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Wednesday 30 June 2021
McHenry Man Sentenced to over Eleven Years in Prison for Transporting Child PornographyRead the Press Release
Gulfport, Miss. – Dexter Kimsey, 26, of McHenry, was sentenced today to 141 months in federal prison, followed by a lifetime of supervised release, for transporting images of minors engaging in sexually explicit conduct, announced Acting U.S. Attorney Darren J. LaMarca and Jack P. Staton, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in New Orleans.
Kimsey was also ordered to pay restitution to victims in the amount of $14,000 and an assessment of $5,000 under the Justice for Victims of Trafficking Act.
In June, 2019, HSI Gulfport and the Stone County Sheriff’s Office executed a state search warrant at a McHenry residence where electronic devices belonging to Dexter Kimsey were recovered. Kimsey’s on-line account and cell phone were found to contain still and video format child exploitation visual depictions.
Kimsey was indicted by a federal grand jury on June 23, 2020. He pled guilty on March 31, 2021 to transporting images of minors engaging in sexually explicit conduct.
The case was investigated by Homeland Security Investigations and the Stone County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
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.
Manhattan Man Sentenced to More Than 27 Years in Prison for Sex TraffickingRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that WILLIAM BAZEMORE, a/k/a “Yaya,” a/k/a “Nudie,” a/k/a “Jack,” was sentenced to 327 months in prison for sex trafficking by force, fraud, and coercion. BAZEMORE previously pled guilty to that offense, and was sentenced today before U.S. District Judge Analisa Torres.
U.S. Attorney Audrey Strauss said: “William Bazemore used violence and coercion to prey on female victims suffering from drug addiction, and he forced a woman to engage in commercial sex for his own financial gain. His predatory conduct had an irreparable impact on the lives of his victims. Today, William Bazemore was justly sentenced to more than 27 years in prison for his crimes.”
According to the Indictment, as well as statements made during BAZEMORE’s plea and sentencing proceedings:
In or about 2017, BAZEMORE was the leader of a criminal enterprise (the “Organization”) involved in various criminal acts, including drug distribution and sex trafficking, in and around New York City, Maine, and Connecticut. Members and associates of the Organization, including BAZEMORE and codefendant Warren Bryant, transported heroin and crack cocaine between New York, Connecticut, and Maine, at times using women suffering from drug addiction as drug couriers to secrete drugs on their persons and transport drugs and drug proceeds in vehicles controlled by the Organization, and to trade sex for access to drugs. In addition, BAZEMORE and other members and associates of the Organization used force, threats of force, and coercion to cause a female drug customer (“Victim-1”) to engage in commercial sex for their financial gain, and took actions to prevent Victim-1 and others from cooperating with law enforcement against the Organization.
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In addition to today’s prison sentence, BAZEMORE, 41, of New York, New York, was sentenced to five years of supervised release.
Codefendant Warren Bryant was sentenced by Judge Torres on September 22, 2020, to 125 months in prison for participating in a racketeering conspiracy and a narcotics conspiracy related to the same scheme.
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD New York Child Exploitation and Human Trafficking Task Force, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacqueline Kelly and Danielle Sassoon are in charge of the prosecution.
Man Sentenced for Federal Drug ChargesRead the Press Release
NEW ORLEANS, LA. – A Cuban National was sentenced on June 16, 2021 to five years in prison for conspiring to sell a kilogram of cocaine to a federal confidential informant, announced U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
According to court documents, PABLO PEDRO MORALES-CURBELO, age 63, a resident of New Orleans, Louisiana, was previously indicted on August 29, 2019 by a Federal Grand Jury in a two count indictment, charging him in Count 1 with conspiring to possess with the intent to distribute 500 grams or more of cocaine. In Count 2 MORALES-CURBELO was charged with attempting to possess with the intent to distribute 500 grams or more of cocaine. On December 4, 2019, MORALES-CURBELO pled guilty to Count 1 of the indictment, a violation of 21 U.S.C. 846, and he faced a minimum statutory sentence of five years to a maximum sentence of forty years in prison. MORALES-CURBELO’s sentencing was postponed numerous times because of the COVID-19 pandemic.
These charges stemmed from an investigation by Special Agents of the U.S. Department of Homeland Security and Jefferson Parish Sheriff’s Office into the illegal activities of MORALES-CURBELO.
At sentencing, Federal District Court Judge Lance Africk ordered that the five-year mandatory minimum sentence be served consecutively to another five-year sentence that MORALES-CURBELO was serving for a supervised release revocation, which also stemmed from a prior federal drug conviction. In total, he was sentenced to serve 10 years in federal prison, four years of supervised release following imprisonment, and payment of a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security and Jefferson Parish Sheriff’s Office. Assistant U.S. Attorney Maurice E. Landrieu, Jr. prosecuted the case.
Man Sentenced to Life in Prison for Carjacking MurderRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Francisco A. Besosa sentenced Argenis Bruzón-Velázquez to life in prison for the carjacking murder of David Dubique on April 14, 2017, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the facts admitted during the change of plea hearing, on the evening of April 14, 2017, Argenis Bruzón-Velázquez, Candy Cedeño-González, Tatiana Yari Giusti Saldaña, Ariel González-Almestica, and an adult male whose alias is “Cachete” were socializing at the El Prado Public Housing Project, and discussed the possibility of committing a robbery. Giusti-Saldaña mentioned that she knew people in Condado could have money. Bruzón-Velázquez, his co-defendants and Cachete then traveled to Condado in González-Almestica’s vehicle, a red Dodge Caliber. Upon arriving in Condado, Cedeño-González and Giusti-Saldaña exited the Dodge Caliber and went to the Stop and Go bar located on Magdalena Avenue.
At the Stop and Go bar, Cachete and Bruzón-Velázquez remained in the vicinity, observing as Cedeño-Gonzalez and Giusti-Saldaña spoke to several men. At one point, Cedeño-Gonzalez and Giusti-Saldaña walked with one of the men with whom they had been speaking—David Dubique—across the street from the Stop and Go bar. Bruzón-Velázquez followed Giusti-Saldaña and Dubique. Once Giusti-Saldaña and Dubique arrived at Dubique’s vehicle, a Ford Transit, Bruzón-Velázquez and Cachete forced Dubique into his vehicle at gunpoint, departed the area in the Ford Transit and drove to a desolate area in Aguas Buenas. There, Bruzón-Velázquez forced Dubique to exit the Ford Transit and shot him multiple times with a .40 caliber Glock pistol.
After shooting and killing Dubique, Bruzón-Velázquez drove the Ford Transit to a location a short distance away; Cachete rode in the Ford Transit with Bruzón-Velázquez. González-Almestica, Giusti-Saldaña, and Cedeño-González followed the Ford Transit inside the Dodge Caliber; then abandoned the Ford Transit and returned to the El Prado Public Housing Project in the Dodge Caliber.
In a separate incident, on June 21, 2017, Bruzón-Velázquez brandished a rifle and another individual brandished a handgun while attempting to dispossess an adult male of his Mercedes Benz in Barrio San Antonio de Caguas. When confronted with an armed individual who attempted to intervene, Bruzón-Velázquez discharged the rifle he was carrying. Bruzón-Velázquez and the individual he was with then fled the scene. Judge Besosa imposed a 15-year sentence to be served consecutively to the life sentence he imposed in connection with the incident involving the murder of Dubique.
The Federal Bureau of Investigation was in charge of the investigation. Assistant United States Attorneys Alexander Alum and Jenifer Y. Hernández prosecuted the case.
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Man Convicted in Manhattan Federal Court for Scheme to Steal over $1.5 Million from New York City’s Human Resources AdministrationRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that SALIFOU CONDE was found guilty of bank fraud, wire fraud, and conspiracy to commit bank and wire fraud on June 29, 2021, in connection with his involvement in a years-long scheme to steal over $1.5 million from New York City’s Human Resources Administration (“HRA”), following a four-day jury trial before U.S. District Court Judge Valerie E. Caproni.
Manhattan U.S. Attorney Audrey Strauss said: “Salifou Conde was a key participant in a scheme to steal more than 2,400 rent supplement checks worth over $ 1.6 million to the HRA, an agency that provides critical assistance to New Yorkers in need of rental assistance. A Manhattan jury of his peers has found Conde guilty, and he now awaits sentencing for callously targeting a much-needed support system for low income New Yorkers.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
HRA is an agency of the City of New York responsible for administering certain of the City’s public assistance programs. Among other things, HRA provides rental assistance to low income New Yorkers. For individuals who qualify, HRA provides rental assistance by sending monthly rent supplement checks to landlords or social services organizations that provide housing or residential treatment to cover a portion of the cost of documented expenses such as rent or storage costs.
During the period charged in the Indictment, HRA rent supplement checks that were undeliverable were sent back to the same P.O. Box at a United States post office in New York, New York. From there, couriers took the undeliverable checks from the post office and delivered the checks back to HRA. CONDE worked as one of the couriers and stole checks out of the mail.
Between approximately 2016 and 2019, CONDE and his co-conspirators were responsible for stealing a total of over 2,400 HRA rent supplement checks worth more than $1.6 million, and fraudulently depositing them into more than 40 bank accounts. CONDE was a key member of the scheme. He helped to steal undeliverable HRA rent supplement checks, deposit the checks into a network of bank accounts, and then quickly withdraw the stolen cash.
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CONDE, 31, of New Jersey, was convicted of one count of wire fraud, which carries a maximum punishment of 20 years in prison; one count of bank fraud, which carries a maximum punishment of 30 years in prison; and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum punishment of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the New York City Department of Investigation, the Federal Bureau of Investigation, and the New York State Commissioner of Taxation and Finance.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Danielle Kudla, Elizabeth Espinosa, Nicholas Folly, and Kedar Bhatia are in charge of the prosecution.
Louisiana Man Pleads Guilty to Dog FightingRead the Press Release
A Louisiana man pleaded guilty yesterday to possession of an animal for use in an animal fighting venture.
According to court documents, beginning as early as June 22, 2017, Clay Turner, 61, of Loranger, possessed and trained dogs for the purpose of having them participate in animal fighting ventures. On telephone calls obtained via court-authorized wiretaps, Turner and others discussed gambling on dog fights, arranging and participating in dog fights, sponsoring and exhibiting dogs in dog fights, training and housing dogs for the purposes of dog fighting, commerce in and transport of fighting dogs and the promotion of dog fights. Turner also stated he would give the dogs “dex,” referring to Dexamethasone—a substance that causes bowel evacuation—to achieve proper weight for the dog fights.
On or about Oct. 24, 2017, a federal law enforcement team consisting of agents from the U.S. Department of Agriculture (USDA), the FBI, and the U.S. Marshals Service and other agencies, executed a search warrant on Turner’s residence in Loranger. During the search, 33 dogs were found on the property, many of which had injuries, scarring, and/or wounding consistent with dog fighting activities. Law enforcement also recovered a large collection of dog fighting paraphernalia.
“Our system of justice does not tolerate the torment and death of animals in this blood sport for personal entertainment or financial gain,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “Beyond the harm imposed on these dogs, animal shelters, nonprofit organizations, and the taxpayers pay the price for caring for the dogs once they are no longer useful to the dog fighters. We will aggressively pursue and prosecute individuals who engage in animal fighting of any kind.”
Turner pleaded guilty to possession of an animal for an animal fighting venture. Turner is scheduled to be sentenced on Sept. 28 and faces a maximum penalty of five years in prison and a $250,000 fine.
Trial Attorneys Matthew D. Evans and Christopher Hale of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan Shih of the U.S. Attorney’s Office for the Eastern District of Louisiana are prosecuting the case.
Louisiana Man Pleads Guilty to Dog FightingRead the Press Release
A Louisiana man pleaded guilty yesterday to possession of an animal for use in an animal fighting venture.
According to court documents, beginning as early as June 22, 2017, Clay Turner, 61, of Loranger, possessed and trained dogs for the purpose of having them participate in animal fighting ventures. On telephone calls obtained via court-authorized wiretaps, Turner and others discussed gambling on dog fights, arranging and participating in dog fights, sponsoring and exhibiting dogs in dog fights, training and housing dogs for the purposes of dog fighting, commerce in and transport of fighting dogs and the promotion of dog fights. Turner also stated he would give the dogs “dex,” referring to Dexamethasone—a substance that causes bowel evacuation—to achieve proper weight for the dog fights.
On or about Oct. 24, 2017, a federal law enforcement team consisting of agents from the U.S. Department of Agriculture (USDA), the FBI, and the U.S. Marshals Service and other agencies, executed a search warrant on Turner’s residence in Loranger. During the search, 33 dogs were found on the property, many of which had injuries, scarring, and/or wounding consistent with dog fighting activities. Law enforcement also recovered a large collection of dog fighting paraphernalia.
“Our system of justice does not tolerate the torment and death of animals in this blood sport for personal entertainment and glorification or financial gain,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “Beyond the harm imposed on these tormented dogs, animal shelters, nonprofit organizations, and the taxpayers pay the price for caring for the dogs once they are no longer useful to the dog fighters. We will aggressively pursue and prosecute individuals who engage in animal fighting of any kind.”
Turner pleaded guilty to possession of an animal for an animal fighting venture. Turner is scheduled to be sentenced on Sept. 28 and faces a maximum penalty of five years in prison and a $250,000 fine.
Trial Attorneys Matthew D. Evans and Christopher Hale of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan Shih of the U.S. Attorney’s Office for the Eastern District of Louisiana are prosecuting the case.
Longtime, International Criminal Sentenced to 2 1/2 Years for U.S. Bank FraudRead the Press Release
ANCHORAGE – A Romanian national, who resided in California, was sentenced today to 30 months in prison followed by five years of supervised release for bank fraud using a device to steal credit card information in a process known as skimming. He is also required to pay $57,713.53 in restitution to his known victims.
According to court documents, Marcus Rosu, 40, became the subject of a federal investigation in February 2020 when the United States Postal Inspection Service (USPIS) intercepted a package containing hundreds of fraudulent bank cards containing customers’ card information. The cards were backtracked to more than 70 banking institutions in southern California and some were traced to fraudulent transactions in Anchorage and the Mat-Su Valley. Through the course of the investigation, Rosu was identified as the suspected mailer of the package.
Following the investigation on a report of ATM skimming at a Matanuska Valley Family Credit Union in Willow, Alaska, law enforcement arrested Rosu at a rental car company at Ted Stevens International Airport in July 2020. After his arrest, law enforcement searched Rosu’s hotel room and found more than 1,000 magnetic strip cards, a laptop computer and a magnetic strip reader-encoder hidden in the ceiling tiles.
In February 2021, Rosu pled guilty to bank fraud. In the plea he admitted to installing skimming devices on ATMs which he used to record customer information encoded on the magnetic stripe of customers’ ATM cards. Using a magnetic strip writer, Rosu copied the stolen account information onto his own magnetic stripe cards producing hundreds of counterfeit cards. He then used the falsified magnetic strip cards and customer PINs, to access customers bank accounts and steal their money.
According to Interpol and other agencies, Rosu was previously convicted of similar offenses in the United Kingdom and Australia. Their records indicate he used at least 12 aliases and eight different dates of birth. He is also a suspect in a similar skimming scheme in Connecticut and Michigan.
“Theft of personal financial information is a serious problem which damages the credit of too many unsuspecting Alaskan citizens,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “We encourage everyone to visually and physically inspect ATMs or other payment stations for any obvious signs of tampering prior to using their debit or credit cards.”
“The U.S. Postal Inspection Service remains steadfast in our commitment to investigate any criminal use of the U.S. Mail,” said Inspector in Charge Anthony Galetti. “The defendant perpetuated their ATM skimming not just in Alaska but across the United States just as they have previously done overseas. The removal of this defendant from the streets ensures our continued efforts to secure the U.S. Mail and protect the Postal Service from criminal attack and misuse. We appreciate the collaborative efforts of our law enforcement partners in bringing this defendant to justice.”
“Identity theft and fraud affects far too many Alaskans each year, and the Alaska State Troopers along with our local, state and federal law enforcement partners will aggressively investigate anyone that victimizes Alaskans,” said Captain Andrew Gorn, Commander of the Alaska Bureau of Investigation. “After committing similar crimes across the multiple states and countries, it was the efforts of Alaska’s law enforcement community that finally held Mr. Rosu accountable for his actions.”
This case was investigated by the United States Postal Inspection Service and the Alaska State Troopers with the support of the Anchorage Airport Police Department.
Assistant U.S. Attorney Karen Vandergaw of the District of Alaska prosecuted the case.
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Lebanon, Virginia Man Pleads Guilty to Distributing Child PornographyRead the Press Release
ABINGDON, Va. – A Lebanon, Virginia man pleaded guilty today to using the online messaging application KIK to distribute images of child pornography to undercover law enforcement officers.
According to court documents, Matthew Thompson, 40, used KIK, an application where individuals create usernames and can send messages online, to communicate with others he believed to be interested in trading images of child pornography.
In June 2020, undercover law enforcement officers located in Wisconsin identified Thompson’s KIK username, “gbrown20201,” as being responsible for distributing child pornography by posting such materials onto a KIK chatroom messaging board frequented by individuals interested in child pornography images.
In July 2020, law enforcement officials in Texas identified the “gbrown20201” username as being an active member of two known child pornography chatgroups and serving as an administrator for one of the groups. The Texas investigation revealed that Thompson distributed at least nine images of child pornography between the dates of July 24, 2020, and July 31, 2020, and received additional child pornography materials.
Thompson pleaded guilty to one count of knowingly distributing one or more visual depictions of a minor engaging in sexually explicit conduct that has been mailed or transported in interstate or foreign commerce. He is scheduled to be sentenced on September 29, 2021 and faces an agreed upon sentence of between 60 to 72 months in prison.
The Federal Bureau of Investigation (FBI), Virginia State Police, and Russell County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Leader of Violent Rochester Drug Ring Convicted by Federal Jury of Drug Conspiracy, Gun Charge and MurderRead 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 a federal jury convicted Carlos Javier Figueroa a/k/a Javi, a/k/a Big Bro, 43, of Rochester, NY, of narcotics conspiracy, possession and discharge of firearms in furtherance of a drug trafficking crime, and murder while engaged in narcotics conspiracy. The charges carry a mandatory minimum penalty of 30 years in prison and a maximum of life in prison.
“The drug trafficking and violence inflicted on the streets of Rochester by this defendant and his co-conspirators is similar to the violence the city is experiencing today,” stated U.S. Attorney Kennedy. “Let this conviction of Carlos Javier Figueroa and his co-defendants serve as a warning, ‘we took down their organization, prosecuted its members and convicted them, and we will do the same to any other criminal engaging in similar behavior.’”
Assistant U.S. Attorneys Robert A. Marangola, Cassie M. Kocher, and Katelyn M. Hartford, who handled the prosecution of the case, stated that the defendant was the leader of a Rochester-based drug trafficking organization responsible for distributing many kilograms of cocaine in the City of Rochester. The organization was involved in the transportation and sale of cocaine and was also responsible for acts of violence in furtherance of the organization’s drug trade. These acts of violence included the September 12, 2016, shooting death of Walter Ross at the corner of Burbank Street and North Clinton Avenue. The Government presented evidence at trial that Figueroa provided the 9mm handgun that co-defendant Jonathan Cruz-Carmona used to murder Walter Ross. The gun was also used by co-defendant Obed Torres Garcia to shoot at police officers on Burbank Street when they attempted to raid Figueroa’s residence on January 29, 2018.
Various locations throughout Rochester were utilized to receive, store, and sell the supply of illegal narcotics. Figueroa coordinated shipments of cocaine from Puerto Rico, which were sent to locations in Rochester via the United States Postal Service (USPS). Once the packages arrived in Rochester, the cocaine was broken down and packaged for sale. On January 29, 2018, during the execution of state search warrants, investigators seized more than $700,000 in cash, six assault rifles, three loaded handguns, over four kilograms of cocaine, and a quantity of suspected heroin and fentanyl.
A total of 12 defendants were charged in this case, 11 have been convicted. The final defendant, Xavier Torres a/k/a Pistolita, is scheduled to go to trial on October 12, 2021. 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.
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.
The verdict is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Greater Rochester Area Narcotics Enforcement Team (GRANET), under the direction of Lieutenant Robert Hill; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greece Police Department, under the direction of Chief Andrew P. Forsythe; and U.S. Border Patrol, under the direction of Acting Chief Patrol Agent Andrew Scharnweber.
Sentencing is scheduled for October 7, 2021, at 3:00 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial of the case.
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Las Vegas Man Pleads Guilty to Distributing Hundreds of Child Pornography Images and Videos via Instant Messaging AppRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to trading over 600 child pornography images and videos using Kik Messenger, an instant messaging application on mobile devices.
According to court documents and admissions made in court, Cyrus Orlando Ortega, 27, distributed those child pornography images and videos to other Kik Messenger users, in exchange for child pornography from those users. The images and videos depicted underage victims — some as young as toddlers — being sexually exploited.
Ortega pleaded guilty to one count of distribution of child pornography. He faces a mandatory minimum statutory penalty of five years in prison, and a statutory maximum penalty of 20 years in prison and a $250,000 fine. U.S. District Judge Jennifer A. Dorsey scheduled sentencing for October 4, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the Las Vegas Metropolitan Police Department and FBI. Assistant U.S. Attorney Supriya Prasad is prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Kinston Felon Sentenced After Repeat Firearm PossessionRead the Press Release
RALEIGH, N.C. – Anthony Jamaal Lee, 32, of Kinston was sentenced today to 57 months in prison and three years of supervised release for two counts of possession of a firearm by a felon. On March 25, 2021, Lee pled guilty to the charge.
According to court documents and statements made during hearings, on July 11, 2019, a Goldsboro Police Department patrol officer spotted a white Cadillac tailgating another car on the Highway 70 service road in Goldsboro. As the Cadillac turned into a Days Inn parking lot, the officer saw that its brake lights were not functioning. He initiated a traffic stop and could smell marijuana as he approached. The driver was identified as defendant Anthony Lee.
Lee was questioned about the marijuana and admitted to having smoked in the car earlier in the day. The officers then searched the car and found a Taurus 9mm handgun in a small compartment near the rear central armrest, along with a bag that contained marijuana. Lee was prohibited from possessing the handgun due to felony state convictions in 2013 and 2014 for carrying concealed firearms.
Later in 2019, Lee became the subject of a drug investigation in Kinston. On November 21, 2019, a confidential informant fitted with a video recording device conducted a controlled purchase of marijuana and ecstasy from Lee at Lee’s Kinston home. The informant reported to law enforcement that Lee had a black gun on his hip when he came to the door. A short time later, Lee left the house in his white Cadillac and was pulled over and taken into custody. Officers executed a search warrant at the residence and recovered a black Smith & Wesson .40 caliber pistol, as well as some marijuana and ecstasy.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Kinston Police Department, Lenoir County Sheriff’s Office, Goldsboro Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-cr-0087-BO.
Justice Department Reaches Agreement with the City of Killeen, Texas to Improve Access for Individuals with DisabilitiesRead the Press Release
The Justice Department announced a settlement with the City of Killeen, Texas, to provide equal access in its programs, services, facilities and activities to individuals with disabilities, including veterans. The agreement is part of the department’s commitment to ensuring that civic institutions comply with the Americans with Disabilities Act (ADA). Killeen has a large population of veterans, active duty military service members, retirees and their families.
Under the agreement, the City of Killeen will remove barriers to access in buildings such as City Hall, police stations, libraries, technology centers, community centers and places of recreation. The agreement requires the City to make changes to its facilities so that parking, routes into the buildings, entrances, restrooms, signage, service counters and drinking fountains are accessible to people with disabilities, and that auditoriums and arenas have the required wheelchair and companion seating. The agreement also requires the City to provide aids and services to ensure effective communication for individuals with hearing disabilities, establish accessible emergency shelters and services, assure that its websites are accessible to individuals with disabilities and implement a plan for the accessibility of sidewalks and curb cuts within the City.
“The Americans with Disabilities Act mandates that individuals with disabilities have equal access to civic programs, services and facilities," said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. "The Civil Rights Division is committed to ensuring that cities and other public entities eliminate physical and communication barriers that prevent individuals with disabilities from participating fully in community life. We commend the City of Killeen for its commitment to working with the Civil Rights Division to ensure equal access for individuals with disabilities, including veterans.”
“The City of Killeen has committed to removing barriers to civic participation for individuals with disabilities, including the many veterans who call our district home,” said U.S. Attorney Ashley Hoff for the Western District of Texas. “Our office remains dedicated to supporting efforts to improve access and inclusion for individuals with disabilities.”
This matter was handled by the Disability Rights Section of the department’s Civil Rights Division. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce the opening of the application period for federally recognized Tribes to participate in the Tribal Access Program (TAP) for National Crime Information, which provides federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes.
“The Department of Justice is committed to improving public safety in Tribal communities and the Tribal Access Program (TAP) is a key component in achieving this goal,” said Deputy Attorney General Lisa Monaco. “TAP provides a means for federally recognized Tribes to effectively access critical criminal justice information to improve public safety and protect Tribal communities. This program has helped improve police officer safety, apprehend fugitives, register convicted sex offenders, enforce domestic violence protection orders, and protect children. With this opening of the application period, more Tribes will be able to protect their communities by participating in this successful program.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. There are currently 99 federally recognized Tribes participating in TAP. The department will accept TAP applications from July 1 through Aug. 31, 2021. Tribes selected to participate will be notified in September.
“TAP is a positive resource for criminal and non-criminal justice organizations of our tribal nation,” said Program Supervisor Orlando Bowman of the Navajo Nation Police Department, Information Management Section. “We continue to coordinate and communicate on potential uses and applications.”
“The Tribal Access Program (TAP) has become an indispensable tool in providing vital law enforcement information to our officers in the field as well as providing 21st century policing techniques for our community,” said Chief of Police Dana Norton of the Bear River Band of the Rohnerville Rancheria. “The TAP has allowed our nation to flourish and succeed every day since launching with our department.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities throughout July and August, beginning on July 1. Webinars will be offered on the following dates: July 1, 6, 8, 13, 15, 20, 23, 26 & 29, and Aug. 2, 6, 12, 13, 17 & 19.
Using TAP, Tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides software that enables full access (both query and entry capabilities) to national crime information databases such as the National Crime Information Center (NCIC), the Interstate Identification Index (III), and the International Justice and Public Safety Network (Nlets) for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification (NGI) system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act;
- A Tribal law enforcement agency that has arrest powers;
- A Tribal court that issues orders of protection; or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART); the Office of Community Oriented Policing Services (COPS); the Office for Victims of Crime (OVC); and the Office on Violence Against Women (OVW). TAP is co-managed by the department’s Office of the Chief Information Officer (OCIO) and Office of Tribal Justice (OTJ).
For more information about TAP, including our webinar dates, time and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Jury Convicts Three Defendants of Stealing Jewelry and Cash from Vault Business and Money LaunderingRead the Press Release
LAS VEGAS, Nev. – Yesterday, a federal jury convicted three defendants who worked for a Las Vegas private vault business of stealing cash, jewelry, and watches from safe deposit boxes and private vaults, as well as laundering those illegal proceeds.
“Yesterday’s verdict reflects that the defendants used their inside knowledge of the business’ security measures to take advantage of victims — including victims who were reluctant to come forward even after they were stolen from,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Our office is grateful to the jury for fulfilling its civic duty, and to our law enforcement partners for their hard work and dedication in investigating the inside jobs.”
2012 Robbery. According to court documents and evidence presented at trial, Phillip D. Hurbace (74, of Calpine, California) was a former contractor for the private vault business and Sylviane Della Whitmore (aka “Sylviane Cordova,” 69, of Las Vegas) was an employee of the business. They met and conspired to rob the business using information they knew. On April 14, 2012, conspirators entered the business through an adjoining vacant suite, restrained an employee using handcuffs and duct tape, and used the crawl space above the ceiling to pass over walls.
Once inside, conspirators drilled into safe deposit boxes and private vaults. They stole cash and personal property, including coins, jewelry, and watches. Whitmore subsequently deposited more than $250,000 of stolen money into her bank account, and Hurbace attempted to sell a stolen watch worth several hundred thousand dollars.
2014 Break In. In 2014, after the private vault business went into bankruptcy, Whitmore and Larry Anthony McDaniel (61, of Las Vegas) planned another heist. They broke into safe deposit boxes and private vaults, stealing hundreds of thousands of dollars in cash. Afterwards, McDaniel opened new bank accounts using nearly $700,000 in cash, and Whitmore deposited $190,000 into a trust account in her mother’s name.
Hurbace was found guilty of one count of conspiracy to interfere with commerce by robbery; one count of interference with commerce by robbery; and one count of interstate transportation of stolen property. McDaniel was found guilty of one count of fraudulent transfer of property; two counts of interstate transportation of stolen property; and 11 counts of money laundering. Whitmore was found guilty of one count of conspiracy to interfere with commerce by robbery; one count of interference with commerce by robbery; seven counts of money laundering; one count of fraudulent transfer of property; and one count of interstate transportation of stolen property.
U.S. District Judge Andrew P. Gordon presided over the trial and scheduled sentencing for September 28, 2021. The statutory maximum penalties faced by each defendant are: Hurbace — 50 years of imprisonment and a $750,000 fine; McDaniel — 135 years of imprisonment and a $3.5 million fine; and Whitmore — 115 years of imprisonment and a $2.75 million fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Albert Childress of IRS-Criminal Investigation made the announcement.
This case was investigated by IRS-Criminal Investigation and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Tony Lopez and Mina Chang are prosecuting the case.
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Jury Convicts Career Criminal on Gun, Drug ChargesRead the Press Release
ALBANY, Ga. – A federal jury convicted an Albany, Georgia, resident with a lengthy criminal history on various gun and drug charges this afternoon.
Robert Scott Kennedy, 37, of Albany, was found guilty of one count of possession with intent to distribute heroin, one count of possessing a firearm in furtherance of a drug trafficking crime and one count of possession of a firearm by a convicted felon following a three-day trial that began on Monday, June 28 in Albany federal court. Kennedy is facing a mandatory minimum five years up to life imprisonment for his crimes. Sentencing before U.S. District Judge Leslie Gardner has not been scheduled. There is no parole in the federal system.
“Armed criminals who continually disregard the law and disrupt the safety and peace of our communities will face the possibility of federal prosecution,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “We will continue to work closely with our law enforcement partners to hold repeat criminals accountable and bring them to justice.”
According to court documents and evidence presented at trial, Kennedy was taken into custody on August 21, 2020, on multiple outstanding arrest warrants. Kennedy was found in possession of a .40 caliber Glock 23 pistol and a distribution amount of heroin. Kennedy also swallowed a quantity of heroin and required medical attention at the scene. Kennedy has a significant criminal history including felony convictions for burglary, possession of methamphetamine with intent to distribute, and obstruction of an officer.
The case was investigated by FBI, GBI, DEA and ATF.
Assistant U.S. Attorney Leah McEwen is prosecuting the case.
Judge sentences man studying abroad from China for possessing child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark sentenced Zetian Liu to 60 months in prison today. In March of this year, the 25-year-old St. Louis, Missouri resident pleaded guilty to one count of possession of child pornography.
On August 11, 2019, a detective with the St. Louis Metropolitan Police Department’s City Cyber Crimes Unit identified a specific IP address from a computer being used to extend an offer to participate in the distribution of child pornography through the use of a file sharing network. An investigation ensued which led to the discovery of computer files containing numerous depictions of child pornography and the arrest of Liu.
The investigation developed in the following manner: officers were able to determine that the IP address was connected to Liu’s residence in St. Louis. On September 12, 2019, officers executed a federal search warrant at this residence. Liu, a Chinese citizen, who was attending school here, was interviewed with the help of an interpreter. Liu told investigators that although he initially downloaded child pornography inadvertently, he later began to download it intentionally. He told investigators the child pornography could be found on his laptop and a flash drive. Officers were able to download files from the laptop and flash drive containing numerous videos and pictures depicting child pornography.
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated the case. Assistant United States Attorney Rob Livergood is handling the case.
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Judge sentences St. Louis taxpayer for tax fraudRead the Press Release
ST. LOUIS – United States District Judge Ronnie L. White sentenced Tiffany McAllister to 37 months in prison today and ordered her to pay restitution in the amount of $902,854. The 44-year-old Florissant, Missouri resident pleaded guilty in March to three counts of tax fraud.
McAllister began operating a tax preparation service in 2009 and continued the business through the 2019 tax year.
During that period, McAllister registered two companies with the Missouri Secretary of State and obtained employer identification numbers for them through the Internal Revenue Service, even though she never transacted business nor employed anyone through either company. Nevertheless, between January 1, 2014, and December 31, 2016, McAllister prepared fraudulent tax returns claiming that she and some of her clients received wages and had taxes withheld with respect to the fictitious companies.
McAllister also knowingly prepared tax returns for clients that fraudulently claimed wages and withholdings from other fictitious businesses, self-employment business losses, and educational expenses, in order to increase the federal tax refunds her clients received.
An investigation by the Internal Revenue Service revealed McAllister received payment for assisting in the fraudulent preparation of 39 tax returns for the tax years of 2014 through 2017.
McAllister admits her false representations for the tax years of 2014, 2015, 2016, and 2017 created tax losses to the Internal Revenue Service totaling $920,854.
“For many years, Ms. McAllister abused her position as a return preparer to cheat the U.S. tax system as well as her client’s trust,” said Amanda Prestegard, Acting Special Agent in Charge of IRS Criminal Investigation’s St. Louis Field Office. “Now, Ms. McAllister faces severe consequences including imprisonment and substantial restitution to the IRS.”
The Internal Revenue Service investigated the case. Assistant United States Attorney Tracy Berry is handling this case.
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Judge sentences St. Louis men for their illegal possession of a firearm and ammunitionRead the Press Release
ST. LOUIS – On Wednesday, United States District Court Judge Henry E. Autrey accepted pleas of guilty from Deandre Scott and Morocco Thompson-Bey for the crimes of being a felon in possession of a firearm and a felon in possession of ammunition, respectively. Immediately after their guilty pleas, Scott was sentenced to a 24-month term of imprisonment. Thompson-Bey received a sentence of 18 months. Scott, 32, and Thompson-Bey, 24, are both St. Louis residents.
On June 3, 2020, members of the St. Louis Metropolitan Police Department responded to a report that businesses were being looted in the area of Kingshighway and Chippewa. When they arrived, they spotted several vehicles. The police began a rolling surveillance. The vehicles eventually stopped in the middle of the street, where the occupants began unloading items. When the police approached, a BMW, occupied by Scott and Thompson-Bey, sped off.
Although the officers were able to disable the BMW, with the aid of spike strips, the vehicle continued to flee from the officers. Thompson-Bey (the driver), and Scott abandoned the BMW and ran from the officers. Scott dropped a firearm during his flight. Both Scott and Thompson-Bey were apprehended a short distance away. The firearm (a loaded .40 caliber pistol) was seized. A search of the BMW resulted in the recovery of a bag containing .45 caliber and 9mm caliber ammunition belonging to Thompson-Bey.
Prior to June 3, 2020, both Scott and Thompson-Bey were each convicted of at least one felony crime punishable by a term of imprisonment exceeding one year.
The St. Louis Metropolitan Police Department investigated this case.
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Judge sentences St. Louis man on drug and weapon chargesRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark sentenced Corey Clark to 50 months in prison today. The 52-year-old St. Louis, Missouri resident pleaded guilty in March to one count of possession with the intent to distribute fentanyl and one count of being a felon in possession of a firearm.
In January 2020, Carter made four separate sales of fentanyl to an individual during the course of an undercover police operation. Carter was arrested on January 28, 2020, as a result of his illegal drug sales.
At the time of Carter’s arrest, Carter was in possession of approximately 20 grams of fentanyl. Law enforcement also recovered a loaded firearm from Carter’s vehicle. Prior to January 28, 2020, Carter was convicted of at least one felony crime.
The Drug Enforcement Administration investigated this case.
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Jefferson County Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
George Broussard, also known as Man, 32, pleaded guilty to possession of a firearm by a prohibited person today before U.S. Magistrate Judge Keith Giblin.
“Today’s guilty plea is another victory for the Department of Justice’s Project Safe Neighborhoods program and our effort to help make Beaumont a safer community,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office, along with the Beaumont Police Department and our other local, state, and federal law enforcement partners, will never stop working to keep firearms out of the hands of violent criminals.”
According to court documents, on March 9, 2021, Broussard was observed by law enforcement officers driving a vehicle without a front license plate in the 3700 block of Magnolia in Beaumont. When officers began to follow the vehicle, Broussard tossed a firearm from the vehicle and sped off. Broussard was apprehended and the firearm was recovered. Further investigation revealed that Broussard had an extensive criminal record including felony convictions for burglary of a building; unauthorized use of a vehicle; evading arrest with a vehicle; theft from a person; aggravated robbery; and two convictions for possession of a controlled substance, all in Jefferson County, Texas. As such, Broussard is prohibited from owning or possessing firearms or ammunition.
Broussard was indicted by a federal grand jury on April 27, 2021. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Iowa Man Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Joseph Rauber, 51, of Pisgah, Iowa, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Rauber to imprisonment for a term of 180 months. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
In March of 2020, Omaha Police Department narcotics investigators received information that Rauber was distributing methamphetamine and that he was being supplied by a female, later determined to be Almendra Escobedo-Orozco. On May 14, 2020, investigators obtained a warrant to search a residence in Omaha frequented by Escobedo-Orozco. On May 19, 2020, while executing the warrant, investigators arrested two residents. During the search, investigators seized drug ledgers, packaging material, 8,677 grams of marijuana, $4,336.00, Mexican passports, and various identity documents. Escobedo-Orozco, who had just left the residence, was stopped driving a minivan and found with two pounds of methamphetamine. Another residence in Omaha frequented by Escobedo-Orozco was searched. There, officers seized $7,800.00, a box for a digital scale, and 6 grams of methamphetamine.
On May 28, 2020, investigators executed a search warrant at Rauber’s residence in Iowa. The search yielded approximately 83.8 grams of methamphetamine, approximately 3.6 grams of cocaine, 7 long guns, 11 handguns, ammunition, stolen property, digital scales, and $55,035.00 in drug proceeds. Rauber was not at the residence at the time the warrant was executed. He was later arrested on July 30, 2020. All currency seized in this case will be forfeited to the United States.
This case was investigated by Omaha Police Department and Iowa Division of Narcotics Enforcement.
Inmate at USP Lee Pleads Guilty to Unlawfully Possessing A WeaponRead the Press Release
ABINGDON, Va. – An inmate at USP Lee in Jonesville, Virginia pleaded guilty yesterday to unlawfully possessing a weapon inside the prison.
According to court documents, Andrew Bryant, 35, was subjected to a search while being escorted within the prison and a weapon was found inside his right shoe. The weapon was approximately 4-and-one-half inches long and appeared to be made from locker metal and was sharpened to a point on one end with a handle made of duct tape with bed linens on the other end.
Bryant pleaded guilty yesterday to one count of possessing contraband in a prison, that contraband being a weapon. Bryant will be sentenced on September 27, 2021, and according to a plea agreement, faces up to an additional 42 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The Federal Bureau of Prisons are investigating the case.
Special Assistant U.S. Attorney Steven J. Luckie is prosecuting the case.
Indiana Man Pleaded Guilty to Disorderly Conduct in Yellowstone National ParkRead the Press Release
Acting United States Attorney Bob Murray announced today that KYLE F. CAMPBELL, age 31 of Fairmont, Indiana, pleaded guilty to charges stemming from an incident that occurred on June 21, 2021, in Yellowstone National Park (YNP). Campbell appeared for arraignment and sentencing before United States Magistrate Judge Mark L. Carman in Mammoth, Wyoming, on June 23, 2021.
On June 21, 2021, Campbell was with a group of individuals who had been scheduled for a guided kayak trip at the Grant Marina in YNP. The guide refused to take the group as he thought they were too intoxicated. Campbell and his group became upset and created a disturbance that led the kayak guide to call security officers and park law enforcement rangers. During the encounter, Campbell made threatening comments and gestures toward the officers. He also exhibited signs of being intoxicated and refused to obey officers’ orders. Campbell continually struggled and kicked at the rangers, resisting arrest, and later injuring himself while banging his head in the patrol car.
Campbell pleaded guilty to several criminal charges: disorderly conduct; threatening, resisting, and intentionally interfering with a government employee; violating the lawful order of a government employee; being under the influence of alcohol and a controlled substance to a degree that may endanger oneself or others; and contempt of court for refusing to comply with Magistrate Judge Carmen’s warrant to collect a blood sample.
Campbell was sentenced to 60 days imprisonment, a five-year term of unsupervised probation, and banned from YNP for five years. He was also ordered to pay $1,550 in fines and a $50 special assessment fee.
“We understand that people are eager to get out this summer and enjoy our national parks; however, this type of behavior is unacceptable. Thanks to the quick actions taken by park rangers and the park vendor’s security officers, no one was seriously harmed,” said Acting United States Attorney, Bob Murray. “Stay sober, because unruly and intoxicated behavior will only earn you a spot with the jailbirds rather than enjoying the beauty and adventure of Yellowstone.”
This incident was handled by rangers of the National Park Service and security officers of Xanterra Parks and Resorts. Assistant United States Attorney Stephanie Hambrick prosecuted the case.
For questions relating to Yellowstone National Park, please contact Public Affairs Specialist, Morgan Warthin 307.344.2015 or [email protected].
Husband and Wife Sentenced to 4 Years for Staged Automobile Accident Resulting in $4.7 Million SettlementRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ANTHONY ROBINSON (“A. ROBINSON”), age 67, and AUDREY HARRIS (“HARRIS”), age 54, of New Orleans, were sentenced today for participating in a scheme to defraud a trucking company and their insurer by staging an automobile accident with a tractor-trailer on October 13, 2015. U.S. District Judge Ivan L.R. Lemelle sentenced A. ROBINSON and HARRIS each to 48 months in prison.
According to documents filed in Federal Court, A. ROBINSON admitted to paying Damien Labeaud (“Labeaud”) $2,000.00 in cash to participate in a staged accident on October 13, 2015. A. ROBINSON arranged for his wife, HARRIS, his daughter, Keishira Robinson (“K. Robinson”), and his friend and neighbor, Jerry Schaffer (“Schaffer”), to go for a ride in A. ROBINSON’s vehicle. Prior to the accident, A. ROBINSON pulled over, exited his vehicle, and allowed Roderick Hickman (“Hickman”) to take the driver’s seat and intentionally collide with a tractor-trailer in the area of Alvar Street and France Road in New Orleans. Hickman, who previously tendered a guilty plea, acted as the “slammer” in this staged accident. After causing the collision, Hickman exited the vehicle and was picked up from the accident site by Labeaud, who acted as the “spotter” and who also previously pled guilty to his role in the larger scheme. A. ROBINSON, who had been in Labeaud’s vehicle during the intentional collision, then got behind the wheel of his own vehicle to make it appear that he had been driving at the time of the staged accident.
After the accident, A. ROBINSON, HARRIS, K. Robinson, and Schaffer were referred to an attorney who paid Labeaud and Hickman to stage accidents. Attorneys then referred A. ROBINSON and HARRIS to medical providers for treatment, and A. ROBINSON and HARRIS both underwent extensive medical treatment, including chiropractor treatment, injections, and eventually both neck and back surgeries. A. ROBINSON and HARRIS understood that agreeing to more medical treatment would increase the value of their lawsuit. Attorneys filed fraudulent civil lawsuits on behalf of A. ROBINSON, HARRIS, Schaffer, and K. Robinson, and they all provided false testimony in depositions taken in conjunction with the lawsuit.
As a result of the lawsuit, the victim trucking and insurance company paid out a total of approximately $4.7 million for the fraudulent claims associated with this staged accident. Specifically, the victim trucking company and its excess insurer paid out approximately $1,500,000.00 for A. ROBINSON’s claim. A. ROBINSON received approximately $534,983.33 of that total amount, in addition to approximately $35,700.00 in loans or advances on his settlement from the law firms representing him. The trucking company’s insurer paid out approximately $2,100,000.00 for HARRIS’s claim. HARRIS received approximately $675,000.00 of that total amount, in addition to approximately $14,600.00 in loans or advances on her settlement from the law firm representing her.
Judge Lemelle sentenced the defendants for conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 371, A. ROBINSON was sentenced to 48 months and HARRIS was sentenced to 48 months. Judge Lemelle also sentenced A. ROBINSON and HARRIS each to three years of supervised release. Additionally, both ROBINSON and HARRIS must pay a $100 mandatory special assessment fee. Regarding restitution, Judge Lemelle ordered that A. ROBINSON, HARRIS and their co-conspirators be held jointly and severally liable for restitution in the total amount of $5,073,358.25. The restitution amount includes the total settlement paid by the victim trucking company and their excess insurer, as well as attorneys’ fees incurred by the trucking company in the course of defending against the fraudulent civil lawsuit stemming from the staged accident. Additionally, Judge Lemelle entered a preliminary order of forfeiture ordering the unlawfully-obtained proceeds by A. ROBINSON and HARRIS from the fraud scheme to be forfeited to the Government.
Judge Lemelle previously sentenced Schaffer to 30 months in prison for his role in this accident and Keishira Robinson has previously pled guilty before Judge Lemelle for her role in this accident.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Shirin Hakimzadeh; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward J. Rivera. Assistant U.S Attorney Alexandra Giavotella and Assistant U.S. Attorney Andre J. Lagarde handled the forfeiture aspects of the case.
Hunterdon County Man Admits Receipt and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Hunterdon County, New Jersey, man today admitted receiving and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Daniel Murphy, 48, of Lebanon, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of receipt of child pornography and one count of possession of child pornography
According to documents filed in this case and statements made in court:
From Jan. 1, 2017, through Nov. 20, 2019, Murphy received and possessed images of minors being sexually abused.
The charge of receipt of child pornography carries a statutory mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and a fine of up to $250,000. The charge of possession of child pornography carries a maximum sentence of 20 years and a fine of up to $250,000. Sentencing is scheduled for Nov. 3, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit in Newark.
Hawaiian Non-Profit Executive Sentenced to 46 Months of Imprisonment for Embezzling over $500,000 from AmeriCorps and for Agreeing to Receive a Bribe for Approving $845,000 in CARES Act GrantsRead the Press Release
WASHINGTON – Hanalei Aipoalani, 42, of Waianae, Hawaii, was sentenced today in federal court to 46 months of imprisonment for embezzling more than $500,000 from AmeriCorps and for agreeing to accept a bribe for the administration of grants under the CARES Act.
The announcement was made by Channing D. Phillips, Acting United States Attorney for the District of Columbia; Deborah Jeffrey, Inspector General of AmeriCorps; and Steven B. Merrill, Special Agent in Charge, FBI Honolulu Field Office.
Hanalei Aipoalani, who pleaded guilty in March 2021 to embezzlement from AmeriCorps and agreeing to take a bribe related to CARES Act funds, was sentenced today by the Honorable Reggie B. Walton of the United States District Court for the District of Columbia to 46 months of imprisonment, three years of supervised release, and ordered to pay $532,730 in restitution to AmeriCorps and a $527,000 money judgment.
“The defendant’s greed greatly cost the people of Hawaii, depriving them of the valuable services that AmeriCorps members provide,” said Acting U.S. Attorney Phillips. “Were it not for the investigators here, Hanalei Aipoalani would also have deprived a qualifying organization of $845,000 in much-needed support under the CARES Act. Today’s sentence should serve as a warning that the United States Department of Justice will prosecute those who abuse their positions of power to enrich themselves at the expense of the American people.”
“Hanalei Aipoalani stole AmeriCorps funds from his neighbors in vulnerable communities to buy luxury goods and take lavish vacations. Holding him accountable for these contemptible actions should deter anyone tempted to do likewise,” said Deborah Jeffrey, Inspector General of AmeriCorps.”
“AmeriCorps trusted Hanalei Aipoalani with their mission in the State of Hawai’i and were ultimately betrayed. Today’s sentencing marks the end of Aipoalani’s betrayal of the Hawai’i community" said Honolulu FBI Special Agent in Charge Steven B. Merrill. “The FBI would like to thank AmeriCorps Office of Inspector General and the United States Attorney for the District of Columbia for their cooperation and dedication to the pursuit of justice.”
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps’ national service members commit to service for a set period of time, usually a year, in exchange for a living allowance, funding to be used for college tuition, and other benefits.
From December 2014 through May 2019, Hanalaei Aipoalani embezzled more than $527,000 from a non-profit that hosted an AmeriCorps program, by submitting false claims for payments to AmeriCorps members and directing those payments into his own bank accounts and by creating fraudulent invoices from non-profits for reimbursement by AmeriCorps. As part of his embezzlement, Hanalaei Aipoalani used at least nine inactive or former AmeriCorps’ members’ names, without their knowledge or consent, to fraudulently claim living allowances and other payments, which he then diverted to his own use.
As part of his guilty plea, Hanalaei Aipoalani admitted to conspiring to enroll his wife, Angelita Aipoalani, as an AmeriCorps member, even though she did not perform AmeriCorps service activities, and to cause a second non-profit to pay Angelita Aipoalani more than $69,000 for no compensable work. Hanalaei Aipoalani also admitted to engaging in a scheme to fraudulently obtain AmeriCorps education awards for Angelita Aipoalani, even though she had not performed the required service. Angelita Aipoalani, 42, of Waianae, Hawaii, pleaded guilty in federal court on April 1, 2021, to conspiring with Hanalei Aipoalani to embezzle more than $69,000 from AmeriCorps and to fraudulently obtaining more than $11,000 in AmeriCorps education grants, and is pending sentencing.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was passed by Congress and signed into law in or about March 2020, provided financial relief to individuals, businesses, states, and localities suffering the economic effects of the COVID-19 pandemic. Among other relief programs, the CARES Act created a $150 billion Coronavirus Relief Fund (“CRF”) to be distributed to states, localities, and tribal governments to support expenditures incurred due to COVID-19. Government entities that received money from the CRF could use the funds, among other things, to make grants to small businesses to reimburse the costs of business interruption caused by required closures and to provide economic relief for those suffering employment interruption.
In August 2020, Hanalaei Aipoalani was hired to serve as Honolulu City and County’s Department of Community Service’s CARES Program Administrator and was responsible for administering CRF programs. In that capacity, Hanalaei Aipoalani agreed to accept a financial benefit from an applicant who filed two fraudulent applications for CARES Act Funds under the agreement that Hanalaei Aipoalani would influence the approval of the grant applications and would receive a financial benefit in return for the approvals.
The FBI, the Inspector General for AmeriCorps, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the AmeriCorps program and programs under the CARES Act. If you are aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
In announcing the sentence, Acting U.S. Attorney Phillips, Inspector General Jeffrey, and Special Agent in Charge Merrill commended the work of those who investigated the case from the Office of the Inspector General for AmeriCorps and the FBI’s Honolulu Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Leslie A. Goemaat and Peter Lallas of the Fraud Section; Amanda Vaughn of the Public Corruption and Civil Rights Section; former Assistant U.S. Attorney Bianca Forde; and Paralegal Specialists Mariela Andrade, Stephanie Frijas, and Joseph McClanahan who worked on the case.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
La Crosse Man Charged with Producing Child Pornography
Thomas J. Hook, 42, La Crosse, Wisconsin, is charged with 6 counts of producing child pornography. The indictment alleges that on six occasions in March and July 2020, Hook used a cellular phone to produce a video of a minor engaged in sexually explicit conduct.
If convicted, Hook faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the La Crosse Police Department, Federal Bureau of Investigation, and the Coulee Region Children’s Internet Protection Task Force. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Illinois Man Charged with Child Pornography Crimes
John Woodward, 32, Oregon, Illinois, is charged with two counts of knowingly accessing a file containing a visual depiction of child pornography. The indictment alleges that he accessed the files on June 27 and August 10, 2020, and that the visual depictions involved a minor who had not attained 12 years of age.
If convicted, Woodward faces a mandatory minimum penalty of 10 years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the investigation.
La Crosse Man Charged with Drug Crimes Involving Methamphetamine
Steven S. McCurdy, 63, La Crosse, Wisconsin, is charged with two counts of distributing methamphetamine and one count of possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he distributed methamphetamine on November 30, 2020 and March 1, 2021, and that he possessed 50 grams or more of methamphetamine on March 1, 2021.
If convicted, McCurdy faces a maximum penalty of 20 years in federal prison on each distribution charge, and a mandatory minimum penalty of 5 years and a maximum of 40 years on the charge of possessing 50 grams or more of methamphetamine with the intent to distribute.
The charges against McCurdy are the result of an investigation by the La Crosse and Campbell Police Departments. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Madison Man Charged with Drug Crimes Involving Cocaine and Crack Cocaine
Kyle Parker, 35, Madison, Wisconsin, is charged with possessing crack cocaine with the intent to distribute and with possessing cocaine with the intent to distribute. The indictment alleges that on April 3, 2021, he possessed 280 grams or more of crack cocaine and 500 grams or more of cocaine.
If convicted, Parker faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on each charge. The charges against him are the result of an investigation by the Federal Bureau of Investigation, Dane County Sheriff’s Office, Madison Police Department, and Drug Enforcement Administration. Assistant U.S. Attorney Diane Schlipper is handling the prosecution.
Waupaca Man Charged with Possessing Methamphetamine for Distribution
Justin M. Baumgardt, 36, Waupaca, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on May 26, 2021.
If convicted, Baumgardt faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Barron County Sheriff’s Office. Assistant U.S. Attorney Zachary Corey is handling the prosecution.
Minnesota Man Charged with Possessing Cocaine for Distribution
Lashawn M. Bennett, 50, Saint Paul, Minnesota, is charged with possessing 500 grams or more of cocaine with the intent to distribute. The indictment alleges that he possessed the cocaine on March 17, 2021.
If convicted, Bennett faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Wisconsin State Patrol and the Drug Enforcement Administration. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Getaway Driver to Serve Prison Time for RobberyRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 60 months in prison for his role as getaway driver in an armed gas station robbery. In April 2021, Jeremiah Urias, 19, of Wichita pleaded guilty to one count of Robbery.
According to court documents, Urias was charged in connection with the robbery of an EZ Trip gas station in Newton, Kansas, in February of 2020. Urias waited in the vehicle while two accomplices entered the business and demanded money from the clerk at gunpoint. After Urias and his accomplices drove away from the scene, a Kansas Highway Patrol trooper spotted the vehicle and a high-speed chase ensued. The chase ended when Urias’ vehicle was involved in an accident with another vehicle. Urias then fled on foot. The two accomplices remained in the vehicle after the accident and were arrested, and Urias was eventually captured by law enforcement.
“We want to make it clear to all persons who willingly participate in crimes that they can be subject to prosecution no matter their role,” said Acting U.S Attorney Duston Slinkard. “Although the defendant may not have personally entered the business or pointed a gun at the employee, he was still responsible for participating in the robbery, and the Court held him accountable.”
The Federal Bureau of Investigation, Kansas Highway Patrol, Newton Police Department, Salina Police Department, and the Wichita Police Department (FBI Task Force Officer) investigated the case.
Assistant U.S. Attorney Alan Metzger prosecuted the case.
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Four Individuals Arrested for Producing and Trafficking Fentanyl PillsRead the Press Release
BOSTON – Four defendants were arrested today and charged in connection with operating a prolific drug trafficking organization that allegedly supplied counterfeit prescription pills containing fentanyl to suppliers on the North Shore of Massachusetts. A fifth defendant currently in state custody was charged with firearm and drug offenses. It is alleged that the defendants possessed a pill press capable of generating up to 15,000 pills per hour, which they used to produce counterfeit Percocet pills, containing fentanyl.
Vincent Caruso, 26, a/k/a “Fatz” and “Big Boy,” and Ernest Johnson, 33, a/k/a “Yo Pesci,” both of Salem, were charged with one count of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl; one count of conspiracy to conduct financial transactions affecting interstate commerce involving the proceeds of dealing in a controlled substance; and one count of conspiracy to possess firearms in furtherance of a drug trafficking conspiracy. Vincent Caruso was also charged with one count of conspiracy to possess a tableting machine to manufacture a controlled substance.
Laurie Caruso, 51, of Lynn, and Nicole Benton, 45, of Saugus, were with one count of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl and one count of conspiracy to conduct financial transactions affecting interstate commerce involving the proceeds of dealing in a controlled substance.
Cesar Rivera, 22, of Revere, was charged separately with one count of possessing controlled substances with intent to distribute and one count of conspiracy to possess and use a firearm in furtherance of a drug trafficking crime.
Vincent Caruso, Johnson, Laurie Caruso and Benton were arrested this morning and will make initial appearances via zoom in federal court in Boston this afternoon.
According to the charging documents, Vincent Caruso, a self-admitted Crip gang member, operates a large drug trafficking organization with co-defendants Johnson, Laurie Caruso (Vincent’s mother) and Benton, among others, to sell counterfeit prescription pills containing fentanyl to street gangs for further distribution on the North Shore of Massachusetts.
Vincent Caruso allegedly possessed multiple pill presses, which can generate thousands of pills per hour, to produce counterfeit pills designed to resemble Percocet pills, but in fact contained fentanyl. According to the charging documents, a counterfeit fentanyl pill retails at prices between $10-$20, thereby generating millions of dollars in retails sales. It is alleged that Caruso possessed multiple pill presses, including one described as being capable of producing 15,000 pills per hour and weighing 1,000 pounds.
It is further alleged that Vincent Caruso and Johnson possessed and used firearms in furtherance of drug trafficking activities. Vincent Caruso and Johnson posted and messaged photos and videos using social media that depicted firearms (including an AR15), fentanyl pills, cash and high-end jewelry. In a number of videos, Johnson allegedly described his involvement in shootings, beatings and drug trafficking and identified people he believed to be a “rat” or a “snitch.”
In addition, it is alleged that Benton and Laurie Caruso conducted cash transactions in order to launder portions of the illegal proceeds of the drug trafficking operation by placing sports bets at a New Hampshire casino.
The charge of conspiracy to manufacture, distribute and possess with intent to distribute 400 grams or more of fentanyl provides for a sentence of up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. The charge of conspiracy to conduct financial transactions affecting interstate commerce involving the proceeds of dealing in a controlled substance provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000. The charge of conspiring to possess firearms in furtherance of a drug trafficking conspiracy involving a machine gun provides for a sentence of up to life in prison, five years of supervised release and a fine of $250,000. The charge of conspiracy to possess a tableting machine to manufacture a controlled substance provides for a sentence of up to four years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts States Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex and Suffolk County Sheriffs’ Departments; Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville and Revere Police Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Bolton (ME), Bangor (ME), Portland (ME) and Westbrook (ME) Police Departments; and Hancock County Sheriff’s Department. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Owner of Florida Produce Business Pleads Guilty to Tax EvasionRead the Press Release
A Florida man pleaded guilty today to tax evasion in federal district court in Fort Lauderdale.
According to court documents, Alejandro Gomez, of Broward County, operated Fleischmann’s Produce, a company that imported fresh herbs for wholesale distribution. Gomez spent approximately $896,951 in 2014 and $1,051,213 in 2015 gambling at a Broward County casino. In March 2015, Gomez filed a false 2014 corporate tax return for Fleischmann’s with the IRS that overstated total business expenditures by falsely reporting the $896,951 in gambling expenditures as cost of goods sold. The next year, Gomez caused a false 2015 corporate tax return to be filed that again falsely characterized his gambling expenditures as cost of goods sold. Because the false items reported on Fleishmann’s 2014 and 2015 corporate returns artificially reduced the income that Gomez received from Fleischmann’s, Gomez also substantially underreported his personal income for both years. In total, Gomez caused a tax loss to the IRS of over $545,000.
Gomez is scheduled to be sentenced on Sept. 30 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Grace Albinson and David Zisserson of the Justice Department’s Tax Division are prosecuting the case.
Former Bank Vice President and Friend Charged in Insider Trading Securities Fraud ScamRead the Press Release
SAN FRANCISCO – Former Silicon Valley Bank vice president Mounir Gad has agreed to plead guilty to two counts of securities fraud in connection with a scheme to profit by sharing material non-public information regarding the acquisition of companies. The announcement was made by Acting U.S. Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The Office of the United States Attorney filed an information earlier today charging Gad, 34, of San Jose, and Nathan Guido, 38, of San Jose, with the crimes. According to the information, Gad was a trained investment banking professional who repeatedly received training and guidance about the proper use of material non-public and confidential information. Gad also allegedly received and knew about the prohibitions against the improper use of such information including how the use of such information for personal gain may violate the insider trading laws. According to the information, Gad nevertheless violated the insider trading laws on two occasions. Specifically, in April of 2015 and again in August of 2016, Gad obtained material non-public information through his employer when the bank advised clients about financial matters related to the acquisition of certain companies; Gad allegedly shared the non-public information with Guido, who used the information to execute securities transactions. The information alleges Gad and Guido both personally benefitted from the transactions and shared the profits from the illegal trades.
The information charges Gad and Guido with two counts each of securities fraud, in violation of 15 U.S.C. § 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, 240.10b5-1, and 240.10b5-2, 18 U.S.C. § 2.
At an arraignment earlier today before U.S. Magistrate Judge Donna M. Ryu, Gad pleaded not guilty to the charges but informed the court he has signed a written agreement pursuant to which his plea would change to guilty. Gad further informed the court that he is seeking to have the court accept his guilty plea. A change of plea hearing has been scheduled for August 4, 2021, before the Hon. Lucy H. Koh, U.S. District Judge.
Guido also pleaded not guilty to the charges and acknowledged that he entered into an agreement with the government whereby his prosecution by the government will be deferred if he complies with the terms of the agreement.
An information contains allegations only. Gad and Guido are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, the maximum statutory penalties for each count of securities fraud is 20 years in prison and a $5,000,000 fine. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The Securities and Exchange Commission has filed a separate enforcement action against Gad and Guido. The announcement of that action can be viewed here.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting this case with assistance from Jessica Leung. The case was investigated by the FBI.
Fifth Employee in Cash Flow Partners’ Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, Acting U.S. Attorney Rachael A. Honig announced.
Cesar Mendez, 49, of New York City, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Between March 2016 and September 2019, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Mendez and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Victim banks sustained losses of over $4 million.
Four of Mendez’s conspirators, Edward Espinal, Gladys Collins, Jennie Frias, and Raymundo Torres, have previously pleaded guilty to charges relating to their role in the Cash Flow bank fraud conspiracy and are awaiting sentencing.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 1, 2021.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
Acting U.S. Attorney Honig credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the U.S. Attorney’s Office’s Special Prosecutions Division and J. Stephen Ferketic of the Health Care Fraud Unit in Newark.
Federal Court Permanently Enjoins Tax Return Preparer in IllinoisRead the Press Release
A federal court in the U.S. District Court for the Northern District of Illinois has permanently enjoined a Rockford-area tax return preparer from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.
According to the court’s order, Gretchen Alvarez, aka Gretchen Trejo, consented to entry of the injunction, which permits the United States to conduct post-judgment discovery to monitor compliance. The terms of the order require that Alvarez, both individually and doing business as Sick Credit Repair, Tax and Legal Services, send notice of the injunction to multiple individuals, and, during the tax filing season, advertise the injunction in places where she conducts business. The civil complaint filed against Alvarez alleged that she prepared federal income tax returns for Rockford-area taxpayers that significantly understated her customers’ tax liabilities by fabricating business losses, which fraudulently reduced her customer’s legitimate W-2 taxable income. The complaint also alleged that Alvarez falsely claimed that some of her customers attended higher education institutions to fraudulently claim education credits on the returns she prepared.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams, and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Essex County Man Sentenced to 82 Months in Prison for Carjacking and Assaulting U.S. Postal Service EmployeeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 82 months in prison for assaulting and carjacking at knifepoint a U.S. Postal Service employee, Acting U.S. Attorney Rachael A. Honig announced.
Wallace Johnson, 32, of Newark, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with carjacking and assaulting a federal employee. Judge Vazquez imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Johnson admitted that on June 6, 2020, he walked up to a postal employee who was sitting in the car’s driver seat while on a break from delivering mail in Newark. Johnson held a box cutter against the postal employee’s neck and the box cutter’s blade pierced the postal employee’s skin, causing a small laceration. While Johnson held the box cutter against the postal employee’s neck, he demanded that the postal employee get out of the car and leave everything inside of the car. After the postal employee got out of the car, Johnson entered the car and drove away.
Shortly thereafter, law enforcement officers saw the carjacked car driving at a very high rate of speed and attempted to conduct a car stop, not knowing at that time about the carjacking. During a subsequent car chase, Johnson crashed the car and fled on foot. Several minutes later, during a canvass of the nearby neighborhood, law enforcement officers found Johnson as he hid behind a parked car and then arrested him following a foot pursuit. Law enforcement officers recovered the postal employee’s cellular telephone and the boxcutter that Johnson used during the assault and carjacking.
In addition to the prison term, Judge Vazquez sentenced Johnson to three years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Dominican National Sentenced for Fentanyl and False Identity CrimesRead the Press Release
BOSTON – A Dominican national was sentenced on Monday, June 28 in federal court in Boston for distributing fentanyl, identity theft and fraudulent use of a Social Security number.
Cesar Lara Castillo, 37, a Dominican national previously residing in Lawrence, was sentenced by U.S. Chief District Court Judge F. Dennis Saylor IV to 44 months in prison and three years of supervised release. In October 2020, Castillo pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl, one count of false representation of Social Security number and one count of aggravated identity theft.
On July 10, 2019, Castillo arrived at the location of a pre-arranged sale of fentanyl with approximately 53 grams of a substance containing fentanyl, packaged in five “fingers,” or compact cylinders designed for distribution. When Castillo was arrested, he gave police a Massachusetts driver’s license in the name of a United States citizen. Castillo had applied for the driver’s license from the Massachusetts RMV in April 2019, using the personal identifying information of the victim, including their Social Security number.
This case is part of a coordinated enforcement operation in the Merrimack Valley dubbed “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Drug Enforcement Administration, New England Division; Massachusetts State Police; Lawrence Police Department and North Andover Police Department. Assistant U.S. Attorney Fred M. Wyshak III of Mendell’s Organized Crime & Gang Unit prosecuted the case.
Dominican National Arrested for Illegal ReentryRead the Press Release
BOSTON – A Dominican national was arrested yesterday for illegally reentering the United States after deportation.
Melvin Baez Peguero, 46, a Dominican national residing in Boston, was indicted on one count of unlawful reentry of a deported alien. Peguero was detained following an initial appearance yesterday before U.S. District Court Magistrate Judge Judith G. Dein.
According to the charging documents, Peguero was previously removed from the United States in April 2013, and subsequently found in Boston in November 2020.
The charge of illegal reentry provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. Peguero will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathanial R. Mendell and William S. Walker, Acting Special Agent in Charge of the Homeland Security Investigations made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Des Moines Woman Sentenced to Eight Years in Prison for Conspiracy to Damage the Dakota Access PipelineRead the Press Release
DES MOINES, IA – A Des Moines woman was sentenced today by United States District Court Judge Rebecca Goodgame Ebinger to eight years in federal prison for Conspiracy to Damage an Energy Facility. Jessica Rae Reznicek, age 39, was ordered to serve three years of supervised release to follow her prison term and pay $3,198,512.70 in restitution.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa and FBI Omaha Special Agent in Charge Eugene Kowel made the announcement.
According to court documents, Reznicek, as early as November 8, 2016, and continuing until May 2, 2017, conspired with other individuals to damage the Dakota Access Pipeline at several locations within the Southern District of Iowa, Northern District of Iowa, and the District of South Dakota. Specifically, the defendant admitted to damaging and attempting to damage the pipeline using an oxy-acetylene cutting torch and fires near pipeline instrumentation and equipment in Mahaska, Boone, and Wapello Counties within the Southern District of Iowa.
Acting U.S. Attorney Westphal stated, “This was a federal crime of terrorism. Criminal acts conducted on multiple instances, at multiple locations, over a sustained period of time, resulting in over $3 million dollars in ordered restitution. After which Reznicek sought to encourage others to engage in similar conduct. As this investigation and punishment show, any crime of terrorism will be aggressively investigated and prosecuted by the federal government.”
Following the sentencing, FBI Special Agent in Charge Kowel commented, “Protecting the American people from terrorism – both international and domestic – remains the FBI’s number one priority. We will continue to work with our law enforcement partners to bring domestic terrorists like Jessica Reznicek to justice. Her sentence today should be a deterrent to anyone who intends to commit violence through an act of domestic terrorism.”
Reznicek’s co-defendant, Ruby Montoya, is scheduled to be sentenced at a later date. This matter was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Department of Justice Begins Third Distribution of Forfeited Funds to Compensate Victims of Fraud Scheme Facilitated by Western UnionRead the Press Release
The Department of Justice announced today that the Western Union Remission Fund began its third distribution of approximately $66 million in funds forfeited to the United States from the Western Union Company (Western Union) to approximately 6,000 victims located in the United States and abroad. These victims, many of whom were elderly victims of consumer fraud, will be recovering the full amount of their losses.
This is the third in a series of distributions. The first two distributions paid more than $300 million to over 142,000 victims, all of whom received full compensation for their losses. The Department of Justice anticipates authorizing compensation for more victims in the coming months. Petitions are accepted on an ongoing basis and potential victims who have not applied for compensation will be provided the opportunity to apply this year.
“This third distribution of funds from the Western Union forfeiture demonstrates the Department of Justice’s continued commitment to compensate and serve justice to victims, many of whom suffered immense losses from this fraud scheme,” said Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division. “Divesting criminals of ill-gotten gains and returning those funds to victims are the primary goals of the Asset Forfeiture Program, which has provided over $10 billion in forfeited funds to victims over the last two decades.”
“Since 2001, our office, in conjunction with the U.S. Postal Inspection Service, has been at the forefront of investigating and prosecuting cross-border frauds where global money services companies such as Western Union facilitate fraud by transferring millions of dollars overseas into the pockets of international fraudsters,” said Acting U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania. “The historic 2017 deferred prosecution agreement with Western Union, and the payments to thousands of victims to compensate them for their losses, demonstrates our commitment to hold all responsible parties accountable and to make all victims whole. I want to thank all the prosecutors and agents who continue to work tirelessly on behalf of the victims.”
“Today’s $66 million distribution continues our commitment to ensuring justice for the thousands of victims who were financially harmed by multiple fraud schemes in this investigation,” said Postal Inspector in Charge Damon Wood of the U.S. Postal Inspection Service’s Philadelphia Division. “We are pleased that thus far over $350 million has been returned to approximately 150,000 victims, many who are among the most vulnerable: the elderly. The U.S. Postal Inspection Service is dedicated to protect Americans and to ensure that all remedies are explored in delivering justice.”
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union had a criminal information filed against it acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of an international consumer fraud scheme. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.
According to court documents, in the scheme, fraudsters targeted consumers, including seniors, through multiple scams. Three specific scams directed towards seniors included the so-called grandparent scam, where the fraudster would pose as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, where the fraudster would tell the victim that he or she had won a large cash prize but had to pay fees, such as taxes, to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose. In each of these scams, the fraudsters convinced their victims to send money through Western Union.
Certain owners, operators or employees of Western Union locations were complicit in the scheme. Western Union aided and abetted the scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union fulfilled its obligations under the DPA, and the court granted the motion to dismiss the criminal information against Western Union last year.
The Department of Justice, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service Philadelphia Division’s Harrisburg, Pennsylvania Office. The victim compensation payments in this case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida. The FBI’s Los Angeles Field Office, IRS-Criminal Investigation, U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance.
More information about the Western Union compensation process is available on the Western Union remission website at www.westernunionremission.com. Further questions may be directed to the Western Union Remission Administrator by phone at 844-319-2124 or by email at [email protected].
The Department of Justice announced today that the Western Union Remission Fund began its third distribution of approximately $66 million in funds forfeited to the United States from the Western Union Company (Western Union) to approximately 6,000 victims located in the United States and abroad. These victims, many of whom were elderly victims of consumer fraud, will be recovering the full amount of their losses.
This is the third in a series of distributions. The first two distributions paid more than $300 million to over 142,000 victims, all of whom received full compensation for their losses. The Department of Justice anticipates authorizing compensation for more victims in the coming months. Petitions are accepted on an ongoing basis and potential victims who have not applied for compensation will be provided the opportunity to apply this year.
“This third distribution of funds from the Western Union forfeiture demonstrates the Department of Justice’s continued commitment to compensate and serve justice to victims, many of whom suffered immense losses from this fraud scheme,” said Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division. “Divesting criminals of ill-gotten gains and returning those funds to victims are the primary goals of the Asset Forfeiture Program, which has provided over $10 billion in forfeited funds to victims over the last two decades.”
“Since 2001, our office, in conjunction with the U.S. Postal Inspection Service, has been at the forefront of investigating and prosecuting cross-border frauds where global money services companies such as Western Union facilitate fraud by transferring millions of dollars overseas into the pockets of international fraudsters,” said Acting U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania. “The historic 2017 deferred prosecution agreement with Western Union, and the payments to thousands of victims to compensate them for their losses, demonstrates our commitment to hold all responsible parties accountable and to make all victims whole. I want to thank all the prosecutors and agents who continue to work tirelessly on behalf of the victims.”
“Today’s $66 million distribution continues our commitment to ensuring justice for the thousands of victims who were financially harmed by multiple fraud schemes in this investigation,” said Postal Inspector in Charge Damon Wood of the U.S. Postal Inspection Service’s Philadelphia Division. “We are pleased that thus far over $350 million has been returned to approximately 150,000 victims, many who are among the most vulnerable: the elderly. The U.S. Postal Inspection Service is dedicated to protect Americans and to ensure that all remedies are explored in delivering justice.”
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the United States. Pursuant to the DPA, Western Union had a criminal information filed against it and acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of an international consumer fraud scheme. Western Union simultaneously resolved a parallel civil investigation with the Federal Trade Commission.
According to court documents, in the scheme, fraudsters targeted consumers, including seniors, through multiple scams. Three specific scams directed towards seniors included the so-called grandparent scam, where the fraudster would pose as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, where the fraudster would tell the victim that he or she had won a large cash prize but had to pay fees, such as taxes, to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose. In each of these scams, the fraudsters convinced their victims to send money through Western Union.
Certain owners, operators or employees of Western Union locations were complicit in the scheme. Western Union aided and abetted the scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union fulfilled its obligations under the DPA, and the court granted the motion to dismiss the criminal information against Western Union last year.
The Department of Justice, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service Philadelphia Division’s Harrisburg, Pennsylvania, Office. The victim compensation payments in this case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania and the Southern District of Florida. The FBI’s Los Angeles Field Office, IRS-Criminal Investigation, Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau Office of Inspector General and the Department of the Treasury Office of Inspector General provided valuable assistance.
More information about the Western Union compensation process is available on the Western Union remission website at www.westernunionremission.com. Further questions may be directed to the Western Union Remission Administrator by phone at 844-319-2124 or by email at [email protected].
Defendants Charged with the Murder of Maurice Spagnoletti Are Now Charged with Being Members of an Enterprise Engaged in MurderRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, a federal grand jury issued a fourth superseding indictment charging Luis Carmona-Bernacet, Yadiel Serrano-Canales, Rolando Rivera-Solis, Alex Burgos-Amaro, Alan Lugo-Montalvo, and Fabiany Almestica-Monge with being members of an enterprise engaged in murder and drug trafficking. Moreover, Carmona-Bernacet, Serrano-Canales, Rivera-Solis, and Burgos-Amaro are now charged with committing murder in aid of that enterprise. Among these murders is that of Maurice Spagnoletti, who was killed on June 15, 2011, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
The defendants were previously charged with committing murder in furtherance of drug trafficking. The new superseding indictment charges the defendants with murdering in aid of an enterprise engaged in drug trafficking and murder.
If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Alberto López-Rocafort, Chief of the Gangs Section and Assistant U.S. Attorneys Kelly Zenón and Victor O. Acevedo-Hernández oversee the prosecution of the case. The Federal Bureau of Investigation collaborated during the investigation.
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Davenport Man Sentenced to Federal Prison for Firearm ChargesRead the Press Release
DAVENPORT, IOWA – A Davenport man, Brenton Mon’Shae Jones, age 24, was sentenced on Tuesday, June 29, 2021, by United States District Court Judge Stephanie M. Rose to 46 months in prison for Felon in Possession of a Firearm, Receipt and Possession of a Machinegun, and Receipt and Possession of an Unregistered Machinegun. This sentence is to be served consecutively to a supervised release revocation sentence of 18 months imposed the same day. Jones was ordered to serve three years of supervised release to follow his prison sentence and pay $300.00 to the Crime Victims’ Fund.
On August 12, 2020, Jones was in possession of a Glock 23 .40 caliber pistol. The pistol had a switch affixed to it that converted the Glock pistol from semi-automatic to fully automatic. As a result, the Glock pistol functioned as a fully automatic machinegun. Jones was prohibited from possessing any firearms due to prior felony convictions including a 2018 conviction in the United States District Court for the Southern District of Iowa for the offenses of felon in possession of a firearm and possession of heroin with intent to distribute. On August 12, 2020, Jones was serving a period of supervised release associated with that conviction.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Davenport Man Sentenced to Federal Prison for Drug ChargeRead the Press Release
DAVENPORT, IOWA – A Davenport man, Donell Jamar Hines, age 32, was sentenced on Monday, June 28, 2021, by United States District Court Judge Stephanie M. Rose to 57 months in prison for Possession with Intent to Distribute a Mixture and Substance Containing Cocaine Base, Cocaine, and Heroin. This sentence is to be served consecutively with a supervised release revocation sentence of 24 months for a prior offense that Hines had been sentenced to in 2016. The total sentence impose was 81 months in prison. Hines was ordered to serve a three-year term of supervised release to follow his prison term as well as pay $100.00 to the Crime Victims’ Fund.
According to court documents, Hines was identified by law enforcement as a participant in drug activities. On September 25, 2019, members of the Davenport Police Department executed a search warrant on the known residence of Hines in the area of Betsy Ross Place in Davenport. During the search, officers located a large amount of United States currency, multiple plastic baggies of drugs including cocaine and heroin, and a digital scale. Following laboratory testing, the controlled substances recovered were determined to be approximately 166 grams of cocaine, 12 grams of cocaine base, and 4 grams of heroin. On February 19, 2021, Hines admitted that on or about September 25, 2019, he was knowingly and intentionally in possession of the controlled substances mentioned above and had the intention to distribute some of all the controlled substances to another person. Hines, furthermore, admitted to the currency found being proceeds from his activity in distributing controlled substances.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Davenport Police Department investigated the case.
Court-Appointed Pennsylvania Guardian and Virginia Co-conspirators Indicted for Stealing over $1 million from Elderly WardsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Gloria Byars, 60, of Aldan, PA; Carlton Rembert, 66, of Hampton, VA; and Alesha Mitchell, 40, of Suffolk, VA, were all indicted for their roles in scheme to defraud elderly, incapacitated people out of hundreds of thousands of dollars. All three defendants were charged with one count of conspiracy and one count of bank fraud. Additionally, Rembert and Byars were charged with five counts of wire fraud, and Byars faces an additional charge of money laundering.
The Indictment alleges that between 2012 and 2018, Byars stole from dozens of incapacitated wards while serving as their court-appointed guardian. Prior to operating her own guardianship company, Byars was an office manager for a different company that was appointed to care for wards in Pennsylvania. As office manager and then as guardian herself through her own firm, Byars had unfettered access to wards’ property including bank accounts, pensions, real estate, annuities, and other assets. Byars allegedly stole money from the wards’ bank accounts by writing unauthorized checks to companies she controlled, or to shell companies controlled by Rembert and Mitchell. The Indictment further alleges that Rembert and Mitchell assisted Byars in the theft by opening bank accounts in the names of shell companies purporting to be medical billing companies and depositing the stolen checks they received from Byars into those accounts. After the stolen checks cleared, Byars, Rembert, and Mitchell are alleged to have shared the fraud proceeds.
Byars is alleged to have also stolen gold Krugerrand coins, valuable gold coins first minted in South Africa in the 1960’s to introduce the country’s gold supply onto the world market, from one elderly victim’s safe deposit box. Byars is also alleged to have stolen $131,000 from the same ward’s bank account and over $756,000 from a retired federal employee’s Thrift Savings Plan. Finally, according to court documents, Byars managed assets for an individual identified as C.G., whose heir asked for the assets’ return from Byers after C.G.’s death. But Byars had already stolen C.G.’s money. In an attempt to conceal her theft from C.G., Byars is alleged to have stolen $122,000 from yet another ward and used it to repay C.G.’s heir.
Mitchell was arrested in Virginia yesterday, has been released on bail pending trial, and will appear in U.S. District Court in the Eastern District of Pennsylvania on Friday, July 2. Byars was previously arrested in both Philadelphia and Delaware County for theft from her wards. Byars and Rembert are scheduled to appear for the federal charges in U.S. District Court in the Eastern District of Pennsylvania on Tuesday, July 6.
“As a court-appointed fiduciary, Byars had a moral and legal obligation to act in her clients’ best interest,” said Acting U.S. Attorney Williams. “Instead, she and her co-conspirators allegedly used her position to help themselves to the very property they should have been protecting – no better than wolves in sheep’s clothing.”
“Elder fraud cases are probably the most heartbreaking of the financial violations we work,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Here we have someone entrusted to oversee their incapacitated wards’ affairs, allegedly siphoning off money and property for herself and her co-conspirators. Anyone who targets vulnerable older folks for their assets has neither a conscience nor a moral compass. The FBI is committed to holding such crooks accountable, on behalf of those they’ve so cruelly victimized.”
If convicted, the defendants face the following maximum possible sentences. For each count of conspiracy to commit bank fraud and bank fraud, the maximum sentence is 30 years’ imprisonment and a $1,000,000 fine. For each count of wire fraud, the maximum sentence is 20 years’ imprisonment and a $250,000 fine and for money laundering the maximum sentence is 20 years’ imprisonment and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigations and Delaware County District Attorney’s Office, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Tiwana Wright.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IOWA – A Council Bluffs man was sentenced on Tuesday, June 29, 2021, by United States District Court Judge Rebecca Goodgame Ebinger to 41 months in prison for felon and drug user in possession of a firearm. The prison term is to be followed by three years of supervised release.
According to court documents, Garrett Duane Hanika, age 33, of Council Bluffs, was attempting to elude officers and speeding -- 60 mph in a 35 mph zone -- down the center turn lanes on Broadway in Council Bluffs until he crashed the vehicle and attempted to run. Hanika was apprehended and a loaded Bryco Amrs, Model 48, .380 caliber pistol was found in his car.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Chicago Man Sentenced to More Than 15 Years in Prison for Sharing Child PornographyRead the Press Release
CHICAGO — A Chicago man has been sentenced to more than 15 years in federal prison for sharing child pornography in an online chat room.
BENNY L. BUTLER, 36, possessed more than 2,800 videos and more than 7,600 images of child pornography on multiple electronic devices. Butler in 2017 shared several videos and images with users of Chatstep, an anonymous online chat room service.
Butler pleaded guilty earlier this year to one count of transportation of child pornography. U.S. District Judge Andrea R. Wood on Tuesday sentenced Butler to 15 years and eight months in federal prison, to be followed by 20 years of court-supervised release. Judge Wood also ordered Butler to pay $47,000 in restitution to the known victims depicted in the child pornography he shared.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The U.S. Coast Guard Investigative Service provided valuable assistance.
“It is impossible to overstate the seriousness of defendant’s conduct and the need for just punishment,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant not only possessed a staggering amount of child pornography, but also distributed, downloaded, and traded child pornography with others online.”
Burgettstown Man Sentenced to Prison for Conspiring to Receive Pandemic Unemployment Assistance Benefits while Incarcerated and IneligibleRead the Press Release
PITTSBURGH, PA - A resident of Burgettstown, Pennsylvania pleaded guilty and was sentenced in federal court to a charge of conspiracy to commit mail fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Levi Stroud, age 25, pleaded guilty to a one count of conspiracy before United States District Judge William S. Stickman
In connection with the guilty plea, the court was advised that Stroud conspired with his mother to commit mail fraud in connection with pandemic unemployment assistance benefits while he was incarcerated for a state conviction.
On March 13, 2020, the President of the United States declared the ongoing COVID-19 pandemic to be an emergency under Section 501(b) of the Robert T. Stafford disaster Relief and Emergency Act. Subsequently, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (which is frequently referred to as the CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance Program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. The CARES Act also provided an emergency increase in unemployment compensation benefits of $600.00 per week.
Following the guilty plea, Judge Stickman sentenced Stroud to seven months of imprisonment followed by one year of supervised release.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
The United States Department of Labor - Office of Inspector General conducted the investigation that led to the prosecution of Levi Stroud.
Bureau of Prisons Correctional Officer Charged with Sexual Abuse of A WardRead the Press Release
OAKLAND – Ross Klinger has been charged in a criminal complaint with sexual abuse of a ward, announced Acting U.S. Attorney Stephanie M. Hinds, Department of Justice (DOJ) Office of the Inspector General (OIG) Los Angeles Field Office Special Agent in Charge Zachary Shroyer, and FBI Special Agent in Charge Craig D. Fair.
According to the complaint filed June 25, 2021, and unsealed today, at the time of the offense, Klinger, 36, of Riverside, Calif., was a correctional officer at Bureau of Prisons Federal Correctional Institute Dublin (FCI Dublin), an all-female low security federal correctional institution. As a correctional officer, Klinger had disciplinary authority over inmates incarcerated at FCI Dublin. He received training that inappropriate relationships with inmates, including sexual or financial involvement, were prohibited. According to the complaint, Klinger knowingly had sexual intercourse with at least one inmate while she was incarcerated at FCI Dublin and were under his custodial, supervisory, or disciplinary authority. The complaint further alleges that Klinger was also sexually involved with a second inmate. Klinger told both inmates that he wanted to father their children and that he made plans to marry them. He also gave his victims, and at times their families, either money, gifts, or both.
“Prison officials are given great power over incarcerated individuals and are entrusted to use that power to ensure the care, safety, and control of the people placed under the government’s supervision,” said Acting U.S. Attorney Hinds. “The abuse of these powers echoes through the entire criminal justice system and threatens to compromise the public’s trust in the system’s legitimacy. The allegations in the criminal complaint unsealed today describe a disturbing deviation from the responsibilities of correctional officers. Such an abuse of power will not be tolerated.”
“Correctional Officers wield great power in correctional facilities," said Special Agent in Charge Shroyer. “Klinger allegedly abused his authority to engage in sexual relations with two inmates. Sexual abuse of inmates will never be tolerated.”
“As alleged in the complaint, Klinger took advantage of his role as an officer, entrusted to supervise inmates on behalf of the government, and instead displayed an egregious abuse of power ” said Special Agent in Charge Fair. “The FBI will continue to work with our partners to investigate such violations of the law and hold those responsible accountable.”
The complaint alleges that between April 2020 and October 2020, Klinger repeatedly had sexual intercourse with one of the victims in a storage warehouse at FCI-Dublin. After he transferred to a different BOP prison in San Diego, he allegedly kept in touch with the victim using the alias “Juan Garcia,” and communicated with her via email and video visits. Klinger also gave money to the victim’s mother, and visited her family, including her minor children.
According to the complaint, Klinger also had sexual intercourse with the second victim in a Conex box on FCI Dublin’s campus, while another inmate acted as a lookout. After the victim was released to a halfway house, Klinger remained in contact with her via text message and Snapchat. Klinger visited the victim at the halfway house, where he engaged in sexual intercourse with the victim and proposed to her with a diamond ring.
Klinger is charged with one count of sexual abuse of a ward, in violation of 18 U.S.C. § 2243(b). Klinger was arrested this morning and made an initial federal court appearance in the U.S. District Court for the Central District of California. His first appearance in the Northern District of California has not yet been scheduled.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. If convicted of the charge, Klinger faces a maximum statutory sentence of 15 years imprisonment, a three-year term of supervised release, and a $250,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Molly K. Priedeman is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the DOJ OIG and the FBI.
Bridgeport Man Sentenced to Prison for Stealing Social Security Benefits Delivered to Deceased FatherRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ADOLFO VARGAS, 43, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for illegally receiving Social Security benefits.
According to court documents and statements made in court, Vargas’ father lawfully received Social Security Administration (“SSA”) monthly Retirement and Survivor Insurance benefit payments. When Vargas’ father became ill, he gave Vargas access to his bank accounts so Vargas could make purchases on his behalf and take care of his affairs after his death. Vargas’ father died in 2006, but the SSA was never informed of his death. Between 2006 and 2019, the SSA deposited approximately $111,000 into Vargas’ father’s account. During that time, Vargas used the account to make numerous ATM cash withdrawals, personal debit transactions and personal online purchases.
Judge Bryant ordered Vargas to pay $93,092 in restitution.
On March 29, 2021, Vargas pleaded guilty to one count of theft of public funds.
Vargas, who is released on a $100,000 bond, is required to report to prison on August 25, 2021.
This matter was investigated by the Social Security Administration Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Brendan Keefe.
Bridgeport Man Charged with Child Exploitation OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL NASTU, 62, of Bridgeport, was arrested today on a federal criminal complaint charging him with multiple child exploitation offenses.
Following his arrest, Nastu appeared via videoconference before U.S. Magistrate Judge S. Dave Vatti and is currently detained.
As alleged in the complaint, in March 2021, Nastu, using the Kik social media application, initiated a chat with an FBI Online Covert Employee who was posing as a 14-year-old female from Connecticut. Between March 31 and June 25, 2021, Nastu sent the OCE sexually explicit messages and several pictures and videos of male genitalia, and he attempted to entice the OCE to send him child pornography in return. Nastu and the OCE had multiple text exchanges about meeting in person to engage in sexual activity, but Nastu ultimately decided not to meet the OCE due to the risk of being caught.
The complaint charges Nastu with attempted transfer of obscene materials to a minor, which carries a maximum term of imprisonment of 10 years; attempted receipt of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years; and attempted enticement of a minor to engage in illegal sexual activity, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Acting U.S. Attorney Boyle stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Amanda S. Oakes.
Boston Gang Associate Pleads Guilty to Cocaine TraffickingRead the Press Release
BOSTON – A Boston gang associate pleaded guilty on Monday, June 28, 2021 to his role in a cocaine trafficking conspiracy.
Michael Toussaint, 40, of Hyde Park, pleaded guilty to conspiracy to distribute and possession with intent to distribute cocaine and cocaine base. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 2, 2021.
In June 2020, Toussiant was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Toussaint is the fifth defendant to plead guilty in the case.
During the investigation, investigators identified Toussaint as a drug customer and distributor for co-defendant Hassan Monroe, who was a significant supplier to co-defendant Kenji Drayton, the leader of the drug-trafficking organization. Over the course of the investigation, Monroe provided a large quantity of cocaine to Toussaint for the purpose of drug trafficking. Monroe has agreed to plead guilty and Drayton pleaded not guilty.
The charge of conspiracy to distribute and possession with intent to distribute cocaine and cocaine base provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.