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18 August 2021
U.S. Defense Contractor and Employees Sentenced for Procurement Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Hampton-based U.S. defense contractor, its owner, and four of its employees were sentenced yesterday and today. The owner was sentenced to 58 months in prison, and his four employees were sentenced today to a combined 93 months years in prison, for engaging in an extensive procurement fraud scheme involving more than $7 million in government contracts targeting the U.S. Department of Defense and other federal government agencies.
“The defendants’ egregious scheme caused the U.S. government to spend over $7 million on fraudulently imported goods. These funds were intended for deserving beneficiaries, including American workers, service-disabled veterans, and authorized trading partners,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “This prosecution demonstrates our firm commitment to holding accountable those who defraud our military and brazenly disregard laws that are designed to protect the strength of our country’s infrastructure and manufacturing base.”
According to court documents, from 2011 to 2018, Iris Kim, Inc., (aka “I-Tek”) owner Beyung S. Kim, 62, of Newport News, and employees Seung Kim, 31, of Newport News; Dongjin Park, 54, of Yorktown; Chang You, 62, of Yorktown; Pyongkon Pak, 53, of Toano; and Li-Ling Tu, 58, of China, engaged in a conspiracy and scheme related to certain government contracts for which I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies.
The defendants obtained government contracts that had certain set-aside preferences and source-of-good requirements. The conspirators acted to defraud the U.S. and commit other substantive offenses by fraudulently importing goods into the U.S. that were made in China in violation of the terms of these contracts. They then falsely relabeled these goods as if they were made in the U.S. Kim and his employees also acted through a separate nominee company to conceal the importing of goods from China and installed a nominee officer of I-Tek in order to be able to fraudulently qualify for contracts set aside for service-disabled veterans. The conspirators also submitted false documents and further falsely classified the value of the goods imported into the U.S. to avoid higher duties and taxes.
“The defendants deserve to be held fully accountable for this reprehensible scheme to knowingly and deceptively source illicit Chinese goods to fulfill Department of Defense contracts,” said Eric Maddox, Special Agent in Charge of the NCIS Economic Crimes Field Office. “This scheme threatened the readiness and safety of our nation’s warfighters, defrauded the American taxpayer, damaged the integrity of the Department of the Navy procurement process, and squandered valuable investigative resources that could have been directed elsewhere. NCIS will continue to work with our law enforcement partners to aggressively root out those who seek to defraud the Navy and Marine Corps.”
“For years, the Iris Kim, Inc., corporation defrauded the U.S. government out of millions of dollars and violated its contract by attempting to use substandard goods made in China, then relabeling them as 'Made in the U.S.A.' in order to make a hefty profit,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Thanks to the multi-agency investigative work uncovering this procurement fraud scheme, those involved will now face the consequences of their crimes.”
“These sentencings demonstrate the resolve of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and its law enforcement partners in protecting the safety and readiness of our military,” said Christopher Dillard, Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “DCIS and its partners will vigorously pursue those who put our warfighters at risk by introducing substandard products into the DoD supply chain.”
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and Eric Maddox, Special Agent in Charge of the NCIS Economic Crimes Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak. Significant assistance was provided by the Defense Contract Audit Agency.
Assistant U.S. Attorney Brian J. Samuels and D. Mack Coleman, and Trial Attorney Matthew P. Mattis of the Justice Department’s Criminal Division 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. 4:20-cr-47.
Two defendants in federal custody on child exploitation chargesRead the Press Release
BRUNSWICK, GA: A Camden County man and woman face substantial penalties after their arrests on federal child exploitation charges.
Michael Williams Kersey, 43, of St. Mary’s, Ga., and Lesley M. Henry, 45, of Kingsland, Ga., are each charged in a federal complaint with Distribution of Child Pornography and Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Distribution of Child Pornography carries a statutory penalty of up to 20 years in prison, along with substantial financial penalties and a period of supervised release following any prison term.
There is no parole in the federal system.
“Our law enforcement partners continue their outstanding work in identifying and intercepting suspected child exploitation activities,” said Acting U.S. Attorney Estes. “We will continue to relentlessly protect our most vulnerable citizens.”
Both defendants are in custody after initial appearance hearings before U.S. District Court Magistrate Benjamin W. Cheesbro. The cases remain under investigation.
Criminal complaints contain only charges; defendants are presumed innocent unless and until proven guilty.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The cases are being investigated by the FBI, the Naval Criminal Investigative Service/Kings Bay, the Camden County Sheriff’s Office, the St. Marys Police Department, and the Kingsland Police Department, and is being prosecuted for the United States by Assistant U.S. Attorney Tania D. Groover.
Two Men Sentenced to 29 Months in Prison Each for Roles in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the Bronx to Customers in New JerseyRead the Press Release
NEWARK, N.J. – Two Bronx, New York, men were sentenced today to 29 months in prison each for their roles in a conspiracy to distribute heroin and fentanyl to customers in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Eddy Urena Rodriguez, 36, and Francisco Mercedes Gil, 33, both previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentences by videoconference today. Dilson Vazquez Genao, 25, also of the Bronx, New York, was sentenced on the same charge last month to 29 months in prison.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Maldonado employed Genao, Gil, Rodriguez, Daury Contreras Ulerio, and Rosario, to assist in preparing the heroin and fentanyl for distribution to customers in New Jersey. Jose Vasquez Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside: including Genao, Gil, Rodriguez, Ulerio, Rosario, Maldonado, and Pena. All seven defendants attempted to escape out a window in the bedroom. All but one—Rosario—were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Acting U.S. Attorney Honig credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Acting Chief of the Violent Crimes Unit in Newark.
The charge and allegations against Maldonado and Rosario are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Top Westinghouse Nuclear Executive Charged with Conspiracy, Fraud in 16-Count Federal IndictmentRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that a Federal Grand Jury has charged former Westinghouse Electric Company Senior Vice President Jeffrey A. Benjamin for his role in failing to truthfully report information regarding construction of new nuclear units at the V.C. Summer nuclear plant.
Benjamin, who served as Senior Vice President for New Plants and Major Projects and directly supervised all new nuclear projects worldwide for Westinghouse during the V.C. Summer project, is charged in a federal indictment with sixteen felony counts including conspiracy, wire fraud, securities fraud, and causing a publicly-traded company to keep a false record.
The charges Benjamin faces carry a maximum of twenty years imprisonment and a $5,000,000 fine.
The indictment alleges that Benjamin was personally involved in communications between Westinghouse and its owners, SCANA and Santee Cooper, regarding the status of the V.C. Summer project.
The indictment further alleges that, throughout 2016 and into 2017, when Westinghouse had direct control over the construction and schedule of the project, Benjamin received information that the V.C. Summer units were materially behind schedule and over budget. Nevertheless, at various times from September 2016 through March 2017, the indictment alleges that Benjamin assured the owners that the units would be completed on schedule and took active steps to conceal from the owners damaging information about the project schedule. During this time period, the owners paid Westinghouse over $600,000,000 to construct the two V.C. Summer units, both of which were ultimately abandoned.
“Our commitment to investigate and prosecute the V.C. Summer nuclear debacle has never wavered,” said Acting U.S. Attorney DeHart. “While the indictment – and the allegations contained within – speak for itself, it is further proof of our commitment to seek justice for South Carolina ratepayers and all others affected by the V.C. Summer project failure.”
“This indictment with its attendant allegations and charges is another step toward justice for all those responsible for the V.C. Summer nuclear plant fiasco,” said FBI Special Agent in Charge Susan Ferensic. “The FBI has devoted substantial resources to investigating this matter and will continue to work with the United States Attorney’s Office, the South Carolina State Law Enforcement Division, and the South Carolina Attorney General’s Office to find facts and prove criminal conduct.”
Benjamin is the fourth individual to be charged in the ongoing federal investigation, stemming from the exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigations (FBI), the U.S. Securities and Exchange Commission (SEC), the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division. Former SCANA Chief Executive Officer Kevin Marsh, former SCANA Executive Vice President Stephen Byrne, and former Westinghouse Vice President Carl Churchman have all pleaded guilty to federal felony charges for their roles in the matter.
Assistant United States Attorneys Winston Holliday, Brook Andrews, Emily Limehouse, and Jason Peavy along with Special Assistant United States Attorney John O'Halloran, a lawyer with the Securities and Exchange Commission, are prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges against the defendant are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Three men sentenced for illegal gambling operationRead the Press Release
AUGUSTA, GA: Two Waynesboro, Ga., men and a Greenwood, S.C., man have been sentenced for participating in an illegal gambling operation.
Grady Brandon Mobley, 44, of Waynesboro, was sentenced to five years of probation and forfeited $340,084 after pleading guilty to an Information charging him with Prohibition of an Illegal Gambling Business and Fraud and False Statements, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Mobley also must pay $207,716 in restitution to the IRS and Georgia Department of Revenue and pay a fine of $2,000.
Two co-defendants also were sentenced after pleading guilty to Prohibition of an Illegal Gambling Business. Daniel Cates, 40, of Waynesboro, was sentenced to three years of probation and agreed to forfeit $100,000, and fined $4,000, while Joel Rees Jones, 59, of Greenwood, S.C, was sentenced to four years of probation and a fine of $10,000.
“With his long-running illegal gambling operations, Grady Mobley showed utter disregard for the law and compounded the activity by drawing others into his orbit,” said Acting U.S. Attorney Estes. “These sentences will hold them all accountable for their actions.”
As described in court documents and testimony, Mobley operated as a “bookie” for an illegal sports betting operation for at least the past 10 years in Burke County, at first collecting bets and paying out winnings himself, and later through a sports betting website operated from Costa Rica.
In 2015, Mobley merged his operation and began splitting his profits with a smaller gambling ring operated by Jones. From 2015 to 2017, Mobley cashed bettor’s checks totaling approximately $220,000 at his parent’s check cashing business which operated out of the Mobley Package Shop in Girard, Ga. To help conceal the growing amount of cash involved in the transactions, Mobley enlisted the assistance of Cates, who admitted that he funneled approximately $250,000 in gambling proceeds through his Waynesboro tire store, Cates Firestone, in return for money and favors from Mobley.
During this period, Mobley admitted filing false information on his income tax returns to conceal the amount of proceeds from the illegal gambling operation.
“Mobley’s greed continued to grow over the years as he operated his illegal gambling operation, eventually recruiting other individuals to take part,” said Chris Hacker, Special Agent in charge of FBI Atlanta. “Their greed eventually caught up with them and now they will suffer the consequences. No matter where an investigation takes us, the FBI and our federal partners will pursue criminal activity that violates our Constitution.”
“Operating an illegal gambling operation and filing false tax returns to the IRS are dangerous moves,” said IRS-Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman. “Not only can the unreported income from the gambling operation result with tax due, interest, and penalties, but it also can result in prison time. The sentencing today brings accountability and justice for the conspiring parties.”
The case was investigated by the FBI and IRS Criminal Investigations, and prosecuted for the United States by Assistant U.S. Attorneys Tara M. Lyons and Asset Recovery Unit Chief Xavier A. Cunningham.
Three Charged in Fraud Schemes Targeting Home Improvement RetailersRead the Press Release
PROVIDENCE, R.I. – Federal arrest warrants were executed today against two individuals on charges they allegedly participated in a large-scale conspiracy to defraud Home Depot stores in at least three New England states. A third person alleged to have taken part in the scheme is being sought by law enforcement.
Court documents allege that Samuel Machuca, a/k/a/ Ithier Batista-Rodriguez, a/k/a Angel Garcia-Sanchez, 50, of Attleboro, MA, Luiyi Taveras-Garcia, 33, of Providence, and Abel Bier Romero, 28, of Cranston, used stolen personal identifying information and stolen or fraudulently created business credit accounts to purchase more than $600,000 in building, roofing, electrical, plumbing and other contractor supplies from Home Depot stores in Rhode Island, Massachusetts, and New Hampshire, announced Acting United States Attorney Richard B Myrus.
Earlier today, more than $30,000 dollars’ worth of construction materials allegedly obtained fraudulently were recovered by federal agents from a garage in Cranston.
According to court documents, since November 2020, several individuals have contacted Home Depot customer service and “Pro desks” in the three New England states, placing orders for various construction and contractor supplies. The orders were paid for with fraudulently created or stolen credit account information, including names, credit card numbers, security codes, and phone numbers. Notification was sent to the “customer” at the phone number provided when the order was ready for pick-up. Two or three individuals then picked-up the order, often utilizing the same white truck to transport the materials.
Samuel Machuca and Luiyi Taveras-Garcia appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond. Machuca was ordered detained andTaveras-Garcia was released on unsecured bond on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Abel Bier Romero is similarly charged and is being sought by authorities.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the United States Secret Service New England Cyber Fraud Task Force, with the assistance of the Smithfield Police Department.
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Texas woman admits to smuggling cocaineRead the Press Release
LAREDO, Texas – A resident of San Antonio has entered a guilty plea to importing almost 17 kilograms of cocaine into the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
On May 20, Alessandra Olivares attempted to enter the United States at the Juarez–Lincoln Bridge in Laredo. After a service K-9 alerted to her SUV, law enforcement conducted an X-ray inspection of the vehicle and discovered anomalies. They drilled into that area and discovered a compartment containing 15 bundles of cocaine weighing 16.84 kilograms.
The drugs had an estimated street value of over $400,000.
U.S. District Judge Diana Saldana accepted the plea and will set sentencing for a later date. At that time, Olivares faces up to 10 years in prison and a possible $10 million maximum fine. She has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Texas Man Charged with Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Galveston, Texas, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Michael Herring, age 55, was indicted on June 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 24, 2021, in Pierre, South Dakota, Herring, who had previously been convicted of crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a firearm, which had been previously shipped and transported in interstate and foreign commerce.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Pierre Police Department, the South Dakota Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges is prosecuting the case.
Herring was immediately turned over to the custody of the U.S. Marshals Service.
Three Men Sentenced for Kidnapping and Murder on the Wind RiverRead the Press Release
Acting United States Attorney Bob Murray announced today that SETH THOMAS BLACKBURN, age 31 of Arapahoe, Wyoming; PETER JOSEPH BLACKBURN, a/k/a "Homer," age 34 of Riverton, Wyoming; and BRENT JORDAN GOULD, age 30 of Riverton, Wyoming, were all sentenced by Chief United States District Judge Scott W. Skavdahl for crimes related to an August 4, 2019, kidnapping that resulted in the death of Victor Dale Addison. Seth Blackburn pleaded guilty to felon in possession of a firearm and first-degree murder. The government argued for a 65-year sentence, and the court imposed a sentence of 60 years imprisonment followed by five years of supervised release. Peter "Homer" Blackburn pleaded guilty to unlawful seizure resulting in death and received a sentence of 12 years imprisonment followed by five years of supervised release. Gould also pleaded guilty to unlawful seizure resulting in death and received a sentence of 15 years imprisonment followed by five years of supervised release. All three offenders are jointly responsible for restitution in the amount of $4,946.
On the afternoon of August 4, 2019, the body of a Native American man was discovered lying face up on the bank of the Little Wind River, beneath the Sharp Nose Road Bridge on the Wind River Reservation near Arapahoe, Wyoming. The victim’s hands were bound behind his back by an electrical cord and there was obvious trauma to his face and head. Upon close inspection, it was apparent the victim, while on the bridge, had been shot at close range in the back of the head before his body was dumped off of the bridge and onto the rocks below. The victim was later identified as Addison.
Law enforcement agents from the Federal Bureau of Investigation, the Bureau of Indian Affairs, the Bureau of Alcohol, Tobacco and Firearms, the Fremont County Sheriff’s Office, the Riverton Police Department, and the Wyoming Division of Criminal Investigation, with substantial assistance from the Casper Police Department, identified Seth Blackburn as the individual who shot and killed Addison. The investigation also revealed that Seth Blackburn’s half-brother, Peter Blackburn, and Peter’s half-brother, Brent Gould, aided and abetted in Addison’s assault, kidnapping, and murder by helping restrain the victim at a residence in Riverton, and in transporting Addison from there to the bridge where he was ultimately murdered. The murder was motivated by the defendants’ belief in unfounded rumors that the victim was responsible for the death of Martika Spoonhunter. Spoonhunter died in a single vehicle car crash the day before Addison’s murder. She was alone in the vehicle, and a FBI investigation into the circumstances of her death found no evidence to suggest that her death was anything other than a tragic accident.
"When a murder is committed execution style, the only motive is pure evil," said Acting United States Attorney Bob Murray. "My office takes seriously its special responsibility to prosecute violent crimes on the Wind River Reservation and to hold these men accountable for the murder of this young man. I’m extremely proud of our local, state, and federal law enforcement agencies for their tireless, collaborative investigation which resulted in the successful prosecution of these violent and dangerous criminals."
"The sentences today should be a warning that anyone who takes matters into their own hands instead of relying on the justice system, will themselves be investigated and prosecuted. The subjects’ horrific and misguided vigilantism resulted in the assault, torture, and execution of an innocent individual in the name of revenge," said FBI Denver Special Agent in Charge Michael Schneider. "We thank the Bureau of Indian Affairs, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riverton Police Department, the Casper Police Department, the Wyoming Division of Criminal Investigation, and the U.S. Attorney’s Office for their dedication to protect our communities while seeking lawful justice."
This case was prosecuted by Assistant United States Attorney Timothy W. Gist.
Suburban Chicago Prescription Drug Wholesaler Indicted for Allegedly Re-Selling Diverted Drugs to PharmaciesRead the Press Release
CHICAGO — The owner of a suburban Chicago prescription drug wholesale distribution company purchased more than $57 million worth of diverted, unregulated prescription drugs and re-sold them to unsuspecting pharmacies and other wholesalers, according to a federal indictment returned in U.S. District Court in Chicago.
GURUCHARAN DUA used his Plainfield, Ill.-based distribution company to knowingly obtain wholesale amounts of the diverted prescription drugs at discounted prices from unlicensed suppliers, the indictment states. Upon receipt of the diverted drugs, Dua directed his employees to clean the bottles to fraudulently make the drugs appear to be from a regulated prescription drug distribution chain, the indictment states. Dua then knowingly sold the diverted prescription drugs to unsuspecting pharmacies and other wholesalers, falsely representing to them that his company had acquired the prescription drugs from a licensed source in a regulated supply chain, the indictment states.
The charges allege that from 2011 to 2017, Dua purchased approximately $57.2 million worth of diverted prescription drugs that he later re-sold to the pharmacies and wholesalers. Some of the pharmacies were located in Chicago, Joliet, Ill., and Springfield, Mass., the indictment states.
The indictment charges Dua, 50, of Naperville, Ill., with six counts of mail fraud, four counts of wire fraud, and three counts of money laundering. Arraignment is scheduled for Aug. 31, 2021, at 11:00 a.m., before U.S. Magistrate Judge Jeffrey I. Cummings.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. The Office of the Chief Counsel at the FDA provided valuable assistance. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not an unregulated, diverted drug,” said U.S. Attorney Lausch. “Individuals who take advantage of their positions and seek to profit from diverted prescription drugs will be prosecuted to the fullest extent of the law.”
“Prescription drugs that are not in the legitimate supply chain can present a serious health risk to those who buy and use these diverted drugs,” said FDA SAC Burdelik. “FDA will continue to protect consumers by investigating and bringing to justice those who attempt to traffic in diverted prescription drugs.”
The public is reminded that charges are 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. Each count of mail fraud and wire fraud carries a maximum sentence of 20 years in federal prison, while each money laundering count is punishable by up to ten years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Steubenville man sentenced for drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Rashaan Donell Mukes, of Steubenville, Ohio, was sentenced today to three years of probation for his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Mukes, age 35, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl” in February 2020. Mukes admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
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.
U.S. District Judge John Preston Bailey presided.
Find related press release here: https://www.justice.gov/usao-ndwv/pr/ohio-west-virginia-and-pennsylvania-residents-indicted-drug-conspiracy-ohio-valley
South Florida Political Consultant Charged with Defrauding Covid-19 Relief ProgramRead the Press Release
Miami, Florida – Federal prosecutors have charged 28-year-old Fort Lauderdale, Florida resident Damara Holness with lying on a coronavirus relief loan application and fraudulently obtaining hundreds of thousands of dollars intended to help small businesses financially survive the Covid-19 pandemic.
According to the information filed yesterday in federal district court in Fort Lauderdale, in June 2020, Holness applied for a $300,000 forgivable, federally-guaranteed Paycheck Protection Program (PPP) loan on behalf of Holness Consulting, Inc., a Florida company that she owned. It is alleged that to justify the requested loan amount, Holness claimed in the on-line loan application, and through supporting fraudulent payroll tax forms, that her company employed 18 people and spent an average of $120,000 each month on payroll. In fact, Holness Consulting had zero employees and no payroll expenses. A bank in Georgia approved Holness Consulting’s PPP loan application based on the lies and wired $300,000 to the company’s bank account in Florida, says the information.
Once the money hit the bank account in July 2020, Holness spent the next few months creating a paper trail to make it appear as if Holness Consulting had employees and was spending the PPP money on legitimate, approved expenses, it is alleged. According to the information, Holness issued checks from the company bank account made out to others who agreed, for a fee, to help with the fraud. At Holness’ direction, the people receiving the checks would endorse and return them to Holness. Then, Holness would cash the checks at the company’s bank, give a few hundred dollars to the check endorsers, and keep the rest of the cash for herself – about $1,000 per check, says the information.
Damara Holness is a former president of the Broward County Democratic Black Caucus.
The information charges Holness with conspiring to commit wire fraud. If convicted, she faces up to 20 years in prison and a fine of up to $250,000. Holness made her initial appearance today before U.S. Magistrate Judge Patrick M. Hunt, who sits in Ft. Lauderdale. Holness was released from custody on a $100,000 personal surety bond.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the charges.
FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey Kaplan is prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP).
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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.
An information is merely an allegation and a defendant are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60229.
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Smith County Man Sentenced for Cocaine Trafficking and Firearm ViolationsRead the Press Release
TYLER, Texas – A Tyler man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Johnny Lee Wickware, 38, pleaded guilty on April 29, 2021, to conspiracy to possess with intent to distribute cocaine and cocaine base and possession of a firearm during a crime of violence. Wickware was sentenced to 76 months in federal prison for the drug charge and 60 months for the firearms violation. U.S. District Judge J. Campbell Barker ordered the penalties to be served consecutively for a total of 136 months in federal prison.
“Today’s sentence is another fine example of how the Eastern District deals with drug dealers, particular those that use firearms during their drug crimes,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to bring cases like this to ensure the continued safety of the greater Tyler area.”
According to information presented in court, from October 2019 through June 2020, Wickware was part of a conspiracy to distribute cocaine and cocaine base in the Smith County area. During that time, Wickware sold drugs on at least five different occasions. During one of those transactions, Wickware also sold a pistol and ammunition. Wickware was indicted by a federal grand jury on October 21, 2020.
This case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety-CID, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
Six Maryland Law Enforcement Officers Facing Federal Indictment for Charges Related to Schemes to Defraud Financial Institutions and Insurance CompaniesRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging an officer for the Fairmount Heights Police Department, the Anne Arundel County Police Department, the Maryland-National Capital Park Police, and three officers from the Prince George’s County Police Department (PGPD) with federal charges for conspiracy to commit bank fraud, wire fraud and/or mail fraud. The indictment was returned on July 28, 2021, and unsealed today. The following defendants are charged in the federal indictment.
Conrad Darwin D’Haiti, age 52, of La Plata, Maryland, of the Maryland-National Capital Park
Police; Philip James Dupree, age 37, of Pikesville, Maryland, of the Fairmount Heights Police Department; Mark Ross Johnson, Jr., age 33, of Camp Springs, Maryland, of the PGPD; Michael Anthony Owen, Jr., age 33, of Accokeek, Maryland, of the PGPD; Jaron Earl Taylor, age 27, of Ft. Washington, Maryland, of the Anne Arundel County Police
Department; and
Candace Danielle Tyler, age 34, of District Heights, Maryland, of the PGPD.Dupree, Johnson, Taylor, and Tyler are expected to have an initial appearance this afternoon in U.S. District Court in Greenbelt. D’Haiti is expected to turn himself in at a later date and Owen is detained on an unrelated State charge. Both will have initial appearances in U.S. District Court at a later date.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Azziz of the Prince George’s County Police Department.
According to the three-count indictment, the defendants conspired to commit three separate frauds, each of which involved filing false police reports and falsified loss claims in order to fraudulently obtain funds from financial institutions and insurance companies. The defendants were all police officers at the time of the alleged criminal activity.
Specifically, the indictment alleges that from May 2019 until June 2019, Dupree, Johnson, and Tyler conspired to defraud three financial institutions by coordinating the withdrawal of money from their financial accounts through ATMs for the purpose of fraudulently claiming the money was stolen and seeking reimbursement from a financial institution. In order to execute the fraud scheme, Dupree, Johnson, and Tyler allegedly coordinated the submission of police reports to PGPD, falsely stating that their debit cards were stolen and used to withdraw fund from the ATM without their permission. The indictment alleges that members of the conspiracy, including the defendants, then submitted fraudulent claims to the victim financial institutions seeking reimbursement for the purportedly unauthorized ATM withdrawals.
Further, the indictment alleges that in January 2020, D’Haiti and Owen coordinated the relocation and vandalism of D’Haiti’s vehicle in order to file a fraudulent insurance claim. Members of the conspiracy, including D’Haiti and Owen, allegedly coordinated the submission of a PGPD police report that falsely stated that D’Haiti’s vehicle was stolen. D’Haiti then allegedly submitted an insurance claim and documents to the victim insurance company by mail and wire, seeking reimbursement for the vehicle that was reported as stolen.
Finally, the indictment alleges that in January 2020, Owen and Taylor coordinated the relocation of a vehicle in a garage to hide the vehicle for the purpose of filing a fraudulent insurance claim. Specifically, the indictment alleges that members of the conspiracy, including Owen and Taylor, moved the vehicle to a garage and conspirators, including Owen, then submitted a false PGPD police report stating that the vehicle was stolen. A co-conspirator then submitted an insurance claim seeking reimbursement for the vehicle that was reported stolen.
If convicted, Dupree, Johnson and Tyler each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud; D’Haiti and Owen each face a maximum sentence of 20 years in federal prison for conspiracy to commit mail fraud and wire fraud; and Owen and Taylor each face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Prince George’s County Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Dwight J. Draughon and Adam K. Ake, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Several Defendants Sentenced in Separate Cases in Western District of LouisianaRead the Press Release
SHREVEPORT/ MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of five cases today in United States District Court in the Western District of Louisiana, all of which are listed below.
SENTENCING HEARINGS – SHREVEPORT
United States District Judge Donald E. Walter sentenced the following defendants:
James D. Stephens, III, 39, of Shreveport, Louisiana, was sentenced to 120 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Stephens pleaded guilty to the charge on April 1, 2021. The charges in the indictment stemmed from an incident on November 17, 2019, when a Bossier Parish Sheriff’s Office deputy stopped Stephens’ car for a routine traffic violation. Inside the vehicle, deputy found more than 500 grams of methamphetamine hidden inside the car.
The DEA, ATF and Bossier Parish Sheriff’s Office conducted the investigation and Assistant U.S. Attorney Mike Shannon prosecuted the case.
Marvelous Brown, 33, of Shreveport, Louisiana, was sentenced to 60 months and one day in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. On August 6, 2019, agents from the Shreveport Police Department narcotics task force encountered Brown in his vehicle near his home and detected an odor of marijuana coming from the vehicle. Brown admitted to agents that he had been smoking marijuana in his vehicle and admitted to having a small amount in his house. Agents searched the house and found approximately 213 grams of marijuana, a digital scale and packaging material, along with two pistols in Brown’s closet.
The ATF and Shreveport Police Department conducted the investigation and Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
SENTENCING HEARINGS – MONROE
United States District Judge Terry A. Doughty sentenced the following defendants:
Danny Ray Wilson, 31, of Monroe, Louisiana, was sentenced to 72 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On October 13, 2020, deputies with the Ouachita Parish Sheriff’s Office stopped the vehicle Wilson was driving to execute an outstanding arrest warrant on him. Law enforcement officers arrested Wilson and found a pistol loaded with 16 rounds of ammunition between the driver’s seat and center console.
Wilson has prior felony convictions for obstruction of justice, illegal possession of a stolen firearm, and illegal use of a dangerous weapon (2009) and simple burglary of an inhabited dwelling (2017 and 2018). As a convicted felon, Wilson is prohibited from possessing a firearm.
The ATF and Ouachita Parish Sheriff’s Office conducted the investigation and Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Lee Underwood, Jr., 53, and Ruby Jane McMillian, 35, of Eros, Louisiana, were both sentenced on drug and firearm charges. Underwood was sentenced to 240 months (20 years) in prison and McMillian was sentenced to 110 months (9 years, 2 months) in prison. Both were sentenced to 5 years of supervised release following their release from prison.
On November 20, 2020, law enforcement agents executed an arrest warrant for Lee Underwood at his home in Eros. Agents observed a firearm and drug paraphernalia in plain view at the residence and obtained a search warrant. During the execution of the search warrant, agents recovered a purse with McMillian’s driver’s license and three bags containing approximately 62 grams of methamphetamine along with the packaging. Agents also recovered two loaded firearms from Underwood’s bedroom, as well as methamphetamine in individually packaged baggies.
The DEA and ATF conducted the investigation and Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Jory Terrell Williams, Jr., 30, of Monroe, Louisiana, was sentenced to 209 months (17 years, 5 months) in prison, followed by 3 years of supervised release, for possession of drugs and a firearm.
Williams was charged in October 2020 and pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. According to information presented in court, law enforcement agents began an investigation into the illegal activities of Williams in January 2020. A search warrant was later obtained and executed at the residence of Williams. During the search, agents recovered 241.325 grams of methamphetamine, several digital scales, a vacuum sealer, and plastic bags. In addition, a loaded Glock pistol and over $9,000 in cash was recovered. Williams admitted to possessing the firearm, knowing that as a convicted felon he was prohibited from doing so.
Williams has prior felony convictions for aggravated battery (2018), aggravated burglary (2010), and simple burglary of an inhabited dwelling (2010).
The DEA and ATF conducted the investigation and Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
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Savannah felon convicted for illegal firearms possessionRead the Press Release
SAVANNAH, GA: A U.S. District Court jury found a previously convicted felon guilty of illegally possessing a firearm and ammunition after just 15 minutes of deliberation.
Matthew Kearse, 30, of Savannah, now awaits sentencing after his conviction for Possession of a Firearm and Ammunition by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The statutory penalty for the crime is up to 10 years in federal prison, followed by a period of supervised release. There is no parole in the federal system.
“To prevent violent crime and keep our neighborhoods safe, it is absolutely essential that we keep guns out of the hands of criminals,” said Acting U.S. Attorney Estes. “That requires the coordination of everyone in the community, including citizens and law enforcement, in identifying and removing those who are prohibited from possessing firearms.”
As described in court documents and testimony, Kearse is a previously convicted felon and prohibited from possessing firearms. He was on parole after a previous prison sentence when his aunt confronted him Nov. 1, 2018, about a pistol she found in her back yard. Her surveillance system captured Kearse in the area where the gun was found.
Investigators from the Savannah Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), took custody of the pistol. DNA testing, as introduced in court, demonstrated definitively that Kearse had possessed the weapon. The jury deliberated just 15 minutes before finding Kearse guilty, and he was remanded to custody of the U.S. Marshals Service to await sentencing.
“This defendant had no business carrying a firearm, given his previous criminal conduct,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “This case demonstrates the cooperation that exists between the Savannah Police Department and ATF.”
In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction on a previous felony.
The case was investigated by the ATF and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
Roswell businesswoman pleads guilty to bank fraud in connection with the Paycheck Protection ProgramRead the Press Release
ATLANTA - Hunter VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, who defrauded the Paycheck Protection Program (PPP) of more than $6 million, has pleaded guilty to a charge of bank fraud.
“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine. “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”
“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”
“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
According to Acting U.S. Attorney Erskine, the charge and other information presented in court: VanPelt submitted six false and fraudulent PPP loans between April 27, 2020 and June 17, 2020. The amounts requested in the six loans totaled $7,943,591.50, of which $6,017,066.50 was disbursed.
VanPelt owned or controlled the six entities that sought these PPP loans:
- Georgia Nephrology Physician Associated,
- United Healthcare Group & Co.,
- Nephrology Network Group LLC,
- First Corporate International,
- Corkrum Consolidated Inc.,
- Kiwi International Inc.
The defendant, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted the PPP loan applications under both names.
In each of the PPP loan applications, VanPelt falsely represented the average monthly payroll and the number of employees working for the relevant company. She also submitted false IRS records, false bank statements, and false payroll reports in connection with those applications.
Federal agents were able to seize approximately $2.1 million of the fraudulent proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Sentencing for Hunter VanPelt, 49, of Roswell, Georgia, is scheduled for January 4, 2022, at 10:00 a.m., before U.S. District Judge Mark H. Cohen.
This case is being investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Department of Justice Trial Attorney Chris A. Wenger are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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.
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.
Rochester Man Pleads Guilty to His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jonathan Torres, 41, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to conspiring to possess with intent to distribute more than 40 grams of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between April and November 28, 2018, the defendant conspired with others to sell fentanyl and cocaine in the area of Wilkins Street in Rochester. In furtherance of the conspiracy, Torres supplied fentanyl and cocaine to individuals who would then distribute the drugs to customers in the Wilkins Street area. The defendant also acted as a supervisor by monitoring the quantities of fentanyl and cocaine sold, directing the sales by others, re-supplying street-level workers, and supervising street-level workers who sold the drugs. At least one of the street-level workers was less than 18 years old. Torres used his Raines Park residence to store, package, and manufacture the fentanyl and cocaine for sale.
The plea is the result of an investigation by New York State Police, under the direction of Major Barry Lyon; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for October 27, 2021, at 2:30 p.m. before Judge Larimer.
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Rochester Man Arrested at the Peace Bridge with Cocaine and A Ghost GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Luis Amed Colon Molina, 42, of Rochester, NY, was arrested and charged by criminal complaint with possession with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking activity. The charges carry a mandatory minimum penalty of five years in prison, and a maximum of life.
Assistant U.S. Attorney Charles E. Watkins, Jr., who is handling the case, stated according to the complaint, on August 14, 2021, the defendant was encountered at the Peace Bridge Port of Entry after making a wrong tum onto the Peace Bridge. Headed towards Canada initially, Colon Molina apparently realized he was heading towards Canada and turned around coming back through United States Customs. During primary inspection, the defendant stated that he was following his GPS and made a wrong turn onto the bridge. He also stated that he and his wife, who was also in the car, live in Rochester, and were attempting to eat Puerto Rican food in Buffalo. When asked by a Customs and Border Protection officer, Colon Molina stated that did not have any narcotics or weapons.
The CBP office then conducted a random trunk examination and discovered several baggies containing a white powder substance inside a gray fanny pack. The defendant and his wife were then referred for a secondary inspection. Once in customs secondary, Colon Molina stated he was in possession of a pocketknife in the vehicle but again provided a negative declaration for firearms and drugs. During a search of the defendant’s vehicle, the gray fanny pack was removed from the trunk. In addition to the baggies containing a white powder substance, officers also found a digital scale with white powder residue inside the fanny pack. The substance was field tested resulting in a positive presence of cocaine. Officers also recovered a loaded 9mm, Polymer 80 handgun in the vehicle's glove box. The gun did not have a serial number and is considered a “Ghost Gun.” In addition, a review of Colon Molina’s cellular telephone recovered photographs of what appeared to be various other firearms and narcotics.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Rapid City Man Sentenced for Attempted Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Attempted Possession of Child Pornography was sentenced on July 20, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Darren Harrison, age 26, was sentenced to 24 months in federal prison, followed by five years of supervised release. Harrison was also ordered to pay a total of $100 in special assessments to the Federal Crime Victims Fund.
Harrison was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2020 Sturgis Motorcycle Rally, targeting online predators. Following multiple online communications with a person Harrison believed to be a 15 year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Harrison went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Harrison was immediately turned over to the custody of the U.S. Marshals Service.
Providence Man Pleads Guilty to Trafficking FirearmsRead the Press Release
BOSTON – A Providence, R.I. man pleaded guilty yesterday in federal court in Boston to firearms trafficking.
Chiweze Ihunwo, 24, previously of Randolph, Mass., pleaded guilty to one count of engaging in the business of dealing in firearms without a license. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 8, 2021. Ihunwo was indicted on Jan. 21, 2021.
In 2019 and 2020, Ihunwo traveled from Massachusetts to North Carolina for the purpose of acquiring firearms to be resold for profit. After acquiring these firearms, Ihunwo traveled back to Massachusetts and sold them to various individuals. At various times, Ihunwo advertised the firearms for sale via social media. In addition, Ihunwo made arrangements to sell firearms to a person who soon thereafter was arrested in connection with a June 23, 2020 shooting incident on I-95 in Providence.
During a search of a residence in Providence where Ihunwo had been staying, an AK-style pistol and various rounds of ammunition were recovered.
The charge of dealing in firearms without a license 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 on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives made the announcement. Assistance was provided by the Randolph Police Department, the Providence Police Department and the Rhode Island State Police. Assistant U.S. Attorney Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
Prison inmate sentenced to decades in federal prison for distribution of child pornographyRead the Press Release
SAVANNAH, GA: An inmate at a Georgia prison has been sentenced to nearly 30 years in federal prison after admitting he distributed child pornography while incarcerated for failing to register as a sex offender.
Melton Andrew Padgett Jr., 47, a Savannah resident who was incarcerated at Baldwin State Prison in Milledgeville, Ga., when charged in January, was sentenced to 312 months in prison after pleading guilty to one count of Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Padgett to pay $250,000 in restitution, to serve 15 years of supervised release after completion of his prison term, and to register as a sex offender. There is no parole in the federal system.
“Melton Padgett served time in prison after being convicted of child molestation, then was sent back to prison after failing to register as a sex offender – and while serving time in a minimum-security setting continued to victimize children,” said Acting U.S. Attorney Estes. “A substantial term in federal prison will protect our most vulnerable citizens from this serial predator.”
As described in court documents and testimony, Padgett was identified as responsible for sharing images of child sexual exploitation after Georgia’s Internet Crimes Against Children Task Force in March 2020 received a cyber tip from the National Center for Missing and Exploited Children. After an investigation by Homeland Security Investigations, Padgett pled guilty to sharing videos of child sexual exploitation through a social media messaging service while he was being housed in the Coastal Transitional Center in Savannah. Padgett previously has been convicted of child cruelty, child molestation and aggravated sexual battery, and failing to register as a sex offender.
“Padgett has not gotten the message that his pattern of predatory behavior must stop or he will continue to face serious consequences,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Protecting our most vulnerable population from exploitation is one of HSI’s most important missions.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by Homeland Security Investigations and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Phoenix Man Sentenced to Federal Prison for Sex CrimesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Phoenix, Arizona, man convicted of Attempted Commercial Sex Trafficking of a Minor and Attempted Enticement of a Minor Using the Internet was sentenced on July 8, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Carlocito Slim, age 35, was sentenced to two 10-year terms in federal prison, to run concurrently. Slim was also sentenced to two 5-year terms of supervised release, to run concurrently, and was ordered to pay a total of $200 in special assessments to the Federal Crime Victims Fund.
Slim was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting internet predators. Following multiple text messages with a person Slim believed to be a pimp for a 15 year-old prostitute, but who was in fact an undercover agent, he proceeded to negotiate the time and place he would meet the minor to engage in unlawful sex acts. When Slim went to the pre-determined location to meet the minor’s pimp, he was instead met by law enforcement agents and placed under arrest. Slim was found guilty following a two-day federal court trial on March 10, 2021.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Slim was immediately turned over to the custody of the U.S. Marshals Service.
Owner of DC-Area Tax Preparation Business Pleads Guilty to FraudRead the Press Release
WASHINGTON – Endalkachew Asfaw, 48, of Alexandria, Va., pleaded guilty today to aiding and assisting in the filing of a false tax return and causing at least $250,000 of loss to the Internal Revenue Service, announced Acting U.S. Attorney Channing D. Phillips and Darrell J. Waldon, Acting Special Agent in Charge, IRS-Criminal Investigation, Washington Field Office.
Asfaw pleaded guilty in the U.S. District Court for the District of Columbia. The Honorable John D. Bates scheduled sentencing for Nov. 17, 2021. The charge carries a statutory maximum of three years in prison and potential financial penalties. As part of the plea agreement, Asfaw has agreed to pay restitution to the United States.
“Our country’s financial system depends on honest and accurate compliance with the U.S. tax laws,” said Acting U.S. Attorney Phillips. “Tax fraud costs U.S. taxpayers billions of dollars each year, and this Office will vigorously prosecute those who commit tax fraud.”
“Tax Practitioners entrusted to prepare accurate tax returns should not lead their clients astray by falsifying returns prepared on their behalf. We will continue to investigate those who fraudulently prepare and file income tax returns, effectively stealing money from the government,” said Acting Special Agent in Charge Waldon.
According to court documents, Asfaw, a Certified Public Accountant in Alexandria, has operated Endalk and Yohannes Associated, L.P. with a business partner in the District of Columbia since 2011. From 2016 through 2019, Asfaw and the business partner prepared approximately 10,000 tax returns.
According to court documents, Asfaw knowingly aided and assisted in the preparation of false income tax returns for years 2015 through 2017 on behalf of his clients. Asfaw did this by deliberately overstating unreimbursed employee business expenses on his clients’ Schedule A deductions, including uniforms and unreimbursed mileage expenses. As part of his plea, Asfaw also admitted to creating fraudulent Schedule C expenses and deducting exemptions for individuals that his clients were not entitled to claim. Asfaw admitted to fabricating these items to generate larger tax refunds for his clients. As part of his plea, Asfaw admitted that he filed false tax returns resulting in a total tax loss of more than $250,000 to the U.S. government.
In announcing the plea, Acting U.S. Attorney Phillips and Acting Special Agent in Charge Waldon commended the work of IRS Criminal Investigation, Washington Field Office, which investigated the case. They also acknowledged the work of those who are handling the case at the U.S. Attorney’s Office, including Paralegal Specialist Mariela Andrade and Assistant U.S. Attorney Leslie A. Goemaat, who is prosecuting this matter.
Onondaga County Man Pleads Guilty to Distribution, Receipt, and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Timothy B. Pease, 32, of Kirkville, New York, pled guilty yesterday to charges of distribution, receipt, and possession of child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty before Chief United States District Judge Glenn T. Suddaby in Syracuse, Pease admitted that from December 2019 through January of 2020, he used various online social networking applications to receive and distribute child pornography. Pease also admitted that during this time he used another social networking application, on which he posed as a teenage girl, to solicit teenage boys to produce sexually explicit images and videos of themselves, which Pease then distributed to others. Pease also admitted to possessing thousands of images and videos of child pornography at the time of his arrest on January 23, 2020.
Pease faces at least 5 years and up to 20 years in prison, as well as a term of supervised release of between 5 years and life. Upon his release from prison, Pease also will be required to register as a sex offender in any state where he lives, is employed, or is a student. His sentencing is scheduled for December 14, 2021.
A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being prosecuted by Special Assistant U.S. Attorney Adrian LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Ohio Resident Pleads Guilty to Operating Darknet-Based Bitcoin ‘Mixer’ That Laundered over $300 MillionRead the Press Release
WASHINGTON – An Ohio man pleaded guilty today to a money laundering conspiracy arising from his operation of Helix, a Darknet-based cryptocurrency laundering service. According to court documents, Larry Dean Harmon, 38, of Akron, admitted that he operated Helix from 2014 to 2017. Helix functioned as a bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet to conceal transactions from law enforcement.
“By holding Harmon accountable, the department has disrupted the unlawful money laundering practices of these dangerous criminal enterprises,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department, together with our law enforcement and regulatory partners, will continue to take enforcement actions to identify and impede those who use illicit means for financial gain, as well as those who use the Darknet to facilitate and obscure their criminal conduct.”
“Darknet markets and the dealers who sell opioids and other illegal drugs on them are a growing scourge,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “They may try to hide their identities and launder millions in sales behind technologies like Helix. But the department and its law enforcement partners will shine a light on their activities, dismantle the infrastructure such criminal marketplaces depend on, and prosecute and convict those responsible.”
“Criminals may think they can mask financial transactions by using services like Helix to conceal the source of illicit funds,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “The FBI and our state, local, federal and international law enforcement partners are working together every day in a complex and ever-changing digital environment to protect the American people from sophisticated money launderers and financiers.”
“The Darknet is driven in part by the criminal marketplaces which peddle their nefarious goods and services,” said Chief James C. Lee of the IRS Criminal Investigation. “But these marketplaces thrive in large measure because of the infrastructure that supports them. Harmon profited by facilitating the back-channel support of these marketplaces and helped criminals launder money they received via illicit activities. He then hid those funds from the government. He admitted his role today in these activities and will now be held accountable.”
“Harmon admitted that he conspired with Darknet vendors to launder bitcoin generated through drug trafficking and other illegal activities,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to infiltrate and shut down the cryptocurrency money-laundering networks that support cyber-criminal enterprises.”
Harmon admitted that Helix partnered with several Darknet markets, including AlphaBay, Evolution, Cloud 9 and others, to provide bitcoin money laundering services for market customers. In total, Helix moved over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Harmon further admitted that he conspired with Darknet vendors and marketplace administrators to launder such bitcoins generated through illegal drug trafficking offenses on those Darknet marketplaces.
As part of his plea, Harmon also agreed to the forfeiture of more than 4,400 bitcoin, valued at more than $200 million at today’s prices, and other seized properties that were involved in the money laundering conspiracy. Harmon will be sentenced at a date to be determined and faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, a term of supervised release of not more than three years, and mandatory restitution. Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia accepted Harmon’s guilty plea and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS-CI Cyber Crimes Unit and the FBI’s Washington Field Office investigated the case, with valuable assistance provided by the Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office for the Northern District of Ohio, the IRS’s Washington, Cincinnati and Oakland Field Offices, the FBI’s Criminal Investigative Division and Cleveland, Newark and San Francisco Field Offices, and the State Department’s Diplomatic Security Service.
The Belize Ministry of the Attorney General and the Belize National Police Department provided essential support for the investigation, coordinated through U.S. Embassy Belmopan. The investigation was coordinated with the Financial Crimes Enforcement Network, which assessed a $60 million civil monetary penalty against Harmon in a parallel action.
Trial Attorneys S. Riane Harper and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia prosecuted the case. Additional assistance was provided by Trial Attorneys Emily Siedell and Brian Nicholson of the Criminal Division’s Office of International Affairs, former CCIPS Trial Attorney W. Joss Nichols and Assistant U.S. Attorney Daniel Riedl of the Northern District of Ohio.
Ohio Resident Pleads Guilty to Operating Darknet-Based Bitcoin ‘Mixer’ That Laundered over $300 MillionRead the Press Release
An Ohio man pleaded guilty today to a money laundering conspiracy arising from his operation of Helix, a Darknet-based cryptocurrency laundering service.
According to court documents, Larry Dean Harmon, 38, of Akron, admitted that he operated Helix from 2014 to 2017. Helix functioned as a bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet to conceal transactions from law enforcement.
“By holding Harmon accountable, the department has disrupted the unlawful money laundering practices of these dangerous criminal enterprises,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department, together with our law enforcement and regulatory partners, will continue to take enforcement actions to identify and impede those who use illicit means for financial gain, as well as those who use the Darknet to facilitate and obscure their criminal conduct.”
“Darknet markets and the dealers who sell opioids and other illegal drugs on them are a growing scourge,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “They may try to hide their identities and launder millions in sales behind technologies like Helix. But the department and its law enforcement partners will shine a light on their activities, dismantle the infrastructure such criminal marketplaces depend on, and prosecute and convict those responsible.”
“Criminals may think they can mask financial transactions by using services like Helix to conceal the source of illicit funds,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “The FBI and our state, local, federal and international law enforcement partners are working together every day in a complex and ever-changing digital environment to protect the American people from sophisticated money launderers and financiers.”
“The Darknet is driven in part by the criminal marketplaces which peddle their nefarious goods and services,” said Chief James C. Lee of the IRS Criminal Investigation. “But these marketplaces thrive in large measure because of the infrastructure that supports them. Harmon profited by facilitating the back-channel support of these marketplaces and helped criminals launder money they received via illicit activities. He then hid those funds from the government. He admitted his role today in these activities and will now be held accountable.”
“Harmon admitted that he conspired with Darknet vendors to launder bitcoin generated through drug trafficking and other illegal activities,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to infiltrate and shut down the cryptocurrency money-laundering networks that support cyber-criminal enterprises.”
Harmon admitted that Helix partnered with several Darknet markets, including AlphaBay, Evolution, Cloud 9 and others, to provide bitcoin money laundering services for market customers. In total, Helix moved over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Harmon further admitted that he conspired with Darknet vendors and marketplace administrators to launder such bitcoins generated through illegal drug trafficking offenses on those Darknet marketplaces.
As part of his plea, Harmon also agreed to the forfeiture of more than 4,400 bitcoin, valued at more than $200 million at today’s prices, and other seized properties that were involved in the money laundering conspiracy. Harmon will be sentenced at a date to be determined and faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, a term of supervised release of not more than three years, and mandatory restitution. Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia accepted Harmon’s guilty plea and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS-CI Cyber Crimes Unit and the FBI’s Washington Field Office investigated the case, with valuable assistance provided by the Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office for the Northern District of Ohio, the IRS’s Washington, Cincinnati and Oakland Field Offices, the FBI’s Criminal Investigative Division and Cleveland, Newark and San Francisco Field Offices, and the State Department’s Diplomatic Security Service.
The Belize Ministry of the Attorney General and the Belize National Police Department provided essential support for the investigation, coordinated through U.S. Embassy Belmopan. The investigation was coordinated with the Financial Crimes Enforcement Network, which assessed a $60 million civil monetary penalty against Harmon in a parallel action.
Trial Attorneys S. Riane Harper and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia prosecuted the case. Additional assistance was provided by Trial Attorneys Emily Siedell and Brian Nicholson of the Criminal Division’s Office of International Affairs, former CCIPS Trial Attorney W. Joss Nichols and Assistant U.S. Attorney Daniel Riedl of the Northern District of Ohio.
Norris Man Indicted for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Norris, South Dakota, man has been indicted by a federal grand jury for Abusive Sexual Contact.
Harold White Hat, age 37, was indicted on August 10, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 16, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to three years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 3, 2020, in Mellette County, White Hat knowingly engaged in sexual contact with a minor victim. The Indictment further alleges that the victim was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating an unwillingness to engage in the sexual conduct.
The charges are merely accusations and White Hat is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Hat was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
New Jersey Resident Sentenced to 10 Years in Prison for Child Pornography and Cyberstalking a San Mateo TeenagerRead the Press Release
SAN FRANCISCO – Barry David Goldberg was sentenced today to 120 months in prison on charges of distribution of child pornography and cyberstalking in a “sextortion” scheme targeting a minor victim, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge.
Goldberg, 57, a resident of Cherry Hill, New Jersey, pleaded guilty to the charges on January 27, 2021. According to the plea agreement, Goldberg admitted he used the internet to misrepresent himself as a minor to a 15-year-old. Goldberg manipulated his victim into sending him images and videos of her engaging in sexually explicit activities. Goldberg acknowledged that he knew at the time the victim was a minor. Goldberg also admitted that once he was in possession of the images and videos, he threatened to post on social media sexually explicit depictions of the minor female victim and to show the materials to her friends and family. Goldberg eventually did post images of the victim on Snapchat and communicated with the minor victim's parents about the sexually explicit photos and videos he had of the minor victim. Goldberg admitted that he did all this intending to injure, harass, and intimidate the minor victim and that he knew his conduct would cause substantial emotional distress.
A further description of Goldberg’s conduct appears in documents filed by the government in the case. In its sentencing memorandum, the government detailed how Goldberg sent to his victim a photo of a random boy he downloaded from the internet to convince her of his false identity. Once Goldberg obtained sexually explicit pictures of his victim, he told her he would disclose her sexual behavior to others including her parents, her high school, and the colleges to which she was applying. Goldberg also created multiple Snapchat usernames, began befriending the victim's schoolmates and friends, and then posted on Snapchat numerous sexually explicit photos and videos of the victim.
Goldberg was charged with distribution of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b), and cyberstalking, in violation of 18 U.S.C. § 2261A (2). He pleaded guilty to both counts.
In addition to the prison term, Judge Breyer also ordered defendant to serve a 10-year period of supervised release. Judge Breyer ordered the defendant to surrender on or before October 20, 2021, to begin serving his prison term.
Assistant U.S. Attorney Andrew Paulson is prosecuting the case with the assistance of Jasmine Sanders. The prosecution is the result of an investigation by the FBI.
Navajo man pleads guilty to assault resulting in serious bodily injury in Indian CountryRead the Press Release
ALBUQUERQUE – Vance Andres Raymond, 24, of Fruitland, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court on Aug. 17 to one count of assault resulting in serious bodily injury in Indian Country. Raymond is currently in custody pending sentencing.
According to the plea agreement and other court records, the defendant committed this offense on April 10, 2018, in San Juan County, New Mexico, on the Navajo Nation. Raymond admitted to recklessly assaulting Jane Doe by grabbing her arm resulting in serious injury.
Raymond faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant U.S. Attorney Kyle Nayback is prosecuting the case.
Nashotah man pleads guilty to attacking U.S. Service MemberRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on August 18, 2021, Ian Alan Olson of Nashotah, Wisconsin, appeared in federal court in Milwaukee and pleaded guilty to attacking United States Servicemen on account of their status as servicemen, in violation of 18 U.S.C. § 1389(a).
As detailed in a plea agreement filed in the case, on March 15, 2021, Olson drove his vehicle to the U.S. Army Reserve station in Pewaukee, Wisconsin. Olson then got out of his vehicle, produced what appeared to be a rifle, pointed it at two uniformed U.S. Army servicemen who were the station’s parking lot, and exclaimed “This is for America.” Olson then fired the weapon, which turned out to be a paintball gun, directly at the two servicemen. After Olson’s paintball gun jammed, the servicemen tackled him to the ground. Both servicemen initially believed Olson was holding a real firearm and they feared that Olson intended to shoot and kill them.
Olson will be sentenced on November 18, 2021 at 1:30 p.m. before United States District Judge Brett H. Ludwig. Olson faces up to two years in prison.
This case was investigated by the FBI and the Village of Pewaukee Police Department. It is being prosecuted by Assistant United States Attorney Benjamin Proctor of the Eastern District of Wisconsin and Trial Attorney Justin Sher of the U.S. Department of Justice National Security Division.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
Mobridge Man Convicted by Federal Jury for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Stanley Gene Schily, Sr., age 66, of Mobridge, South Dakota, was found guilty of Conspiracy to Distribute 50 Grams or More of Methamphetamine as a result of a two-day federal jury trial in Aberdeen, South Dakota.
The charge carries a maximum penalty of life in federal prison and/or an $8,000,000 fine, a lifetime of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution may be ordered.
Schily was indicted by a federal grand jury on September 9, 2020. A Superseding Indictment alleging Schily had been previously convicted of a serious drug felony offense was filed on July 13, 2021.
The evidence at trial showed Schily knowingly and intentionally conspired with several individuals to distribute approximately 140 grams of methamphetamine in and around Mobridge, South Dakota, from 2019 through March of 2020. On March 5, 2020, law enforcement executed a warrant to search Schily’s residence. Law enforcement recovered approximately .64 grams of methamphetamine, 150 plastic baggies, and several records indicating drug transactions. Schily spoke with law enforcement and made several admissions about his involvement in methamphetamine trafficking.
This case was investigated by the Mobridge Police Department, the Walworth County Sheriff’s Office, the Campbell County Sheriff’s Office, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys Cameron J. Cook and Abby Roesler prosecuted the case.
A sentencing date was set for November 15, 2021. The defendant was immediately remanded to the custody of the U.S. Marshals Service after the jury reached its verdict.
Michigan Man Indicted for Traveling to Wisconsin to Have Sex with a 15-Year-OldRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that Scott D. Sundberg (age: 42) of Ishpeming, Michigan, was indicted by a federal grand jury in Milwaukee following his August 13, 2021, arrest by local and federal authorities.
According to a criminal complaint filed in the case, Sundberg began exchanging instant messages with an individual whom he believed to be the parent of a 15-year-old girl living in Oshkosh, Wisconsin. The complaint alleged that Sundberg expressed repeated interest in engaging in sexual activity with the 15-year-old and also sent pornographic images of children engaged in explicit sexual activity.
In fact, Sundberg was communicating with a law enforcement agent working as a part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office (https://go.usa.gov/xFfCm). Sundberg was arrested upon his arrival in the Eastern District of Wisconsin.
The indictment alleges that Sundberg used a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b). If convicted, Sundberg faces a mandatory minimum sentence of 10 years and up to a lifetime of imprisonment.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
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Mexican National Sentenced to 46 Months in Prison for Trafficking Fentanyl into New JerseyRead the Press Release
NEWARK, N.J. – A Mexican national was sentenced today to 46 months in prison for his role in transporting approximately two kilograms of fentanyl into New Jersey for distribution, Acting U.S. Attorney Rachael A. Honig announced.
Adrian Vargas Arroyo, 31, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to possession with intent to distribute over 400 grams of fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In October 2019, Vargas Arroyo drove a tractor trailer into New Jersey with a bag containing four half-kilogram packages of fentanyl. Vargas Arroyo arranged to distribute the narcotics at a location in Middlesex County, New Jersey, where he was ultimately arrested.
In addition to the prison term, Judge Martinotti also sentenced Vargas Arroyo to two years of supervised release.
Acting U.S. Attorney Honig credited special agents with the U.S. Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Media Advisory In-Person Press ConferenceRead the Press Release
WHEN: Thursday, August 19, 2021 at 1:00 p.m.
WHERE: Brunswick County Sheriff’s Office
70 Stamp Act Drive
Bolivia, NC 28422
Re: Prosecutions of Violent Gang Leaders & Significant Armed Drug Traffickers
The United States Attorney’s Office announces a press conference to discuss the successful prosecution of 26 defendants, including the highest-ranking member of the Bloods street gang in Brunswick County.
This prosecution targeted defendants who trafficked large amounts of cocaine and crack cocaine from Texas to Brunswick County. One defendant was responsible for trafficking almost 28 kilograms of cocaine. The prosecution also led to the seizure of heroin, fentanyl, and more than a dozen firearms.
In addition to Acting United States Attorney G. Norman Acker, III, we anticipate Sheriff John Ingram of Brunswick County; Resident Agent in Charge (RAC) Shawn Stallo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and District Attorney Jon David to participate in this event.
Credentialed members of the media are invited to attend. For additional information, and to RSVP your intentions to attend this event, please email Don Connelly at [email protected].
McKean County Man Indicted for Conspiring to Acquire Illegally Transported PlantsRead the Press Release
PITTSBURGH, Pa. - A resident of Eldred, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit offenses against the United States, receipt, acquisition, or purchase of illegally transported protected plants, and falsification of records, Acting United States Attorney Stephen R. Kaufman announced today.
The five-count Indictment named Dale A. Smith, 59, of Eldred, Pennsylvania, as the sole defendant.
According to the Indictment, Smith conspired to receive, acquire or purchase American ginseng plants that had been illegally transported in interstate commerce and falsified records relating to the purchase and sale of these plants.
The law provides for a maximum total sentence of 21 years in prison, a fine of $330,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The United States Fish and Wildlife Service, Office of Law Enforcement, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Madison County Business Owner Sentenced to Prison for Payroll Tax FraudRead the Press Release
Troy, Ill. – A Madison County businessman who failed to submit payroll taxes will be spending the next few years behind bars. Gary Hunsche, 56, of Troy, Illinois, was sentenced today to 48 months in prison for willfully failing to pay millions of dollars in employment taxes to the IRS. Hunsche pled guilty to the charge on May 13.
“Tax fraud is not a victimless crime,” said U.S. Attorney Steven D. Weinhoeft. “Stealing from the public fisc hurts all Americans, and those who flaunt the federal tax laws will be prosecuted.”Court records show that Hunsche owned and operated a pair of Troy-based staffing companies: Unique Risk Management and Unique Personal Consultants. The businesses employed thousands of employees who were then leased to clients as temporary workers.
Between 2011 and 2016, Hunsche withheld federal incomes taxes, Social Security, and Medicare taxes from his employees’ paychecks but never paid them over to the IRS, resulting in a loss to the
United States in excess of $9.4 million.Hunsche used approximately $4 million in unpaid payroll taxes for improvements to his personal residence, located on 41 acres in Troy, including an indoor basketball court, a barn, a lake, and partial construction of a home with a swimming pool.
“Today’s sentencing of Mr. Hunsche shows that the courts do not take lightly those individuals that willfully fail to pay over millions in federal payroll taxes,” said Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office. “Thousands of employees trusted Mr. Hunsche to properly collect and pay employment taxes but Mr. Hunsche admitted that he chose to spend the money he collected to build his empire. IRS Criminal
Investigation will vigorously investigate employers who betray their duties to employees.”As part of his sentence, Hunsche was also ordered to spend 18 months on supervised release. The investigation was conducted by IRS-Criminal Investigation.
The prosecution was handled by Assistant U.S. Attorneys Norman R. Smith and Luke J. Weissler.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Robert Earl Partee, II, 28, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for conspiracy to distribute 500 grams or more of a mixture of substance containing methamphetamine. United States District Judge John M. Gerrard sentenced Partee to 225 months in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
An investigation by law enforcement that included phone analysis, traffic stops, and other investigatory techniques uncovered that from the middle of 2018 until the end of November of 2019, Partee was purchasing methamphetamine and reselling it in large amounts in the Lincoln area. In total, Partee purchased at least 70 pounds of methamphetamine for resale to others. During this time, law enforcement twice seized methamphetamine from Partee and his vehicle. On April 30, 2019, officers stopped Partee’s vehicle for a traffic violation and found more than 300 grams of methamphetamine in the vehicle. Later, on November 13, 2019, law enforcement found methamphetamine on Partee’s person during a traffic stop of his vehicle.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Justice Department and DHS Publish Notice of Proposed Rulemaking to Make Asylum Process More Efficient and Ensure FairnessRead the Press Release
In a key step toward implementing the Administration’s blueprint for a fair, orderly, and humane immigration system, the Department of Justice (DOJ) and Department of Homeland Security (DHS) are publishing a notice of proposed rulemaking (NPRM) that would amend current regulations to improve the processing of asylum claims. The proposed rule would allow, U.S. Citizenship and Immigration Services (USCIS) asylum officers to hear and decide applications for asylum, withholding of removal, and Convention Against Torture (CAT) protection for individuals who receive a positive credible fear determination. These cases are currently assigned to immigration judges within the Justice Department’s Executive Office for Immigration Review.
“Today marks a step forward in our effort to make the asylum process fairer and more expeditious,” said Attorney General Merrick Garland. “This rule will both reduce the caseload in our immigration courts and protect the rights of those fleeing persecution and violence.”
“These proposed changes will significantly improve DHS’s and DOJ’s ability to more promptly and efficiently consider the asylum claims of individuals encountered at or near the border, while ensuring fundamental fairness,” said Secretary Alejandro N. Mayorkas. “Individuals who are eligible will receive relief more swiftly, while those who are not eligible will be expeditiously removed. We are building an immigration system that is designed to ensure due process, respect human dignity, and promote equity.”
The current system for hearing and adjudicating asylum claims at the southwest border has long needed repair. For nearly a decade, the number of such claims has ballooned, and the system has proved unable to keep pace, resulting in large backlogs and years-long delays in adjudication. The proposed rule aims to begin replacing the current system with a better and more efficient one to adjudicate protection claims fairly and expeditiously.
Under the proposed process, an individual who establishes a credible fear of removal will be referred to a USCIS asylum officer for a hearing on the protection claims. The asylum officer will be authorized to adjudicate in the first instance requests for asylum, as well as eligibility for statutory withholding of removal or for withholding or deferral of removal under the Convention Against Torture. In a denied case, the individual may request de novo administrative review by an immigration judge under a streamlined process, with further administrative appeal available through the Board of Immigration Appeals.
The rule also proposes a revision to the criteria applicable to grants of parole prior to the credible fear determination. The proposal would allow DHS to grant parole when “detention is unavailable or impracticable,” in addition to the existing criteria involving medical emergencies and law enforcement objectives.
The rule would apply to individuals who are placed into the expedited removal process on or after the effective date of the final rule. The rule would not apply to unaccompanied children or to individuals already residing in the United States. Details for submitting public comments can be found in the soon-to-be published NPRM.
This proposed rule joins a number of actions the Biden-Harris Administration is taking to build a fair, orderly, and humane immigration system, including by expanding pathways to apply for protection and opportunity in home countries, addressing the root causes of migration, and securely managing the southwest border.
Jury finds St. Louis man guilty of being a felon in possession of a firearmRead the Press Release
ST. LOUIS – A federal jury found Jeremiah Taylor, 36, of St. Louis, Missouri, guilty of one count of felon in possession of a firearm on Tuesday, August 17, 2021. United States District Court Judge Stephen R. Clark presided over the trial. Taylor was indicted by a federal grand jury in December 2020 on this gun offense.
The above trial commenced on Monday with a jury verdict of guilty being rendered on Tuesday morning. Sentencing will be held on November 23, 2021. Taylor faces a maximum sentence of ten years in the United States Bureau of Prisons.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Ashley Walker is handling the prosecution of this matter.
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Jury Convicts Felon of Drug Trafficking and Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. – A federal jury convicted a Las Vegas man Monday of distribution of methamphetamine and unlawful possession of a firearm.
According to court documents and evidence presented at trial, on October 29, 2019, Donnell Henry (35) distributed 50 grams or more of methamphetamine, a Schedule II controlled substance. Three weeks later, on November 19, 2019, he possessed a multi-caliber pistol. Henry is prohibited from possessing a firearm due to prior felony convictions in California state court for first degree burglary and maintaining a place to sell narcotics.
After a four-day trial, the jury found Henry guilty of one count of distribution of methamphetamine and one count of felon in possession of a firearm. U.S. District Judge Jennifer A. Dorsey presided over the trial and scheduled sentencing for November 29, 2021. At sentencing, Henry faces: a statutory minimum penalty of five years in prison and a statutory maximum penalty of 40 years in prison and a $5,000,000 fine for the distribution of methamphetamine charge; and a statutory maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of a firearm charge.
Co-defendant Ozzie Morrison pleaded guilty in May 2021. U.S. District Judge Dorsey sentenced him to two years in prison on August 11, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement. Assistant U.S. Attorneys Melanee Smith and Kimberly Sokolich are prosecuting the case.
This case was part of Operation Nora, a joint investigation by the ATF, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department’s Central Intelligence Unit, focusing on the Sherwood Forest and Naked City areas in Las Vegas. Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice 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 has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
This case is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Jury Convicts Columbia Man of Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man was convicted at trial by a federal jury today of attempting to meet a law enforcement officer, posing online as a 14-year-old girl, for illegal sexual activity.
Darren Wade Lasley, 32, was found guilty of attempting to entice a minor to engage in illegal sexual activity.
On June 14, 2017, Lasley responded by email to an online classified advertisement on Craigslist, which was placed as part of an undercover operation by a detective in the Boone County Sheriff’s Department Cyber Crimes Task Force posing as a 14-year-old girl. In a series of email exchanges over the course of the next several days, Lasley described his plans for a sexual encounter with the decoy. Lasley proposed visiting her residence while her mother was at work or out of town.
On June 21, 2017, Lasley asked in an email if the decoy could sneak out of her house to meet him for a sexual rendezvous. Lasley was arrested when he arrived at the arranged location.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Aug. 16.
Under federal statutes, Lasley is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashley S. Turner and Aaron M. Maness. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Inland Empire Man Indicted in Sexual Exploitation Case for Targeting Children, One of Whom He Met in Online Gaming PlatformRead the Press Release
RIVERSIDE, California – A federal grand jury this afternoon returned an indictment charging a Hemet man with sexual exploitation offenses alleging he convinced a preteen girl to send him sexually explicit photos of herself and a younger relative.
John Mathew Piecuch, 61, was named in a three-count indictment that charges him with attempted enticement of a minor to engage in criminal sexual activity, production of child pornography, and receipt of child pornography.
Piecuch posed as a 13-year-old boy on an online gaming platform, where he met a 12-year-old girl in late 2020, according to court documents. After moving their conversation to a text message system, Piecuch requested sexually explicit photos from the girl, who also sent sexually explicit photos of a 5-year-old relative, according to a criminal complaint filed earlier this month.
The mother of the 12-year-old girl saw some of the text messages between her daughter and Piecuch on one of the girl’s mobile devices, which prompted her to contact authorities, the complaint states.
Special agents with the FBI arrested Piecuch on August 4 pursuant to the criminal complaint. At his first court appearance that afternoon, he was ordered jailed without bond pending trial.
Piecuch is scheduled to be arraigned in this matter on August 24 in United States District Court in Riverside.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were convicted of the three counts in the indictment, Piecuch would face a statutory maximum sentence of life in federal prison. Each of the three charges carries a mandatory minimum sentence, with the mandatory minimum sentence for production of child pornography being the longest at 15 years in prison.
The FBI is conducting the investigation in this matter in conjunction with the Carroll County (Maryland) Sheriff’s Office.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office is prosecuting this case.
Indiana Man Pleads Guilty to Armed Pharmacy RobberyRead the Press Release
JEFFERSON CITY, Mo. – An Indianapolis, Indiana, man has pleaded guilty in federal court to his role in the armed robbery of a Walgreens pharmacy in Jefferson City, Missouri.
Daijahn Antwan Reed, 22, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. on Tuesday, Aug. 17, to one count of armed robbery and one count of brandishing a firearm during a crime of violence.
Reed, who was scheduled to begin trial next week, is the third and final defendant to plead guilty in this case. Co-defendant Jerome Scott King, 22, of Speedway, Indiana, was sentenced to 14 years in federal prison without parole. Co-defendant Raymond Allen Craig, 23, of Indianapolis, was sentenced to 11 years and three months in federal prison without parole. Although Reed and his co-defendants are aware of the identity of a fourth participant in this crime, according to court documents, none of them have identified that individual.
Reed admitted that he and three other men robbed the Walgreens at 2002 Missouri Boulevard at gunpoint shortly after midnight on July 25, 2018. Police officers arrived as the robbers were running from the business. They fled in a vehicle driven by King. As officers followed in pursuit, occupants of the vehicle began throwing items from the vehicle, including more than 4,000 tablets of various controlled substances taken during the robbery with an aggregate value of $9,264.
Multiple officers pursued the vehicle eastbound on U.S. Highway 54 into Callaway County. The Missouri State Highway Patrol deployed spike strips at the U.S. 54-AA/OO interchange. King’s vehicle began to slow, left the highway, crossed the outer road and crashed near Jazel Lane in Holts Summit, Missouri. King and Craig were apprehended; an unidentified man escaped. Officers recovered the loaded Smith & Wesson 9mm handgun used in the pharmacy robbery. The firearm had been stolen from Indianapolis, Indiana.
A witness called the Jefferson City Police Department at about 4:15 a.m. the same day. The witness reported that Reed, who had not made it to the getaway car after the robbery, knocked on his door and asked to use the phone. Reed spoke with the witness for several hours and admitted that he robbed the Walgreens store. The witness told officers that Reed was on the roof of the O’Reilly Auto Parts store, 1010 Missouri Blvd., in Jefferson City. Officers arrested Reed at that location.
King admitted he entered the Walgreens to conduct surveillance and then reported the number of persons inside to Craig. Craig, Reed, and the fourth individual entered the pharmacy wearing medical masks over their faces and medical style gloves on their hands. The unidentified man displayed a firearm and confronted the store clerk. One of the thieves, whose identity could not be determined from the surveillance video, zip-tied the clerk’s hands behind his back while a firearm was pointed at his head, led him to the rear of the business near the pharmacy area, and forced him down on the floor. Craig and Reed jumped over the counter and confronted the pharmacist, brandishing a firearm in a threatening manner, and removed controlled substances from the pharmacy. Both Reed and Craig handled the firearm and brandished it in a threatening manner in the direction of the pharmacist.
Under federal statutes, Reed is subject to a sentence of up to 20 years in federal prison without parole for the robbery, plus a mandatory minimum of seven years in federal prison without parole for the firearm offense, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger and Assistant U.S. Attorney Jim Lynn. It was investigated by the Jefferson City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Immigrant gets lengthy prison sentence for drug convictionRead the Press Release
McALLEN, Texas – A 35 year-old Mexican citizen from Camargo, Tamaulipas, Mexico, has been ordered to federal prison for conspiring to distribute more than 500 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jesus Ivan Resendez-Gomez pleaded guilty Oct. 7, 2019.
Today, U.S. District Judge Micaela Alvarez ordered him to serve a 170-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following the prison term. In handing down the sentence, Judge Alvarez noted Resendez-Gomez’s prior 2014 federal conviction for possession with intent to distribute 307 kilograms of marijuana. Judge Alvarez also held him responsible for two additional drug transactions involving meth. The total weight of all three transactions was 2.9 kilograms.
At the sentencing hearing, Resendez-Gomez admitted that on March 13, 2019, he provided a kilogram of meth to a co-conspirator who had transported the drugs to a location in Palmhurst.
Resendez-Gomez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) “Operation Hold My Beer.” OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Robert Wells Jr. prosecuted the case.
Guam Man Found Guilty of Aggravated Sexual Abuse of a MinorRead the Press Release
PECOS – Today a federal jury convicted a Guam man for aggravated sexual abuse of a minor.
According to court documents and evidence at trial, Damion Edward Cruz-Benavente, 29, was found guilty of one count of aggravated sexual abuse by force; one count of sexual abuse by threat or fear; and one count of sexual abuse of a minor. While living in Big Bend National Park beginning in 2015, the defendant repeatedly sexually assaulted the victim using force and threats, placing the victim in fear.
Defendant has remained in federal custody since his arrest on March 12, 2021. Cruz faces up to life in prison on both the charges of aggravated sexual abuse by force and sexual abuse by threat or fear. He faces up to 15 years in prison on the sexual abuse of a minor charge.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey Downey, El Paso Division, made the announcement.
The FBI and the National Park Services along with assistance from the Killeen Police Department and the Alpine Police Department are investigating the case.
Assistant U.S. Attorneys Lance Kennedy and Tracy Thompson are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Georgia Woman Pleads Guilty to Bank Fraud for COVID-Relief Fraud SchemeRead the Press Release
A Georgia woman pleaded guilty today in the Northern District of Georgia for perpetrating a scheme to fraudulently obtain more than $7.9 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Hunter VanPelt, aka Ellen Corkrum, 49, of Roswell, submitted six fraudulent PPP loan applications to four different lenders on behalf of entities she owned or controlled, namely: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. Through the six PPP loan applications, VanPelt fraudulently sought more than $7.9 million in PPP loan funds, of which more than $6 million was disbursed to accounts controlled by VanPelt.
VanPelt falsely represented the number of employees and payroll expenses in each of the six PPP loan applications. To support the fraudulent PPP loan applications, VanPelt submitted fraudulent tax records, bank statements, and payroll reports. VanPelt, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted three of the PPP loan applications using the VanPelt name and three additional PPP loan applications using the Corkrum name.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $2.1 million of the disbursed PPP funds in this matter. An additional $1.6 million of the disbursed PPP funds were seized by a bank and returned to the lender.
“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”
“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”
“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Special Agent in Charge Chris Hacker of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
VanPelt pleaded guilty to bank fraud. She is scheduled to be sentenced on Jan. 4, 2022, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and FHFA-OIG are investigating the case.
Trial Attorney Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the U.S. Attorney’s Office for the Northern District of Georgia, are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Convicted of Filing Fraudulent Tax ReturnsRead the Press Release
A federal jury in Athens, Georgia, convicted a Georgia man today of filing fraudulent tax returns in the name of several trusts.
According to court documents and evidence presented at trial, between 2016 and 2018, Marquet Mattox, of Lilburn, filed at least 30 fraudulent federal income tax returns in the name of at least 11 different trusts. Those returns falsely represented that the trusts had earned interest income and that federal income taxes had been withheld and paid to the IRS. Mattox then fraudulently requested refunds on behalf of the purported trusts totaling nearly $165 million. The IRS paid approximately $5 million of the requested refunds, which Mattox used to purchase a house, expensive furniture and a luxury automobile.
Mattox will be sentenced at a later date. He faces a maximum penalty of 20 years in prison on the wire fraud counts, five years on the false claims counts, and 10 years on the theft of government funds count. He also faces a period of supervised release, restitution, monetary penalties and forfeiture.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.
IRS-Criminal Investigation and the Treasury Department’s Office of the Inspector General investigated the case.
Trial Attorney Jessica A. Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Lyndie M. Freeman of the Middle District of Georgia are prosecuting the case.
Gang Member Sentenced to 37 Months in Federal Prison for Distributing FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ARMANDO QUINONES, also known as “Yayo,” 40, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea to 37 months of imprisonment, followed by four years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates, including Quinones, who sold drugs on his behalf. Intercepted communications also revealed Reyes was acquiring and trafficking firearms.
Quinones, a member of Los Solidos, has a criminal history spans more than 20 years includes multiple convictions in Connecticut and New Jersey.
Quinones has been detained since his arrest on June 20, 2019. On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes, Quinones and 13 associates with various narcotics trafficking and firearm possession offenses. On April 19, 2021, Quinones pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl.
Reyes pleaded guilty and, on February 11, 2021, was sentenced to 18 years of imprisonment.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Gainesville Man Sentenced to Twenty Years in Prison for Production of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA –– Howard Louis Anderson, Jr., 40, of Gainesville, Florida, was sentenced yesterday to twenty years in federal prison following his conviction for production of child pornography. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentence.
Anderson entered a guilty plea on March 1, 2021. Court documents reflect that in 2019, Anderson placed a hidden camera in the bathroom of his residence. On numerous occasions, he created lascivious video recordings of a minor child using the bathroom. In August 2019, a search warrant was executed at Anderson’s residence and the videos and several hidden cameras were recovered. The victim was identified after investigators reviewed the recordings.
“The abuse committed by this child predator has come to an end as a result of the vigilant efforts of our law enforcement partners,” stated Acting U.S. Attorney Coody. “Moreover, the sentence imposed acknowledges the heinous conduct and should serve as a significant deterrent to those that would attempt to prey upon our most vunerable.”
Anderson’s prison sentence will be followed by lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
“This sentence sends a strong message to those who engage in criminal activity and abuse the trust of innocent children," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "I am proud of the diligent work of our agents and our law enforcement partners to identify and investigate sexual perpetrators and bring them to justice."
The case was investigated by the Gainesville Police Department, North Florida Internet Crimes Against Children Task Force, and Federal Bureau of Investigation. Assistant United States Attorney Frank Williams prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.