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18 August 2021
Michigan Man Indicted for Traveling to Wisconsin to Have Sex with a 15-Year-OldRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that Scott D. Sundberg (age: 42) of Ishpeming, Michigan, was indicted by a federal grand jury in Milwaukee following his August 13, 2021, arrest by local and federal authorities.
According to a criminal complaint filed in the case, Sundberg began exchanging instant messages with an individual whom he believed to be the parent of a 15-year-old girl living in Oshkosh, Wisconsin. The complaint alleged that Sundberg expressed repeated interest in engaging in sexual activity with the 15-year-old and also sent pornographic images of children engaged in explicit sexual activity.
In fact, Sundberg was communicating with a law enforcement agent working as a part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office (https://go.usa.gov/xFfCm). Sundberg was arrested upon his arrival in the Eastern District of Wisconsin.
The indictment alleges that Sundberg used a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b). If convicted, Sundberg faces a mandatory minimum sentence of 10 years and up to a lifetime of imprisonment.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Mexican National Sentenced to 46 Months in Prison for Trafficking Fentanyl into New JerseyRead the Press Release
NEWARK, N.J. – A Mexican national was sentenced today to 46 months in prison for his role in transporting approximately two kilograms of fentanyl into New Jersey for distribution, Acting U.S. Attorney Rachael A. Honig announced.
Adrian Vargas Arroyo, 31, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to possession with intent to distribute over 400 grams of fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In October 2019, Vargas Arroyo drove a tractor trailer into New Jersey with a bag containing four half-kilogram packages of fentanyl. Vargas Arroyo arranged to distribute the narcotics at a location in Middlesex County, New Jersey, where he was ultimately arrested.
In addition to the prison term, Judge Martinotti also sentenced Vargas Arroyo to two years of supervised release.
Acting U.S. Attorney Honig credited special agents with the U.S. Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Media Advisory In-Person Press ConferenceRead the Press Release
WHEN: Thursday, August 19, 2021 at 1:00 p.m.
WHERE: Brunswick County Sheriff’s Office
70 Stamp Act Drive
Bolivia, NC 28422
Re: Prosecutions of Violent Gang Leaders & Significant Armed Drug Traffickers
The United States Attorney’s Office announces a press conference to discuss the successful prosecution of 26 defendants, including the highest-ranking member of the Bloods street gang in Brunswick County.
This prosecution targeted defendants who trafficked large amounts of cocaine and crack cocaine from Texas to Brunswick County. One defendant was responsible for trafficking almost 28 kilograms of cocaine. The prosecution also led to the seizure of heroin, fentanyl, and more than a dozen firearms.
In addition to Acting United States Attorney G. Norman Acker, III, we anticipate Sheriff John Ingram of Brunswick County; Resident Agent in Charge (RAC) Shawn Stallo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and District Attorney Jon David to participate in this event.
Credentialed members of the media are invited to attend. For additional information, and to RSVP your intentions to attend this event, please email Don Connelly at [email protected].
McKean County Man Indicted for Conspiring to Acquire Illegally Transported PlantsRead the Press Release
PITTSBURGH, Pa. - A resident of Eldred, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit offenses against the United States, receipt, acquisition, or purchase of illegally transported protected plants, and falsification of records, Acting United States Attorney Stephen R. Kaufman announced today.
The five-count Indictment named Dale A. Smith, 59, of Eldred, Pennsylvania, as the sole defendant.
According to the Indictment, Smith conspired to receive, acquire or purchase American ginseng plants that had been illegally transported in interstate commerce and falsified records relating to the purchase and sale of these plants.
The law provides for a maximum total sentence of 21 years in prison, a fine of $330,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The United States Fish and Wildlife Service, Office of Law Enforcement, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Madison County Business Owner Sentenced to Prison for Payroll Tax FraudRead the Press Release
Troy, Ill. – A Madison County businessman who failed to submit payroll taxes will be spending the next few years behind bars. Gary Hunsche, 56, of Troy, Illinois, was sentenced today to 48 months in prison for willfully failing to pay millions of dollars in employment taxes to the IRS. Hunsche pled guilty to the charge on May 13.
“Tax fraud is not a victimless crime,” said U.S. Attorney Steven D. Weinhoeft. “Stealing from the public fisc hurts all Americans, and those who flaunt the federal tax laws will be prosecuted.”Court records show that Hunsche owned and operated a pair of Troy-based staffing companies: Unique Risk Management and Unique Personal Consultants. The businesses employed thousands of employees who were then leased to clients as temporary workers.
Between 2011 and 2016, Hunsche withheld federal incomes taxes, Social Security, and Medicare taxes from his employees’ paychecks but never paid them over to the IRS, resulting in a loss to the
United States in excess of $9.4 million.Hunsche used approximately $4 million in unpaid payroll taxes for improvements to his personal residence, located on 41 acres in Troy, including an indoor basketball court, a barn, a lake, and partial construction of a home with a swimming pool.
“Today’s sentencing of Mr. Hunsche shows that the courts do not take lightly those individuals that willfully fail to pay over millions in federal payroll taxes,” said Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office. “Thousands of employees trusted Mr. Hunsche to properly collect and pay employment taxes but Mr. Hunsche admitted that he chose to spend the money he collected to build his empire. IRS Criminal
Investigation will vigorously investigate employers who betray their duties to employees.”As part of his sentence, Hunsche was also ordered to spend 18 months on supervised release. The investigation was conducted by IRS-Criminal Investigation.
The prosecution was handled by Assistant U.S. Attorneys Norman R. Smith and Luke J. Weissler.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Robert Earl Partee, II, 28, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for conspiracy to distribute 500 grams or more of a mixture of substance containing methamphetamine. United States District Judge John M. Gerrard sentenced Partee to 225 months in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
An investigation by law enforcement that included phone analysis, traffic stops, and other investigatory techniques uncovered that from the middle of 2018 until the end of November of 2019, Partee was purchasing methamphetamine and reselling it in large amounts in the Lincoln area. In total, Partee purchased at least 70 pounds of methamphetamine for resale to others. During this time, law enforcement twice seized methamphetamine from Partee and his vehicle. On April 30, 2019, officers stopped Partee’s vehicle for a traffic violation and found more than 300 grams of methamphetamine in the vehicle. Later, on November 13, 2019, law enforcement found methamphetamine on Partee’s person during a traffic stop of his vehicle.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Justice Department and DHS Publish Notice of Proposed Rulemaking to Make Asylum Process More Efficient and Ensure FairnessRead the Press Release
In a key step toward implementing the Administration’s blueprint for a fair, orderly, and humane immigration system, the Department of Justice (DOJ) and Department of Homeland Security (DHS) are publishing a notice of proposed rulemaking (NPRM) that would amend current regulations to improve the processing of asylum claims. The proposed rule would allow, U.S. Citizenship and Immigration Services (USCIS) asylum officers to hear and decide applications for asylum, withholding of removal, and Convention Against Torture (CAT) protection for individuals who receive a positive credible fear determination. These cases are currently assigned to immigration judges within the Justice Department’s Executive Office for Immigration Review.
“Today marks a step forward in our effort to make the asylum process fairer and more expeditious,” said Attorney General Merrick Garland. “This rule will both reduce the caseload in our immigration courts and protect the rights of those fleeing persecution and violence.”
“These proposed changes will significantly improve DHS’s and DOJ’s ability to more promptly and efficiently consider the asylum claims of individuals encountered at or near the border, while ensuring fundamental fairness,” said Secretary Alejandro N. Mayorkas. “Individuals who are eligible will receive relief more swiftly, while those who are not eligible will be expeditiously removed. We are building an immigration system that is designed to ensure due process, respect human dignity, and promote equity.”
The current system for hearing and adjudicating asylum claims at the southwest border has long needed repair. For nearly a decade, the number of such claims has ballooned, and the system has proved unable to keep pace, resulting in large backlogs and years-long delays in adjudication. The proposed rule aims to begin replacing the current system with a better and more efficient one to adjudicate protection claims fairly and expeditiously.
Under the proposed process, an individual who establishes a credible fear of removal will be referred to a USCIS asylum officer for a hearing on the protection claims. The asylum officer will be authorized to adjudicate in the first instance requests for asylum, as well as eligibility for statutory withholding of removal or for withholding or deferral of removal under the Convention Against Torture. In a denied case, the individual may request de novo administrative review by an immigration judge under a streamlined process, with further administrative appeal available through the Board of Immigration Appeals.
The rule also proposes a revision to the criteria applicable to grants of parole prior to the credible fear determination. The proposal would allow DHS to grant parole when “detention is unavailable or impracticable,” in addition to the existing criteria involving medical emergencies and law enforcement objectives.
The rule would apply to individuals who are placed into the expedited removal process on or after the effective date of the final rule. The rule would not apply to unaccompanied children or to individuals already residing in the United States. Details for submitting public comments can be found in the soon-to-be published NPRM.
This proposed rule joins a number of actions the Biden-Harris Administration is taking to build a fair, orderly, and humane immigration system, including by expanding pathways to apply for protection and opportunity in home countries, addressing the root causes of migration, and securely managing the southwest border.
Jury finds St. Louis man guilty of being a felon in possession of a firearmRead the Press Release
ST. LOUIS – A federal jury found Jeremiah Taylor, 36, of St. Louis, Missouri, guilty of one count of felon in possession of a firearm on Tuesday, August 17, 2021. United States District Court Judge Stephen R. Clark presided over the trial. Taylor was indicted by a federal grand jury in December 2020 on this gun offense.
The above trial commenced on Monday with a jury verdict of guilty being rendered on Tuesday morning. Sentencing will be held on November 23, 2021. Taylor faces a maximum sentence of ten years in the United States Bureau of Prisons.
This case was investigated by the St. Louis Metropolitan Police Department. Assistant United States Attorney Ashley Walker is handling the prosecution of this matter.
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Jury Convicts Felon of Drug Trafficking and Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS, Nev. – A federal jury convicted a Las Vegas man Monday of distribution of methamphetamine and unlawful possession of a firearm.
According to court documents and evidence presented at trial, on October 29, 2019, Donnell Henry (35) distributed 50 grams or more of methamphetamine, a Schedule II controlled substance. Three weeks later, on November 19, 2019, he possessed a multi-caliber pistol. Henry is prohibited from possessing a firearm due to prior felony convictions in California state court for first degree burglary and maintaining a place to sell narcotics.
After a four-day trial, the jury found Henry guilty of one count of distribution of methamphetamine and one count of felon in possession of a firearm. U.S. District Judge Jennifer A. Dorsey presided over the trial and scheduled sentencing for November 29, 2021. At sentencing, Henry faces: a statutory minimum penalty of five years in prison and a statutory maximum penalty of 40 years in prison and a $5,000,000 fine for the distribution of methamphetamine charge; and a statutory maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of a firearm charge.
Co-defendant Ozzie Morrison pleaded guilty in May 2021. U.S. District Judge Dorsey sentenced him to two years in prison on August 11, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement. Assistant U.S. Attorneys Melanee Smith and Kimberly Sokolich are prosecuting the case.
This case was part of Operation Nora, a joint investigation by the ATF, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department’s Central Intelligence Unit, focusing on the Sherwood Forest and Naked City areas in Las Vegas. Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
This case is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Jury Convicts Columbia Man of Enticing a Minor for Illicit SexRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man was convicted at trial by a federal jury today of attempting to meet a law enforcement officer, posing online as a 14-year-old girl, for illegal sexual activity.
Darren Wade Lasley, 32, was found guilty of attempting to entice a minor to engage in illegal sexual activity.
On June 14, 2017, Lasley responded by email to an online classified advertisement on Craigslist, which was placed as part of an undercover operation by a detective in the Boone County Sheriff’s Department Cyber Crimes Task Force posing as a 14-year-old girl. In a series of email exchanges over the course of the next several days, Lasley described his plans for a sexual encounter with the decoy. Lasley proposed visiting her residence while her mother was at work or out of town.
On June 21, 2017, Lasley asked in an email if the decoy could sneak out of her house to meet him for a sexual rendezvous. Lasley was arrested when he arrived at the arranged location.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about an hour before returning the guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Aug. 16.
Under federal statutes, Lasley is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashley S. Turner and Aaron M. Maness. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Inland Empire Man Indicted in Sexual Exploitation Case for Targeting Children, One of Whom He Met in Online Gaming PlatformRead the Press Release
RIVERSIDE, California – A federal grand jury this afternoon returned an indictment charging a Hemet man with sexual exploitation offenses alleging he convinced a preteen girl to send him sexually explicit photos of herself and a younger relative.
John Mathew Piecuch, 61, was named in a three-count indictment that charges him with attempted enticement of a minor to engage in criminal sexual activity, production of child pornography, and receipt of child pornography.
Piecuch posed as a 13-year-old boy on an online gaming platform, where he met a 12-year-old girl in late 2020, according to court documents. After moving their conversation to a text message system, Piecuch requested sexually explicit photos from the girl, who also sent sexually explicit photos of a 5-year-old relative, according to a criminal complaint filed earlier this month.
The mother of the 12-year-old girl saw some of the text messages between her daughter and Piecuch on one of the girl’s mobile devices, which prompted her to contact authorities, the complaint states.
Special agents with the FBI arrested Piecuch on August 4 pursuant to the criminal complaint. At his first court appearance that afternoon, he was ordered jailed without bond pending trial.
Piecuch is scheduled to be arraigned in this matter on August 24 in United States District Court in Riverside.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were convicted of the three counts in the indictment, Piecuch would face a statutory maximum sentence of life in federal prison. Each of the three charges carries a mandatory minimum sentence, with the mandatory minimum sentence for production of child pornography being the longest at 15 years in prison.
The FBI is conducting the investigation in this matter in conjunction with the Carroll County (Maryland) Sheriff’s Office.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office is prosecuting this case.
Indiana Man Pleads Guilty to Armed Pharmacy RobberyRead the Press Release
JEFFERSON CITY, Mo. – An Indianapolis, Indiana, man has pleaded guilty in federal court to his role in the armed robbery of a Walgreens pharmacy in Jefferson City, Missouri.
Daijahn Antwan Reed, 22, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. on Tuesday, Aug. 17, to one count of armed robbery and one count of brandishing a firearm during a crime of violence.
Reed, who was scheduled to begin trial next week, is the third and final defendant to plead guilty in this case. Co-defendant Jerome Scott King, 22, of Speedway, Indiana, was sentenced to 14 years in federal prison without parole. Co-defendant Raymond Allen Craig, 23, of Indianapolis, was sentenced to 11 years and three months in federal prison without parole. Although Reed and his co-defendants are aware of the identity of a fourth participant in this crime, according to court documents, none of them have identified that individual.
Reed admitted that he and three other men robbed the Walgreens at 2002 Missouri Boulevard at gunpoint shortly after midnight on July 25, 2018. Police officers arrived as the robbers were running from the business. They fled in a vehicle driven by King. As officers followed in pursuit, occupants of the vehicle began throwing items from the vehicle, including more than 4,000 tablets of various controlled substances taken during the robbery with an aggregate value of $9,264.
Multiple officers pursued the vehicle eastbound on U.S. Highway 54 into Callaway County. The Missouri State Highway Patrol deployed spike strips at the U.S. 54-AA/OO interchange. King’s vehicle began to slow, left the highway, crossed the outer road and crashed near Jazel Lane in Holts Summit, Missouri. King and Craig were apprehended; an unidentified man escaped. Officers recovered the loaded Smith & Wesson 9mm handgun used in the pharmacy robbery. The firearm had been stolen from Indianapolis, Indiana.
A witness called the Jefferson City Police Department at about 4:15 a.m. the same day. The witness reported that Reed, who had not made it to the getaway car after the robbery, knocked on his door and asked to use the phone. Reed spoke with the witness for several hours and admitted that he robbed the Walgreens store. The witness told officers that Reed was on the roof of the O’Reilly Auto Parts store, 1010 Missouri Blvd., in Jefferson City. Officers arrested Reed at that location.
King admitted he entered the Walgreens to conduct surveillance and then reported the number of persons inside to Craig. Craig, Reed, and the fourth individual entered the pharmacy wearing medical masks over their faces and medical style gloves on their hands. The unidentified man displayed a firearm and confronted the store clerk. One of the thieves, whose identity could not be determined from the surveillance video, zip-tied the clerk’s hands behind his back while a firearm was pointed at his head, led him to the rear of the business near the pharmacy area, and forced him down on the floor. Craig and Reed jumped over the counter and confronted the pharmacist, brandishing a firearm in a threatening manner, and removed controlled substances from the pharmacy. Both Reed and Craig handled the firearm and brandished it in a threatening manner in the direction of the pharmacist.
Under federal statutes, Reed is subject to a sentence of up to 20 years in federal prison without parole for the robbery, plus a mandatory minimum of seven years in federal prison without parole for the firearm offense, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger and Assistant U.S. Attorney Jim Lynn. It was investigated by the Jefferson City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Immigrant gets lengthy prison sentence for drug convictionRead the Press Release
McALLEN, Texas – A 35 year-old Mexican citizen from Camargo, Tamaulipas, Mexico, has been ordered to federal prison for conspiring to distribute more than 500 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jesus Ivan Resendez-Gomez pleaded guilty Oct. 7, 2019.
Today, U.S. District Judge Micaela Alvarez ordered him to serve a 170-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following the prison term. In handing down the sentence, Judge Alvarez noted Resendez-Gomez’s prior 2014 federal conviction for possession with intent to distribute 307 kilograms of marijuana. Judge Alvarez also held him responsible for two additional drug transactions involving meth. The total weight of all three transactions was 2.9 kilograms.
At the sentencing hearing, Resendez-Gomez admitted that on March 13, 2019, he provided a kilogram of meth to a co-conspirator who had transported the drugs to a location in Palmhurst.
Resendez-Gomez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) “Operation Hold My Beer.” OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Robert Wells Jr. prosecuted the case.
Guam Man Found Guilty of Aggravated Sexual Abuse of a MinorRead the Press Release
PECOS – Today a federal jury convicted a Guam man for aggravated sexual abuse of a minor.
According to court documents and evidence at trial, Damion Edward Cruz-Benavente, 29, was found guilty of one count of aggravated sexual abuse by force; one count of sexual abuse by threat or fear; and one count of sexual abuse of a minor. While living in Big Bend National Park beginning in 2015, the defendant repeatedly sexually assaulted the victim using force and threats, placing the victim in fear.
Defendant has remained in federal custody since his arrest on March 12, 2021. Cruz faces up to life in prison on both the charges of aggravated sexual abuse by force and sexual abuse by threat or fear. He faces up to 15 years in prison on the sexual abuse of a minor charge.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey Downey, El Paso Division, made the announcement.
The FBI and the National Park Services along with assistance from the Killeen Police Department and the Alpine Police Department are investigating the case.
Assistant U.S. Attorneys Lance Kennedy and Tracy Thompson are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Georgia Woman Pleads Guilty to Bank Fraud for COVID-Relief Fraud SchemeRead the Press Release
A Georgia woman pleaded guilty today in the Northern District of Georgia for perpetrating a scheme to fraudulently obtain more than $7.9 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Hunter VanPelt, aka Ellen Corkrum, 49, of Roswell, submitted six fraudulent PPP loan applications to four different lenders on behalf of entities she owned or controlled, namely: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. Through the six PPP loan applications, VanPelt fraudulently sought more than $7.9 million in PPP loan funds, of which more than $6 million was disbursed to accounts controlled by VanPelt.
VanPelt falsely represented the number of employees and payroll expenses in each of the six PPP loan applications. To support the fraudulent PPP loan applications, VanPelt submitted fraudulent tax records, bank statements, and payroll reports. VanPelt, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted three of the PPP loan applications using the VanPelt name and three additional PPP loan applications using the Corkrum name.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $2.1 million of the disbursed PPP funds in this matter. An additional $1.6 million of the disbursed PPP funds were seized by a bank and returned to the lender.
“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”
“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”
“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Special Agent in Charge Chris Hacker of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
VanPelt pleaded guilty to bank fraud. She is scheduled to be sentenced on Jan. 4, 2022, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and FHFA-OIG are investigating the case.
Trial Attorney Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the U.S. Attorney’s Office for the Northern District of Georgia, are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Convicted of Filing Fraudulent Tax ReturnsRead the Press Release
A federal jury in Athens, Georgia, convicted a Georgia man today of filing fraudulent tax returns in the name of several trusts.
According to court documents and evidence presented at trial, between 2016 and 2018, Marquet Mattox, of Lilburn, filed at least 30 fraudulent federal income tax returns in the name of at least 11 different trusts. Those returns falsely represented that the trusts had earned interest income and that federal income taxes had been withheld and paid to the IRS. Mattox then fraudulently requested refunds on behalf of the purported trusts totaling nearly $165 million. The IRS paid approximately $5 million of the requested refunds, which Mattox used to purchase a house, expensive furniture and a luxury automobile.
Mattox will be sentenced at a later date. He faces a maximum penalty of 20 years in prison on the wire fraud counts, five years on the false claims counts, and 10 years on the theft of government funds count. He also faces a period of supervised release, restitution, monetary penalties and forfeiture.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.
IRS-Criminal Investigation and the Treasury Department’s Office of the Inspector General investigated the case.
Trial Attorney Jessica A. Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Lyndie M. Freeman of the Middle District of Georgia are prosecuting the case.
Gang Member Sentenced to 37 Months in Federal Prison for Distributing FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ARMANDO QUINONES, also known as “Yayo,” 40, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea to 37 months of imprisonment, followed by four years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes and associates, including Quinones, who sold drugs on his behalf. Intercepted communications also revealed Reyes was acquiring and trafficking firearms.
Quinones, a member of Los Solidos, has a criminal history spans more than 20 years includes multiple convictions in Connecticut and New Jersey.
Quinones has been detained since his arrest on June 20, 2019. On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes, Quinones and 13 associates with various narcotics trafficking and firearm possession offenses. On April 19, 2021, Quinones pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl.
Reyes pleaded guilty and, on February 11, 2021, was sentenced to 18 years of imprisonment.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Gainesville Man Sentenced to Twenty Years in Prison for Production of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA –– Howard Louis Anderson, Jr., 40, of Gainesville, Florida, was sentenced yesterday to twenty years in federal prison following his conviction for production of child pornography. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentence.
Anderson entered a guilty plea on March 1, 2021. Court documents reflect that in 2019, Anderson placed a hidden camera in the bathroom of his residence. On numerous occasions, he created lascivious video recordings of a minor child using the bathroom. In August 2019, a search warrant was executed at Anderson’s residence and the videos and several hidden cameras were recovered. The victim was identified after investigators reviewed the recordings.
“The abuse committed by this child predator has come to an end as a result of the vigilant efforts of our law enforcement partners,” stated Acting U.S. Attorney Coody. “Moreover, the sentence imposed acknowledges the heinous conduct and should serve as a significant deterrent to those that would attempt to prey upon our most vunerable.”
Anderson’s prison sentence will be followed by lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
“This sentence sends a strong message to those who engage in criminal activity and abuse the trust of innocent children," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "I am proud of the diligent work of our agents and our law enforcement partners to identify and investigate sexual perpetrators and bring them to justice."
The case was investigated by the Gainesville Police Department, North Florida Internet Crimes Against Children Task Force, and Federal Bureau of Investigation. Assistant United States Attorney Frank Williams prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Gainesville Man Sentenced to Fifteen Years in Prison for Receipt of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA –– Edgar Antwarn Moultrie, 46, of Gainesville, Florida, was sentenced yesterday to fifteen years in federal prison following his conviction for receipt of child pornography. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentence.
Moultrie entered a guilty plea on March 1, 2021. Court documents reflect that Moultrie was under investigation for using an Internet social networking site to engage in sexually explicit communications with a 13-year-old. Further investigation determined that Moultrie had received numerous sexually explicit images and videos of the child within a three-month period.
“Crimes against children are among the most heinous types of offenses and deserving of the most significant sentences,” said Acting U.S. Attorney Coody. “We will continue to work tirelessly with our law enforcement partners to ensure that those who would use social media to solicit and obtain sexually explicit material from a child are identified and held accountable for their actions.”
Moultrie’s prison sentence will be followed by lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
"This case reinforces the message that the victimization of children will not be tolerated by law enforcement," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Having a dedicated task force with our law enforcement partners to address these issues gives us more resources to identify, investigate and arrest online predators. The FBI will continue to work hand in hand with our partners to pursue these criminals to protect our children."
The case was investigated by the Gainesville Police Department, North Florida Internet Crimes Against Children Task Force, and Federal Bureau of Investigation. Assistant United States Attorney Frank Williams prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Louisville Men Indicted on Federal Drug and Firearms ChargesRead the Press Release
LOUISVILLE, KY. – A federal grand jury in Louisville, Kentucky returned an Indictment charging Andre Ross, Robert Ross, Cory Ross, and Seiko Ross, all of Louisville, with violations of federal drug and firearms laws.
According to the Indictment Andre Ross, age 45, Cory Ross, age 29, Robert Ross, age 27, and Seiko Ross, age 37, are charged with Conspiracy to Possess with Intent to Distribute a Controlled Substance containing a detectable amount of cocaine, also known as “crack.” Andre Ross, Cory Ross, Robert Ross, and Seiko Ross are also individually charged with possessing a firearm in furtherance of a drug trafficking crime. Andre Ross, Robert Ross, and Seiko Ross are also individually charged with possession of a firearm by a convicted felon.
If convicted at trial, the defendants face a minimum of 5 years in prison, a maximum sentence of life, a maximum $1,000,000 fine, and not more than 5 years of supervised release.
The Indictment follows the filing of Criminal Complaints on August 13, 2021, charging Andre Ross, Robert Ross, and Cory Ross with possession of controlled substances with intent to distribute, possession of a firearm by a prohibited person, and possession of a firearm during and in relation to a federal drug trafficking crime.
According to the Criminal Complaints, on Thursday, August 12th, Detectives with the Louisville Metro Police Department’s Major Case Team and Special Agents from the Louisville FBI Safe Streets Task Force executed federal search warrants which included the following locations in the Newburg neighborhood:
- 4211 Norene Lane, Apt. 4, Louisville, Kentucky
- 5108 Crafty Drive, Apt 5, Louisville, Kentucky
- 5318 Russett Boulevard, Apt 2, Louisville, Kentucky
During the execution of the search warrants, law enforcement officers recovered 17 firearms, including assault rifles, handguns, and shotguns, a large quantity of ammunition, as well as approximately 1200 grams of various suspected illegal controlled substances.
Andre Ross, Robert Ross, and Cory Ross are in federal custody. Seiko Ross is currently in the custody of the Louisville Metropolitan Department of Corrections.
“The charges set forth in the Indictment are the result of the ongoing work of LMPD and the strong working relationships it maintains with our federal law enforcement agencies,” stated Acting U.S. Attorney Michael A. Bennett. "This type of collaboration is crucial as we continue to focus our efforts on the most significant drivers of violence in Louisville."
“FBI Louisville is committed to helping reduce the unacceptable level of violence that is plaguing our city. These arrests should send a loud and clear message to violent criminals that the FBI Safe Streets Task Force will deploy its collective strength to ensure the safety and security of our neighborhoods,” said Acting Special Agent in Edward J. Gray of the FBI’s Louisville Field Office. “This is just the beginning.”
LMPD’s Chief Erika Shields commented, “The culmination of this joint, targeted investigation has resulted in some of the most violent offenders being taken off the city’s streets. LMPD is grateful to have such strong federal partnerships and looks forward to further dismantling organized criminal activity.”
Assistant U.S. Attorney Tom Dyke is prosecuting the case. The case is being investigated by the FBI and LMPD.
The FBI Safe Streets Task Force consists of investigators from Louisville Metro Police Department, Nelson County Sheriff’s Office, Bullitt County Sheriff’s Office, and FBI Louisville. Special Agents from FBI Knoxville and FBI Indianapolis also assisted in yesterday’s operation.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fort Thompson Man Sentenced for Involuntary ManslaughterRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Fort Thompson, South Dakota, man convicted of Involuntary Manslaughter was sentenced on August 16, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Patrick Dion, age 55, was sentenced to 30 months in federal prison, followed by two years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and restitution in the amount of $7,126.48.
Dion was indicted by a federal grand jury on February 8, 2021. He pled guilty on May 10, 2021.
The conviction stemmed from an incident that occurred on January 14, 2021, in Fort Thompson. Dion was driving his vehicle while intoxicated and failed to yield for a pedestrian in a marked crosswalk. The victim died instantly.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Dion was immediately turned over to the custody of the U.S. Marshals Service.
Former Ironworkers Treasurer Sentenced for Stealing Union FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Scott Russell Merritt, 41, of Celoron, NY, who was convicted of theft from a labor union, was sentenced to serve two years probation and ordered to pay restitution totaling $50,850.21 by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that between May 2011, and August 2018, the defendant was the treasurer of Ironworkers Local 470. As treasurer, Merritt embezzled $50,850.21 in union funds to pay various personal expenses.
The sentencing is the result of an investigation by the U.S. Department of Labor, Office of Labor Management Standards, under the direction of the Boston-Buffalo District Director Jonathan Russo.
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Former Bixby High School Teacher Pleads Guilty After Recording Inappropriate Video of his StudentsRead the Press Release
A former Bixby High School teacher who was caught using his cell phone to inappropriately record underneath a female student’s skirt pleaded guilty today in federal court, announced Acting U.S. Attorney Clint Johnson.
Jason Scott Byrd, 46, of Jenks, pleaded guilty to attempted receipt of child pornography; video voyeurism in Indian Country; and obstruction of justice by corruptly destroying records, documents, or other objects. He will be sentenced on Dec. 16, 2021.
“Jason Byrd violated the trust placed in him as a teacher in the Bixby community. It was extremely difficult for the victim to know she was inappropriately filmed by a teacher she trusted and in her school, a place where she should feel safe,” said Acting U.S. Attorney Clint Johnson. “The alert witness who saw and reported the crime is to be commended. He exposed Byrd’s criminal acts and helped ensure the safety of his fellow students.”
On Aug. 25, 2020, Byrd was observed walking closely behind the victim holding his iPhone underneath the victim’s skirt for several seconds. The witness noticed the red recording square and timer on the screen, indicating the phone was actively recording. The video was taken in a stairwell as students were returning to class after a fire drill. The witness reported the incident to two Bixby Police Department school resource officers. The victim was unaware she was being recorded.
Byrd was brought to a school office and held until law enforcement could question him, but he was briefly left unattended with his phone. Byrd admitted that when he saw law enforcement, he began deleting photographs and video, making them unrecoverable.
When questioned, Byrd initially denied the allegations but then indicated he was sorry and that he had a problem. He admitted to taking the video of the victim, as well as taking several similar photos or videos of other students over the past year. He said those photos and videos were taken using the same cell phone.
In a written plea agreement, Byrd admitted that between Aug. 1, 2019, and Aug. 25, 2020, he intentionally attempted to use a camera to record and receive images of the victim and other students’ pubic areas. He further admitted that he captured those private images without their consent and under circumstances in which the individuals had a reasonable expectation of privacy. He further stated that on Aug. 25, 2020, he knowingly destroyed evidence on his phone so it would be unusable in a trial.
The crimes occurred within the boundaries of the Muscogee Nation reservation. Bryd, a Cherokee Nation citizen, started teaching at Bixby High School in 2008.
The Muscogee (Creek) Nation Lighthorse Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Oklahoma State Bureau of Investigation and Bixby Police Department conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Floridians Charged and Convicted in Connection with International Enterprise that Operated Sexually Exploitive “Child Modeling” WebsitesRead the Press Release
Tampa, FL – A series of charges and convictions were announced today in connection with an international enterprise based in Florida that operated subscription-based sexually exploitive “child modeling” websites.
According to court documents, Kenneth Power (deceased at 58, of Weston), was a principal member of the Newstar Enterprise – an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling” through a collection of websites called the Newstar Websites. Patrice Eileen Wilowski-Mevorah, 53, of Tampa, and Mary Lou Bjorkman, 58, of Lutz, recently pleaded guilty to laundering money for the Newstar Enterprise. Other members of the Newstar Enterprise resided in Europe. Kenneth Power’s wife, Tatiana “Tanya” Power, 41, of Weston, is currently pending trial on money laundering charges in connection with the Newstar Enterprise.
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. Using the recruited child-victims, the Newstar Enterprise produced more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as 6 years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims—recruited from Ukraine, Moldova and other nations in Eastern Europe—were particularly vulnerable due to their age, family dynamics and poverty. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the course of the conspiracy. To process, receive and distribute this money, Newstar Enterprise members fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, four members of the Newstar Enterprise have been charged in connection with the Newstar Websites. See chart below for case statuses.
Name
Case Number
Charge(s)
Status
Maximum Penalty
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering; international promotion money laundering; concealment money laundering
Indicted,
pending trial
100 years’ imprisonment
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased; case dismissed
60 years’ imprisonment
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations in Tampa, with substantial assistance provided by Homeland Security Investigations offices in Fort Lauderdale, Athens, and the Hague, as well as the IRS Criminal Investigation in Tampa.
Assistant U.S. Attorney Frank Murray of the Middle District of Florida and Trial Attorney Kyle Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; the Republic of Moldova, Office of the Prosecutor General and National Inspectorate of Investigations; the Kingdom of the Netherlands, Department for Combating Crime Cybercrime Office, Public Prosecution Service (North-Holland Unit); the Italian Republic; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Floridians Charged and Convicted in Connection with International Enterprise that Operated Sexually Exploitive ‘Child Modeling’ WebsitesRead the Press Release
A series of charges and convictions were announced today in connection with an international enterprise based in Florida that operated subscription-based sexually exploitive “child modeling” websites.
According to court documents, Kenneth Power (deceased at 58, of Weston), was a principal member of the Newstar Enterprise – an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling” through a collection of websites called the Newstar Websites. Patrice Eileen Wilowski-Mevorah, 53, of Tampa, and Mary Lou Bjorkman, 58, of Lutz, recently pleaded guilty to laundering money for the Newstar Enterprise. Other members of the Newstar Enterprise resided in Europe. Kenneth Power’s wife, Tatiana “Tanya” Power, 41, of Weston, is currently pending trial on money laundering charges in connection with the Newstar Enterprise.
According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. Using the recruited child-victims, the Newstar Enterprise produced more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as 6 years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose and miniskirts. Most of the child-victims - recruited from Ukraine, Moldova and other nations in Eastern Europe - were particularly vulnerable due to their age, family dynamics and poverty. Law enforcement officers have disabled the servers hosting the Newstar Websites.
The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the course of the conspiracy. To process, receive and distribute this money, Newstar Enterprise members fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
To date, four members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the statuses of each case.
Name
Case Number
Charge(s)
Status
Maximum Penalty
Tatiana Power
8:21-cr-244-MSS-AAS
Conspiracy to commit money laundering; international promotion money laundering; concealment money laundering
Indicted,
pending trial
100 years’ imprisonment
Kenneth Power
8:21-cr-00032-SDM-AAS
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased; case dismissed
60 years’ imprisonment
Patrice Wilowski-Mevorah
8:21-cr-00206-MSS-TGW
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
Mary Lou
Bjorkman
8:21-cr-00227-SDM-AAS
Conspiracy to commit money laundering
Pleaded guilty, sentence pending
20 years’ imprisonment
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.
These cases were investigated by Homeland Security Investigations in Tampa, with substantial assistance provided by Homeland Security Investigations offices in Fort Lauderdale, Athens, and the Hague, as well as the IRS-Criminal Investigation in Tampa. The Justice Department’s Office of International Affairs provided investigative assistance.
Assistant U.S. Attorney Frank Murray of the Middle District of Florida and Trial Attorney Kyle Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting these cases.
This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; the Republic of Moldova, Office of the Prosecutor General and National Inspectorate of Investigations; the Kingdom of the Netherlands, Department for Combating Crime Cybercrime Office, Public Prosecution Service (North-Holland Unit); the Italian Republic; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Firearm Discovered During Jefferson Parish Traffic Stop Results in 37 Month Sentence for Convicted FelonRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that TERRELL RICHARDSON (“RICHARDSON”), age 37, of Westwego, Louisiana, was sentenced to thirty-seven (37) months imprisonment by United States District Court Judge Martin L. C. Feldman for being a prohibited person in possession of a firearm. Additionally, RICHARDSON was ordered to serve three (3) years of supervised release and pay a $100 mandatory special assessment fee.
According to court documents, Jefferson Parish Sheriff’s deputies stopped RICHARDSON after he committed a traffic violation on N. Causeway Blvd. in Metairie, Louisiana. Law enforcement smelled marijuana and proceeded to search RICHARSON’s vehicle. They discovered a reportedly stolen and loaded, SCCY Industries Model CPX-2, nine-millimeter caliber semi-automatic firearm, bearing serial number 192060. RICHARDSON possessed the firearm after having been convicted on January 22, 2002 of a federal felony offense.
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 matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Felon Who Shot at Occupied Vehicle Sentenced to More than Eight Years in Federal PrisonRead the Press Release
A man who shot at an occupied vehicle in an apartment complex parking lot was sentenced today to more than eight years in federal prison.
Eric James Lyle, age 34, from Cedar Rapids, Iowa, received the prison term after a March 31, 2021 guilty plea to being a felon in possession of a firearm.
At the guilty plea, Lyle admitted that on September 7, 2020, he possessed a Glock 42 .380 pistol, after previously being convicted of a felony offense. An on-duty police officer parked near the Mead Apartment Complex observed the shooting and later recovered the firearm and six shell casings from the parking lot. Surveillance video showed Lyle discharging the firearm multiple times towards a black SUV as the SUV left the parking lot.
Lyle was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lyle was sentenced to 105 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lyle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-0001.
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Felon Charged with Unlawfully Possessing a Firearm at Albany International AirportRead the Press Release
ALBANY, NEW YORK – Josef Jarvis, age 32, of Albany, appeared in federal court today on a charge of unlawfully possessing a firearm as a felon at the Albany International Airport on August 16, 2021.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Albany County Sheriff Craig D. Apple, Sr.
The criminal complaint alleges that Jarvis, who has prior felony convictions for racketeering and weapons offenses, possessed a loaded handgun while attempting to pass through a security checkpoint at Albany International Airport on August 16, 2021.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Jarvis faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Jarvis appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained.
This case was investigated by the FBI’s Joint Terrorism Task Force and the Albany County Sheriff’s Office, as well as the Transportation Security Administration. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
Federal Jury Convicts Ripley Felon for Illegally Possessing Firearm and AmmunitionRead the Press Release
Memphis, TN – Michael Shane Rogers, 37, of Ripley has been found guilty of illegally possessing a firearm and ammunition. Acting U.S. Attorney Joseph C. Murphy Jr., announced the guilty verdict today.
According to information presented in court, on August 6, 2018, an ATF Special Agent received information from a confidential informant that Rogers—who was on probation—illegally possessed a firearm as a convicted felon at his house in Lauderdale County.
On August 9, 2018, ATF Special Agents and several Lauderdale County Sheriff's Officers went to the residence on Curve Nanikpoo Road in Ripley, Tennessee. Before law enforcement could reach the door, Rogers came out of the house and stated that he knew why they were there and that he had the "same the thing as last time." (This admission referred to his 2011 arrest for possession of marijuana with intent and a firearm.) Rogers gave written consent to search the property and signed a Miranda waiver.
Investigators found an unloaded .22 caliber rifle behind the front door and .30-06 ammunition in the living room in a nightstand drawer. During a recorded statement, Rogers acknowledged possessing the firearm and ammunition. After being transported to the Lauderdale County Sheriff's Office, Rogers gave a second interview acknowledging that he was a convicted felon and possession of the firearm and ammunition. He concluded the interview with "I guess I'm going to federal prison. I had the gun in the house. I knew the risk. It was mine."
As a result of his prior felony conviction, Rogers is prohibited by federal law from possessing firearms or ammunition.
A sentencing hearing is scheduled for November 9, 2021, before U.S. District Judge Mark S. Norris, where Rogers faces up to 120 months of imprisonment. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Special Assistant U.S. Attorney Sean G. Hord and Assistant U.S. Attorney Audrey Calkins are prosecuting this case on behalf of the government. SAUSA Hord is currently assigned from the 25th Judicial District Attorney’s Office.
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Federal Court Finds Miami-Area Tax Preparer in Contempt for Violating Permanent InjunctionRead the Press Release
A federal court in the Southern District of Florida has held a Miami-area tax preparer in contempt for violating a permanent injunction that barred her from preparing, filing or assisting in the preparation or filing of federal tax returns for others.
The United States filed a complaint against Milagros Espinal on Feb. 7, 2011, that alleged that she had prepared returns for customers that claimed deductions for fraudulent medical expenses, charitable contributions and unreimbursed employee business expenses. According to the complaint, an IRS review of returns she prepared uncovered errors in 97% of the returns the agency examined. The parties contemporaneously filed a consent order, in which Espinal agreed to a full bar on return preparation. On Feb. 16, 2011, the court issued a permanent injunction.
On Dec. 29, 2020, the United States filed a motion for an order to show cause, requesting an evidentiary hearing and alleging that Espinal was in contempt. According to the motion, during a deposition in an unrelated civil case, Espinal testified that her profession was “income tax, taxes.” The motion alleged that a subsequent Department of Justice investigation revealed that Espinal had continued to prepare fraudulent returns, that she had never stopped doing so, despite the injunction, and that she continued to act as a “ghost” preparer, and does not sign the returns she prepares. The court granted that motion and held an evidentiary hearing on April 15, 2021.
In holding Espinal in contempt today, the court found that the United States proved by clear and convincing evidence that Espinal continued to prepare returns notwithstanding the injunction. According to the court’s order, Espinal attempted to mask her violations by acting as a “ghost” preparer, meaning that she did not sign the returns she prepared and instead instructed customers to submit the returns to the IRS as though the customers prepared them on their own. The court noted that paid preparers are required to sign the returns they prepare and that failing to do so is a violation of federal law.
The court also found that the returns Espinal filed in violation of the injunction contained numerous fraudulent claims. In particular, the order concludes that Espinal frequently fabricated fuel tax credits and that she included more than $269,095 in fabricated or overstated deductions on the returns she prepared for the customers who testified at the contempt hearing. According to the order, the court will impose a sanction on Espinal on a later date.
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’s’ 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 on 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.
Ex-Fort Gordon soldier sentenced to federal prison for possession of child pornographyRead the Press Release
AUGUSTA, GA: A former U.S. Army soldier training at Fort Gordon has been sentenced to federal prison after admitting to possession of child pornography.
Bryan S. Stills, 26, of Fort Gordon, was sentenced to 60 months in federal prison after pleading guilty to Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Stills to pay $18,000 in restitution to the victims, to serve 15 years of supervised release following completion of his prison sentence, and to register as a sex offender. There is no parole in the federal system.
“Our law enforcement partners work tirelessly to protect the most vulnerable members of our society,” said Acting U.S. Attorney Estes. “This sentence will hold Bryan Stills accountable for his victimization of children.”
As described in court documents and testimony, in October 2019 the National Center for Missing and Exploited Children (NCMEC) alerted investigators from the U.S. Army Criminal Investigation Command (CID) after detecting child pornography being downloaded to an email account. Investigators identified the source as Stills, who at the time was serving as a Private Second Class in training at Fort Gordon with the 369th Signal Battalion. Investigator searched Stills’ living quarters and seized electronic devices with more than 1,000 images and videos of child pornography.
Stills subsequently was discharged from the Army.
“Child exploitation presents a serious danger to children,” said Edward LaBarge, director of the Major Cybercrime Unit, U.S. Army Criminal Investigation Command (CID). “This sentencing demonstrates our commitment to seeking justice for the children that are victimized by this horrendous conduct, and pursuing those accused of child pornography offenses.”
The case was investigated by the U.S. Army Criminal Investigation Command, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Evanston Woman Charged with Insider TradingRead the Press Release
CHICAGO — An Evanston woman used insider information obtained from her husband to purchase shares of a company ahead of its acquisition by her husband’s employer, according to a federal criminal charge filed today by the U.S. Attorney’s Office in Chicago.
In August and September 2019, DENISE GREVAS made $286,960 in illegal profits from the purchase and sale of securities in a Washington state-based pharmaceutical company that was a target for acquisition and later acquired by an overseas-based pharmaceutical company that had an office in Deerfield, Ill., and employed Grevas’s husband, according to a criminal information filed in U.S. District Court in Chicago. Grevas used material, non-public information about the expected acquisition to purchase shares in the Washington company ahead of a public announcement of the acquisition on Sept. 16, 2019, the charge alleges. After the announcement, the Washington company’s stock price increased and Grevas sold her shares for the profit, the charge alleges.
The information charges Grevas, 60, with one count of securities fraud. The charge, which was filed by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago, is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Grevas, provided valuable assistance. Assistant U.S. Attorneys Jared Hasten and Jason Yonan represent the government in the criminal case.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Essex County Man Sentenced to 27 Months in Prison for Role in Conspiracy to Defraud Banks of $250,000 Using Stolen Credit Cards and ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 27 months in prison for his role in a conspiracy to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Allen Varice, 25, of East Orange, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence by videoconference today.
Varice’s conspirators – Dashawn Duncan, 27, of South Orange; Alexander Varice, 22, of South Orange; and Nasheed Jackson, 24, Tamir Duval, 22, and Qshaun Brown-Guinyard, 27, all of Newark, previously pleaded guilty before Judge Wigenton to informations charging each with one count of conspiracy to commit bank fraud. Duncan and Jackson were sentenced last month and each received a two-year sentence. Duval, Alexander Varice, and Brown-Guinyard are awaiting sentencing.
According to documents filed in this case and statements made in court:
From August 2018 through August 2019, Allen Varice and his conspirators engaged in a scheme to use stolen credit cards and/or checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme.
The credit cards and blank checks were stolen from various New Jersey-based U.S. Postal Service facilities and never reached their intended recipients. After obtaining the stolen credit cards, Allen Varice and his conspirators used them to make unauthorized purchases at various retail stores and to withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. They altered the date, payee, and amount of the stolen checks prior to deposit. Allen Varice and his conspirators then fraudulently withdrew money at various ATMs from third-party account holders’ accounts.
In addition to the prison term, Judge Wigenton sentenced Varice to three years of supervised release and ordered him to pay restitution of $43,364.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, in Newark, under the direction of Acting Inspector in Charge Rodney M. Hopkins, Newark Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Drug Bust in Pontoon Beach Leads to 7-Year Prison Term for St. Louis ManRead the Press Release
Pontoon Beach, Ill. – A St. Louis man who tried to buy cocaine in Illinois has been sentenced to over 7 years in prison. Steve P. Kennedy, 51, appeared at the federal courthouse in East St. Louis on Tuesday and was sentenced to 87 months behind bars for attempting to possess with the intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. Kennedy pled guilty to the charges in May.
The offenses all occurred on August 12, 2020, when, according to court documents, Kennedy and a co-defendant, Stephen Brown, drove to a restaurant in Pontoon Beach, Illinois, intending to purchase 2 kilograms of cocaine. The man they were meeting was a confidential source working at the direction of law enforcement. DEA agents arrested Kennedy and Brown at the restaurant shortly after they arrived.
At the time of his arrest, Kennedy was carrying a .22 caliber semi-automatic pistol with an attached silencer and seven loaded magazines, along with $33,000 in cash. Kennedy has a prior felony drug conviction from Mississippi that prohibits him from lawfully possessing a gun.
Brown had another $5,000 in his car and was also charged. His sentencing will be held in October.
As part of the sentence, Chief United States District Judge Nancy J. Rosenstengel ordered Kennedy to forfeit his interest in the seized cash, pay a $150 fine, and serve a 3-year term of supervised release. The case was investigated by the DEA in Fairview Heights.
Domestic Abuse Call Results in Six-Year Prison Sentence for Oklahoma City Man Found in Illegal Possession of Ammunition After Previous Felony ConvictionsRead the Press Release
OKLAHOMA CITY – Yesterday, CARL RAMON BROWN, II, 46, of Oklahoma City, was sentenced to serve six years in federal prison for illegal possession of ammunition after previously being convicted of a felony, announced Acting U.S. Attorney Robert J. Troester.
On March 2, 2021, a federal grand jury returned a one-count Indictment that charged Brown with illegal possession of ammunition. Federal law prohibits a person who has previously been convicted of felony from possessing a firearm or ammunition. On March 31, 2021, Brown pleaded guilty to the Indictment.
Public records reflect that, on February 22, 2020, Oklahoma City Police officers responded to a priority domestic call involving Brown. Upon arriving at the scene, the officers discovered Brown was in possession of a firearm and threatened to shoot his girlfriend. These threats were made in the presence of his girlfriend’s mother and minor children. Officers located Brown nearby. Brown admitted to officers that he gave his firearm to a third party prior to their arrival. Officers located nine rounds of ammunition on his person, leading to Brown’s arrest. Before possessing the ammunition, Brown had been convicted of multiple felonies in Oklahoma County, including armed robbery, assault and battery on a police officer, and carrying a firearm during parole.
On August 16, 2021, U.S. District Judge Bernard M. Jones sentenced Brown to serve 72 months in federal prison, followed by three years of supervised release. In support of this sentence, Judge Jones cited the nature of the crime and Brown’s previous criminal history.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorney Mary E. Walters prosecuted the case.
This case is part of "Operation 922," the Western District of Oklahoma’s local implementation of the national Project Safe Neighborhoods initiative to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes prosecution of federal gun crimes connected to domestic violence.
Reference is made to public filings for more information.
Detroit man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Patrick Collins, of Detroit, Michigan, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Collins, 31, pleaded guilty today to one count of “Conspiracy to Distribute Controlled Substances.” Collins admitted to working with others to distribute cocaine base, also known as “crack,” and heroin from the summer of 2020 to October 2020 in Monongalia County.
Collins faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Defendant Sentenced to 15 Years in PrisonRead the Press Release
FORT WAYNE – Kenneth Apt, 53, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady upon his plea of guilty to being a felon in possession of a firearm, announced Acting U.S. Attorney Tina L. Nommay.
Apt was sentenced to 180 months in prison followed by 3 years of supervised release.
According to documents in this case, Apt was traveling northbound near downtown Fort Wayne on September 27, 2019 when his Ford pickup truck left the roadway, struck, and then knocked over two city light poles. When Fort Wayne Police Department officers arrived at the scene of the crash, they observed the Ford pickup truck on the side of the road and an unconscious male in the driver’s seat. The driver was Apt.
In Apt’s pants pocket, Officers found a yellow jar with a pink lid that contained a substance that field tested positive for cocaine. Apt was then taken to a nearby hospital where tests showed he had cocaine in his system. As Apt was being transferred from the EMS cot to an emergency room cot, a FWPD officer observed a plastic clip on Apt’s right hip. When Apt was subsequently moved, the officer located a loaded 9mm Ruger handgun in a black holster.
Apt’s prior criminal history over a 30-year period included 11 felony convictions. As a result of his criminal history, Apt was determined to be a Career Offender for which he faced a 15 year mandatory minimum sentence of imprisonment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Dallas Man Used Stolen Credit Cards to Buy Tires in Four StatesRead the Press Release
WACO – A Dallas man was sentenced today to 57 months in prison and ordered to pay $341,520 in restitution for conspiring to commit identity theft.
According to court documents, Brandon Decorwyn Alexander, 30, unlawfully acquired victims’ credit card numbers to rent vehicles and purchase tires starting in August 2017. Over 15 credit cards involving over 41 different merchants were fraudulently used. The defendant, along with co-conspirators, would call tire shops in Texas, Louisiana, Arkansas and Oklahoma and order tires using the stolen credit card information. He would then pick up the tires using vehicles he rented with the fraudulent credit card information.
On November 10, 2020, Alexander pleaded guilty to conspiracy to commit identity theft.
Eboni Simone Arps, 30, from Waco participated in the scheme. Arps pleaded guilty to a misprision of a felony on November 9, 2020 and was sentenced to 12 months in prison, one year of supervised release and a $200 fine.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Limestone County Sheriff Murray Agnew made the announcement.
The Limestone County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Gregory Gloff prosecuted the case.
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Corrections officer indicted for providing meth and sex to an inmateRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Beeville woman has been arrested on charges of attempting to bring meth to an inmate with whom she also had a sexual relationship, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a two-count indictment Aug. 11 against Jolienne Salinas. Yesterday, law enforcement took her into custody. She is set to appear before U.S. Magistrate Judge Jason B. Libby at 10:15 a.m. tomorrow.
Salinas is a correctional officer at FCI Three Rivers, a medium security federal correctional institution with an adjacent minimum security satellite camp.
The indictment alleges that in early May 2020, Salinas provided or attempted to provide meth to an inmate. Additionally, she allegedly engaged in a sexual relationship with the inmate from approximately September 2019 to May 2020.
If convicted, Salinas faces up to 20 years in prison for providing narcotics for an inmate, while the sexual relations charge carries a possible 15-year-term of imprisonment. She also faces a $250,000 possible fine on each count of conviction.
Department of Justice-Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Barbara J. De Pena is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Connecticut Nurse Sentenced for Tampering with Liquid MorphineRead the Press Release
BOSTON – A Connecticut nurse was sentenced today in federal court in Springfield for tampering with liquid morphine prescribed to a patient.
Danielle Works, 42, of Stafford Springs, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 20 months in prison and three years of supervised release. On March 30, 2021, Works pleaded guilty to one count of tampering with a consumer product.
“Ms. Works took morphine away from a hospice patient who instead received diluted morphine in her final hours of life – it is hard to imagine a more vulnerable victim,” said Acting United States Attorney Nathaniel R. Mendell. “She caused a patient in her care to suffer needlessly, and she put lives at serious risk by working while under the influence of narcotics. Health care professionals who do such things warrant federal prosecution.”
“Patients must have confidence in their health care provider that they are receiving appropriate medical care,” said Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office. “We are committed to working with our law enforcement partners to protect the public health and bring to justice those who tamper with medications and deny patients access to the treatments they need.”
“Residents of Massachusetts depend on our state’s medical professionals to offer the highest level of care,” said Department of Public Health Acting Commissioner Margret Cooke. “DPH is committed to ensuring that our residents are receiving the best quality care at all congregate care facilities in the Commonwealth, and it is essential that we continue to hold accountable those who neglect this duty of care.”
On Jan. 27, 2018, Works tampered with a bottle of morphine prescribed to a patient at Governor’s Center, a nursing facility in Westfield, by removing the morphine from the bottle and diluting the remaining morphine with another substance. The morphine was prescribed to a hospice patient, who subsequently received diluted doses of the medication shortly before her death. After ingesting the morphine, Works was observed to be significantly impaired while providing care to patients at the nursing facility.
Acting U.S. Attorney Mendell; FDA SAC Ebersole; and Acting Commissioner Margret R. Cooke of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Christopher Looney of Mendell’s Health Care Fraud Unit prosecuted the case.
Columbus woman pleads guilty to Social Security fraudRead the Press Release
COLUMBUS, Ohio – Roxanne Bates, 52, of Columbus, Ohio, pleaded guilty in U.S. District Court today to one count of theft of public money, acknowledging that she took her mother’s Social Security benefits for almost eight years after her mother died.
According to court documents, Bates’ mother died in January 2012. Before she died, she was receiving disability benefits from the Social Security Administration. Those benefits should have ceased when she died, but the Social Security Administration was not notified of the death and continued to pay benefits totaling $146,143.
The benefits were deposited into a bank account controlled by Bates’ mother. On a regular basis, Bates knowingly and willfully stole the money by withdrawing it from the account using a debit card with her late mother’s name on it.
An audit by the Social Security’s Office of Inspector General detected the theft. Agents interviewed Bates in August 2020 and she acknowledged that she took money out of the account after her mother died.
Theft of public money is a crime punishable by up to ten years in prison, but the court will apply federal sentencing guidelines to determine an appropriate sentence. The plea agreement requires Bates to repay the money she stole.
The Social Security Administration’s Office of Inspector General and the United States Secret Service cooperatively investigated this case.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced the plea entered today before U.S. Magistrate Judge Norah McCann King. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Charlotte Man Is Sentenced to 25 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – Raymond Baucom, 39, of Charlotte, was sentenced today to 25 years in prison for receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Baucom to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Chief Johnny Jennings of the Charlotte Mecklenburg Police Department joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, law enforcement became aware that, between December 2017 and October 2018, an individual later identified as Baucom was using the internet to download child pornography. During a search of Baucom’s residence in Charlotte, law enforcement retrieved Baucom’s cell phone. A forensic analysis of the cell phone revealed that Baucom possessed 58 videos and 950 images of child pornography, some of which depicted the sadistic and masochistic sexual abuse of prepubescent minors. Court records also show that some of the images and videos contained identified victims of 40 different known series of child pornography.
In 2002, Baucom was convicted in Mecklenburg County of Indecent Liberties with a Child and was sentenced to a probationary term, which was later revoked for failing to register as a sex offender.
Baucom pleaded guilty to receipt of child pornography on September 16, 2020. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
CMPD investigated the case. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Central Falls Man Admits to Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – A Central Falls man with an extensive criminal record, including convictions for drug trafficking, assault, breaking and entering, and domestic assault, today pleaded guilty in federal court to possession with the intent to distribute more than 28 grams of a mixture containing cocaine base (crack cocaine), announced Acting United States Attorney Richard B. Myrus.
David Leite,43, was arrested by Cranston Police in September 2019, following an investigation that included surveillance of Leite’s activities, two purchases from him of crack cocaine, and the issuance of two court-authorized search warrants for his residence and one of his vehicles.
On September 24, 2019, as Cranston Police were preparing to execute a court-authorized search of Leite’s residence, detectives received information that on that day Leite would be transporting a significant quantity of narcotics to Cranston. Leite was observed leaving his home in a motor vehicle and was followed into Cranston where he was soon stopped by police.
According to information presented to the court, when officers approached Leite’s vehicle they smelled a strong odor of marijuana coming from the vehicle, and observed multiple cell phones, and a significant amount of loose cash in the center cup holder. Leite was asked to step out of the vehicle.
A search of the vehicle resulted in the discovery of a bag containing 38.1 grams of crack cocaine and a bag containing 11.45 grams of cocaine salts, hidden behind the faceplate of the vehicle’s radio. Officers also seized, among other items, $13,340 in cash and two cell phones. On the same day, law enforcement executed the court-authorized search of Leite’s residence and seized a digital scale and other items used in the packaging and distribution of narcotics and a total of $2,679 in U.S. currency.
Leite, first charged in Rhode Island state court on September 25, 2019, appeared in federal court on September 30, 2019, and was charged in this matter by way of a federal criminal complaint. He has been detained in federal custody since his initial appearance in U.S. District Court.
Leite is scheduled to be sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., on November 30, 2021.
The case is being prosecuted by Assistant United States Attorney Stacey P. Veroni.
The matter was investigated by the Cranston Police Department, Central Falls Police Department, and the Rhode Island DEA Drug Task Force.
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Buffalo Man Pleads Guilty to Federal Prostitution Charges Involving Multiple VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney James P. Kennedy, Jr., announced today that Michael McDonald, a/k/a George Jackson, a/k/a Rabbit, 42, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to three counts of interstate travel for purposes of prostitution. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorneys John D. Fabian and Aaron J. Mango, who are handling that case, stated that in April 2013, the defendant transported Victim 1 from New York to New Jersey, where the Exxxotica Fan Choice Awards were being held. When McDonald transported Victim 1 to New Jersey, the purpose was for Victim 1 to engage in commercial sex acts in New Jersey. In May 2017, the defendant transported Victim 2 from New York to Florida, where Victim 2 had a court date. When McDonald transported Victim 2 to Florida, the purpose was for Victim 2 to engage in commercial sex acts in Florida. In January 2018, the defendant transported a third victim from New York to Florida, where, among other things, a boat party was planned in Miami. When McDonald transported the victim to Florida, it was for the purpose of engaging in commercial sex acts.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Cheektowaga Police Department, under the direction of Chief Brian Gould.
Sentencing is scheduled for December 14, 2021, at 2:00 p.m. before Judge Sinatra.
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Bradford, PA Man Indicted for Acquiring Illegally Transported Protected PlantsRead the Press Release
PITTSBURGH, Pa. - A resident of Bradford, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of receipt, acquisition or purchase of illegally transported protected plants and falsification of records, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Shane Michael Trout, 37, as the sole defendant.
According to the Indictment presented to the court, Trout received, acquired or purchased American ginseng plants that had been illegally transported in interstate commerce and falsified records relating to the purchase and sale of these plants
The law provides for a maximum total sentence of 10 years in prison, a fine of $40,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The United States Fish and Wildlife Service, Office of Law Enforcement, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Boston Man Pleads Guilty to Cocaine TraffickingRead the Press Release
BOSTON – A Boston man pleaded guilty today to his role in a cocaine trafficking conspiracy.
Derrick Hobson, 41, of Boston, pleaded guilty to conspiracy to distribute and possession with intent to distribute cocaine. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 4, 2022.
In June 2020, Hobson was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement investigated 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. Hobson is the sixth defendant to plead guilty in the case.
Hobson supplied cocaine to members of the conspiracy.
The charge of conspiracy to distribute and possession with intent to distribute cocaine, after the filing of a notice of prior conviction, provides for a sentence of up to 30 years in prison, at least six years and up to life of supervised release and a fine of up to $2 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; Douglas Bartlett, Acting 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 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 remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boat Operators Plead Guilty in Smuggling Death in La JollaRead the Press Release
Assistant U. S. Attorneys Jimmy N. Rotstein (619) 546-8573, Colin M. McDonald (619) 546-9144, and Victor P. White (619) 546-8439
NEWS RELEASE SUMMARY – August 18, 2021
SAN DIEGO – Victor Alfonso Soto Aguilar and Jose Ramon Geraldo Romero pleaded guilty in federal court today in connection with their roles as operators of a panga boat that attempted to smuggle fourteen Mexican citizens into the United States in open ocean waters, ultimately resulting in the death of one passenger.
During a proceeding before U.S. Magistrate Judge Karen S. Crawford, Soto and Geraldo admitted that they piloted a panga boat loaded with 14 Mexican citizens from Mexico into the United States. As part of their guilty pleas, Soto and Romero admitted that the panga boat was loaded beyond capacity, which resulted in temporary engine failure that caused the boat to stall in open ocean waters in the middle of the night. They further admitted that when they arrived near Marine Street Beach in La Jolla, California, they stopped the boat approximately 80 yards from shore and instructed all 14 passengers to remove their life jackets and jump into the water without regard to whether any of them knew how to swim. They also assured many of the passengers that the water was shallow. One passenger, Rogelio Perez Gutierrez, jumped out of the boat, could not stay afloat, and drowned as a result of the smuggling attempt.
United States Border Patrol, the Coast Guard, and San Diego Lifeguards ultimately responded to this event and rescued a number of individuals who had jumped into the ocean at the direction of Soto and Romero. The other passengers on the panga boat were paying between $12,000 and $15,000 to be brought into the United States; they stated they feared for their lives throughout the ocean journey.
“Another life has been tragically lost as a result of smugglers’ reckless actions,” said Acting U.S. Attorney Randy Grossman. “Smugglers do not care about the safety of their human cargo. They care only about profits, and the U.S. Attorney’s office is committed to bringing them to justice for these callous crimes.” Grossman commended the excellent work of Assistant U.S. Attorneys Jimmy N. Rotstein, Colin M. McDonald and Victor P. White, and as well as the HSI agents, Coast Guard officers, Border Patrol agents, Customs and Border Protection officers and San Diego Lifeguards, for their efforts in connection with the case.
“What’s really alarming is the callousness of these smugglers and their blatant disregard for the safety of those aboard the vessel,” said HSI San Diego Acting Special Agent in Charge Chad Plantz. “As seen in this case, the criminal networks who profit from these smuggling ventures prioritize profit over the well-being and livelihood of those who hire them. HSI stays committed to working closely with our law enforcement partners and prosecutors to continue to disrupt these illegal smuggling operations and bring to justice, those who violate U.S. law.”
“Callous disregard for the safety of their passengers is a common trait among smugglers,” said Brandon Tucker, Deputy Director of Air Operations for U.S. Customs and Border Protection, Air and Marine Operations in San Diego. “Their actions have consequences for the people they smuggle. They put people in danger, and now, they themselves will face the consequences of their actions.”
“The Coast Guard’s primary concern is the safety of life at sea,” said Capt. Tim Barelli, Sector Commander, USCG Sector San Diego. “This case is just one example of the disregard for human life these smugglers have, and we urge people not to place their lives in the hands of smugglers who ultimately care only about the money they will receive.”
Soto and Romero are scheduled to be sentenced by U.S. District Judge John A. Houston on December 13, 2021 at 10:00 a.m.
DEFENDANTS Case Number 21cr1665-JAH
Victor Alfonso Soto Aguilar Age: 37 Mexico
Jose Ramon Geraldo Romero Age: 24 Mexico
SUMMARY OF CHARGES
Attempted Bringing In at Other Than a Port of Entry Resulting In Death– Title 8, U.S.C., Sections 1324(a)(1)(A)(i), (v)(II), and (a)(1)(B)(iv)
Maximum penalty: Death or life in prison and $250,000 fine
Attempted Bringing In for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Fifteen years in prison and $250,000 fine; mandatory minimum of five years in custody
AGENCIES
Homeland Security Investigations
United States Coast Guard
San Diego Lifeguards
United States Border Patrol
Customs and Border Protection
The U.S. Attorney’s Office for the Southern District of California is part of Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement and Customs and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Bellevue man pleads guilty to profiting on inside information on Netflix securities tradesRead the Press Release
Seattle – A 50-year-old Bellevue, Washington man who made more than $1.5 million dollars using inside information to trade in Netflix securities pleaded guilty today in U.S. District Court in Seattle, announced Acting U.S. Attorney Tessa M. Gorman. Junwoo Chon, is one for four men charged in the scheme that involved two former Netflix software engineers illegally providing proprietary subscriber data in advance of Netflix’s earnings announcements. Chon is scheduled to be sentenced by U.S. District Judge Richard A. Jones on December 3, 2021.
The others charged by Information in the case are Netflix software engineers Ayden Lee, 33, of San Jose, California, and Sung Mo Jun, 49, of Bellevue, Washington. Jun’s brother, Joon Jun, 45, of Issaquah, Washington is also charged in the case. The Jun brothers are scheduled for plea hearings on August 30, 2021.
“Insider trading is not a victimless crime,” said Acting U.S. Attorney Gorman. “When someone on one side of the trade has non-public information, they have an advantage over the person on the other side – the person who ultimately loses money on their securities trade. The integrity of our financial markets demands a fair and level playing field.”
According to the records filed in the case, from July 2016, to February 2017, Sung Mo Jun was employed by Netflix as a software engineer. He had access to Netflix’s internal subscriber data and had been trained by the company that such data was material, non-public information. Nevertheless, Jun disclosed that information to his close friend, Junwoo Chon, and his brother, Joon Jun, with the knowledge that the two intended to use the information to profit on the purchase and sale of Netflix securities. Between July 2016 and April 2017, Jun’s brother, Joon Jun, made $215,419 and co-conspirator Junwon Chon made $521,400. After Chon made these significant profits on the illegal insider trading, he secretly provided Sung Mo Jun with $60,000 in cash as Sung Mo Jun’s share of the profits.
After Sung Mo Jun left Netflix, he obtained additional non-public information about subscriber data from another Netflix employee, software engineer Ayden Lee, 33, of San Jose, California. Jun not only passed that information on to his brother and Chon, he also used it to make his own trades. Between April 2017 and July 2019, Sung Mo Jun made a profit of $434,086 by trading in Netflix stock and options with this inside information.
In his plea agreement, Junwoo Chon also admitted to receiving inside information from Sung Mo Jun concerning another technology company located in California. He also admitted that he received inside information from a source at a third technology company located in Seattle and traded on the inside information with respect to those technology companies. Chon’s profits from trading on that inside information was less than $2,000.
All told the insider trading attributable to insider Sun Mo Jun in Netflix securities resulted in an illicit gain of $1,170,905. Joon Jun is responsible for illicit profits of $1,106.208. Chon is responsible for illicit profits of $1,642,855 and Lee is connected to illicit profits of $453,465.
Insider trading is punishable by up to 20 years in prison and a $5 million fine. The judge will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Securities and Exchange Commission (SEC) has filed a separate civil enforcement action against the defendants.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Justin Arnold.
Arkansas Man Sentenced to Prison and Ordered to Pay Almost $6M in Restitution for His Role in TRICARE Fraud SchemeRead the Press Release
WACO – An Arkansas man was sentenced today to 24 months in prison and ordered to pay $5,918,446 in restitution for his role in a scheme to defraud TRICARE, a health care program of the U.S. Department of Defense.
According to court documents, Theodis Lamond Jefferson, 37, a former United States Army Service Member, received more than $5.9 million from January 2015 to June 2015 from pharmacies and groups that provided and marketed compounded medications. Compounded medications are personalized dosages or formulas normally made for patients who cannot tolerate certain ingredients in commercially manufactured medications. Jefferson defrauded TRICARE by making and receiving unlawful payments for the prescription of compounded drugs to TRICARE beneficiaries. Jefferson paid bribes to prescribing physicians and kickbacks to TRICARE beneficiaries, who unlawfully enriched themselves from TRICARE reimbursements for covered compounded drugs.
On December 8, 2020, Jefferson pleaded guilty to one count of receipt of illegal payment and one count of payment of illegal fee.
“This defendant stole millions of dollars from a government healthcare program that supports our servicemembers and their families,” said U.S. Attorney Ashley C. Hoff. “This sentence sends a strong message that those who use bribes and kickbacks to steal taxpayer dollars from important programs will be identified, investigated and prosecuted.”
“The TRICARE Program is vital to the health and well-being of our warfighters, retirees, and their families,” said Michael Mentavlos, Special Agent-in-Charge of the Department of Defense Inspector General Defense Criminal Investigative Service - Southwest Field Office. “Today's announcement underpins the steadfast commitment of DCIS and our investigative partners to bring to justice those who look to enrich themselves by jeopardizing the healthcare of our warfighters and defrauding the American taxpayer.”
The U.S. Army Criminal Investigative Division investigated the case.
Assistant U.S. Attorney Gregory Gloff prosecuted the case.
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Angier, NC Resident Sentenced for Conspiring to Defraud the North Carolina Medicaid SystemRead the Press Release
NEW BERN, N.C. – An Angier, North Carolina man, Ruben Samuel Matos, was sentenced today to 42 months in prison and three years of supervised release for conspiracy to commit health care fraud. On September 18, 2020, Matos pled guilty to the charge. As part of sentencing, Matos was also ordered to pay $1,997,883 in criminal restitution to the North Carolina Fund for Medical Assistance.
According to court documents and other information presented in court, between 2014 and 2017, Matos conspired with multiple individuals and businesses to defraud the North Carolina Medicaid system by submitting over $3.6 million in false and fraudulent claims for the reimbursement of behavioral health services. Medicaid is a federally funded health care benefit program that helps pay for medical-related services for low-income individuals and their families. In North Carolina, Medicaid is administered by the North Carolina Department of Health and Human Services, Division of Health Benefits.
Matos initially partnered with Reginald Van Reese, Jr., a Raleigh, NC resident who was previously convicted of conspiracy in a related case. As part of the scheme, Matos and Reese canvassed low-income neighborhoods to identify eligible Medicaid recipients and collect their personal information, including Medicaid identification numbers. The beneficiary information was then sold and supplied to behavioral health business operators for the unlawful purpose of generating fraudulent claims for reimbursement of services that were never rendered.
Matos and Reese worked closely with co-conspirator Antonio Deon Fozard, a Durham, NC resident who controlled multiple behavioral health entities, including Group Service and In Touch of Care. Fozard, Matos, and Reese defrauded the North Carolina Medicaid system by incorporating stolen Medicaid beneficiary and clinician data into false billings for these entities and enlisting “note writers” to fabricate supporting medical documentation for use in the event of an audit.
In furtherance of a similar Medicaid fraud scheme, Matos and Reese later partnered with Luis Angel Lozada, a Clayton, NC resident who owned and operated Cornerstone Family Services Group, a purported behavioral health business in Zebulon, NC. According to the investigation, Cornerstone used stolen Medicaid beneficiary and clinician data to back-bill the Medicaid system and recruited note writers to prepare bogus medical records to substantiate the claims.
Antonio Fozard and Luis Lozada pleaded guilty to health care fraud charges in the U.S. District Court for the Eastern District of North Carolina and are currently awaiting sentencing.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation and the North Carolina Medicaid Investigations Division investigated the case. Assistant U.S. Attorney Adam F. Hulbig prosecuted the case for the government.
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. 5:20-CR-307.