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Thursday 1 July 2021
Orlando Man Sentenced to Ten Years for Conspiring and Distributing Fentanyl-Laced HeroinRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Freddie Miguel Velez-Gonzalez (53, Orlando) to 10 years in federal prison for conspiring to possess with the intent to distribute and distributing more than 40 grams of fentanyl and more than 100 grams of heroin.
Velez-Gonzalez had pleaded guilty on March 22, 2021.
According to court documents, Velez-Gonzalez was a member of a drug trafficking organization (DTO) that distributed controlled substances including, heroin, fentanyl, cocaine, marijuana, and tramadol, in the Middle District of Florida. On six dates between approximately April 23 and August 11, 2020, at the direction of law enforcement, a confidential source negotiated and met with Velez-Gonzalez at the same designated location and purchased from him a total of over 100 grams of mixtures containing heroin, fentanyl, or a combination of the two substances. Velez-Gonzalez sold the drugs to the confidential source to further a drug trafficking conspiracy with other members of the DTO, including Inginio Santos-Garcia, a co-defendant of Velez-Gonzalez.
On September 8, 2020, authorities arrested Velez-Gonzalez and Santos-Garcia at an address on Brosche Road in Orlando from which they were distributing narcotics in furtherance of the conspiracy. Santos-Garcia pleaded guilty on November 9, 2020, and was sentenced to eight years in federal prison on April 14, 2021.
This case was investigated by the Drug Enforcement Administration and the Orlando Police Department. It was prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Ilianys Rivera-Miranda.
Oregon Man Pleads Guilty for Role in Covid-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today for his role in a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Russell Anthony Schort, 39, of Myrtle Creek, Oregon, pleaded guilty to bank fraud.
Schort worked with his accomplice, Andrew Aaron Lloyd, 51, of Lebanon, Oregon, to take advantage of the Small Business Administration’s Paycheck Protection Program (PPP), an integral part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March 2020. The CARES Act provided emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.
According to court documents, on May 1, 2020, Lloyd submitted a PPP loan application under Schort’s business name, Schort Lee Construction, to U.S. Bank. Included in the loan application package was a false IRS form 944 listing 2019 wages paid of more than $3 million. The application also included a fake list of fifty-six employees and the wages purportedly paid to each employee.
Based on these false representations, U.S. Bank processed the PPP loan application, resulting in the disbursal of more than $600,000 into Schort’s bank account. Three days later, Schort transferred $307,000 to Lloyd’s bank account, who used the funds to purchase securities through an online brokerage account.
On January 5, 2021, Schort was charged by criminal complaint with wire fraud, bank fraud, and money laundering. On June 8, 2021, he was charged by superseding criminal information with bank fraud.
Schort faces a maximum sentence of 30 years in prison, a $1 million fine, and five years of supervised release. He will be sentenced on October 21, 2021 before U.S. District Court Judge Michael J. McShane.
As part of his plea agreement, Schort has agreed to pay no less than $294,552 in restitution to the U.S. Treasury.
On June 17, 2021, Lloyd pleaded guilty to bank fraud, money laundering, and aggravated identity theft.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Operator of Residential Nursing Facility Sentenced for Health Care FraudRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to two years in prison for defrauding the Virginia Medicaid program by submitting over $188,000 in false claims for a residential nursing facility.
“For three years, the defendant used his position as a nursing home operator to fraudulently obtain over $188,000 from the Virginia Medicaid program,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Health care fraud takes funding and critical services away from those who truly need it. We will continue to hold accountable those who exploit these essential health care programs at the expense of vulnerable members of our communities.”
According to court documents, Lopez Scott, 47, operated Turning Points Residential Care, a business authorized to provide residential support services and skilled nursing services to recipients of Medicaid. Between October 2016 and October 2019, Scott submitted numerous false and fraudulent claims to Virginia Medicaid, known as the Virginia Medical Assistance Program (VMAP), which misrepresented that 5,847.75 hours of skilled nursing services had been provided to a Medicaid recipient. As a result, Scott received approximately $188,297.39 in health care payments to which he was not entitled.
“When Lopez Scott launched his fraud scheme, he threatened the integrity of the Medicaid program and illegally pocketed taxpayer funds meant to pay for the legitimate care of needy patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services (HHS) Office of the Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their unprincipled actions.”
According to court documents, in order to conceal and cover up the fact that no skilled nursing services had been provided to the Medicaid recipient, Scott created fraudulent entries of nursing notes in the electronic office records of Turning Points, including the forged signature of a nurse, which falsely indicated that such services had been provided. Scott also asked this nurse to falsely state to investigators that she had continued to work for the company even after her employment had ceased.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for HHS, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Alan Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-104.
Old Town Man Pleads Guilty to Possessing Short-Barreled ShotgunRead the Press Release
BANGOR, Maine: An Old Town man pleaded guilty today in federal court in Bangor to possessing an unregistered firearm, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on September 8, 2020, Stephen Warren, 37, was pulled over by the Old Town Police. He was issued a summons for operating a motor vehicle with a suspended license and served with a protection order. Warren was told not to operate his car due to his suspended license. He ignored this order, however, and drove away from the area. Officers attempted to stop him again, but he failed to stop and a brief pursuit occurred before he was eventually stopped and arrested.
A subsequent inventory search of Warren’s car revealed a short-barreled shotgun without a serial number that was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of a weapon made from a shotgun, if the modified weapon has a barrel less than 18 inches in length or an overall length of less than 26 inches, unless that weapon is registered to the possessor in the NFRTR.
Warren faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Old Town Police Department investigated the case.
North Las Vegas Woman Pleads Guilty to Stealing over $200,000 in Social Security Retirement BenefitsRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas woman pleaded guilty today to unlawfully collecting over $200,000 of her deceased mother’s Social Security retirement benefits. She also admitted to wrongfully taking over $20,000 of her deceased mother’s annuity payments from a life insurance company.
According to court documents and admissions made in court, Inez Baker Cone, 74, held a joint bank account with her mother. The Social Security Administration (SSA) directly deposited her mother’s retirement benefits into the joint account. When her mother passed away in 1995, Baker Cone did not inform the SSA that her mother had died and was accordingly no longer eligible to receive retirement benefits. Instead, nearly two years after her mother’s death, Baker Cone changed her mother’s mailing address with the SSA to her own home address.
Similarly, Baker Cone changed her mother’s mailing address with Transamerica Life Insurance Company to her own home address in order to wrongfully collect her mother’s annuity payment checks mailed by the company. Baker Cone deposited the checks by forging her late mother’s signature. From April 1995 to September 2020, Baker Cone unlawfully obtained approximately $200,244 of SSA retirement benefits and $22,763 of annuity payments from Transamerica Life Insurance Company.
Baker Cone pleaded guilty to one count of theft of government property. She is scheduled to be sentenced by U.S. District Judge Richard F. Boulware II on October 14, 2021, and she faces a statutory maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. attorney Christopher Chiou for the District of Nevada and Inspector General Gail S. Ennis for the Social Security Administration Office of Inspector General (SSA OIG) made the announcement.
This case was investigated by the SSA OIG. Assistant U.S. Attorney Eric Schmale is prosecuting the case.
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Niece of Veteran Pleads Guilty to Stealing Va Benefits Intended for Her UncleRead the Press Release
Montgomery, Ala. – On Wednesday, June 30, 2021, Mende Leone, also known as Shirl Lee Cook, 37, pleaded guilty to misappropriation of a federal benefit by a fiduciary, announced Acting United States Attorney Sandra J. Stewart. Leone resided in Phenix City, Alabama at the time of the crime.
This case involves the fraudulent misapplication by a fiduciary of funds provided by the U.S. Department of Veterans Affairs (VA) intended for the sole benefit of a veteran. The VA’s mission is to provide and care for United States military veterans. Among its many programs, the VA administers a fiduciary program designed to protect certain VA beneficiaries who, as a result of injury, disease, or infirmities of advanced age, or by reason of being less than the age of majority, cannot manage their VA benefits. Under this program, the VA may appoint a relative or some other fiduciary to receive payments of benefits on behalf of the beneficiary for the use and benefit of the veteran.
According to court records, Mende Leone was the niece of a veteran living in Phenix City who was receiving benefits from the VA and was eventually appointed to serve as his fiduciary. In late 2014, the VA notified Leone that a large retroactive payment of benefits would be made on behalf of her uncle. A short time after these payments, the VA received a tip that large transfers had been made from the veteran’s bank account where his funds were being held. When looking into the matter, the VA discovered that from March-May of 2015, Leone wrote several checks from the veteran’s fiduciary account made payable to her mother, Shirley Ann Moreman, who is also the veteran’s sister. Moreman either cashed or deposited the checks into her personal account and then almost immediately withdrew most of the money. Moreman and Leone then used the money for their personal use and not for the benefit of the veteran. The investigation revealed that Leone and Moreman misappropriated at least $151,000.00 of VA benefits intended for the veteran.
Both Leone and Moreman were indicted by a federal grand jury in March 2020 for their roles in the scheme. However, Moreman passed away in February 2021 before her case could be adjudicated. At some date in the coming months, Leone will be scheduled for a sentencing hearing where she faces a maximum sentence of five years in prison, as well as monetary penalties and restitution.
“Stealing benefits from a veteran is a despicable crime,” stated Acting U.S. Attorney Stewart. “Our country owes a debt to all service members for their sacrifice and we must ensure that they are protected from those that would take advantage of them for personal gain. I am grateful that the Department of Veterans Affairs quickly discovered this illegal activity and my office stands ready to use every tool available to investigate and prosecute those that target our most vulnerable citizens.”
“The OIG is committed to prioritizing the protection of vulnerable veterans from unscrupulous fiduciaries that use veterans’ VA benefit payments for personal gain,” stated David Spilker, Special Agent in Charge at the VA Office of Inspector General (VA OIG). “The defendant abused her position of trust as a VA fiduciary to enrich herself and her mother—siphoning taxpayer dollars intended to support a disabled veteran’s needs.”
The U.S. Department of Veterans Affairs Office of Inspector General investigated this case, with assistance from the Russell County Sheriff’s Office and the Russell County Department of Human Resources (DHR) Adult Protective Service. Assistant United States Attorney Stephanie Billingslea and Special Assistant U.S. Attorney Thomas Govan are prosecuting the case.
Monroe County Man Sentenced to 36 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald McKenna, age 41, of Monroe County, Pennsylvania, was sentenced on June 30, 2021, to 36 months’ imprisonment by United States District Court Judge Malachy E. Mannion for drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, McKenna pleaded guilty to distributing between 80 and 100 grams of heroin (which is the equivalent of 3,200 to 4,000 individual doses) and accepting a firearm in exchange for heroin.
The case was investigated by the Federal Bureau of Investigation and the Stroud Area Regional Police Department. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is 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.
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Moncks Corner Man Who Shot at Berkeley County Deputy and Pointed a Gun at U.S. Marshals Sentenced to 30 Years in Federal PrisonRead the Press Release
Charleston, South Carolina ––– Acting United States Attorney M. Rhett DeHart announced today that Ricky DeWayne Johnson, 35, of Moncks Corner, has been sentenced to 30 years in federal prison, after pleading guilty to assaulting two members of the United States Marshal’s Fugitive Task Force and unlawfully possessing a firearm.
“Anyone foolish enough to point a gun at federal law enforcement yet fortunate enough to survive should know that they will be prosecuted to the full extent of the law,” said Acting U.S. Attorney DeHart. “Our law enforcement officers – local, state, and federal – put their lives on the line each day to protect and serve the public. Our office will never tolerate criminals threatening or shooting at our brave men and women in uniform.”
Evidence presented in court showed that, just after 2:00 AM on March 22, 2018, a deputy with the Berkeley County Sheriff’s Office attempted to stop a truck for traffic violations. While the truck initially slowed and pulled into a gas station parking lot, it quickly pulled out and led the deputy on a high-speed chase into a residential subdivision. The driver of the vehicle, later identified as Johnson, made a U-turn in a neighborhood and fired a .45 caliber pistol at the pursuing deputy. Johnson continued driving until he made an abrupt stop, where he pointed the handgun at the deputy who had exited his vehicle and had drawn his weapon. When the deputy took cover, Johnson sped off and made his way to a cul-de-sac in the neighborhood, where he exited the vehicle and ran from the deputy.
Upon searching the truck, which had been stolen, deputies located inside a spent casing for a .45 caliber round and a .22 caliber handgun. Another spent casing was discovered nearby in the street. After deputies established a search perimeter, they learned that a van had been stolen around where the suspect had fled on foot. Hours later, two members of the U.S. Marshals Fugitive Task Force located Johnson in downtown Summerville, activated blue lights, and pulled up behind Johnson in an attempt to apprehend him. Johnson attempted to flee and, during the ensuing foot chase, pulled a handgun from his jacket and pointed it at the pursuing Marshals. The Marshals opened fire at Johnson and brought him down. Investigators recovered a .45 caliber handgun loaded with 4 rounds of ammunition from Johnson who was treated for a gunshot wound in a local hospital and taken into custody.
Federal law prohibits Johnson from possessing firearms and ammunition, as he was previously convicted of a crime punishable by imprisonment of more than one year. Johnson’s criminal history includes prior convictions for second degree burglary in 2009 and 2010, grand larceny in 2009 and 2013, possession with intent to distribute methamphetamine in 2014, financial transaction card theft in 2009, breaking into motor vehicles in 2010, and failure to stop for blue lights in 2014 and 2015.
United States District Court Judge Margaret B. Seymour sentenced Johnson to the statutory maximum of 30 years in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol Tobacco Firearms & Explosives (ATF), the United States Marshals, the South Carolina State Law Enforcement Division (SLED), and the Berkeley County Sheriff’s Office. The Ninth Circuit Solicitor’s Office worked with the U.S. Attorney’s Office to secure Johnson’s plea.
Assistant United States Attorney Chris Schoen prosecuted the case.
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Meth trafficker sentenced to 12 years in prison in Billings conspiracyRead the Press Release
MISSOULA – A man convicted in a methamphetamine conspiracy in which he helped bring the drug to Billings for distribution was sentenced today to 12 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
James Moe McPhail, 35, unknown hometown, pleaded guilty on March 4 to conspiracy to possess with intent to distribute meth. McPhail was detained.
U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the government alleged that in July 2019, law enforcement learned that McPhail, while incarcerated at Crossroads Correction Center, was in contact with co-defendant, Todd William Weidler, to arrange for delivery of meth to Weidler in Billings. Investigators also learned that Weidler always had meth on hand, could usually sell ounces in a matter of minutes and conducted all of his business from his BMW or Range Rover in parking lots.
In September 2019, law enforcement searched Weidler’s residence, vehicles and storage units and recovered meth and approximately $11,900 in currency. Law enforcement estimated Weidler distributed at least 1,153.3 grams, or about 2.5 pounds, which is the equivalent of about 9,060 doses. Weidler was sentenced to 10 years in prison for conviction in the case.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Montana Department of Corrections, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Maryland Accountant Convicted of Preparing False Tax Returns for D.C. ResidentsRead the Press Release
A federal jury in the District of Columbia convicted a Maryland woman today for preparing three false tax returns for District of Columbia residents that claimed more than $1.1 million in fraudulent refunds.
According to court documents and evidence presented at trial, Charese Johnson, of Aberdeen, Maryland, operated Prodigy Accounting Services and prepared false amended income tax returns in 2014 for three District of Columbia taxpayers. Those returns fraudulently claimed large refunds based upon fictious refundable credits and phony withholdings that had never been paid to the IRS.
Johnson is scheduled to be sentenced on Sept. 17 and faces a maximum penalty of three years in prison on each count. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
Special Agents of IRS-Criminal Investigation investigated the case.
Trial Attorneys Abigail Burger Chingos and Jeffrey McLellan of the Justice Department’s Tax Division are prosecuting the case.
Martin County Resident Pleads Guilty to Child ExploitationRead the Press Release
Miami, Florida -- Today, Nikolas Cook, 22, of Stuart, Florida, pled guilty in federal district court in Ft. Pierce to production, distribution, and possession of child pornography.
According to court documents, on September 10, 2020, Cook communicated with others in a social media group created for individuals interested in child sexual abuse material. While participating in the chat group, Cook produced and distributed multiple pornographic images of a three-year-old girl. An investigation led agents to Cook’s residence. Agents arrested Cook within 12 hours of learning of his activity in the chat group. During a search of Cook’s residence, agents located electronic devices containing multiple sexually explicit images and videos of minor children being sexually abused.
The court will set a date for Cook’s sentencing hearing. Cook faces a minimum of 15 years in prison and a maximum possible sentence of 70 years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez and Special Agent in Charge for FBI Miami George L. Piro announced the guilty plea.
The Federal Bureau of Investigation and Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Daniel E. Funk and Luisa Berti are prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
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-14007.
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Marine Corps Official Sentenced to Prison for Taking $100,000 in Bribes in Exchange for Directing over $2,000,000 Worth of Transportation Contracts to AssociateRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ERIK MARTIN, aged 49, was sentenced on June 29, 2021 to 45 months in prison by the Honorable Wendy B. Vitter for taking bribes in exchange for directing transportation contracts to Darrel Fitzpatrick, an Atlanta businessman, after previously pleading guilty to his role in the bribe conspiracy scheme. MARTIN will also serve two (2) years of supervised release after prison. MARTIN will also owe restitution to the government, which will be determined at a future hearing.
On December 29, 2020, MARTIN pleaded guilty to Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(2). MARTIN faced up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
According to the Factual Basis, in 2019 Darrel Fitzpatrick was a senior account manager at Company A, a bus brokerage company that provided transportation to the United States Marine Corps Reserves. That same year, Fitzpatrick started a competing transportation brokerage company called National Charter Express.
In 2019, Fitzpatrick agreed to pay kickbacks to MARTIN, a civilian employee of the United States Marine Corps Reserves, in exchange for Martin directing business to Company A, and then later, National Charter Express. The conspiracy resulted in at least $2,000,000 in transportation contracts being corruptly awarded to companies associated with Fitzpatrick over six months in 2019. In exchange, Fitzpatrick wired and attempted to wire MARTIN over $250,000 in bribes in a series of at least four transactions. Fitzpatrick was charged separately for his role in the scheme and is scheduled to be sentenced on July 8, 2021, by United States District Judge Carl J. Barbier in case number 20-cr-150, “J.” Additionally, government authorities successfully forfeited approximately $1,000,000 of the criminal proceeds from accounts belonging to one or more of the defendants.
“This sentencing should serve as a warning that perpetrators who seek to defraud the Department of the Navy will always be exposed and investigated to the fullest extent,” said NCIS Southeast Field Office Special Agent in Charge Thomas Cannizzo. “Mr. Martin’s reprehensible scheme to accept bribes in exchange for directing Marine Corps contracts to a specific transportation company damaged the integrity of the DON procurement process, wasted American taxpayer money, and squandered valuable investigative resources. NCIS and our partners remain committed to rooting out bribery and corruption that threatens warfighter readiness.”
“I’d like to thank the U.S. Attorney’s Office and the Naval Criminal Investigative Service for partnering on this important investigation,” stated DCIS Special Agent in Charge Cynthia Bruce. “I am pleased that we were able to secure a significant forfeiture to take back ill-gotten gains from the defendants and send the message that ultimately crime does not pay.”
U. S. Attorney Evans praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorneys Myles Ranier and Andre Lagarde.
Man sentenced for procuring firearms used in Atlanta-area crimesRead the Press Release
ATLANTA – Ben’Andre Javon Goolsby has been sentenced to prison for unlawfully acquiring dozens of firearms, several of which were later recovered by police at various crime scenes in the metro-Atlanta area and beyond.
“Goolsby’s illegal purchases of firearms helped fuel the violence in our community,” said Acting U.S. Attorney Kurt R. Erskine. “Those who illegally receive, possess, and peddle weapons face prosecution and significant federal prison terms for their actions.”
“By putting guns in the hands of criminals, Mr. Goolsby has violated the trust of his community, the trust of those he should care about and has contributed to the unnecessary violence in our communities,” said Arthur Peralta, ATF Special Agent in Charge. “It is not okay to buy guns for people who cannot legally own them and doing so has consequences.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From October 2017 through the date of his arrest in May 2020, Ben’Andre Javon Goolsby purchased 33 pistols from a federally licensed firearms dealer in Jonesboro, Georgia. Most of the firearms were 9mm and .40 caliber pistols. On several occasions, Goolsby purchased multiple guns of identical make, model, and caliber within a single week.
During each transaction, Goolsby falsely stated to the firearms dealer that he was not under indictment for a felony offense. In fact, Goolsby knew at the time of each of his many purchases that he had been indicted in Rockdale County, Georgia, for a smash-and-grab burglary and other crimes. Those charges related to a 2014 break-in at a pawn shop from which Goolsby and others stole numerous firearms. Because federal law prohibits any person under indictment from receiving firearms, each of Goolsby’s purchases was unlawful.
Several of the guns that Goolsby purchased found their way into the hands of people who sought to—and did—use them unlawfully. For example, in September 2018, police officers in Forest Park, Georgia, pulled over a car in which one of the 9mm pistols Goolsby bought was found alongside two other guns, pepper spray, walkie-talkies, and a taser. The vehicle’s occupants were dressed entirely in black and had black masks and gloves.
In June 2019, sheriff’s deputies in Decatur, Georgia, found another of Goolsby’s 9mm pistols in the possession of a fugitive who was wanted on aggravated assault charges. A month later, also in Decatur, police confiscated a Goolsby-purchased .40 caliber pistol from a 19-year-old suspected of robbing a jewelry store and burglarizing a dollar store and gas station.
Ben’Andre Javon Goolsby, 25, of Atlanta, Georgia, was sentenced on June 25, 2021, by U.S. District Judge Michael L. Brown, to three years, four months in prison to be followed by three years of supervised release. Goolsby was convicted of making false statements to a federally licensed firearms dealer and unlawful receipt of a firearm, after he pleaded guilty on January 11, 2021.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Man admits meth trafficking in Great Falls, role in crime spree of stolen ATVsRead the Press Release
GREAT FALLS – A Florida man today admitted trafficking methamphetamine in Great Falls and transporting stolen property after he was arrested in Missouri driving a truck and pulling a stolen trailer loaded with $80,000 in stolen ATVs and other items, Acting U.S. Attorney Leif M. Johnson said.
Harold Goodson Hill, 37, pleaded guilty to possession with intent to distribute meth and to interstate transportation of stolen property. Hill faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug crime and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the transportation of stolen property crime.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Oct. 21. Hill was detained pending further proceedings.
The government alleged in court documents that in September 2020, the Great Falls Police Department responded to series of theft complaints around town of various items, including an ATV from a pickup truck. While responding to a report, officers found Hill asleep in the driver’s seat of a vehicle and seized stolen items found in the vehicle. In October 2020, law enforcement learned Hill had been selling meth in Great Falls and that he was receiving suspicious packages from Las Vegas to an address he had in Townsend. Officers stopped Hill after he picked up a package at the Townsend post office, seized the package and determined it contained 1.9 pounds of meth. Hill told agents he had come to Montana from Virginia in April 2020 and admitted to distributing meth. The agents released Hill.
The government further alleged that Hill rented a 26-foot Penske truck in Whitehall on Oct. 29, 2020. A trooper in Missouri ultimately stopped the Penske truck, which was pulling a trailer that had been stolen from Broadwater County and had a license plate stolen from Belgrade. Hill was the driver and sole occupant of the truck. Officers searched the truck and trailer and found five ATVs and a UTV that had been stolen in Bozeman, Great Falls and Spearfish, S.D., along with a Toro lawnmower and other items. The estimated value of the stolen items was $80,000.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case, which was investigated by the FBI, Drug Enforcement Administration, Great Falls Police Department, Russell Country Drug Task Force, Broadwater County Sheriff’s Office, U.S. Postal Service, Gallatin County Sheriff’s Office, South Dakota Division of Criminal Investigation, Belle Fourche Police Department, South Dakota, Sioux Falls Police Department, South Dakota, and Missouri State Highway Patrol.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Major International Automotive-Parts Suppliers Restructure Deal to Resolve Antitrust ConcernsRead the Press Release
Auto parts supplier Tupy agreed to restructure its acquisition of Teksid after the Department of Justice raised concerns that the merger would result in higher prices and reduced quality and timeliness of production for crucial components used in heavy-duty engines. As initially proposed, the deal would have combined the two most significant suppliers of engine blocks and cylinder heads for heavy-duty engines to customers in North America. These components are key inputs for engines used in large trucks, construction and agricultural equipment, as well as numerous other vehicles.
Under the original agreement, Tupy would have acquired Teksid’s entire iron automotive components business from Teksid’s parent company Stellantis N.V. The original acquisition included Teksid’s plant and other assets in Mexico used to manufacture iron blocks and heads for U.S. automotive customers. Following the restructuring, Tupy will acquire only Teksid’s iron operations in Brazil and Portugal. Teksid will retain its iron operations in Mexico and continue to compete with Tupy to supply U.S. customers.
“Tupy’s decision to restructure their merger is a victory for American engine manufacturers and consumers,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “I commend our team for their diligence in conducting a thorough investigation, a testament to the division’s resolve to enforce the antitrust laws. As originally proposed, the transaction would have eliminated competition that keeps prices low and quality high for vital industries such as transportation and agriculture.”
Tupy S.A., a Brazilian company headquartered in Brazil, is the largest supplier of iron blocks and heads for heavy-duty engines to customers in North America. Tupy owns four iron foundries, two in Brazil and two in Mexico.
Teksid S.p.A., an Italian corporation headquartered in Italy, is a wholly-owned subsidiary of Stellantis, a multinational automobile manufacturer headquartered in Amsterdam, the Netherlands. Teksid is the second largest supplier of blocks and heads for heavy-duty engines in North America. Teksid owns iron foundries in Mexico, Brazil, Poland, and Portugal. Teksid is also part of a joint venture that owns an iron foundry in China.
Luzerne County Man Sentenced to 120 Months’ Imprisonment for Conspiracy to Possess and Distribute MethamphetamineRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wilver Veras, a/k/a “Gavi,” age 31, of Hazleton, Pennsylvania, was sentenced to 120 months’ imprisonment to be followed by five years on supervised release on June 29, 2021, by U.S. District Court Judge Robert D. Mariani for conspiring to possess and distribute methamphetamine.
According to Acting United States Attorney Bruce D. Brandler, Veras previously pleaded guilty to conspiring to possess and distribute 50 grams and more of actual methamphetamine throughout Hazleton and other parts of Luzerne County. Veras’s involvement in the charged conspiracy began in January 2018 and ended with his arrest in September 2018.
The case was investigated jointly by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Landlord to Pay $90,000 under the False Claims Act for Violating HUD Rules by Renting Subsidized Section 8 Apartment to RelativeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mikhail Geneles (“Geneles”), will pay $90,000 to resolve False Claims Act allegations that he illegally claimed subsidies from the Department of Housing and Urban Development (“HUD”) while renting an apartment to his father-in-law in violation of the department’s requirements.
The settlement resolves allegations that, between May 2010 and May 2020, Geneles rented a subsidized apartment to his relative in violation of the Housing Choice Voucher Program’s (“HCVP”) requirements. The HCVP is commonly known as Section 8 housing. In the agreement, the United States alleges that Geneles participated as a landlord in the HCVP, a program whereby HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market. The government alleges that Geneles submitted documents to the Bucks County Housing Authority (which administers the HCVP in Bucks County) falsely certifying that the assisted tenant in Geneles’ rental property was not an immediate relative of the property’s owners. In fact, the sole tenant was Geneles’ father-in-law, which precluded Geneles’ receipt of HCVP rental subsidies.
“HUD instituted the HCVP program to help low-income residents without other options to obtain decent housing,” said Acting U.S. Attorney Williams. “By investigating this case, we put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.” Williams added, “From the time that this matter was brought to his attention, Mr. Geneles committed himself to setting things right. We appreciate his cooperative approach and efforts toward rectifying the problem.”
“The U.S. Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and community stakeholders to ensure that Federal funds intended to help low-income families are not wasted or misapplied,” said Acting Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and by the Bucks County Housing Authority. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Lakeland Man Sentenced to More Than 9 Years in Federal Prison for Downloading and Possessing Child Sex Abuse Videos from the DarkwebRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jack R. Dove, III (40, Lakeland) to nine years and two months in federal prison for receiving and possessing videos and other images depicting the sexual abuse of children. The court also ordered Dove to pay $13,000 in restitution to victims of the offenses and to forfeit electronic devices used in the commission of the offenses.
Dove had pleaded guilty on March 29, 2021.
According to court documents, Dove used bitcoin to pay for membership to a particular Darknet marketplace that contained more than 100,000 videos depicting the sexual exploitation of children, the largest volume of child sexual exploitation materials on the Darknet. In March 2018, the Korean National Police Agency in South Korea seized the computer server that was used to operate the website.
This particular Darknet marketplace exclusively advertised child sexual exploitation videos available for purchase and downloading by members of the website using bitcoin. An analysis of the server revealed that Dove had created multiple accounts. In January and February 2017, Dove used one of his accounts to purchase “points” from the website. Dove then used those “points” to download and received nearly 9 gigabytes of child sexual abuse materials. In August 2018, Dove used another account to pay for “VIP” membership to this website, granting him unlimited downloads from the website for a six-month period. During his VIP membership status, Dove downloaded and received 38 videos depicting children being sexually exploited and abused, including children under the age of 12.
On November 30, 2018, federal agents executed a search warrant at Dove’s residence and seized several electronic devices. Forensic analyses of those devices confirmed Dove had in fact received the child sex abuse videos he had previously purchased from the Darknet marketplace and, also, that he possessed additional materials depicting the sadistic sexual abuse of young children, including infants and toddlers.
“As crimes become more sophisticated and advanced technology is being used to sexually exploit young children, our HSI special agents, and all of law enforcement must stay ahead of the criminals,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “This case is an example of a child predator who thought he could hide behind the Darknet and international borders, but was instead caught and will now be held accountable for his crimes against children.”
This case was investigated by Homeland Security Investigations. The original international investigation was led by the IRS-Criminal Investigation, Homeland Security Investigations, the National Crime Agency in the United Kingdom, and the Korean National Police of the Republic of Korea. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Ilyssa Spergel, with assistance provided by U.S. Department of Justice Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Withdraws from Settlement with the National Association of RealtorsRead the Press Release
Today the Justice Department’s Antitrust Division filed a notice of withdrawal of consent to a proposed settlement with the National Association of Realtors (NAR). The department has also filed to voluntarily dismiss its complaint without prejudice. The department determined that the settlement will not adequately protect the department’s rights to investigate other conduct by NAR that could impact competition in the real estate market and may harm home sellers and home buyers. The department is taking this action to permit a broader investigation of NAR’s rules and conduct to proceed without restriction.
“The proposed settlement will not sufficiently protect the Antitrust Division’s ability to pursue future claims against NAR,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Real estate is central to the American economy and consumers pay billions of dollars in real estate commissions every year. We cannot be bound by a settlement that prevents our ability to protect competition in a market that profoundly affects Americans’ financial well-being.”
As the real estate industry’s leading trade association, NAR has rules and policies that affect millions of real estate brokers and agents and, in turn, impact millions of American home buyers and sellers, who, according to reported industry data, paid over $85 billion in residential real estate commissions last year. The department filed a complaint and proposed settlement on Nov. 19, 2020. The complaint alleged that NAR established and enforced certain rules and policies that illegally restrained competition in residential real estate services. The proposed settlement sought to remedy those illegal practices and encourage greater competition among realtors, but it also prevented the department from pursuing other antitrust claims relating to NAR’s rules.
Under a stipulation signed by the parties and entered by the court, the department has sole discretion to withdraw its consent to the proposed settlement. The proposed settlement may also be modified with consent from the department and from NAR. The department sought NAR’s agreement to modify the settlement to adequately protect and preserve the department’s rights to investigate and challenge additional conduct by NAR, but the department and NAR could not reach an agreement. Because the settlement resolved only some of the department’s concerns with NAR’s rules, this step ensures that the department can continue to enforce the antitrust laws in this important market.
Juneau Man Sentenced to 15 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
JUNEAU – A Juneau man was sentenced to 15 years in federal prison followed by 35 years of supervised release for the sexual exploitation – receipt of child pornography. Also, he must pay $9,000 to the known victims.
According to information presented in court, Arthur Moe Martin, 51, became the subject of an investigation in December 2017 when the Anchorage Cyber Crimes Unit received a cybertip from the National Center for Missing and Exploited Children (NCMEC). An online internet email provider contacted NCMEC with a tip regarding the download of an image involving a prepubescent female engaged in sexual conduct with an adult male. The email account was located in Juneau. The Federal Bureau of Investigation (FBI) and the Juneau Police Department identified and contacted Martin as the owner of the email account. Martin admitted that he possessed electronic images of sexually exploited children and turned over his cell phones and computer to law enforcement where they found more than 200 images of very young children being sexually exploited. In 1995, Martin was convicted in Alaska state court for sexually abusing a minor.
“Sexual exploitation of children is especially abhorrent, and the harm caused to the child victims lasts for the rest of their lives,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “There is no place in society for these acts on children and our office will vigorously pursue all of those who perpetuate these crimes.”
“Now more than ever, our children need to be protected from online predators seeking to exploit their innocence,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “It’s a top priority of ours at the FBI, and thanks to this dedicated investigation and prosecution team, there is now one less predator roaming our streets.”
The Federal Bureau of Investigation (FBI) and Juneau Police Department conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Jack Schmidt prosecuted the case.
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 U.S. Attorneys’ Offices, Project Safe Childhood combines 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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Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross sentenced Joe Lea, 34, of St. Louis, to 48 months in prison today. Lea pleaded guilty to being a felon in possession of a firearm.
On July 30, 2019, two members of the North County Police Cooperative were on patrol in the area of the Wellston Food Market when the officers observed Lea exit a vehicle and drop what appeared to be controlled substances to the ground. Lea retrieved the suspected controlled substances and placed them in a satchel that Lea was wearing.
The officers approached Lea to investigate further. Lea refused to cooperate and initiated a struggle with the officers. During the struggle, Lea struck one of the officers in the face and ran. As Lea fled on foot, Lea tossed a firearm and his satchel to the ground. After doing so, Lea eventually stopped running and was arrested.
Lea’s nine-millimeter firearm was seized. It was loaded with 26 rounds of ammunition. Inside Lea’s satchel, officers seized 17 capsules containing fentanyl; two additional loaded nine-millimeter firearm magazines, and additional loose rounds of ammunition.
Prior to July 30, 2019, Lea was convicted of at least one felony crime.
The North County Police Cooperative investigated the case.
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Judge sentences Fairview Heights man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Court Judge Rodney W. Sippel sentenced Darryl Lewis today to 37 months in prison and ordered Lewis to pay $2,250 in restitution. The 22-year-old Fairview Heights, Illinois resident pleaded guilty in April to one count of being a felon in possession of a firearm.
On June 5, 2019, Lewis stole multiple items from a car parked in a garage in the 1100 block of Washington Avenue in downtown St. Louis. One of the items was a camouflage-colored DPMS Panther 5.56 caliber A15 firearm with a 30-round magazine. Garage surveillance cameras captured Lewis carrying the firearm out of the garage. The firearm was reported stolen to the St. Louis Metropolitan Police Department two days later.
Police detained Lewis, on June 12, 2019, after encountering him near the crime scene and recognizing Lewis as the person in the surveillance video carrying the stolen firearm. Lewis initially denied ever being in the garage, but later admitted he was the individual in the surveillance video holding the firearm stolen from the car.
Police seized Lewis’s cell phone. A search warrant was issued to obtain the phone's content. A search of the phone revealed photographs, created on the same day the firearm was stolen, of a rifle matching the description of the stolen firearm.
Prior to June 5, 2019, Lewis had been convicted of at least one felony crime.
The St. Louis Metropolitan Police Department investigated this case.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 28 was:
James Michael Gunderson, 58, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Gunderson faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gunderson was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-44.
Leslee Marie Kinsey, 29, a transient, on charges of theft of mail. If convicted of the most serious crime, Kinsey faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Kinsey was detained pending further proceedings. The U.S. Postal Service investigated the case. PACER case reference. 21-42.
Eric Antonio Espinoza, 30, a transient, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Espinoza faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Espinoza was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-43.
Appearing on June 29 and pleading not guilty was:
Jessy James Zachariah Harwood, 29, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Harwood faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Harwood was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-39.
Michael Andrew Cuellar, 30, a transient, on charges of bank fraud, aggravated identity theft and theft of mail. If convicted of the most serious crime, Cuellar faces a maximum 30 years in prison, a $250,000 fine and five years of supervised release. Cuellar was detained pending further proceedings. The U.S. Postal Service investigated the case. PACER case reference. 21-42.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 29 was:
William Daly Harrington, 42, of Helena, on charges of distribution of child pornography and possession of child pornography. If convicted of the most serious crime, Harrington faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Harrington was released pending further proceedings. The FBI, Lewis and Clark County Sheriff’s Office, Homeland Security Investigations and Internet Crimes Against Children Task Force investigated the case. PACER case reference. 21-05.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Indicted for Illegal Firearms Trafficking Using the United States MailRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a two-count indictment charging Luis Christian Montalvo-García with conspiracy to engage in illegal firearms trafficking and to receive firearms illegally from outside of this district, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, between March and June 2021, Luis Christian Montalvo-García conspired to receive firearms from states including Texas and Pennsylvania, to sell them in Puerto Rico. Among other events:
- In March 2021, Montalvo-García communicated with a co-conspirator regarding the mailing of a package containing a firearm from Texas.
- In April 2021, Montalvo-García received a communication regarding a rifle, handgun, and accessories for sale for $2,700. In response to a request from a co-conspirator, Montalvo-García sent a photo of a rifle, a magazine, and AK-47 accessories. Montalvo-García also received a message regarding a rifle with a price of $1,500.
- In May 2021, Montalvo-García communicated regarding various models of Glock pistols with magazines and accessories.
- In June 2021, a co-conspirator in Pennsylvania sent via U.S. Priority Mail Express two packages with a firearm frame, a firearm slide, five magazines and firearm accessories to Montalvo-García in Puerto Rico, which Montalvo-García attempted to take possession of.
Montalvo-García is not a licensed importer or dealer in firearms.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The United States Postal Inspectors and the Department of Homeland Security are jointly in charge of the investigation. If convicted, the defendant faces a maximum of five years in prison.
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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Hillsboro Man Pleads Guilty in Mail and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon man pleaded guilty today after stealing hundreds of pieces of residential mail throughout the Portland Metropolitan Area and using the personal identity of one local resident to purchase a luxury car.
Dwayne Leroy Daan, 42, pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.
According to court documents, between February and May 2020, Daan stole more than 800 pieces of mail from residences in Portland, Beaverton, West Linn, Milwaukee, and Hillsboro, Oregon. Some of the mail was stolen using a counterfeit U.S. Postal Service arrow key. On April 20, 2020, Daan used the stolen identity of a local resident to obtain a line of credit and purchase a 2018 Audi for $51,031 from a car dealership in Milwaukee.
On July 16, 2020, a federal grand jury in Portland returned a four-count indictment charging Daan with possessing stolen mail and a counterfeit U.S. Postal Service arrow key. Later, on June 29, 2021, a superseding criminal information added felony charges for bank fraud and aggravated identity theft.
With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Daan in jointly recommending a 90 months federal prison sentence to run concurrently with sentences previously imposed in the Multnomah and Washington County Circuit Courts for similar conduct. If the recommended federal sentence is imposed, the Clackamas County District Attorney’s Office will move to dismiss pending charges filed against Daan in the Clackamas County Circuit Court.
Daan will be sentenced on September 29, 2021 before U.S. District Court Judge Michael W. Mosman.
As part of his plea agreement, Daan has agreed to pay restitution in full to his victims and abandon his right to criminally derived proceeds and property seized by law enforcement.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations, the Portland Police Bureau, West Linn Police Department, and Hillsboro Police Department. This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Havre woman admits trafficking fentanyl pillsRead the Press Release
GREAT FALLS – A Havre woman accused of trafficking fentanyl pills on the Rocky Boy’s Indian Reservation and in Hill and Cascade counties admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Amber Victoria Standingrock, 24, pleaded guilty to possession with intent to distribute controlled substances as charged in an information during an arraignment and plea change hearing. Standingrock faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Oct. 21. Standingrock was detained pending further proceedings.
In court documents filed in the case, the government alleged that on April 15, a Great Falls Police Department officer arrested Standingrock on an outstanding warrant. During a subsequent search of Standingrock’s purse, the officer found $2,825 in cash, two cellular phones and about 40 small blue pills, identified as fentanyl. Officers served a search warrant on Standingrock’s vehicle and phones and located four identical pills, $150 in cash and communications in which Standingrock appeared to be arranging the sale of “fettys,” which is common slang for fentanyl pills. Law enforcement executed a search warrant on Standingrock’s Facebook account and retrieved communications showing her arranging and proposing sales of fentanyl pills.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI, Great Falls Police Department and Russell Country Drug Task Force.
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Havelock Man Convicted of Multiple Drug OffensesRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Havelock man yesterday on charges of conspiring to distribute and possess with intent to distribute more than a kilogram of heroin, four counts of distributing heroin and aiding and abetting, and one count of possessing with intent to distribute more than a kilogram of heroin.
According to court records and evidence presented at trial, Daryl Lee Godette, 36, conspired to distribute over a kilogram of heroin in the Havelock area for approximately one year from 2018–2019. He involved several people in his scheme, including a co-defendant. In that time, Godette distributed quantities of heroin on at least four occasions. Godette also maintained a separate residence for storing bulk amounts of heroin and preparing it for sale. A search warrant of that residence revealed over 1,200 grams of heroin and extensive drug distribution paraphernalia.
Godette, who was on federal supervised release at the time of the new offenses, faces a mandatory minimum of fifteen years in prison when sentenced in September 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. Havelock Police Department, Carteret County Sheriff’s Office, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorneys Lucy Brown and John Parris are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-82.
Harahan Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that CHARLES A. LOPEZ (“LOPEZ”), age 28, of Harahan, Louisiana, pled guilty on June 30, 2021 to receipt of child pornography in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1).
The case against LOPEZ developed as a result of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). On April 30, 2019, HSI agents and special agents with the Louisiana Bureau of Investigation executed a federal search warrant at LOPEZ’s Harahan home and determined LOPEZ received images and videos depicting the sexual exploitation of minors.
LOPEZ faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, a $250,000.00 fine, and a $100.00 mandatory special assessment fee. Sentencing in this matter is scheduled for September 29, 2021, before United States District Judge Ivan L. R. Lemelle.
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."
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Chief of Financial Crimes Unit, Assistant U.S. Attorney Brian M. Klebba.
Guilford County Man Sentenced for Distribution of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced on July 1, 2021, to 188 months in prison for distribution of child pornography.
Christian Dean Hall, 35, was indicted in October, 2020, on one count of distribution and attempted distribution of child pornography and one count of possession of images containing child pornography. He later pleaded guilty to one count of distribution of child pornography on December 17, 2020.
According to court documents, in April, 2020, an online covert employee (OCE) encountered Hall after graphic messages were sent in a group chat on the app Kik. After engaging directly with Hall, the OCE asked Hall if he had any child pornography in his collection. In response, Hall sent multiple videos to the OCE containing child pornography. Investigators obtained Hall’s name, email, and address and discovered that he was a Visual Arts teacher at Gate City Charter Academy in Greensboro. Upon execution of a search warrant at Hall’s residence in Greensboro, agents from the Federal Bureau of Investigations discovered hundreds of photos and videos containing child pornography on multiple accounts and devices. After initially denying that he was part of the conversation with the OCE, Hall later admitted sharing graphic content involving minors despite knowing that it was illegal to do so.
This case was investigated by the Federal Bureau of Investigations and the Greensboro Police Department and was prosecuted by Assistant U.S. Attorney Kennedy Gates and Assistant U.S. Attorney Nicole R. Dupre.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Greenbush Man Pleads Guilty to Unlawfully Possessing AmmunitionRead the Press Release
BANGOR, Maine: A Greenbush man pleaded guilty today in federal court in Bangor to being a felon in possession of ammunition, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on multiple dates at the end of January 2021, David Phillips, 30, was seen on video purchasing ammunition at a gun and ammunition store in Maine. These purchases were confirmed on Phillips’ debit card. The ammunition he purchased was not manufactured in the state of Maine. He was prohibited from possessing ammunition under federal law because he had previously been convicted in Connecticut state court of Violation of a Protective Order, a crime that was punishable by a term of imprisonment exceeding one year.
Phillips faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Penobscot County Sheriff’s Office; the Maine State Police; and the Bangor Police Department investigated the case.
Grand jury indicts St. Louis man for arson and possession of a destructive deviceRead the Press Release
ST. LOUIS – A federal grand jury indicted 23-year-old Rashaad Cotton for arson and one count of possession of a destructive device on Wednesday. Police arrested the St. Louis resident on April 30, 2021.
According to the indictment, on April 30, 2021, Cotton maliciously tried to damage and destroy a building located in the 1400 block of Beale Street in St. Charles, Missouri using fire and explosive materials.
Cotton knowingly possessed a destructive device (Molotov cocktail) consisting of a glass bottle filled with an ignitable liquid with a wick inserted into the neck of the bottle.
For the arson count, Cotton faces a maximum punishment of at least five years but not more than 20 years in prison and a fine of up to $250,000. For the destructive device count, the maximum punishment is 10 years in prison and a fine of up to $10,000.
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 St. Charles Police Department and ATF are investigating this case. The case is being handled by Assistant United States Attorney John Ware.
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Four Indicted for Wire Fraud, Mail Fraud and Money Laundering in International Telemarketing Scheme Targeting SeniorsRead the Press Release
Myrtle Beach, South Carolina ––– Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a 13-count indictment charging four in the Myrtle Beach area for an alleged international telemarketing scheme targeting seniors.
Fabian Gray, a/k/a Mike Taylor, 29; Avia Reid, 29; Khalelah Powell, 20; and Romaine Gordon, 29, all of Myrtle Beach, have been charged with conspiracy to commit wire fraud, wire fraud, mail fraud, and conspiracy to commit money laundering.
The indictment alleges that, since June 2015, the four defendants knowingly, willfully, and intentionally conspired to defraud victims by use of telemarketing. Namely, it is alleged that the defendants and their co-conspirators falsely informed more than 100 victims, most of them elderly, that the victims had won large awards of money and then convinced the victims that they had to pay fees in advance in order to receive their awards.
The indictment further alleges that the defendants and their co-conspirators sent communications purported to be from a genuine sweepstakes company, financial institutions, and even federal agencies that discussed the purported cash awards, designed to hide the true nature of the conspiracy and to convince victims of the authenticity of the winnings and fees. The defendants then allegedly instructed how and whom the bogus fees and taxes were to be sent. After receiving the victims’ money through prepaid cards, money orders, cash, personal checks and wire transfers, the defendants in turn wire transferred and carried to co-conspirators in Jamaica and elsewhere.
It is alleged in the indictment that at least $665,000 was stolen in the scheme.
The maximum penalty the defendants could receive per count is 20 years imprisonment and a fine of $250,000. Because the indictment alleges that the defendants targeted victims over the age of 55, the defendants face an enhanced penalty of up to 10 additional years for the first 12 counts of the indictment.
All defendants are currently detained pending trial. During the detention hearing of several of the defendants, information was presented to the court that the defendants are all originally from Jamaica and that at least two of the defendants are in the United States without legal status.
The case was investigated by Homeland Security Investigations (HSI). Assistant United States Attorney Derek Shoemake is prosecuting the case.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fort Myers Businessman Sentenced to Three Years in Federal Prison for COVID Relief Fraud and Mortgage FraudRead the Press Release
Fort Myers, Florida – Senior U.S. District Judge John Steele has sentenced Casey David Crowther (35, Fort Myers) to three years and one month in federal prison for two counts of bank fraud, two counts of making a false statement to a lending institution, and two counts of money laundering. The court also ordered Crowther to forfeit $2,739,081.21, $630,482.37, and a 40’ catamaran boat, which were the proceeds of the Paycheck Protection Program (PPP) fraud and the mortgage fraud offenses.
At trial, a federal jury had found Crowther guilty of committing bank fraud, making a false statement to a lending institution, and two counts of money laundering on March 26, 2021, which were related to a PPP fraud scheme. Before the trial started, Crowther pleaded guilty to one count of bank fraud and one count of making a false statement to a financial institution, which were related to a mortgage fraud scheme. As part of the mortgage fraud scheme, Crowther created false bank statements to justify a loan he had used to purchase a nearly $1.3 million waterfront house in St. James City, Florida.
According to evidence at the trial, Crowther obtained a $2.1 million PPP loan by falsely stating that he had intended to use the money to make payroll and pay rent and utilities for his company Target Roofing and Sheet Metal, Inc. However, Crowther intended to use the money to enrich himself and, once the loan was obtained, quickly used the proceeds to make a series of personal purchases including a nearly $700,000 boat and a $100,000 payment to a former business partner. Crowther concealed the scheme by providing false explanations for the expenditures to his bank, calling the boat “equipment” and the payment to his former partner “payroll.” Under the terms of the PPP program, Crowther did not have to pay back the loan if he used at least 60% of the proceeds on payroll. To falsely make it appear he met that threshold, Crowther created dozens of fake employees to whom he purportedly paid wages: by adding multiple family members to his company’s payroll, even though they did not actually perform work; and, separately, by creating 39 other fake employees, for whom he obtained fake identification documents -- including Social Security cards -- that he provided to his company’s Human Resources to be placed in the files of the “employees.”
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorneys Trent Reichling and Michael V. Leeman. Assistant United States Attorney Suzanne Nebesky obtained the forfeitures.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Former West Boylston Nurse Sentenced for Tampering with Hydromorphone and MeperidineRead the Press Release
BOSTON – A former nurse was sentenced on Tuesday, June 29 in federal court in Boston for tampering with opioids intended for emergency department patients at a hospital where he worked and then attempting to conceal his crime by replacing the diverted narcotics with saline.
Mark Croft, 48, of West Boylston, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year and one day in prison and three years of supervised release, with the first year to be severed in home confinement. On Jan. 28, 2021, Croft pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by deception and subterfuge.
While working at a Massachusetts hospital in January 2016, Croft administered hydromorphone and meperidine – both Schedule II controlled substances – to emergency department patients in need of pain relief. A month earlier, in December 2015, Croft had entered into an Agreement Not to Practice with the Massachusetts Board of Registration in Nursing after being terminated from a previous position as a nurse. Croft did not inform his then-current employer that he had voluntarily agreed not to practice. Between Jan. 5 and Jan. 14, 2016, Croft tampered with carpujects – syringe devices used to administer injectable fluid medication – containing hydromorphone and meperidine by accessing the automated dispensing machine (ADM) in the hospital’s emergency department.
Specifically, Croft used his credentials to enter false “cancel” or “return to stock” transactions in the ADM, which allowed him to remove carpujects containing hydromorphone and meperidine. He then used syringes to puncture the carpujects and remove portions of the hydromprohone and meperidine for his own use. In several instances, Croft replaced the medication he removed with saline in an attempt to conceal his conduct. To avoid detection, Croft later put the carpujects with the diluted medication back in the ADM where they remained available for nurses to unwittingly use on patients.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margaret R. Cooke, Acting Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Patrick Callahan of Mendell’s Health Care Fraud Unit prosecuted the case.
Former Postal Worker Pleads Guilty to Mail Theft from Paulina Post OfficeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that LACEY STEWART, age 35, of Baton Rouge, Louisiana pled guilty as charged to a one count Bill of Information on June 29, 2021. She was charged in 2021 by a Bill of Information with Mail Theft, a violation of Title 18, United States Code, Section 1708.
In papers filed with the court and signed by defendant LACEY STEWART, she admitted to being an employee of the Paulina, Louisiana Post Office. She further admitted to stealing a $1,000.00 postal money order from an Express Mail package she handled. She removed the postal money order from the package and cashed it at the Paulina Post Office. Her theft was discovered when the person to whom the package was delivered discovered that the postal money order was missing.
STEWART faces up to five (5) years incarceration, up to a $250,000 fine, restitution, up to three (3) years supervised release and a $100 mandatory special assessment fee. Sentencing is set for August 31, 2021.
U.S. Attorney Evans praised the work of the Office of Inspector General of the United States Postal Service in investigating the matter. The case is being handled by Assistant United States Attorney Carter K.D. Guice Jr.
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Former Exeter Hospital Employee's Request for Compassionate Release from 39-Year Sentence DeniedRead the Press Release
CONCORD – A federal judge today rejected an effort by David M. Kwiatkowski, 41, to obtain compassionate release, Acting United States Attorney John J. Farley announced today.
Kwiatkowski, 41, a medical technician who worked at hospitals in at least eight different states, repeatedly stole fentanyl that was intended for patients who were undergoing medical procedures, injected the drug into his body, and then refilled the syringes with saline. The patients then received injections of saline that had been tainted by his blood. Because he was infected with Hepatitis C, Kwiatkowski’s actions not only deprived patients of medication, but also infected over 40 victims with Hepatitis C. One of those victims, a resident of Kansas, died as a result of his conduct.
Kwiatkowski’s crimes came to light after law enforcement authorities in New Hampshire investigated an outbreak of Hepatitis C at Exeter Hospital in 2012. He was arrested in July of 2012. He pleaded guilty in August of 2013 to eight counts of tampering with a consumer product and eight counts of obtaining a controlled substance by fraud. He was sentenced to serve 39 years in prison in December of 2013.
In January of 2021, Kwiatkowski filed a motion requesting compassionate release from prison. He alleged that his medical conditions placed him at high risk of becoming severely ill if he were to become infected with COVID-19.
At a hearing today, U.S. District Judge Joseph Laplante denied Kwiatkowski’s motion. In rejecting the request, the judge noted that the defendant’s crime had been “extremely cruel and callous” and that the risk posed by COVID-19 did not justify releasing the defendant after he had only served approximately nine years of his 39-year sentence.
“I am grateful that the Court rejected this defendant’s effort to avoid serving his justly-imposed prison sentence,” said Acting U.S. Attorney Farley. “This defendant damaged the lives of dozens of victims in multiple states and caused a significant public health crisis. It would have been a grave injustice if this defendant had been released from prison while so many of his victims continue to endure the health consequences of his unlawful and cruel actions.”
The criminal investigation was a cooperative effort of federal, state, and local law enforcement entities, including the Federal Bureau of Investigation, the Office of Inspector General of the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the Office of Criminal Investigations of the Food and Drug Administration, the Office of Inspector General of the Department of Veterans Affairs, the New Hampshire Attorney General’s Office, the New Hampshire State Police, and the Exeter, New Hampshire Police Department. Assistance also was provided by the New Hampshire Drug Task Force, the Marlborough, Massachusetts Police Department, the Boxborough, Massachusetts Police Department, and the United States Attorney’s Offices in the District of Massachusetts, the District of Kansas, the District of Maryland, and the Middle District of Georgia.
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Former Construction Executive Sentenced to 51 Months in Prison for Tax Evasion and Bribery SchemeRead the Press Release
A New York construction executive was sentenced today in Manhattan federal court to 51 months in prison for evading taxes on more than $1.8 million in bribes he received from building subcontractors.
According to the criminal information, as well as other public documents and recent court proceedings, between 2011 and 2017, Vito Nigro, formerly of Middletown, New Jersey, and now of Ocean, New Jersey, was a senior construction official at Turner Construction Company, a major construction firm that performed building projects in New York City for Bloomberg LLP. Nigro used his position to participate in a scheme to obtain bribes from construction subcontractors, who paid kickbacks in exchange for being awarded construction contracts and subcontracts. In total, Nigro received approximately $1,350,000 in unlawful cash payments, which he did not report on his 2011 to 2017 tax returns. Nigro also received in-kind bribes in the form of renovations and improvement projects at his New Jersey residence.
In imposing the sentence, Judge Torres indicated that a restitution order would be entered, with the amount being no less than $780,000 owed by Nigro to the IRS, and no more than $812,000.
In related proceedings, co-conspirator Ronald Olson, the former vice president and deputy operations manager at Turner Construction, was sentenced on June 15 by the Honorable P. Kevin Castel to 46 months in prison for evading taxes on more than $1.5 million in bribes. Another co-conspirator, Anthony Guzzone, a former Director of Global Construction at Bloomberg, was sentenced on Jan. 19 by the Honorable Lewis J. Liman to 38 months in prison for evading taxes on more than $1.45 million in bribes in the same scheme. Michael Campana, a subordinate construction manager at Bloomberg also involved in the same scheme, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison for evading taxes on more than $420,000 in bribes.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Audrey Strauss for the Southern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Stanley J. Okula of the Tax Division and Assistant U.S. Attorney David Raymond Lewis of the Southern District of New York’s Complex Frauds and Cybercrime Unit are in charge of the prosecution.
Former Construction Executive Sentenced to More Than 4 Years in Prison for Tax Evasion and Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that VITO NIGRO, a former construction project manager at Turner Construction Company (“Turner”), was sentenced today in Manhattan federal court to 51 months in prison for evading taxes on more than $1.8 million in bribes he received from building sub-contractors, in connection with a number of building projects undertaken for Bloomberg LP (“Bloomberg”). NIGRO previously pled guilty to those charges, and was sentenced today before U.S. District Judge Analisa Torres.
In related proceedings, co-conspirator Ronald Olson, a former vice president and deputy operations manager at Turner, was sentenced on June 15, 2021, by the Honorable P. Kevin Castel, to 46 months in prison, for evading taxes on more than $1.5 million in the same scheme; Anthony Guzzone, a former director of global construction at Bloomberg, was sentenced on January 19, 2021, by the Honorable Lewis J. Liman to 38 months in prison, for evading taxes on more than $1.45 million; Michael Campana, a subordinate construction manager at Bloomberg, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000.[1]
U.S. Attorney Audrey Strauss said: “Bribery and tax evasion in the construction industry impose hidden, unfair costs on law-abiding builders, contractors, and fellow taxpayers. Appropriately, Vito Nigro has been sentenced to prison for his crimes.”
According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:
Between 2011 and 2017, NIGRO was a construction project manager at Turner, a construction firm that performed various building projects in New York City and elsewhere for Bloomberg, a global financial firm. Throughout those years, Guzzone oversaw such building projects at Bloomberg, while NIGRO and Olson worked at Turner. Beginning in 2013, Campana was also a construction manager at Bloomberg, and a subordinate to Guzzone. Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg. Olson and NIGRO also separately schemed to receive kickbacks in connection with construction projects Turner was performing for clients other than Bloomberg.
In all, the defendants have pled guilty to failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million. The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction projects on their individual homes and properties, and the direct payment of personal expenses. Such personal expenses included hundreds of thousands of dollars’ worth of repeated renovations and improvement projects at NIGRO’s home in New Jersey and OLSON’s homes on Long Island and Long Beach Island, as well as a sham lease of that beach house, through which OLSON received $20,000 per month in payments that he falsely characterized as rent; Guzzone’s receipts of several sets of Super Bowl tickets, worth approximately $8000 per ticket; and Campana’s receipt of charges related to his 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with Campana’s honeymoon. Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.
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NIGRO, 60, of Middletown, New Jersey, pled guilty on October 28, 2020, to a single count of tax evasion for the tax years 2011 through 2017. In addition to the prison term, NIGRO was sentenced to three years of supervised release. He was also ordered to make full restitution, in an amount to be set by Judge Torres within 30 days. The Government is seeking $812,108.93 in restitution for unpaid taxes and interest.
Olson, 54, of Massapequa, New York, pled guilty on July 29, 2020, to a single count of tax evasion for the tax years 2011 through 2017. He was sentenced on June 15, 2021, to 46 months in prison, three years of supervised release, and ordered to pay restitution of $661,519.57 in unpaid taxes and interest.
Guzzone, 52, of Middletown, New Jersey, pled guilty on September 29, 2020, to a single count of tax evasion for the tax years 2010 through 2017. He was sentenced on January 19, 2021, to 38 months in prison, three years of supervised release, and restitution of $574,005.33 in unpaid taxes and interest.
Campana, 35, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced last week, on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes, and a fine of $10,000.
Ms. Strauss praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis, and Stanley J. Okula, Senior Litigation Counsel of the Tax Division of the Department of Justice, are in charge of the prosecution.
[1] In addition, all four defendants have pled guilty in New York State Supreme Court, Indictment No. 04038-2018, to participating in the underlying bribery scheme, and are awaiting sentencing.
Former Boston Police Officer Pleads Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer pleaded guilty today in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s evidence warehouse.
Craig Smalls, 55, of Roxbury, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Allison D. Burroughs scheduled sentencing for Oct. 21, 2021. Smalls was charged on June 17, 2021.
From at least March 2015 through September 2016, Smalls submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Smalls claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Smalls submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts.
Between March 2015 and September 2016, Smalls personally collected approximately $16,252 for overtime hours he did not work.
To date, 14 Boston Police officers have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. Smalls is the eighth officer to plead guilty.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florencia 13 Gang Member Sentenced to 160 Months in Federal PrisonRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Aleandro Leon, age 24, of Pasco, Washington, was sentenced on June 30, 2021, after having pleaded guilty to: being a Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g)(1), 924(a)(2); Conspiracy to Provide Prohibited Objects to an Inmate in Prison in violation of 18 U.S.C. § 1791(a)(1), (a)(2), (b)(1), (b)(2) (b)(3), (b)4, and (c), all in violation of 18 U.S.C. § 371; and Inmate in Possession of a Prohibited Object, in violation of 18 U.S.C. § 1791(a)(2), (b)(1)(c). Chief United States District Judge Stanley Bastian sentenced Leon to a 160-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from prison.
According to information disclosed during court proceedings, Leon was under Department of Corrections supervision for a drive-by shooting conviction when he was indicted in three separate federal indictments, all involving separate criminal conduct from January 2019 until April 2020. Leon was identified as working within a criminal organization responsible for the distribution of thousands of deadly Fentanyl laced pills in early 2019. A partner of Leon, Miguel Candido' s apartment was searched in March of 2019 where 5000 Fentanyl laced pills, 1 pound of heroin, over $20,000 in US currency, drug ledgers, scales, and cell phones linking the two to a criminal organization were located. When Leon was arrested for those drug charges, he was unlawfully in possession of a loaded firearm. While in custody, Leon, a confirmed Florencia 13 gang member, became involved in a conspiracy to smuggle illegal contraband into the Benton County Jail with the assistance of a correctional officer. The illegal contraband included methamphetamine, heroin, marijuana, and cell phones.
Leon pled guilty to two out of the three federal indictments. A contested sentencing hearing was held June 30, 2021, and Chief Bastian found that, shortly after Leon's release from state custody on the drive-by shooting conviction in November 2017, Leon immediately began new criminal conduct to include the distribution of large quantities of Fentanyl laced pills and heroin. Even after his arrest, this criminal conduct continued with the serious actions within the Benton County Jail. Chief Judge Bastian determined Leon posed a danger to the community and an extreme risk to re-offend given his significant criminal history and recidivist criminal behavior. Judge Bastian sentenced Leon to 100 months on the firearms offense and a consecutive 60 months on the contraband offense.
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the federal and local agencies who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker and violent offender from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the DEA-Tri-Cities Task Force, METRO and Pasco Street Crimes Unit, United States Marshals Service, and Benton County Sheriff's Office. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Felon Sentenced to Four Years in Federal Prison for Possession of A Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Claude Avery Rucker, age 31, of Capitol Heights, Maryland to four years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his plea agreement, on December 11, 2019, Prince George’s County Police Department officers received a call reporting a parked vehicle in Capitol Heights, Maryland. As officers arrived on the scene, officers observed a silver vehicle parked with it’s low beams on. There were no other vehicles with lights on at the scene.
As officers approached Rucker, the driver and sole occupant of the vehicle, one officer smelled the odor of marijuana emitting from Rucker. When asked if he lived in the area, Rucker informed police that his uncle lived at one of the near-by residences. When law enforcement asked Rucker to provide identification, Rucker was unable to do so. Officers then asked Rucker to step out of the vehicle, at which time Rucker asked to call his uncle.
As Rucker exited the vehicle, Rucker shoved one law enforcement officer and attempted to flee on foot. Officers struggled with Rucker near the trunk of the vehicle as Rucker repeatedly reached for his waistband area and refused to comply with officers’ commands to place his hands behind his back.
As officers placed Rucker into handcuffs, a Glock Model 19 9mm handgun loaded with 15 rounds of 9mm ammunition fell from Rucker’s waistband. Law enforcement performed a search incident to the arrest that recovered approximately 15.4 grams of marijuana from Rucker’s right jacket pocket.
Prior to December 11, 2019, Rucker had been previously convicted of a crime punishable by a term exceeding one year and his civil rights had not been restored.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Dwight J. Draughon and Special Assistant U.S. Attorney Craig G. Fansler, who prosecuted the case.
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Federal Jury Convicts Local High School Janitor of Secretly Filming Students in Bathroom StallRead the Press Release
Orlando, Florida – Acting United States Attorney Karin Hoppmann announces that a federal jury has found Derremy Jerrell Walker (31, Sanford) guilty of two counts of using, or attempting to use, children to produce sexually explicit videos. Walker’s sentencing hearing has been set for September 21, 2021.
According to evidence and testimony admitted during the trial, Walker was a contracted janitor at Oviedo High School in November 2019, when two 15-year-old female students discovered an actively recording cellphone hidden under the sink inside a toilet stall in a student bathroom. The girls took the phone to school administrators, who then contacted the Oviedo Police Department.
Forensic analysis of the cellphone revealed Walker had placed the phone in the same location on two prior dates in November 2019, each time creating a one-hour video of students in that stall. On the date the girls found the phone, it had been recording video for about 15 minutes before they discovered it. In each of the three instances, Walker had angled the cellphone’s camera in an effort to capture the genitalia and pubic areas of those in the stall. School administration officials and law enforcement officers were able to identify six of the ten students unknowingly captured in the videos Walker created.
Further analysis revealed Walker had also set up a surreptitious cellphone camera to record in the school’s faculty bathroom earlier that month.
This case was investigated by the Oviedo Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Federal Indictment Accuses Three Men of Unlawfully Dealing or Possessing Firearms in ChicagoRead the Press Release
CHICAGO — Three men have been charged in a federal indictment with unlawfully dealing or possessing firearms in Chicago.
JOHNATHAN BURGOS, 28, of Chicago, illegally dealt firearms in Chicago from January to March of last year, according to an indictment returned in U.S. District Court in Chicago. Burgos also illegally possessed handguns and a semiautomatic rifle on seven occasions last year and this year, the indictment states. As a previously convicted felon, Burgos was not lawfully allowed to possess the firearms.
Two other convicted felons – ALEJANDRO DAVIS, 29, of Chicago, and DAMIAN REYES, 23, of Chicago – are also charged in the indictment with illegally possessing firearms in the city.
All three defendants were arrested Wednesday and have made initial appearances in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Paul Mower represents the government.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Illegal possession of a firearm by a convicted felon is punishable by a maximum sentence of ten years in federal prison, while dealing firearms without a license is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Federal Gun Trafficking and Drug Dealing Charges Filed Against Chicago ManRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with trafficking a loaded submachine gun and dealing cocaine in the city.
JOSUE CANALES, 28, knowingly transferred a loaded Israeli Military Industries Model submachine gun to another individual on Dec. 15, 2020, according to an indictment returned in U.S. District Court in Chicago. The indictment also accuses Canales of distributing cocaine in Chicago on four occasions in 2019.
Canales was arrested Wednesday and has made an initial appearance in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Paul Mower represents the government.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
One of the four drug counts against Canales carries a mandatory minimum sentence of five years in federal prison and a maximum of 40 years. The three other drug counts are each punishable by a maximum sentence of 20 years, while the firearm count carries a maximum sentence of ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Extradited Ghanaian National Sentenced to Nearly 6 Years in Prison for Multimillion-Dollar Money Laundering ConspiracyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that DEBORAH MENSAH was sentenced to 70 months in prison for her participation in a conspiracy to launder millions of dollars of fraud proceeds from business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018. MENSAH was extradited from the Republic of Ghana (“Ghana”) to the United States on August 21, 2020. She pled guilty to conspiring to commit money laundering on April 2, 2021, before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
Manhattan U.S. Attorney Audrey Strauss said: “Deborah Mensah was a member of an international criminal enterprise that stole millions of dollars from businesses and vulnerable individuals across the United States, and laundered that money through a network of bank accounts in the Bronx. Having previously been extradited from Ghana, Deborah Mensah has now been sentenced to a term in a U.S. prison for her crime.”
According to the Indictment and other public filings in the case:
From at least in or about 2014 through in or about 2018, MENSAH was a member of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York.
The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise. First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company to “spoof” or impersonate those employees or third parties. These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic. The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees. By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including MENSAH.
The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise, including MENSAH. At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise. The members of the Enterprise, posing as the romantic interest of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.
MENSAH and her co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise into bank accounts that she and other members of the Enterprise controlled in the Bronx, New York. MENSAH opened and maintained multiple business bank accounts in the name of an auto sales company to receive funds stolen from victims and launder them to co-conspirators based primarily in Ghana. She also recruited and directed one co-conspirator to receive and launder fraud proceeds and instructed that co-conspirator on how to set up a business bank account for this purpose to avoid detection.
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MENSAH, 34, a citizen of Ghana, was also sentenced to three years of supervised release. In addition, MENSAH was ordered to forfeit $202,964 and pay restitution of $1,505,519 to victims.
Other defendants in this case who have been sentenced include Muftau Adamu, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” 32, of the Bronx, New York, who was sentenced to 51 months in prison on June 7, 2019; Tourey Ahmed Rufai, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” 34, of the Bronx, New York, who was sentenced to 48 months in prison on April 12, 2019; Prince Nana Aggrey, 45, of the Bronx, New York, who was sentenced to 30 months in prison on May 10, 2019; and Assana Traore, 41, of the Bronx, New York, who was sentenced to 15 months in prison on October 8, 2019. Adamu, Rufai, and Aggrey each pled guilty to one count of conspiracy to commit wire fraud, and Troare pled guilty to one count of conspiracy to receive stolen money. Each of the defendants was sentenced by Judge Cote.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Ms. Strauss also thanked the United States Marshals Service, the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Ministry of Justice & Attorney General’s Office of Ghana, and Ghana’s Economic and Organised Crime Office, for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Ghana.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Mitzi Steiner are in charge of the prosecution.
Ex-Corrections Officer Trainee Sentenced in Federal CourtRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Tarrence Dramon Tolbert, 40, of Brewton, Alabama, was sentenced on June 29, 2021 to 135 months’ imprisonment for his possession with intent to distribute methamphetamine on February 24, 2020. In January of 2021, Tolbert pled guilty to the charge in federal court in Mobile.
According to documents filed in connection with his guilty plea, Tolbert was a corrections officer trainee at Fountain Correctional Facility in Atmore, Alabama, on February 24, 2020, and a supervisor observed that he was stopped on the side of the road at about 8:30 p.m. The supervisor stopped and asked Tolbert if everything was okay, and Tolbert replied that he was waiting on a relative. The supervisor was suspicious about these circumstances, and left instructions to have Tolbert and his belongings searched when he arrived for his shift. Investigators conducted the search as instructed, and discovered methamphetamine ice, marijuana, earbuds, a SIM card, cigars, two bottles of liquor and two knives, which Tolbert intended to smuggle into the prison and deliver to certain inmates.
United States District Court Judge William H. Steele imposed the sentence of 135 months’ imprisonment, to be followed by a five-year term of supervised release when Tolbert is released from custody. No fine was imposed but Tolbert was also ordered to pay a mandatory special assessment of $100.
The case was investigated by the Alabama Department of Corrections, the Alabama Law Enforcement Agency and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Essex Man Pleads Guilty to Crack Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Joel William Hammond, age 35, of Essex, Maryland, pleaded guilty today to conspiracy to distribute and possess with intent to distribute at least 28 grams of cocaine base.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; Sheriff Jeff Gahler of the Harford County Sheriff’s Office; and the Harford County Narcotics Task Force comprised of members of the Harford County Sheriff's Office, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department and the Harford County States Attorney’s Office.
According to his guilty plea, the Harford County Narcotics Task Force undertook an investigation into a drug trafficking organization (DTO) distributing powder and crack cocaine in Harford County, Maryland. On February 4, 2020, the Harford County Narcotics Task Force received authorization from a Circuit Court County Judge to intercept wire and electronic communication of drug trafficking organization members.
Over the course of the investigation, detectives intercepted numerous drug-related communications over social media and phone calls. The intercepted communications identified Hammond as a drug supply source.
On March 7, 2020, task force detectives followed one of the DTO members to Hammond’s Essex, Maryland residence. Upon arrival, detectives observed members of the DTO make contact with Hammond. Following the meeting with Hammond, DTO members returned to Harford County. Detectives then observed one of the members of the DTO meet with several known drug users, following the meeting with Hammond. Detectives believe this to be consistent with this individual obtaining two to three ounces of crack cocaine from Hammond, the source of supply for the DTO.
Hammond met with members and customers of the DTO on at least 10 occasions between March and April 2020. Specifically, on March 31 detectives intercepted a series of communications indicating that a member of the DTO planned to meet Hammond to obtain crack cocaine. Investigators learned that Hammond sold approximately one ounce of crack cocaine to the individual during the meeting.
On April 21, 2020, investigators intercepted a communication that indicated that Hammond and a DTO member were to meet later that day. Detectives observed Hammond and the DTO member make contact at Hammond’s residence. Soon after, the DTO member proceeded to drive back to Harford County. As the DTO member returned to Harford County, the Harford County Sheriff’s Office Special Response Team and Harford Narcotics Task Force searched the member’s vehicle during a traffic stop pursuant to a search warrant.
As a result of the search, law enforcement discovered two plastic bags of a white substance as well as $660 in U.S. currency. One of the bags contained a white rock like substance that was similar to powder cocaine that had been directly cut off a kilogram of pressed cocaine. In total, the substance was 16 grams in weight. The second bag was an off-white rock like substance that law enforcement determined to be crack cocaine. The total weight of the bag was 41 grams. Both substances tested positive for the presence of cocaine. The combined weight of the two bags was 57.9 grams.
On April 22, 2020, law enforcement executed a search warrant at Hammond’s residence and seized a small quantity of crack cocaine.
Hammond agrees it is reasonably foreseeable that the conspiracy involved at least 112 grams but less than 196 grams of crack cocaine.
Hammond and the government have agreed that, if the Court accepts the plea agreement, Hammond will be sentenced to six years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 27, 2021 at 11 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Harford County States Attorney’s office, the Harford County Narcotics Task Force, and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Christopher J. Romano who is prosecuting the case.
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Duval Felon Indicted for Attempting to Purchase FirearmRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Jose Angel Vazquez, (59, Jacksonville) with making a false statement to a federal firearms dealer. If convicted, Vazquez faces a maximum penalty of five years in federal prison.
According to the indictment, Vazquez attempted to purchase a handgun from a Federally Licensed Firearm Dealer on February 2, 2021, after having been convicted of numerous felonies on multiple occasions.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce Federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of Federal, State, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Department of Justice Statement on Supreme Court Decision in BrnovichRead the Press Release
The U.S. Department of Justice today released the following statement from spokesman Anthony Coley following the Supreme Court’s decision in Brnovich, et al. v. Democratic National Committee, et al.:
“The Attorney General has made clear, ‘the Department of Justice will never stop working to protect the democracy to which all Americans are entitled.’ The department remains strongly committed to challenging discriminatory election laws and will continue to use every legal tool available to protect all qualified Americans seeking to participate in the electoral process. The department urges Congress to enact additional legislation to provide more effective protection for every American’s right to vote.”
Defendants Sentenced in Four Separate CasesRead the Press Release
ALEXANDRIA/LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of numerous cases this week in United States District Court in the Western District of Louisiana, all of which are listed below.
SENTENCING HEARINGS – LAFAYETTE
Joshua L. Damond, 29, of Lafayette, Louisiana, was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 78 months (6 years, 5 months) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Damond was charged in an indictment and pleaded guilty on March 8, 2021.
In June 2020, Damond led law enforcement officers on a high-speed chase after leaving the residence where his daughter lived with her mother. When Damond went to the residence where his daughter lived, the mother refused to allow him to enter the residence, but he kicked in the door and then got into a verbal altercation with her. The mother and daughter left, and he followed them. Law enforcement officers arrived on the scene and observed Damond leaving the area and attempted a traffic stop. He refused to stop, and a pursuit ensued. During the chase, officers observed Damond throw items from the vehicle. Other officers assisting in the chase stopped to find the item that was thrown and found a firearm wrapped in the blue shirt Damond had been wearing. He was apprehended and arrested. The firearm was determined to be stolen.
Damond has prior felony convictions for possession of cocaine (2014) and monies derived from drug violation and illegal possession of stolen firearm (2015) and is prohibited from possessing a firearm.
The ATF, Lafayette Parish Sheriff’s Office and Jefferson Davis Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John W. Nickel prosecuted the case.
Shaun J. Labbe, 38, and Ana C. Smith, 33, both of Scott, Louisiana, have been sentenced by United States District Judge Robert L. Summerhays on drug trafficking charges. Labbe was sentenced to 210 months (17 years, 6 months) and Smith was sentenced to 72 months (6 years) in prison, followed by 5 years of supervised release for each.
Labbe and Smith were indicted on March 18, 2020 and charged with drug trafficking and firearms charges. Labbe pleaded guilty March 5, 2021 to conspiracy to possess with intent to distribute methamphetamine. Smith pleaded guilty January 6, 2021 to possession with intent to distribute methamphetamine. Evidence introduced in court revealed that in 2018, agents with the Lafayette Parish Narcotics Unit began investigating Labbe and Smith who were suspected of selling large quantities of methamphetamine from their residence and his place of business. Law enforcement agents obtained search warrants for their residence and his place of business and in October 2018 executed those warrants. Agents found 370.7 grams of methamphetamine, 45.4 grams of marijuana and other narcotics, as well as over $8,000 in cash, two handguns, and other drug paraphernalia. During a search of Labbe’s place of business, agents found approximately 5,053 grams of methamphetamine which was hidden inside a child’s playhouse. Labbe admitted the seized items and cash found in the residence were his and that he was aware the narcotics were hidden in the business. Smith admitted to law enforcement that she knew about the items in the residence and that she participated in the distribution and sale of methamphetamine in Lafayette Parish.
The DEA, FBI and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John W. Nickel prosecuted the cases.
SENTENCING HEARINGS – ALEXANDRIA
United States District Judge Dee D. Drell sentenced the following defendants in Alexandria:
Chace Middlebrooks, 37, of Evergreen, Louisiana, was sentenced to spend 59 months in prison, followed by 2 years of supervised release, for being a convicted felon in possession of a firearm. Middlebrooks was charged in an indictment and pleaded guilty March 26, 2021. According to court documents, Middlebrooks had an outstanding arrest warrant and on April 20, 2020, two Louisiana State Police troopers spotted a vehicle that belonged to him near a residence in Evergreen. As the troopers drove toward the vehicle, the driver who was later identified as Middlebrooks, led the troopers on a brief pursuit and after a short time they were able to stop the vehicle and arrest him. Middlebrooks admitted to having a sawed-off shotgun in his possession prior to the pursuit and troopers were able to find and seize the gun. Middlebrooks has four prior felony convictions for unauthorized entry of an inhabited dwelling (2009); theft and illegal possession of stolen things (2011); violation of a protective order (2019); and domestic abuse battery by strangulation (2019), and is prohibited from possessing a firearm.
The ATF and Louisiana State Police conducted the investigation and Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Baldomero C. Velasco, 31, of Baytown, Texas, and Antonio Zarate, 22, of South Houston, Texas, were each sentenced on drug trafficking charges. Velasco and Zarate were each sentenced to 28 months in prison, followed by 1 year of supervised release. Both defendants pleaded guilty to the charges on January 31, 2020.
Velasco pleaded guilty to conspiracy to possess with intent to distribute cocaine and admitted to conspiring with his co-defendants to willfully joining in the conspiracy and knew of its unlawful purpose. He stipulated and agreed that the conspiracy involved at least 500 grams or more of cocaine and that the acts took place in the Western District of Louisiana.
Zarate pleaded guilty to a Bill of Information charging interstate travel or transportation in aid of racketeering. He admitted that on March 16 and 17, 2018, he traveled from the State of Tennessee to the State of Louisiana with the specific intent of carrying out an unlawful activity, by conspiring to possess with intent to distribute cocaine.
The Drug Enforcement Administration and Department of Homeland Security-Office of Immigration and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the cases.
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