMANAT, Tuzman, and Maiden engaged in efforts to artificially inflate the share price and trading volume of KITD shares. During this time period, KITD shares traded on the OTC Bulletin Board and on the NASDAQ. Maiden, at Tuzman and AMANAT’s direction, purchased and sold shares of KITD through Maiden Capital, for the purpose of manipulating KITD’s stock price and creating the illusion of greater volume in the trading for KITD shares.
For instance, Maiden, with Tuzman’s knowledge and approval, frequently engaged in match trading in which Maiden caused an account under Maiden’s control to buy or sell KITD stock, and on the same day caused an account under Maiden’s control to take the opposite position. Tuzman also directed Maiden to make timely purchases of KITD stock in an effort to manipulate the price of KITD shares at certain critical times, including, for example, when KITD was seeking to raise additional capital and in the weeks before KITD’s stock was uplisted to the NASDAQ. At times, Maiden was responsible for nearly all of the day’s trading activity in KITD stock.
Amanat’s Fabrication of Evidence
Evidence at trial also revealed that AMANAT produced to the Government and entered into evidence at trial emails that had been fabricated. After two evidentiary hearings, the Court allowed the Government to present to the jury evidence of AMANAT’s use of false and fabricated email evidence during the trial. After the verdict, Judge Gardephe revoked AMANAT’s bail and ordered him remanded into custody, citing numerous factors, including that “substantial evidence was introduced at trial that Mr. Amanat fabricated emails” showing “disdain for the court” and its procedures.
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AMANAT, 48, was also sentenced to three years of supervised release and ordered of pay a fine of $175,000.
Tuzman, 49, is scheduled to be sentenced by Judge Gardephe on September 10, 2021, at 12:00 p.m.
Irfan Amanat, 50, was convicted at a separate trial before Judge Gardephe in October 2018. He is scheduled to be sentenced by Judge Gardephe on September 8, 2021, at 1:00 p.m.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service. She also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold, Joshua A. Naftalis, and Daniel M. Tracer are in charge of the prosecution.
[1] Maiden pled guilty to various offenses for his role in the schemes and cooperated with the Government.
North Carolina Man Indicted on Federal Charges of Sex Trafficking, Transporting an Individual to Engage in Prostitution, and Possession with the Intent to Distribute Controlled SubstancesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Adolph J. Scott, a/k/a “A”, a/k/a “AJ”, a/k/a “Ghost”, a/k/a “Jay”, age 36, of Spring Lake, North Carolina, for the federal charges of sex trafficking by force, fraud, and coercion; interstate transportation of an individual to engage in prostitution; and possession with intent to distribute controlled substances.
The indictment 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; and Chief Lisa D. Myers of the Howard County Police Department.
According to the three-count indictment, from at least January 2020 to February 2021, in the District of Maryland, the Eastern District of North Carolina, and elsewhere, Scott recruited, enticed, transported, advertised, and solicited Victim 1 to conduct sexual acts for his financial benefit.
Specifically, the indictment alleges from January 23, 2021 to January 24, 2021 that Scott transported Victim 1 from Maryland to North Carlina with the intent that Victim 1 would engage in prostitution and sexual activity.
The indictment further alleges that Scott also possessed controlled substances with intent to distribute including: a mixture or substance containing a detectable amount of fentanyl, a mixture or substance containing a detectable amount of heroin, and a mixture or substance containing a detectable amount of cocaine.
If convicted, Scott faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of life in prison for sex trafficking. 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. Scott is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking and sex trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary Setzer 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 https://www.justice.gov/usao-md/community-outreach.
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New York Man Sentenced to 36 Months for Stealing Nude Photos of Dozens of VictimsRead the Press Release
A New York man was sentenced today to 36 months in federal prison for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of women.
Nicholas Faber, 25, of Rochester, pleaded guilty on Feb. 8. According to court documents, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female SUNY-Plattsburgh students and then used information from those school email accounts to gain access to the victims’ social media accounts. Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts. As a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords and notifying students and parents.
Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.
In addition to the 36 month prison sentence, United States District Judge Mae A. D’Agostino also imposed a three year term of supervised release, which will start after Faber is released from prison, and ordered him to pay $35,430 in restitution to SUNY-Plattsburgh and a $200 special assessment.
Fish pleaded guilty to computer hacking, aggravated identity theft and child pornography offenses on May 19, 2020 and is scheduled to be sentenced on Nov. 3.
This case was investigated by the FBI's Albany Field Office with substantial assistance from the SUNY-Plattsburgh Police Department.
Deputy Chief Michael Stawasz of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers of the U.S. Attorney’s Office for the Northern District of New York are handling the case.
New Haven Man Charged with Crack Cocaine Distribution OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging ZAQUAWN ARRINGTON, 22, of New Haven, with three counts of possession with intent to distribute cocaine base (“crack”).
The indictment was returned on July 27. Arrington appeared yesterday via videoconference before U.S. Magistrate Judge Robert A. Richardson and pleaded not guilty to the charge. Arrington has been detained since July 21.
As alleged in court documents, on January 9, 2021, Arrington was arrested by West Haven Police after they found him in possession of crack cocaine packaged for distribution and $763 in cash. Subsequent analysis of an iPhone seized from Arrington at the time of his arrest revealed multiple photos and videos of firearms, including photos of Arrington possessing firearms.
It is further alleged that on June 22, 2021, New Haven Police attempted to stop a vehicle being operated by Arrington, but Arrington fled at a high rate of speed. On July 6, 2021, New Haven Police located Arrington and arrested him. At the time of his arrest, Arrington possessed crack cocaine packaged for distribution and $580 in cash.
Arrington was arrested on a federal criminal complaint on July 21, 2021. A search of Arrington’s residence on the date of his arrest revealed crack cocaine packaged for distribution, a digital scale, and $2,075 in cash. It is further alleged that, the following day, a court-authorized search of a parked vehicle that Arrington had been seen accessing revealed a loaded ghost gun.
If convicted, Arrington faces a maximum term of imprisonment of 20 years on each count of the indictment.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the New Haven Police Department and the West Haven Police Department. The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Natasha M. Fresimuth
This case is part of Project Safe Neighborhoods (PSN), 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.
New Hampshire Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
PORTLAND, Maine: A New Hampshire man was sentenced today in U.S. District Court in Portland for conspiring to distribute over 500 grams of methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge D. Brock Hornby sentenced Joseph Fall, 40, to 78 months in prison and five years of supervised release. Fall pleaded guilty on March 29, 2021.
According to court records, between March 2018 and February 2019, Fall conspired with his wife and others to distribute methamphetamine in New Hampshire and Maine. During the conspiracy, Fall and his wife were stopped by the Illinois State Police while bringing methamphetamine back to New England from California. Law enforcement officers seized nearly a kilogram of methamphetamine from their vehicle as part of that traffic stop. Investigators later made multiple controlled purchases of methamphetamine from Fall and his co-conspirators. Fall was living in Rumford, Maine at the time.
The U.S. Drug Enforcement Administration, the Rumford Police Department, the Maine Drug Enforcement Agency, the New Hampshire State Police, the New Hampshire Attorney General’s Drug Task Force, the Carroll County (New Hampshire) Sheriff’s Office and the Illinois State Police investigated the case.
Nevada Medical Practice Agrees to Pay $1 Million to Resolve Allegations of False Medicare Reimbursement ClaimsRead the Press Release
BOSTON – Nevada Advanced Pain Specialists (NAPS), a Reno-based medical practice, has agreed to resolve allegations that it submitted false claims for payment to Medicare for medically unnecessary urine drug testing (UDT).
Pursuant to the settlement agreement, NAPS admits that it ordered confirmatory UDT—testing designed to confirm the results of presumptive UDT—despite failing to first obtain presumptive UDT results. In fact, NAPS did not consult the presumptive UDT results before ordering their confirmation but continued to perform presumptive tests in-house and bill Medicare as if they were medically necessary. NAPS admits that its performance of presumptive UDT played no role in its medical decision-making regarding whether to order confirmatory UDT from a clinical laboratory.
“NAPS ordered presumptive testing in order to collect more from Medicare, not because the tests were medically necessary,” said Acting U.S. Attorney Nathaniel R. Mendell. “It’s not supposed to work that way, of course. NAPS was improperly draining resources from an important federal program, and we commend it for resolving the matter expeditiously.”
“Healthcare providers are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. We are committed to pursuing these types of allegations along with our law enforcement partners as we work to protect the integrity of our federal healthcare system.”
“Public health insurance programs, such as Medicare, incur staggering financial losses when their programs are exploited. Today’s settlement should make it perfectly clear that those who bill for medically unnecessary tests will be held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
This settlement resolves claims brought as part of a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive $150,000 of the recovery.
Acting U.S. Attorney Mendell, HHS-OIG SAC Coyne, and FBI Boston SAC Bonavolonta made the announcement today. The Department of Veterans Affairs also provided assistance. Assistant U.S. Attorneys Abraham R. George and Charles B. Weinograd of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Natchez Woman Pleads Guilty to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – A Natchez woman pled guilty in federal court to possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi, and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on December 13, 2019, Williesia Laquanda Williams, 29, made a live social media video of herself driving and displaying a firearm. At that time, Williams was on parole and her parole officer saw the video. That evening, Williams was stopped by a Natchez police officer for a traffic violation and arrested for possessing the firearm as a convicted felon. Williams had been previously convicted of assaulting a correctional officer and possessing cocaine.
Williams is scheduled to be sentenced on November 16, 2021, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
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.
Naknek Man Indicted on Drug ChargesRead the Press Release
ANCHORAGE – A federal grand jury in Anchorage returned an indictment yesterday charging a Naknek, Alaska, man for possession and attempted possession of methamphetamine and heroin.
According to court documents, Kenneth Bruce Bishop, 61, arranged for an associate to fly from Anchorage to King Salmon, Alaska, with approximately 170 grams of methamphetamine and approximately 50 grams of heroin. Staff of a regional air carrier at Merrill Field Airport detected the illegal drugs during a routine screening on July 29, 2021, and the Anchorage Airport Interdiction Team intercepted the drugs.
On August 3, law enforcement conducted a controlled delivery of the illegal drugs via the U.S. Postal Service in King Salmon. After Bishop picked up the package at the local post office and drove away, Alaska State Troopers pulled him over and found the contents of the package on the floor of the truck. The seized narcotics have an estimated street value of $220,000 and included approximately 50 user doses of heroin and more than 1,700 user doses of methamphetamine.
Bishop is scheduled for his initial court appearance on August 23 before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court of Alaska. If convicted, he faces a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska and Colonel Bryan Barlow, Director of the Alaska State Troopers made the announcement.
The Alaska State Troopers, the U.S. Postal Inspection Service, the U.S. Drug Enforcement Administration, the Anchorage Airport Interdiction Team, Alaska Wildlife Troopers and the Bristol Bay Police Department are investigating the case.
Assistant U.S. Attorney Yunah Chung is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Missouri Army National Guardsman and Department of Defense Subcontractors Indicted for Conspiring to Steal and Sell Military GearRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury in East St. Louis, Illinois, has returned an indictment charging three area men with conspiring to steal and sell sensitive equipment and other property belonging to the United States military.
Brandon Schulte, 43, of Jefferson City, Missouri, Jody (“Joe”) Stambaugh, 50, of Nashville, Illinois, and Gary Stambaugh, 77, of Fayetteville, Illinois, are accused of conspiring with each other and others unnamed to steal military uniforms, tactical robots, night vision sights, high frequency radios, and other functional military equipment.
“These allegations are very serious,” U.S. Attorney Steven D. Weinhoeft said. “The indictment charges a conspiracy to steal and sell sensitive military items. Any theft of government property harms the taxpayers, but worse, items such as equipment and uniforms could easily fall into the wrong hands and threaten the safety of our service members.”
“As the investigative arm of the Department of Defense, the DoD Office of Inspector General Defense Criminal Investigative Service (DCIS) is charted to protect our warfighters, DoD equipment, funds and other resources,” said Michael Mentavlos, Special Agent-in-Charge – DCIS, Southwest Field Office. “Today’s announcement demonstrates our commitment, along with our law enforcement partners, to aggressively pursue those that attempt to illegally profit from taxpayer funded resources.”
According to the indictment, Gary Stambaugh and Joe Stambaugh were co-owners of Stambaugh Enterprises, a scrap metal company located in Mascoutah, Illinois. Stambaugh Enterprises allegedly operated as a subcontractor on a DoD contract to pick-up, transport, and recycle scrap metal items from multiple DoD facilities in Illinois and Missouri, including Scott Air Force Base in St. Clair County, Illinois, and a Missouri Army National Guard facility in Jefferson City, Missouri.
The indictment alleges that the Stambaughs were obligated to mutilate and destroy all military property they hauled away from each DoD facility and were prohibited from reusing or refurbishing any military items for their own use or selling any military items to be reused or refurbished by someone else.
The Stambaughs allegedly removed truckloads of military property from DoD facilities but did not destroy or mutilate every item, in violation of their contracts. According to the indictment, the Stambaughs transported the military property to their place of business in Mascoutah and sorted through the items to determine what could be converted to their own use or sold to others.
From January-October 2017, Joe Stambaugh allegedly provided an unnamed person identified as J.S. with numerous military items to be sold for profit, including LED video screens, a high frequency radio, military night vision sights, a military antenna system, military flight helmets, and a military infrared thermal imager.
The indictment further alleges that the Stambaughs submitted “certificates of destruction” that falsely showed they had properly mutilated and destroyed the property when, in fact, they had stolen and retained items off the scrap piles for their own use and for sale.
Brandon Schulte was a national guardsman responsible for properly storing and disposing of military property at the Missouri Army National Guard facility in Jefferson City. According to the indictment, the Stambaughs received military uniforms and other unauthorized, sensitive military property from Schulte, even though Schulte allegedly knew the Stambaughs were authorized to receive only scrap metal.
The indictment charges that Schulte understood he was required to follow specific procedures to dispose of sensitive military items, including uniforms. Such procedures are vital to national security, as terrorist groups overseas have previously acquired U.S. combat uniforms and used them to impersonate American soldiers, endangering American troops. Nevertheless, Schulte allegedly supplied the Stambaughs with thousands of pounds of military uniforms and other non-scrap military equipment. The indictment charges Schulte with conspiring with the Stambaughs from 2015-2018, as well as making a false statement about his conduct to federal agents in 2019.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The Stambaughs and Schulte are due in federal court for their initial appearances and arraignments on Sept. 1, 2021, before U.S. Magistrate Judge Mark A. Beatty in the federal courthouse in East St. Louis. If convicted, the Stambaughs face up to 10 years in prison on each of their three theft counts and up to 5 years in prison for the conspiracy. Schulte’s conspiracy count and separate charge for making a false statement each carry a maximum sentence of 5 years in prison.
This case is being investigated by agents with DCIS, the Defense Logistics Agency-Office of Inspector General, the Department of Homeland Security-Homeland Security Investigations, U.S. Army Criminal Investigation Command (CID), FBI-Springfield, and the Department of Commerce.
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.Middlesex County Man Admits Drug Trafficking OffenseRead the Press Release
CAMDEN, N.J. – A Middlesex County, New Jersey, man today admitted that he possessed several kilograms of heroin with the intent to sell, Acting U.S. Attorney Rachael A. Honig announced.
Eduard Avila Rivas, 33, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of possession with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
On Feb. 10, 2020, Avila Rivas travelled to Clarksboro, New Jersey, and met with an associate in order to carry out a sale of several kilograms of heroin. Following Avila Rivas’ arrival, law enforcement officers searched his vehicle and seized close to three kilograms of heroin packaged for sale.
The drug trafficking count to which Avila Rivas pleaded guilty is punishable by a minimum of 10 years in prison, a maximum of life in prison, and a maximum fine $10 million. Sentencing is scheduled for Dec. 22, 2021.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Atlantic City Office, under the direction of Special Agent in Charge Jason J. Molina, and the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill, and the Gloucester County High Intensity Drug Trafficking Area (HIDTA) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Mexican National Sentenced to 10 Years for Attempting to Entice MinorRead the Press Release
EL PASO – Today a Mexican national was sentenced to 10 years in prison for attempting to entice a minor.
According to court documents, Cayetano Lopez, 50, of Mexico, attempted to entice a minor into engaging in sexually explicit conduct via a social media messaging application. On May 20, 2021, Lopez pleaded guilty to one count of enticement of a minor. By pleading guilty, Lopez admitted that in July 2020, he engaged in sexually explicit communications with a female he believed to be 13 years old, attempting to entice her into having unlawful sexual intercourse.
Lopez has remained in federal custody since his arrest on July 19, 2020, when he arrived at a prearranged meeting with the minor, who turned out to be an undercover agent.
“According to new data released by the National Center for Missing and Exploited Children, online enticement of children has increased 97.5% amid the pandemic,” said U.S. Attorney Ashley C. Hoff. “In response, the US Attorney’s Office, along with our law enforcement partners, has redoubled our efforts to prosecute these very serious cases and keep our children safe while using the internet.”
“I am proud of the work done by FBI El Paso Violent Crimes Against Children personnel to ensure that another child predator was taken off the streets,” said FBI Special Agent in Charge Jeffrey Downey, El Paso Division. “The FBI remains dedicated in the fight to protect our nation’s future by ensuring our children can prosper where individuals like Lopez do not threaten their welfare.”
The FBI investigated the case.
Assistant U.S. Attorney Michelle Winters prosecuted the case.
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 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.justice.gov/psc.
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Mexican National Sentenced for Toxic Marijuana Cultivation Operation in Stanislaus National Forest and Ordered to Pay for Environmental DamageRead the Press Release
FRESNO, Calif. — Eleno Fernandez-Garcia, 37, of Michoacán, Mexico, was sentenced today to 4 and a half years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana and ordered to pay $45,688 in restitution to the U.S. Forest Service for the environmental damage that the toxic chemicals and cultivation operation had on public land, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, the cultivation operation contained 9,654 marijuana plants and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones, and was covered with marijuana debris. Three other individuals fled from the area, which is near recreational activities and Sugar Pine Springs, a natural spring used by two companies for bottled water.
The cultivation operation caused significant damage to the environment. Within the grow site, investigative agents found the pesticide Weevelcide, which contains aluminum phosphide, a lethal restricted use chemical; two types of rodenticides; 837 pounds of soluble fertilizer; 45.65 gallons of liquid fertilizer; and a dead raccoon. Nearly all of the native vegetation was cut down to make room for the marijuana plants. Besides chemicals and fertilizer, there was over 2,000 pounds of trash and irrigation tubing.
The grow site was in a grazing permit area where cows roamed freely and had access to the plants and chemicals. The Basin Creek complex also lies upstream of several species of conservation concern, including the Central Valley steelhead, federally threatened under the Endangered Species Act (ESA); chinook salmon, federally threatened under the ESA; and yellow-legged frog, a candidate for listing as threatened under both the federal and the California ESA.
This case was the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the California Fish and Wildlife. Assistance was provided by the Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Mexican National Found Guilty of Transporting Unaccompanied Minor from MexicoRead the Press Release
DEL RIO – Today a federal jury convicted a Mexican national for illegally transporting an unaccompanied child from Mexico.
According to court documents and evidence presented at trial, Victor Manuel Monsivais, 67, was apprehended at 1 a.m. in an HEB parking lot in south San Antonio transporting an unaccompanied 8-year-old child from Mexico. Monsivais intended to give the child back to another person involved in smuggling the child from Mexico into the United States. Special agents with HSI, as well as officers from the San Antonio Police Department, were waiting for Monsivais at the HEB based on investigative intelligence about the intended exchange. Monsivais was found guilty of one count of illegal alien transportation.
Co-defendants Elida Kassandra Moreno, 28, a United States citizen and Nery Uriostegui-Dominguez, 28, a Mexican national, pleaded guilty to bringing in and harboring aliens and conspiracy to bringing in and harboring aliens. Moreno was sentenced to 36 months in prison and a $1,000 fine on February 20, 2021. Uriostegui was sentenced to 18 months in prison on April 1, 2020.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee, San Antonio Division, made the announcement.
HSI with assistance from the San Antonio Police Department are investigating the case.
Assistant U.S. Attorneys Joshua Banister and Holly Pavlinski are prosecuting the case.
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Mean Peach and a Co-Conspirator Sentenced to Federal Prison for Fraud Scheme and Interstate Transportation of Stolen PropertyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Mean Peach, age 65 and Eam Peng Chou, age 56, both of Philadelphia, Pennsylvania, to two years in federal prison and a year and a day in federal prison, respectively, each followed by three years of supervised release, for conspiracy and for interstate transportation of stolen property, in connection with a scheme to defraud a Maryland company of more than $2 million. Chief Judge Bredar also ordered Peach and Chou to each pay restitution in the amount of $1,645,494. The sentences were imposed yesterday.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to their plea agreements and other court documents, Peach, Chou, and co-defendants Chonnathason Has and Thi Ho, conspired with Kevin Miller, who was employed as the Director of Planning, Logistics, and Control at Company A, located in Linthicum, Maryland, and was engaged in the business of manufacturing personal products, such as hair care, hair dye and lotions. Miller was responsible for determining the timing and volume requirements for materials used in the manufacturing operations at Company A, and had the authority to approve payments of invoices submitted by vendors and service providers without obtaining approval from anyone else at Company A.
As detailed in their plea agreements, from about September 2015, through March 2019, Peach, Chou, Has, Ho, and Miller engaged in a scheme to defraud Company A of at least $2.4 million. Specifically, in approximately September 2015, Company A assigned Miller the task of arranging for vendors to dispose of various waste products that were stored at the Company’s two warehouse locations in Maryland. Peach, Has, Chou, and other conspirators created and used shell companies in various names, with business addresses that were mail boxes at commercial mail facilities, to submit fraudulent invoices to Company A for waste disposal and other work that was never performed by those entities. Miller approved the fraudulent invoices and submitted them to Company A’s accounting department for payment. Company A then issued checks which the conspirators would transmit and cause to be transmitted from Maryland to Pennsylvania. Peach, Chou, and Has would cash the checks at facilities in Philadelphia and the proceeds would be divided up among the conspirators.
As a result of the conspiracy and scheme to defraud, the defendants caused Company A to issue approximately $2.4 million in checks for goods and services that it never received.
Thi Ho, age 51, of Bear, Delaware, who pleaded guilty to conspiracy and interstate transportation of stolen property, was sentenced to 46 months in federal prison and ordered to pay restitution of $2,478,069.16. Chonnathason Has, a/k/a Bora Has, age 54, of Philadelphia and Kevin Miller, age 48, of Bel Air, Maryland, pleaded guilty to their roles in the scheme and are scheduled to be sentenced on August 25, 2021 and October 22, 2021, respectively.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the 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 and https://www.justice.gov/usao-md/community-outreach.
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McKees Rocks Felon Charged with Having a Gun and Ammunition in Violation of Federal LawRead the Press Release
PITTSBURGH, PA – A resident of McKees Rocks, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dayvon Gandy, age 28, formerly of Robb Street, McKees Rocks, PA 15136, as the sole defendant.
According to the Indictment, on July 20, 2021, Harris, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Martinsburg Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Randell Adist, age 50, of Martinsburg, New York pled guilty today to distributing and possessing child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea before United States District Court Judge David N. Hurd, Adsit, who has a prior New York State conviction for possessing a sexual performance by a child, admitted that he distributed child pornography using a social media application from approximately February 2020 through September 2020. Adsit also admitted that, on November 11, 2020, he possessed approximately 40 files depicting child pornography on his cell phone.
When Adist is sentenced on December 22, 2021, he faces at least 15 years and up to 40 years in prison for distributing child pornography and at least 10 years and up to 20 years in prison for possessing child pornography. In addition, Adist will be required to serve a term of supervised release of between five years and life after his term of incarceration and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and Computer Crimes Unit (CCU) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s 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 https://www.justice.gov/psc.
Man Sentenced for Drug Trafficking and Firearms Offenses in Stanly CountyRead the Press Release
GREENSBORO, N.C. - A Mount Gilead man was sentenced today in federal court in Greensboro for knowingly possessing a firearm as a convicted felon and for distribution of fentanyl, announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
JARBARRI RANDALE WALL, age 39, was sentenced to a 204-month term of imprisonment by United States District Judge Catherine C. Eagles. WALL was also ordered to pay a $200 special assessment and submit to 5 years of supervised release following his imprisonment. He was also revoked on his current term of supervised release and sentenced to serve a consecutive sentence of 24 months. WALL pleaded guilty on May 10, 2021, to possession of a firearm by a convicted felon and distribution of 40 grams or more of a mixture and substance containing fentanyl.
According to court documents, law enforcement officers conducted a controlled purchase of fentanyl from WALL using a confidential informant in October 2019. WALL traveled to Albemarle in Stanly County where he sold the informant 56 grams of fentanyl and gave the informant a sample of heroin. In September 2020, WALL told the informant he was traveling to Albemarle and could sell the informant more fentanyl. The informant alerted law enforcement who conducted a traffic stop as WALL drove through Stanly County towards Albemarle, after leaving a residence in Charlotte. A search of WALL’s car revealed marijuana, drug paraphernalia, a bag containing 30 grams of a mixture of heroin and fentanyl, and a FN Herstal 5.7 caliber semi-automatic pistol. The firearm had a 20-round magazine attached and was loaded with 18 rounds. A spare 20-round magazine loaded with 19 rounds was also found inside the car. WALL had $5,320 in cash on him when arrested and admitted to possessing the firearm and narcotics.
WALL had previously been convicted of Social Security Fraud in the U.S. District Court for the Middle District of North Carolina in January 2016 and was sentenced to 20 months’ imprisonment followed by 3 years of supervised release. WALL was still on federal supervised release when he committed these new offenses.
A search warrant later executed at the Charlotte residence maintained by WALL revealed two additional AR-15 style firearms, 61 grams of a mixture of heroin and fentanyl, approximately 900 pills which contained a mixture of both heroin and fentanyl, several firearm magazines including two drum magazines, different calibers of ammunition, 54 grams of marijuana, and a large amount of U.S. currency.
The case was investigated by Homeland Security Investigations, the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Albemarle Police Department, the Stanly County Sheriff’s Office, and North Carolina Alcohol Law Enforcement. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Man Involved in Bridgeport Restaurant Robbery Sentenced to 66 Months in Federal PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JERMAINE OGRINC, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by three years of supervised release, for his role in violent Bridgeport restaurant robbery in 2017.
According to court documents and statements made in court, on November 29, 2017, at approximately 8:00 p.m., Ogrinc and three other men entered the La Sabrosura Restaurant on East Main Street in Bridgeport. The robbers, two of whom were armed with firearms, forced two workers and a customer into the kitchen and ordered them to lie on the floor with their hands behind their heads. Another individual who was in a back room and heard screaming ran from the restaurant and flagged down the police. One of the robbers took a cellphone from one of the victims and cash from another, and the robbers attempted to break into an ATM in the restaurant. After spotting police, Ogrinc and his associates fled. Ogrinc was apprehended a short time later near the restaurant. In an interview with investigators, he admitted to his role in the robbery.
Ogrinc has been detained since his arrest. On March 11, 2021, he pleaded guilty to one count of Hobbs Act Robbery.
This investigation was conducted by the Federal Bureau of Investigation and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Leader of Macon Meth Distribution Ring with Ties to Georgia Prison System Sentenced to Federal PrisonRead the Press Release
MACON, Ga. – A Macon man with a prior federal conviction for distributing methamphetamine was sentenced to serve more than 18 years in federal prison for his role directing a drug trafficking ring with ties to the Georgia prison system responsible for pushing large quantities of “ice” methamphetamine into Middle Georgia.
Richard Charles Allen, aka Chucky, 44, of Macon, was sentenced to serve 220 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Wednesday, August 18, after previously pleading guilty to conspiracy to possess with intent to distribute methamphetamine. There is no parole in the federal system.
“Chucky Allen was obtaining large amounts of ‘ice’ methamphetamine from prisoners and then distributing this deadly drug in Middle Georgia. The DEA and our local law enforcement teams stopped a major source of methamphetamine from flowing into our communities, preventing further harm and death,” said Acting U.S. Attorney Peter D. Leary. “Allen is yet another repeat offender who is now facing federal consequences for choosing to commit crime. Our office will not hesitate to pursue federal charges against repeat felons engaging in the most egregious crimes.”
“DEA is fully committed to tirelessly pursuing criminals who sell drugs, whether they’re selling them on the streets or from inside a prison,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Strong law enforcement partnerships which led to the dismantlement of this once-thriving ‘meth’ ring underscores the power of combined forces and strategic partnerships. These components are vital in the war against ‘meth’ and other dangerous drugs.”
DEA agents began investigating Allen’s illegal narcotics distribution activities in the Middle Georgia region in April 2019. DEA conducted a series of controlled purchases from Allen using a confidential informant (CI) but were unable to identify Allen’s source of methamphetamine supply. As a result, agents sought and obtained a wiretap order on Allen’s phone number from a federal judge. Allen was recorded negotiating the purchase of a total of three kilograms of methamphetamine from an unknown source incarcerated in the Georgia prison system and one kilogram of methamphetamine from co-defendant, Cristian Estrada-Santa Maria, aka Strada, 35, who was also incarcerated in the Georgia prison system. Allen’s courier, co-defendant Joshua Noojin, 40, of Macon, was directed by Allen to retrieve the kilo of methamphetamine sourced by Estrada-Santa Maria. Noojin was taken into custody on September 7, 2019, after obtaining what amounted to be 990 grams of methamphetamine. Noojin was sentenced to serve 130 months in federal prison on July 13, after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. Estrada-Santa Maria was sentenced serve 240 months in federal prison on May 18, after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. In all, Allen is responsible for distributing 1231.462 grams of d-Methamphetamine Hydrochloride, also known as “ice.” Allen has a previous federal conviction for conspiracy to possess with intent to distribute methamphetamine.
The case was investigated by DEA, the Bibb County Sheriff’s Office, the Peach County Sheriff’s Office and the Marietta Police Department.
Criminal Chief and Assistant U.S. Attorney Michael Solis prosecuted the case.
Lafourche Parish Man Sentenced to Ten Years Imprisonment for Federal Drug Distribution ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – MONTRELL CLEVELAND, age 34, a resident of Raceland, Louisiana, was sentenced to 120 months’ imprisonment, 5 years of supervised release, and was ordered to pay $400.00 in special assessment fees by U.S. District Judge Carl J. Barbier after pleading guilty to four counts of a fourteen-count indictment charging him with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty kilograms or more of methamphetamine and use of a communication facility to facilitate a drug trafficking crime, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in January 2018, Special Agents with the Drug Enforcement Administration made two controlled purchases of more than 50 grams of methamphetamine each from Kendall Mathews. After making the controlled purchases, agents obtained court ordered wiretaps of Mathews’s and co-conspirators’ telephones and intercepted numerous calls between Mathews, his co-conspirators including CLEVELAND, and customers in which they negotiated the sales of methamphetamine, cocaine hydrochloride, and heroin. Through their continued monitoring of telephone calls, agents identified a pending narcotics transaction and seized two kilograms of cocaine hydrochloride. Also, agents and officers obtained search warrants for co-conspirators’ residences and seized approximately 148 grams of heroin and 1,300 grams of a mixture or substance containing methamphetamine.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution was handled by Assistant United States
Justice Department Files Suit to Stop Utah Physician from Issuing Opioid and Other Prescriptions in Violation of the Controlled Substances ActRead the Press Release
https://www.justice.gov/opa/pr/justice-department-files-suit-stop-utah-physician-issuing-opioid-and-other-prescriptions
Judge sentences St. Louis man for carjacking and murderRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey sentenced Lashawn Clayburn, 19, of St. Louis, Missouri, to a 25-year term of imprisonment on today’s date. Clayburn pleaded guilty in May to murder and carjacking charges.
On January 5, 2019, Clayburn murdered Naomi Miller as she was about to get into her vehicle that was parked in her driveway outside her residence in Pine Lawn, Missouri. Ms. Miller was intending to go to work as an overnight home healthcare nurse when Clayborn approached her and shot her to death. Clayburn then stole Ms. Miller’s car and went on a joy-riding stint for several hours. During this time, Clayburn picked up two friends and stopped by Steak ‘n Shake for a burger and a milkshake.
The following day, Clayburn met up with a group of friends, who claimed to be members of the “Murdaa Gang,” and traded Ms. Miller’s carjacked vehicle for another stolen vehicle. As a result of a series of leads, Clayburn was interviewed by federal agents. Subsequent to the interview, Clayburn attempted to enlist his cousin to provide a phony alibi on Clayburn’s behalf for the night of the murder and carjacking. As a result of a continuing investigation, Clayburn was indicted by a federal grand jury for the above murder and carjacking, which resulted in Clayburn’s plea of guilty and today’s sentencing.
This case was investigated by ATF, the North County Police Cooperative, the St. Louis Metropolitan Police Department, and the Major Case Squad. Assistant United States Attorney Angie E. Danis is prosecuting this case for the United States of America.
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Johnstown Man Admits Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Willie Gene Gulley, Jr., 52, of Kunkle Street, Johnstown, PA, pleaded guilty to Count One and Count Two of the Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on or about March 1, 2018 and March 20, 2018, Gulley distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Jan. 4, 2022. The law provides for a maximum of 40 years in prison, a fine of $2,000,000, 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.
Assistant United States Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force led the prosecution of Gulley.
Idaho Falls Man Sentenced to 27 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
BOISE – Kim Jarod Kouros Firouzbakhsh, 35, of Idaho Falls, was sentenced in U.S. District Court to 27 months in federal prison for the unlawful possession of a firearm, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered Firouzbakhsh to serve three years of supervised release following his prison sentence.
According to court records, on May 2, 2020, Nampa police officers responded to a report of domestic violence. Officers identified Firouzbakhsh as a suspect and discovered a firearm in his pants pocket. Firouzbakhsh is prohibited from possessing firearms due to a prior felony drug conviction and was on parole at the time of the offense. Firouzbakhsh pleaded guilty to the firearms charge on March 16, 2021.
Acting U.S. Attorney Gonzalez praised the joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nampa Police Department, which led to charges. “It is illegal for convicted felons to possess firearms. Repeat offenders caught with illegal weapons in Idaho will face federal prosecution,” said Mr. Gonzalez. “The Nampa Police Department and departments throughout Idaho are working closely with ATF to hold repeat offenders accountable for their continued criminal actions. We will continue to work together to make cases to keep our community safe from criminal offenders,” he concluded.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.
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Husband and Wife Sentenced in Large-Scale Fraud and Bribery Scheme Involving Two South Florida VA HospitalsRead the Press Release
Miami, Florida – A federal district judge in Fort Lauderdale yesterday sentenced the last of 16 defendants for their roles in a large-scale kickback and bribery scheme involving employees and vendors of the U.S. Department of Veterans Affairs (VA) Medical Centers located in West Palm Beach and Miami.
Earron Starks, 51, was sentenced to 30 months’ imprisonment, followed by three years of supervised release, and ordered to pay $2,451,000 in restitution. His wife, Carlicha Starks, 42, was sentenced to three years of supervised release, including one year of home confinement, and ordered to pay $501,000 in restitution.
Earron and Carlicha Starks, both from Hallandale Beach, Florida, were vendors who sold supplies to the VA. They, as did other vendors, paid kickbacks to VA employees in exchange for getting the VA’s business. Court filings describe how in exchange for cash bribes, medical center employees used government credit cards to order medical and other hospital supplies from these corrupt vendors. In some cases, the prices of the supplies were grossly inflated. In other cases, the orders were only partially fulfilled or not fulfilled at all. Ultimately, the fraud scheme enabled the Starks couple and other corrupt vendors to receive over $20 million in purchase orders with VA Medical Centers in West Palm Beach and Miami.
“There is no place for kickbacks in our veterans’ healthcare system,” said Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida. “These crimes not only violate the public’s trust, they also compromise the integrity of programs intended to help those who have made great sacrifices for our country. The United States Attorney’s Office will hold accountable anyone who tarnishes the VA through fraud, bribes, or other crimes.”
“These crimes were a gross violation of public trust and a threat to the resources used to care for our nation’s veterans and their families. The act of soliciting and accepting bribes undermines the vital work that honest VA employees do every day,” said David Spilker, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG, CI), Southeast Field Office. “The VA OIG is grateful for the United States Attorney’s Office’s partnership in holding these defendants accountable.”
Fourteen additional defendants were charged for their roles in this scheme. They pleaded guilty and received the following sentences:
Defendants who worked at West Palm Beach VA Medical Center (Case Number 19-80223-CR-KAM).
- Clinton Purvis, 54, of West Palm Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 27 months’ incarceration followed by 24 months of supervised release and ordered to pay $1.4 million in restitution.
- Christopher Young, 46, of West Palm Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 24 months’ probation.
- Kenneth Scott, 61, of Riviera Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 24 months’ probation and ordered to pay $295,511 in restitution.
- Robert “Bob” Johnson, 64, of West Palm Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 24 months’ imprisonment followed by 24 months of supervised release and ordered to pay $800,000 in restitution.
Defendants who worked at Miami VA Medical Center.
- Waymon Melvon Woods, 60, of Miami, pleaded guilty to one count of receiving a bribe as a public official and was sentenced to nine months’ incarceration, 36 months of supervised release and ordered to pay $120,505 in restitution (case number 19-20743-CR-FAM).
- Don Anderson, 61, of Port St. Lucie, Fl., pleaded guilty to one count of receiving a bribe as a public official and was sentenced to 10 days of incarceration, 36 months of supervised release, and ordered to pay $31,579 in restitution (case number 19-20746-CR-FAM).
- Jose Eugenio Cuervo, 55, of Miramar, Fl., pleaded guilty to one count of receiving a bribe as a public official and was sentenced to six months of home confinement, 36 months of supervised release, and ordered to pay $8,596 in restitution (case number 19-20748-CR-DPG).
- Donnie Shatek Hawes, 37, of Cutler Bay, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 5 days of incarceration, 24 months of probation, and ordered to pay $2,900 in restitution (case number 19-20745-CR-RNS).
- Robert Lee James Harris, 46, of Miami Gardens, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 6 months of home confinement, 36 months of probation and ordered to pay $7,775 (case number 19-20747-CR-RNS).
- Emir Gilberto Reyes,55, of Homestead, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 60 months of probation and ordered to pay $18,380 (case number 20-20098-CR-FAM).
- Eugene Campbell, 62, of Miami Gardens, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 36 months’ incarceration, 36 months of supervised release, and ordered to pay $592,717 in restitution (case number 19-20744-CR-UU).
Defendants who were VA supply vendors.
- Jorge Flores, 47, of Delray Beach, pleaded guilty to one count of conspiracy to commit healthcare fraud was sentenced to 18 months’ incarceration, 36 months of supervised release, and ordered to pay $2.1 million in restitution (case number 19-80200-CR-RS).
- Robert Kozak, 75, of Boca Raton FL, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 6 months’ incarceration, 36 months of supervised release, and ordered to pay $850,000 in restitution (case number 19-80201-CR-RS).
- Vincent Bellafiore, 47, of Palm Beach Gardens, FL, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 36 months’ probation and ordered to pay a $10,000 fine (case number 20-80077-CR-RS).
All VA employees were either terminated or resigned.
The convictions were the result of a lengthy investigation by Special Agents of VA-OIG CI, who uncovered the extensive scheme after receiving an anonymous tip. A related case in the Eastern District of Pennsylvania resulted in another VA employee being charged with bribery. VA OIG, Criminal Investigations Division, is responsible for conducting independent investigations of VA’s expansive programs and operations, which includes the largest healthcare system in the country.
Assistant U.S. Attorney Amanda Perwin is prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-80202-CR-WP.
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Groundbreaking extradition lands ELN members in Texas for narco-terrorism and international cocaine distributionRead the Press Release
HOUSTON – Two alleged members of one of the most serious transnational criminal organizations will make their initial appearances in U.S. federal court on charges of narco-terrorism and distributing kilogram quantities of cocaine from Colombia.
This is the first time believed members of the National Liberation Army (Ejército de Liberación Nacional aka ELN) have been extradited to the United States in their nearly 60-year history to face both narco-terrorism and drug trafficking charges. ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.
Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited and landed in Houston just moments ago. They are set to appear before U.S. Magistrate Judge Sam Sheldon at 10 a.m. tomorrow.
A federal grand jury returned an indictment against Picon-Rodriguez, Trigos-Celon and others Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.
Picon-Rodriguez is charged with international cocaine distribution conspiracy along with five others. Those six are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).
According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.
In early 2019, Trigos-Celon and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.
Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.
The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.
The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand jury indicts individual for health-care fraud and drug offensesRead the Press Release
ST. LOUIS – On August 18, 2021, a federal grand jury issued a twenty-five count indictment against Katie Diana Rooney charging Rooney with health-care fraud and controlled substance offenses. At the time Rooney allegedly committed these offenses, she was a resident of St. Charles, Missouri.
The indictment alleges that through fraud and deceit, Rooney obtained prescriptions for Adderall and Xanax, both controlled substances. Rooney illegally sold these drugs to an undercover detective. Because the drugs were intended for Rooney’s two minor children, who were both Medicaid recipients, Medicaid paid for the drugs.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Drug Enforcement Administration, the United States Department of Health and Human Services (Office of the Inspector General), and the Missouri Medicaid Fraud Control Unit are investigating this case. The case is being prosecuted by Assistant United States Attorney Dorothy L. McMurtry.
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Grand jury indicts doctor for illegally prescribing controlled substances and other chargesRead the Press Release
ST. LOUIS – On August 18, 2021, a federal grand jury issued a thirteen-count indictment against Matthew Steven Miller, D.O. charging Dr. Miller with illegally prescribing controlled substances and other related offenses. At the time Dr. Miller allegedly committed these offenses, he was licensed to practice medicine in Missouri, Michigan, and New Jersey.
The indictment alleges that Dr. Miller illegally prescribed Xanax to five individuals with whom Dr. Miller did not have a doctor-patient relationship. It further alleges that Dr. Miller was not licensed by the Missouri Bureau of Narcotic and Dangerous Drugs to prescribe Xanax The indictment also alleges that Dr. Miller never examined these individuals to determine whether they had a medical need for Xanax. The indictment additionally alleges that the Xanax that was obtained through the issuance of the illegal prescriptions and/or the money received as a result of the sale of the fraudulently obtained Xanax was shared with Dr. Miller.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Drug Enforcement Administration, the United States Department of Health and Human Services (Office of the Inspector General), and the Missouri Medicaid Fraud Control Unit are investigating this case. The case is being prosecuted by Assistant United States Attorney Dorothy L. McMurtry.
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Grand jury indicts doctor for conspiring to and participating in a nationwide health-care fraudRead the Press Release
ST. LOUIS – On August 18, 2021, a federal grand jury issued a twenty-five count indictment against Scott Taggart Roethle, M.D., an anesthesiologist residing in Kansas, charging Dr. Roethle with conspiring to and participating in a nationwide health-care fraud. At the time Dr. Roethe allegedly committed these offenses, he was licensed to practice medicine in 22 states.
The indictment alleges the following: that beginning in 2017 and continuing until at least 2020, multiple telemedicine and marketing companies paid Dr. Roethle illegal kickbacks, totaling $674,026, to sign prescriptions and orders for orthotics, genetic tests, and topical creams. Dr. Roethle was typically paid $30 for each order or prescription he signed. The marketing and telemedicine companies solicited patients through the media and cold calls and then electronically transmitted patient information to Dr. Roethle through an electronic portal. In almost all instances, Dr. Roethle had no contact with the patients and did not determine if they needed the items or services before he signed the orders. Patients often complained to Dr. Roethle that they did not want or need the items he had ordered for them.
Roethle obtained medical licenses in 22 states and signed orders for thousands of patients residing in these states. Medicare Part B suffered a loss of over $26 million based on fraudulent prescriptions and orders signed by Dr. Roethle.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Department of Health and Human Services (Office of the Inspector General), United States Department of Defense (Office of the Inspector General) are investigating this case. The case is being prosecuted by Assistant United States Attorneys Dorothy L. McMurtry and Derek Wiseman.
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Grand jury indicts 4 individuals on gun and drug chargesRead the Press Release
ST. LOUIS – On August 11, 2021, a federal grand jury indicted Rebecca Hanks, 46, Zachary Siebert, 19, Amelia Siebert, 23, and Richard Frazier, 23, for drug and gun-related offenses that allegedly occurred in Lincoln County, Missouri. All 4 defendants have subsequently been arrested on this indictment.
The defendants are charged with the drug trafficking crime of conspiring to distribute and possess with the intent to distribute marijuana. Each defendant is also charged with possessing a firearm in furtherance of the above drug trafficking crime. In addition to those charges, Rebecca Hanks is charged with one count of being a felon in possession of a firearm and one count of maintaining a drug house located in Lincoln County, Missouri.
The charge of possessing a firearm in furtherance of a drug trafficking crime is punishable by a term of imprisonment of no less than 5 years and no more than life in the United States Bureau of Prisons. According to the relevant federal statute, this sentence must run consecutively to any other sentence imposed.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Lincoln County Sheriff’s Department and the Drug Enforcement Administration (DEA) are investigating this case. The case is being prosecuted by Assistant United States Attorney Geoffrey S. Ogden.
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Georgia Man Convicted of Filing $165 Million in Fraudulent Tax ReturnsRead the Press Release
ATHENS, Ga. – A federal jury convicted a Lilburn, Georgia, man of filing fraudulent tax returns amounting to nearly $165 million in the name of several fake trusts.
Marquet Antwain Burgess Mattox, AKA Marquet Antwain Burgess Mattox El, AKA Marquet Burgess Mattox, AKA Asim Ashunta El, AKA Asim El Bey, 49, was found guilty of nine counts of wire fraud, ten counts of false claims against the U.S. Government and one count of theft of government funds by a federal jury on Wednesday, August 18, following a three-day trial that began on Monday, August 16. U.S. District Judge C. Ashley Royal presided over the trial and will sentence Mattox at a later date. Mattox is in custody. Mattox faces a maximum of 20 years in prison on the wire fraud counts, five years on the false claims counts and ten years on the theft of government funds count. Mattox also faces a period of supervised release, restitution, monetary penalties and forfeiture. There is no parole in the federal system.
“Mattox brazenly filed enormous fraudulent tax returns on made-up trusts—a criminal act that ultimately amounts to attempted theft, pure and simple,” said Acting U.S. Attorney Peter D. Leary. “Thanks to the efforts of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, Mattox will now be held accountable for his scheme.”
“Mattox intentionally manipulated the tax system for personal benefit,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The charges and prosecution shows that we do not tolerate those who seek an unfair advantage over hard-working taxpaying citizens. If you come across such tax schemes, including individuals luring others to commit 1099-OID schemes, please help us fight this inequity by reporting it to IRS Criminal Investigation.”
“TIGTA’s statutory mission includes investigating individuals who interfere with the lawful collection of taxes,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to interfere with IRS employees engaged in the performance of their official duties will be aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office and IRS Criminal Investigation in working with TIGTA to protect the integrity of Federal tax administration.”
According to court documents and evidence presented at trial, between 2016 and 2018, Mattox filed at least 30 fraudulent federal income tax returns in the name of at least 11 different trusts. Those returns falsely represented that the trusts had earned interest income and that federal income taxes had been withheld and paid to the IRS. Mattox then fraudulently requested refunds on behalf of the purported trusts totaling nearly $165 million. The IRS paid approximately $5 million of the requested refunds, which Mattox used to purchase a house, expensive furniture and a luxury automobile.
The case was investigated by IRS-CI’s Atlanta Division and Office of the U.S. Treasury Inspector General for Tax Administration investigated the case.
Assistant U.S. Attorney Lyndie M. Freeman and Trial Attorney Jessica A. Kraft of the Justice Department’s Tax Division are prosecuting the case for the Government.
Former employee sentenced for stealing over $400,000Read the Press Release
McALLEN, Texas - The former controlling manager of Lone Star Shredding’s parent company has been ordered to federal prison for defrauding his employer, announced Acting U.S. Attorney Jennifer B. Lowery.
Brian Janish, 44, pleaded guilty June 10.
Today, U.S. District Judge Randy Crane ordered him to serve a 24-month sentence to be immediately followed by three years of supervised release. The court further ordered Janish to pay $340,293.19 in restitution. At the hearing, the court heard additional testimony from a representative of the company that described the impact the crime had on the business.
Lone Star Shredding is a local subsidiary in Mercedes. Its parent company is located in Tennessee.
At the time of his plea, Janish admitted to using an unauthorized access device and engaging in other fraudulent activity to steal $403,293.19 between July 2013 and December 2017.
As part of his responsibilities, Janish was in charge of establishing bank accounts and approving expenses for the company. When the company switched banks, Janish failed to close the company’s previous bank account or destroy the corporate credit card issued in his name.
In fact, he charged personal expenses on the company credit card, including travel and online goods. Janish also wrote checks from the company account and withdrew cash for personal use. He attempted to cover his fraud by emailing fake bank statements to the company.
The Morristown, Tennessee, resident also increased his payroll without authorization.
Janish was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Stephanie Bauman prosecuted the case.
Former coach charged with distributing pornographic images of childrenRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Rockport man has surrendered to authorities following the return of an indictment alleging charges of distributing and possessing images of sexually-exploited children, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a two-count indictment Aug. 11 against Mark Daniel Malone. He is set to appear before U.S. Magistrate Judge Jason B. Libby tomorrow at 10:15 a.m.
The investigation allegedly revealed Malone was a former high school basketball coach.
According to the indictment, Malone uploaded images of sexually-exploited children onto the internet. The investigation later revealed he had possessed photos of similar victimized children on his cell phone, according to the charges. Those images allegedly included children under the age of 12.
If convicted, Malone faces up to 20 in prison as well as a possible $250,000 maximum fine.
Homeland Security Investigations and the Texas Attorney General’s Office - Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorney Attorneys Molly K. Smith and Dennis E. Robinson are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former bookkeeper sentenced to prison for embezzlementRead the Press Release
ATLANTA – Alice Sue Smith has been sentenced for stealing from her employer while working as the bookkeeper and for filing false tax returns.
“When employees take advantage of their positions of trust to steal from small, family-owned businesses, real victims suffer serious financial harm,” said Acting U.S. Attorney Kurt R. Erskine. “As in this case, there are real and significant consequences for employees who are caught stealing from their employers.”
“Smith let her greed blind her to responsibilities her company entrusted her with,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “For that she will be held accountable.”
“This sentencing sends a clear message that stealing from your employer is not okay,” said Demetrius Hardeman, Assistant Special Agent in Charge, IRS CI Atlanta Field Office. “No one should ever feel they have the right to take what is not theirs. IRS-CI will continue to work diligently, in concert with the FBI and US Attorney’s Office, to ensure everyone pays their fair share.”
According to Acting U.S. Attorney Erskine, the criminal information, and other information presented in court: Alice Sue Smith was the bookkeeper and office manager at Chattanooga Coin, Inc. (“CCI”) from 2004 to 2018. From 2009 to 2018, Smith forged the signatures of CCI’s owners on approximately 1,400 checks that she then cashed. Smith also created fictitious check stubs in CCI’s financial records to cover up her fraud. In total, she stole approximately $1.24 million from CCI over nearly a decade. Smith also failed to report the embezzled funds and other legitimate income on her income tax returns.
Alice Sue Smith, 63, of Fort Oglethorpe, Georgia, has been sentenced to three years, seven months in prison to be followed by three years of supervised release. The Court also ordered her to pay restitution to CCI and the United States of approximately $1.48 million. She was convicted of wire fraud and filing a false tax return on February 11, 2021, after pleading guilty.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with assistance from the Rossville, Georgia Police Department.
Assistant U.S. Attorneys Michael Qin and Russell Phillips prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Nixa School Official Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former assistant principal at Nixa Junior High School in Nixa, Missouri, pleaded guilty in federal court today to soliciting sexually explicit photos from a 13-year-old victim by posing online as a teen girl.
Colby Fronterhouse, 41, of Springfield, Mo., pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of receiving child pornography. Fronterhouse was employed as an assistant principal at the junior high school at the time of the offense; he was terminated on Feb. 8, 2021.
A Christian County sheriff’s deputy was contacted by a 13-year-old child victim and his father in September 2020. The child victim, identified in court documents as “John Doe,” had been engaging in a series of text messages for approximately a week with Fronterhouse, who posed as a 14-year-old girl. Fronterhouse, posing as a 14-year-old, encouraged John Doe to transmit sexually explicit images of himself to Fronterhouse, made specific requests for poses or types of images, and had sexually explicit conversations with John Doe.
Investigators learned that the phone used by Fronterhouse was a burner phone number with a Voice Over Internet Protocol (VoIP) account, but they were able to trace the account to Fronterhouse. Officers executed a search warrant at Fronterhouse’s residence on Jan. 26, 2021, and he was arrested. Investigators seized Fronterhouse’s cell phone and found evidence linking his cell phone to the burner account. Investigators confirmed that Fronterhouse had access to the child victim’s cell phone number through school records.
Under federal statutes, Fronterhouse is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, the Greene County, Mo., Sheriff’s Department, and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
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 . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Federal indictment unsealed alleging massive Muscogee County, Georgia fraud; former county clerk charged and in custodyRead the Press Release
COLUMBUS, Ga. – A federal grand jury has returned an indictment charging eight people, including the former Deputy Clerk of Muscogee County Court, with various criminal charges including bank fraud, wire fraud and interstate transportation of stolen property amounting to an alleged loss of nearly $500,000 to Muscogee County during an 11-month period in 2019.
Willie Demps, 63, of Phenix City, Alabama, is charged with one count conspiracy to commit bank fraud, 35 counts of wire fraud and 34 counts of interstate transportation of stolen property. If convicted, Demps faces a maximum sentence of 30 years on the conspiracy charge, a maximum sentence of 20 years on each of the wire fraud charges and a maximum sentence of ten years on each of the interstate transportation charges. Each count of conviction also carries a maximum of three years of supervised release and a maximum $250,000 fine. Demps’ initial appearance is scheduled for Tuesday, August 24, at 11 a.m. in Columbus federal court before U.S. Magistrate Judge Stephen Hyles.
Curtis Porch, 48, of Columbus, is charged with conspiracy to commit bank fraud, wire fraud, and interstate transportation of stolen property. If convicted, Porch faces the same potential penalties as co-defendant Demps.
Dereen Porch, 43, of Columbus, is charged with conspiracy to commit bank fraud. If convicted, Porch faces a maximum sentence of 30 years in prison, three years of supervised release and a maximum $250,000 fine.
Terry McBride, 43, of Smiths Station, Alabama, is charged with conspiracy to commit bank fraud, 31 counts of wire fraud and 31 counts of transportation of stolen property. If convicted, McBride faces the same potential penalties as co-defendant Demps.
Samuel Cole, 72, of Columbus, is charged with conspiracy to commit bank fraud, two counts wire fraud, two counts transportation of stolen property and false statements. If convicted, Cole faces the same potential penalties as co-defendant Demps, plus a maximum of five years, a $250,000 fine and three years of supervised release on the false statements charge.
Rosalee Bassi, 65, of Lawrenceville, Georgia, is charged with one count conspiracy to commit bank fraud. If convicted, Bassi faces the same potential penalties as co-defendant Dereen Porch.
Lamarcus Palmer, 34, of Smiths Station, Alabama, is charged with conspiracy to commit bank fraud and wire fraud. If convicted, Palmer faces a maximum of 30 years on the conspiracy charge, a $250,000 fine and three years of supervised release. If convicted of wire fraud, he faces a maximum of twenty years imprisonment, a $250,000 fine and three years of supervised release.
George Cook, 33, of Columbus, is charged with conspiracy to commit bank fraud. If convicted, he faces the same potential penalties as co-defendant Dereen Porch.
According to the now unsealed indictment, handed down by a federal grand jury on Wednesday, August 11, and unsealed on Wednesday, August 18, Demps, who worked for the Muscogee County Clerk for approximately 30 years, supervised money deposits received by the Clerk’s Office. The Clerk’s Office received money from fines and condemnations, and payments were frequently made in cash. Most of the cash was given to Demps, who had the responsibility of depositing Muscogee County funds. Demps is accused of making Clerk of Superior Court checks payable to various co-defendants in dollar amounts he filled in and endorsed. Demps would allegedly meet various co-defendants in locations away from his place of business at the Clerk’s Office to give the illicit checks to them to be cashed at banks in Columbus and in nearby Alabama. The co-defendants are accused of cashing the checks and returning the money to Demps, who would allegedly give the participating co-defendant a portion of the money. It is alleged that during the time period between January 2019 to November 2019, Demps and his co-defendants cashed at least $467,331 in checks stolen from the Muscogee County Clerk’s Office.
FBI, IRS and the Columbus Police Department are investigating the case.
Assistant U.S. Attorney Mel Hyde is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Prosecutor Receives Prestigious Legal AwardRead the Press Release
KANSAS CITY, Mo. – Jeffrey Q. McCarther, Assistant U.S. Attorney for the Western District of Missouri, has been named a recipient of the prestigious Lon O. Hocker Award in recognition of his outstanding trial work in federal court.
“Jeff McCarther has been on the front line of our effort to make our community safer by getting violent criminals off the street and behind bars,” said Acting U.S. Attorney Teresa Moore. “Jeff has worked diligently to aggressively prosecute drug traffickers, armed robbers, kidnappers, carjackers, felons and others who illegally possess firearms. Jeff confronts some of the most dangerous criminals in court and brings them to justice. Combatting violent crime is one of our highest priorities, and his dedication and professionalism have earned the respect of the legal community.”
Each year, the Missouri Bar recognizes one attorney under the age of 40 in the Kansas City, Mo., area who exemplifies the qualities of a trial lawyer, including professionalism and high ethical conduct. Awards are also presented to one attorney in the St. Louis, Mo., area and to one attorney in the remaining counties. The Missouri Bar Foundation describes the Lon O. Hocker Award recipients: “The recipients are chosen based on their demonstrated balance between zealousness and honor, strength and courtesy, and confidence and respect. They must possess a quick wit in the courtroom that is supported by meticulous preparation in the pursuit of truth.”
McCarther has been a federal prosecutor for seven years in the Violent Crime and Drug Trafficking Unit of the U.S. Attorney’s Office. He prosecutes felony crimes related to robbery, kidnapping, carjacking, drug trafficking conspiracies, the illegal possession of firearms, as well as other violent and drug-related crimes. Since joining the U.S. Attorney’s Office in 2014, McCarther has successfully prosecuted 18 jury trials, as well as three bench trials.
For example, in 2019 McCarther earned convictions against two defendants who were indicted for kidnapping, robbing, and terrorizing three women during a violent, hours-long crime spree. The victims were threatened with a sawed-off shotgun as their kidnappers forced them to withdraw money from ATMs. One of the victims escaped when police officers recognized the stolen car in which she was being held. The others were able to flee from their captors. The jury deliberated less than two hours before returning guilty verdicts on 17 charges apiece. One defendant was later sentenced as an armed career criminal and “three strikes” violent felon to four consecutive terms of life in federal prison without parole. The other defendant was sentenced to 60 years in federal prison without parole.
In another case, a defendant was convicted at trial for illegally possessing the firearm he had used to shoot his girlfriend. He was found guilty of being a felon in possession of a firearm and sentenced to 17 years in federal prison without parole.
Another defendant was sentenced to 10 years in federal prison without parole after being convicted at trial of participating in a conspiracy to manufacture methamphetamine. His co-defendants, who pleaded guilty, possessed 80,000 pseudoephedrine pills at the time of their arrest – enough to produce approximately three kilograms of pure methamphetamine with a street value of more than $100,000.
McCarther was born, raised, and currently resides in Kansas City, Mo. He is a 2005 graduate of Northwestern University in Evanston, Illinois, and a 2009 graduate of the University of Missouri School of Law in Columbia, Mo. Prior to joining the U.S. Attorney’s Office, McCarther was an Assistant Prosecuting Attorney at the Jackson County, Mo., Prosecutor’s Office and, before that, a civil attorney at a top national law firm.
Lon O. Hocker Award
Mary B. Hocker established the Lon O. Hocker Award in 1954 in memory of her late husband, an outstanding trial lawyer who practiced in St. Louis for more than 50 years. The Missouri Bar Foundation gives the award annually to lawyers who have demonstrated unusual proficiency in the art of trial advocacy.
Traditionally, the Missouri Bar Foundation presents these awards at its Awards Luncheon during The Missouri Bar Annual Meeting. The Annual Meeting this year will be held virtually as it was last year. Nominations were taken from throughout the state by previous Lon O. Hocker Award winners, the Missouri Bar president, leaders, or members-at-large. The review committee was comprised of three or more federal or state judges.
Federal Jury Convicts Stephens County Man of Abusive Sexual Contact with a Child Under 12Read the Press Release
OKLAHOMA CITY – Last week, a federal jury convicted LAWRENCE JUNIOR LOFTIS, 65, of Stephens County, of abusive sexual contact with a child under 12 years old, announced Acting U.S. Attorney Robert J. Troester.
On April 20, 2021, a federal grand jury returned a three-count Indictment against Loftis, charging him with aggravated sexual abuse and abusive sexual contact with a child under 12 years old.
On August 13, 2021, after a four-day trial, a federal jury found Loftis guilty of abusive sexual contact with a child under 12 years old. Evidence at trial showed that, between early 2018 and late 2019, Loftis knowingly engaged in and caused sexual contact with a child, who was then eight to ten years old. The jury heard testimony from witnesses who had helped bring the sexual abuse to light, from the child victim, and from the Stephens County Sheriff’s Office investigator who interviewed Loftis. Finally, the jury heard the testimony of another victim who had been sexually abused by Loftis for many years when that person was a child. The jury did not reach a verdict on the two counts charging Loftis with aggravated sexual abuse of a child.
At sentencing, Loftis faces a maximum penalty of life in federal prison, restitution to the child victim, and a fine of up to $5,000. Loftis is in federal custody pending sentencing, which is expected in approximately 90 days.
Federal jurisdiction existed in this case because the crime was committed in Indian Country and Loftis was Native American.
This case is the result of investigations by the Federal Bureau of Investigation – Oklahoma City Field Division and the Stephens County Sheriff’s Office. Assistant U.S. Attorneys Bow Bottomly and Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
FCI Schuylkill Inmates Sentenced for Possession of Contraband in PrisonRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 18, 2021, Jose Martinez, age 54, and David Montserrate Torres, age 33, both inmates at the Federal Correctional Institute-Schuylkill, Minersville, Pennsylvania, were sentenced by U.S. Magistrate Judge Joseph F. Saporito, Jr. to one month imprisonment following their separate convictions for possession of contraband in prison. Both sentences are to be served consecutive to the inmates’ current sentences.
According to Acting United States Attorney Bruce D. Brandler, both Martinez and Montserrate Torres were inmates within the satellite camp at FCI-Schuylkill when they were found to be in possession of prohibited objects including a cellphone, charging cable, charging adapter, and a pair of earbuds on July 18, 2021.
The case was investigated by Bureau of Prisons. Assistant U.S. Attorneys Jeffrey St. John and James M. Buchanan prosecuted the cases.
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Extradición histórica lleva a miembros del ELN a Texas por narcoterrorismo y distribución internacional de cocaínaRead the Press Release
HOUSTON – Dos presuntos miembros de una de las organizaciones delictivas transnacionales más temerarias tendrán una audiencia inicial en una corte federal de EE. UU. por cargos de narcoterrorismo y distribución de cocaína en cantidades superiores a un kilogramo desde Colombia.
Es la primera vez que se extradita a Estados Unidos a presuntos miembros del Ejército de Liberación Nacional (ELN) en los casi 60 años de existencia de la organización para enfrentar cargos por narcoterrorismo y narcotráfico. El ELN es una organización guerrillera colombiana que fue designada oficialmente como organización terrorista extranjera el 8 de octubre de 1997. Sigue operando como una de las organizaciones de narcoterrorismo más extensas del mundo.
Yamit Picón-Rodríguez, alias Choncha, de 36 años, y Henry Trigos-Celón, alias Moncho Picada, de 44, fueron extraditados y llegaron a Houston por vía aérea hace instantes. Está previsto que comparezcan ante el juez federal Sam Sheldon mañana a las 10 a.m.
Un jurado federal de acusación dispuso el procesamiento de Picón-Rodríguez, Trigos-Celón y otras personas el 12 de febrero de 2020. Las autoridades colombianas aprehendieron a estas personas a pedido de Estados Unidos en septiembre de 2020.
Picón-Rodríguez está acusado de conspiración con fines de distribución internacional de cocaína junto a otras cinco personas. A los seis se los acusó también de distribución de sustancia controlada y de realizar actos orientados a proporcionar elementos de valor pecuniario, o a sabiendas de que serían proporcionados, a una persona o una organización que participa en terrorismo o actividades terroristas (narcoterrorismo).
Según la acusación, Picón-Rodríguez, Trigos-Celón y otras personas estuvieron implicadas en una conspiración por un lapso de 20 años para distribuir cocaína desde Colombia hacia Estados Unidos con la intención de proporcionar apoyo económico al ELN o a sabiendas de que tal apoyo se brindaría.
A comienzos de 2019, Trigos-Celón y otras cuatro personas presuntamente participaron en la distribución de cerca de 30 kilogramos de cocaína en Colombia, con conocimiento de que se importaría a Estados Unidos.
Villegas-Palomino, alias Carlos El Puerco, de 38 años, presunto líder del ELN, también fue acusado pero todavía no ha sido detenido. Se lo considera fugitivo, al igual que Jaime Miguel Picón-Rodríguez, alias Chencho y Jairo, de 38 años, y Diomedes Barbosa-Montaño, alias El Burro, de 38. Se ha librado una orden para su detención. Se pide a quienes tengan información sobre sus paraderos que se contacten con el FBI llamando al 1-800-CALL-FBI o enviando cualquier dato valioso a tips.fbi.gov. El Departamento de Estado de EE. UU., a través de su programa de recompensas relacionadas con narcóticos, ofrece hasta $ 5 millones a cambio de información que posibilite que se detenga o condene a Villegas-Palomino.
Las Divisiones de Houston del FBI y de la Administración para el Control de Drogas (Drug Enforcement Administration, DEA) llevaron a cabo la investigación como parte de los Grupos de Tareas contra la Narcodelincuencia Organizada (Organized Crime Drug Enforcement Task Forces, OCDETF). Los agentes del FBI y la DEA en Bogotá brindaron un apoyo sustancial, al igual que la División de Operaciones Especiales, un organismo de carácter interinstitucional dentro del ámbito del Departamento de Justicia (DOJ), incluidos abogados asignados desde la Sección de Narcóticos y Drogas Peligrosas, así como agregados judiciales del DOJ en Colombia, con la cooperación de las autoridades colombianas. También prestaron asistencia esencial la Oficina de Asuntos Internacionales del DOJ, el Departamento de Policía de Houston, el Comando Sur de EE. UU. y varios socios internacionales, entre ellos el Ejército, la Policía Nacional, la Fiscalía General de la Nación y el Cuerpo Técnico de Investigación de Colombia.
La operación, que recibió el nombre de Relámpago de Catatumbo (Catatumbo Lightning), forma parte de una iniciativa del Grupo de Ataque de OCDETF que prevé la conformación de equipos de tareas interinstitucionales permanentes que trabajen codo a codo en un mismo lugar. Este modelo de emplazamiento conjunto permite que agentes de distintos organismos colaboren en operaciones basadas en datos de inteligencia en múltiples jurisdicciones para interceptar y desarticular el accionar de los narcotraficantes, responsables de blanqueo de capitales, pandillas y organizaciones delictivas transnacionales de mayor envergadura. La misión específica del Grupo de Ataque de Houston es interceptar, desbaratar y enjuiciar a las organizaciones de narcotráfico que han sido designadas como Organización Identificada de Prioridad Consolidada u Organización Identificada de Prioridad Regional y sus organizaciones afiliadas que tienen impacto en Houston y el sur de Texas.
Los fiscales federales auxiliares Casey N. MacDonald y Aníbal Alaniz del Distrito Sur de Texas impulsan la acusación.
El escrito de procesamiento es una acusación formal de una conducta delictiva y no constituye prueba de esta. Se presume la inocencia de los acusados hasta tanto se demuestre su culpabilidad sin lugar a duda racional en un tribunal de justicia.
Essex County Man Indicted for Gunpoint Robbery of Cell Phone StoreRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted by a federal grand jury today for his role in a January 2021 gunpoint robbery of a cell phone store in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Kenneth Graham, 49, of Newark, is charged by indictment with one count of Hobbs Act Robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. He will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
On Jan. 18, 2021, Graham was in a cell phone store when he drew a gun and pointed it at a store employee. Graham ordered the employee to place several cell phones from the display case and cash from the register into his bag. Video surveillance footage near the store showed Graham enter a black Nissan Altima after the robbery and drive away. Witnesses confirmed that Graham was the person entering the Nissan Altima after robbing the store.
The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison. It also carries a mandatory minimum sentence of 25 years of prison in this case because Graham was previously convicted of the same crime in 2007 in connection with three gunpoint bank robberies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and members of the East Orange Police Department, under the direction of Chief Phylis Bindi, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the Violent Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Erie Man Pleads to Drug and Gun Charges following PSP InvestigationRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Chancelor Amir Jordan, 37, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about February 4, 2020, Jordan possessed with intent to distribute more than 30 grams of fentanyl. The court was advised that Jordan also possessed a 9mm Taurus semi-automatic handgun, ammunition, cash, and a press used for packaging controlled substances.
Judge Cercone scheduled sentencing for December 13, 2021 at 1:00 p.m. The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. 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.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Jordan.
Eleven Indicted for Distribution of Heroin Across Wasatch FrontRead the Press Release
SALT LAKE CITY – Eleven members of a Wasatch Front heroin distribution ring face federal charges for distributing heroin in Utah and Idaho in an indictment unsealed Monday in federal court.
The indictment is based on a multi-month wiretap investigation into a drug trafficking organization that conspired to distribute multiple kilograms of heroin along the Wasatch Front, including Utah County, Salt Lake County, Tooele County, and Davis County, and into Idaho. During the investigation, close to 2 kilograms of heroin were seized, with multiple kilograms running through the organization since at least December of 2020. Five firearms, two of which are stolen, were also seized during the investigation.
During the approximately six-month investigation, agents completed 13 controlled purchases of heroin from members of the distribution ring. The organization in Utah operated as a cell of a much larger network of drug trafficking activity that originated in Mexico and that includes cells in Colorado and other states.
Antonio Giron-Fernandez, 39, of Orem, who is alleged to be the leader of the Utah distribution network, is charged with conspiracy to distribute heroin, distribution of heroin, and illegally reentering the United States after being removed. Also charged in the indictment are: Fernando Antonio Medina-Garcia, 23, of Orem, who is charged with conspiracy to distribute heroin, distribution of heroin, and possession of heroin with the intent to distribute; Juan Carlos Heredia-Perez, 21, of Orem, who is charged with conspiracy to distribute heroin; Jesus Alberto Zarate-Pacheco, 26, of Orem, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; Eric Ryan Francis, 35, of West Valley City, who is charged with conspiracy to distribute heroin, possession of heroin with the intent to distribute, and being a convicted felon in possession of a firearm; Michael Shane Ellison, 47, of Provo, who is charged with conspiracy to distribute heroin; Jacob Elizardo Aragon, 28, of Cottonwood Heights, who is charged with conspiracy to distribute heroin, possession of heroin with the intent to distribute, and for being a user of controlled substances in possession of a firearm; Marc Anthony Pagni, 33 of Salt Lake City, who is charged with conspiracy to distribute heroin; Christina Ann Chance, 40, of Nampa, Idaho, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; Kimberly Jo Hancock, 56, of Eagle, Idaho, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; and, Jonathan Christopher McGuire, 41, of West Valley City, who is charged with conspiracy to distribute heroin.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office are prosecting the case. Special Agents from FBI’s Safe Streets Task Force, including detectives from the West Valley City Police Department, along with detectives from the Davis Metro Narcotics Task Force and the Layton City Police Department, conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
East Bay Man Sentenced to over Six Years in Prison for Possessing Child PornographyRead the Press Release
OAKLAND – Shawn Jamison Prichard was sentenced today to 78 months in prison, for possession of child pornography, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Prichard, 42, of Antioch, pleaded guilty to the charge on March 31, 2021. According to the plea agreement, Prichard admitted that he knew he was in possession of sexually explicit images of children. The images included videos and images showing prepubescent children engaged in sexually explicit conduct as well as images of sadistic or masochistic depictions of children engaged in sexually explicit conduct and visual depictions of sexually explicit conduct perpetrated by adults on infants or toddlers. Prichard admitted to possessing more than 600 images of child pornography. Documents filed by the government in the case establish that an investigation into Prichard began after the National Center for Missing and Exploited Children received a Cybertip from a social media company. At the time the Cybertip was made, Prichard worked as a registered nurse for a hospital in the East Bay.
On February 12, 2021, Prichard was charged by information with a single count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2). He pleaded guilty to the count.
In addition to the prison term, Judge Gilliam also sentenced the defendant to a five-year term of supervised release and scheduled a hearing for October 20, 2021, to consider issues regarding restitution. Judge Gilliam ordered the defendant to begin serving his prison term on or before September 29, 2021.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Kay Konopaske, Kathleen Turner, and Leeya Kekona. The prosecution is the result of an investigation by HSI, the Silicon Valley Internet Crimes Against Children Task Force, the Contra Costa County Sheriff’s Office.
Eagle Butte Woman Indicted for Assault and Drug ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer and two counts of Possession with Intent to Distribute a Controlled Substance.
Frances Sioux Montero, age 40, was indicted on August 10, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $1,000,000 fine, three years up to life of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 12, 2021, and June 1, 2021, Montero knowingly and intentionally possessed methamphetamine in Eagle Butte with intent to distribute the drug. Further, on June 1, Montero resisted a lawful arrest and caused the arresting officer to cut his finger when they fell to the ground and a methamphetamine pipe Montero had been holding shattered.
The charges are merely accusations and Montero is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Montero was released on bond pending trial. A trial date has not been set.