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Tuesday 29 June 2021
Mt. Vernon man pleads guilty to conspiracy to distribute deadly fentanylRead the Press Release
Seattle – A 22-year-old Mount Vernon, Washington, man pleaded guilty today in U.S. District Court in Seattle to conspiracy to distribute fentanyl, announced Acting U.S. Attorney Tessa M. Gorman. Defendant Jiovanni Nunez supplied counterfeit oxycodone pills tainted with fentanyl to an associate, who distributed them in Skagit and Whatcom Counties. The pills are connected to at least two overdoses, including the overdose death of a Bellingham 17-year-old. Nunez and co-conspirator Rosaliana Lopez-Rodriguez, 23, of Mount Vernon were arrested in late 2019 after an investigation to track down the source of the tainted pills. Both defendants have been in custody since their arrests. Lopez-Rodriguez has already pleaded guilty.
According to records filed in the case, a family member found the 17-year-old victim unresponsive on November 9, 2019. Despite efforts of emergency responders to resuscitate him, the victim died; his cause of death was later determined to be fentanyl overdose. Investigators found a whole and a partial pill near the 17-year-old victim. The pills were designed to look like oxycodone 30-milligram pills, with “M” and “30” stamped on them. But they were fakes tainted with fentanyl. Similar pills have been linked to other overdose deaths throughout the Puget Sound region. In fact, a friend of the 17-year-old victim nearly died after smoking one of the pills on November 2, 2019. Nunez’s co-conspirator knew of that near-fatal overdose when she sold the 17-year-old victim more pills a week later, on November 9, 2019.
During this investigation, law enforcement executed court-authorized search warrants at each defendant’s residence. At Nunez’s residence, law enforcement found a safe containing more than 900 fake oxycodone pills that matched the appearance of the fentanyl-laced pills linked to the fatal overdose. Co-conspirator Lopez-Rodriguez admitted that Nunez supplied her with the pills that killed the Bellingham 17-year-old. She is scheduled for sentencing on August 19, 2021.
Nunez faces a mandatory minimum five years in prison and up to forty years in prison when sentenced by Chief Judge Ricardo S. Martinez on October 1, 2021. Under the terms of the plea agreement, the prosecution and defense will each recommend a term of imprisonment for Nunez of between seven and nine years. Chief Judge Martinez is free to impose any sentence allowed under the statute.
The case is being investigated by the Drug Enforcement Administration (DEA), the Whatcom County Sheriff’s Office, the Skagit County Interlocal Drug Enforcement Unit (SCIDEU), and the Whatcom County Drug and Gang Task Force, which is made up of members of the Whatcom County Sheriff’s Office, Washington State Department of Corrections, U.S. Customs and Border Protection, and Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Mount Pleasant Man Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
DAVENPORT, IOWA – A Mount Pleasant man was sentenced on June 28, 2021, by United States District Court Judge Stephanie M. Rose to 132 months in prison for Receiving and Distributing Child Pornography. Alanis was ordered to serve five years of supervised release to follow his prison term, pay $100.00 to the Crime Victims’ Fund and $6,000 in restitution.
According to court documents, Jacob Hugo Alanis, age 21, was identified by the Mount Pleasant Police Department when they received a cyber tip from Dropbox alleging the presence of child pornography related to a particular email address. On October 15, 2019, law enforcement executed a search warrant at the residence associated with the email address. At the residence, Alanis admitted the email address belonged to him. Alanis also admitted downloading, watching, and trading child pornography. Law enforcement seized multiple electronic devices, on which law enforcement located hundreds of images and videos of child pornography.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Mount Pleasant Police Department and the Federal Bureau of Investigation investigated this matter. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Montana Native Women’s Coalition ex-director, ex-board treasurer sentenced for stealing grant fundsRead the Press Release
BILLINGS – Two former officials with the Montana Native Women’s Coalition were sentenced to probationary terms and ordered to pay restitution after each admitted to stealing federal grant funds for unapproved spending, including travel to Las Vegas, Nevada, Acting U.S. Attorney Leif M. Johnson said today.
Sheryl Lynn Lawrence, 45, of Colstrip, who was the Coalition’s executive director, was sentenced today to three years of probation and ordered to pay $35,127 restitution jointly and severally with co-defendant Meredith McConnell, the Coalition’s former chairwoman. Lawrence pleaded guilty on Feb. 4 to theft of federal funds.
McConnell, 51, of Lame Deer, was convicted on April 2 in a federal jury trial of crimes related to the unauthorized spending of grant funding and is pending sentencing.
Co-defendant Barbara Mary Daychief, 45, of Browning, who was the Coalition’s board treasurer, was sentenced on June 17 to two years of probation and ordered to be solely liable for $2,973 restitution. Daychief pleaded guilty on Jan. 22 to theft of federal funds.
U.S. District Judge Susan P. Watters presided.
“As executive director and board treasurer, Lawrence and Daychief held trusted positions within the Coalition. By stealing the Coalition’s federal grant money to spend for their own benefit, Lawrence and Daychief prevented the money from being used as intended -- helping Native American victims of domestic and sexual abuse. Our office will prosecute and hold accountable those who misuse grant funding,” Acting U.S. Attorney Johnson said.
“The money that Lawrence and Daychief stole was intended to help Native American victims of domestic and sexual violence. The Department of Justice Office of the Inspector General will continue to root out these schemes, to help ensure that victims of crime are given the help that they need,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
In court documents filed in the case, the government said that the purpose of the Lame Deer-based Coalition is to help Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services.
The government alleged that while serving as the Coalition’s executive director, Lawrence received a travel advance in November 2017. Lawrence claimed $1,826 in travel money for a trip to Las Vegas. Lawrence claimed she drove, which provided more money due to payment for mileage, when in fact, Lawrence flew, which cost significantly less money. Lawrence spent money on a trip to Las Vegas, which was never approved by the OVW, nor would it ever have been approved.
The government also alleged that while serving on the board, Daychief received travel advances for travel to various locations. In November 2017, Daychief claimed $1,874 in travel money for a trip to Las Vegas. Although initially intending to travel to the claimed destinations, Daychief ultimately did not travel as planned. Rather than pay back the travel advances as required, Daychief kept the money for herself. When interviewed by law enforcement, Daychief admitted she obtained travel advances despite not traveling as claimed. The government further alleged the thefts occurred four months after board officials, including Daychief, participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director pleaded guilty to fraud in March 2017 for stealing from the organization.
Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake prosecuted the case, which was investigated by the Department of Justice’s Office of the Inspector General.
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Mississippi Band of Choctaw Indians Tribal Council Member Pleads Guilty to Wire FraudRead the Press Release
Jackson, Miss. – Roderick Bell, 42, of Philadelphia, an elected member of the Tribal Council for the Mississippi Band of Choctaw Indians, entered a plea of guilty today to federal wire fraud, announced Acting United States Attorney Darren J. LaMarca and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
A federal grand jury indicted Bell in February 2019, charging him with one count of theft and one count of wire fraud for defrauding the Choctaw Tribal government. Between April 2017 and October 2017, Bell forged hotel bills and receipts and submitted those documents to the Tribal government in claims for reimbursement for official business travel.
Bell will be sentenced by Judge Carlton W. Reeves on October 6, 2021. He faces a potential maximum penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The case is being prosecuted by Assistant United States Attorneys Theodore Cooperstein and Kevin Payne.
Mexican Native Pleads Guilty to Damaging National Forest Through an Illegal Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Luis Madrigal-Reyes, 37, a native and citizen of Mexico, pleaded guilty to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced. He also agreed to pay $45,057 in restitution to the U.S. Forest Service for the damage that the cultivation operation had on public land.
According to court documents, the cultivation operation contained 2,307 marijuana plants and was located in the Basin Creek drainage in the Dutch Oven Creek area of the Sierra National Forest. U.S. Forest Service agents saw Madrigal carrying fertilizers and bags of groceries into the grow site and later apprehended him after they chased him down the side of a mountain.
The cultivation operation caused extensive environmental damage to the area, which serves as the habitat for the Sierra Nevada yellow-legged frog, an endangered species and the California spotted owl, which is currently being considered for listing under the Endangered Species Act. Agents found toxic banned pesticides, which appeared to have been applied to the marijuana plants. The water from Dutch Oven Creek had also been diverted to irrigate the plants. Dutch Oven Creek is part of the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the Madera County Sheriff’s Office. Assistance was provided by the Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Madrigal is scheduled for sentencing on Sept. 20. He faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against co-defendant, Lester Eduardo Cardenas Flores, 24, also a citizen of Mexico. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced to Federal Prison for Attempting to Smuggle Drugs and a Firearm into MexicoRead the Press Release
ALPINE – A federal judge today sentenced 37-year-old Mexican national Jose Miguel Lazarin-Zurita to 60 months in federal prison for attempting to smuggle methamphetamine and a firearm into Mexico earlier this year.
On March 5, 2021, Lazarin-Zurita pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of attempting to export to Mexico a rifle and several firearm-related accessories without a license.
According to court records, Lazarin-Zurita attempted to cross into Mexico on January 27, 2021, at the U.S. Port of Entry in Presidio. While inspecting the defendant’s vehicle, U.S. Customs and Border Protection officers discovered two plastic bags hidden in the engine compartment. One bag contained 26 grams of methamphetamine; the other, 26 grams of cocaine. Inside the vehicle’s seats, agents found a Kel-Tec PLR-16 rifle, a 60-round capacity drum magazine for 5.56mm ammunition and two empty 30-round 5.56mm magazines.
“This case represents the commitment of our law enforcement partners and our prosecutors to thwart smugglers’ attempts to pedal dangerous narcotics and firearms in and out of the country,” said U.S. Attorney Ashley C. Hoff. “We have and will continue to prosecute these important cases with full force.”
Along with USA Hoff, Erick P. Breitzke, Special Agent in Charge, Homeland Security Investigations (HSI), El Paso Division made today’s announcement.
HSI conducted this investigation. Assistant U.S. Attorneys Eduardo R. Mendoza and Fidel Esparza III prosecuted this case.
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Mexican National Sentenced to 15 Years for Methamphetamine TraffickingRead the Press Release
RALEIGH, N.C. – A Mexican national was sentenced today to 180 months in prison for Possession with Intent to Distribute 50 grams or more of methamphetamine.
According to court documents and information presented in court, Agustin Nunez-Leonardo, 22, told undercover officers that he had a source that could supply kilograms of methamphetamine per delivery to Wake County, North Carolina. Nunez-Leonardo, a Mexican national, had previously been deported. During the course of the investigation, he agreed to sell undercover officers 5 kilograms of methamphetamine. He ultimately sold 4,940 grams of methamphetamine to undercover officers. Laboratory testing revealed the seized methamphetamine was 100% pure.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Drug Enforcement Administration and Wake County Sheriff’s Office investigated the case and Assistant U.S. Attorney Tom Crosby prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-185-BO.
Meriden Man Admits Trafficking Heroin from Bridgeport MarketsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that EDDY ANTONIO TORRES MOREL, 50, of Meriden, pleaded guilty yesterday to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, an investigation revealed that Torres was trafficking narcotics from Big Daddy’s Deli and Jamal’s Market, two stores he operated on East Main Street in Bridgeport. During the investigation, law enforcement made two controlled purchases of a half-kilogram of heroin from Torres, first at Jamal’s Market on October 29, 2019, and then at Big Daddy’s Deli on January 24, 2020.
Torres was arrested on February 5, 2020. On that date, investigators searched his residence and stores and seized two firearms, assorted firearm parts, ammunition, and approximately $22,000 in cash.
Torres is released on a $300,000 bond pending sentencing, which is scheduled for September 24, 2021, in Hartford federal court.
This matter is being investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
McKean County Man Pleads Guilty to Purchasing Meth on the Dark Web for DistributionRead the Press Release
ERIE, Pa. - A resident of Kane, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Michael Carter, Anderson, 43 of Kane, Pennsylvania, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Anderson attempted to possess with intent to distribute more than fifty grams of a mixture or substance containing a detectable amount of methamphetamine. Anderson purchased the methamphetamine on the Dark Web for the purpose of selling and redistributing those drugs in the Western District of Pennsylvania.
Judge Cercone scheduled sentencing for November 22, 2021 at 2:00 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Anderson on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the Drug Enforcement Administration, the McKean County Detectives, and the McKean County Drug Taskforce conducted the investigation that led to the prosecution of Anderson.
Marrero Man Sentenced to 130 Months Imprisonment After Second Conviction for Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRADLEY EDWARD CORLEY, age 46, a resident of Marrero, Louisiana, was sentenced to 130 months imprisonment by United States District Judge Jay C. Zainey after previously pleading guilty to Count Two of a two-count Indictment charging him with possession of images and videos depicting the sexual exploitation of children, including children as young as approximately four (4) years old, in violation of 18 U.S.C. 2252(a)(4)(B). Additionally, Judge Zainey imposed on CORLEY supervised release for the remainder of his life and a $100 special assessment fee. Judge Zainey also scheduled a restitution hearing in the matter on August 16, 2021. In 2006, CORLEY was convicted in the United States District Court for the Eastern District of Louisiana of possession of child pornography.
According to court documents, in about September 2019, Special Agents with the Federal Bureau of Investigation (“FBI”) received a tip that an individual, subsequently determined to be CORLEY, had uploaded approximately seven (7) images depicting the sexual exploitation of children to a digital application and distribution platform designed for video gaming communities. Agents executed a search warrant at CORLEY’s residence in March 2020 and seized several electronic devices that contained files depicting the sexual victimization of children. A forensic examination of several of the devices confirmed that CORLEY had used them to search for, download, and save at least 60,000 images and 1,5000 videos depicting the sexual victimization of children, including by visiting a web forum on June 16, 2019, August 4, 2019, and March 9, 2020. The filed depicted children as young as approximately four (4) years old engaging in sexually explicit conduct, including numerous images and videos that portrayed “sadistic or masochistic conduct or other depictions of violence.”
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 United States 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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, with support from the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Marina del Rey Man Sentenced to over 4 Years in Prison for $3.3 Million Ponzi Scheme He Claimed Was Legitimate Forex BusinessRead the Press Release
LOS ANGELES – An accountant was sentenced today to 51 months in federal prison for running a four-year, $3.3 million Ponzi scheme that conned dozens of investors through false promises of generous returns on foreign exchange currency investments and was funded, in part, by his embezzlement from his non-profit employer.
Steven F. Brown, 53, of Marina del Rey, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered Brown to pay $3,313,346 in restitution. Brown pleaded guilty in October 2020 to one count of wire fraud.
Brown controlled and operated Alpha Trade Analytics, Inc., a financial consulting-and-investment company he largely ran out of his home. Neither Brown nor Alpha Trade was a registered broker or dealer in securities. Brown also served as the accountant for a non-profit organization providing dance and theater arts education to children and young adults in Los Angeles, which gave him access to its bank accounts.
From April 2014 to May 2018, Brown solicited investments in Alpha Trade, including from people he encountered through his position at the non-profit, and through his relationship with its executives and employees, which afforded him access to high-net worth individuals.
To encourage those individuals to invest with Alpha Trade, Brown falsely promised that their investments would only be used for foreign exchange (Forex) currency trading and that they would receive guaranteed monthly payouts of around 10%. He also falsely represented that he had extensive experience in Forex investing, regularly made profitable trades, and achieved substantial and growing rates of return that exceeded the industry average.
Contrary to his representations to investors, Brown only used a small portion of the total amount invested in Alpha Trade for Forex trading, mostly in 2015. Instead, he routinely used investor funds for other purposes, including his rent, car payments, restaurant and retail expenses, and lulling payments to other investors.
To induce investors to maintain or supplement their investments with Alpha Trade and to conceal his scheme, Brown periodically provided investors with account statements that reflected fabricated investment returns that often showed steady, significant gains.
Brown made some of the promised recurring payouts and provided demanded refunds, not based on any Forex investment returns, but instead from money stolen from new investors and through funds he embezzled from the dance academy through unauthorized wire transfers, credit card advances and cash withdrawals he was able to make by virtue of his position as the dance academy’s accountant.
In total, Brown caused losses of approximately $3,313,346 to 48 victims, including nearly $700,000 in losses to his former employer based on the money he embezzled from it.
The Securities and Exchange Commission in September 2020 filed a lawsuit against Brown alleging violations of federal securities laws. That litigation is pending.
The FBI investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section prosecuted this case.
Maple Grove Investment Advisor Sentenced to 7 Years in Prison for Defrauding Clients Out of More Than $2.3 MillionRead the Press Release
ST. PAUL, Minn. – A Maple Grove man was sentenced today to 84 months in prison followed by three years of supervised release for engaging in a $2.3 million mail fraud scheme.
According to court documents, from at least 2017 through November 2020, Isaiah Leslie Goodman, 34, defrauded at least 23 of his investor clients out of approximately $2,335,797.19. Goodman was a registered investment advisor and broker who owned Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C. Goodman also owned and operated MoneyVerbs, a business that claimed to provide customers with financial guidance through an internet-based app. Through Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C., Goodman represented that he would provide his clients with financial planning and investment advice, including purporting to place his clients’ savings and retirement funds into financial accounts that Goodman claimed were safe, secure, and profitable.
According to court documents, as part of his scheme to defraud, Goodman lied to prospective and existing clients about his use of their money, the security and profitability of the financial accounts he claimed to administer on their behalf, and the status and performance of their funds. During in-person sales pitches or through email messages and phone calls, Goodman provided clients with materially false and fraudulent information, including investment proposals and bogus online account information. Goodman also misrepresented to clients that their funds would be returned to them upon request, when, in fact, Goodman either kept all of the money or provided investors with refunded payments that were late, incomplete, or both, or that were refunds actually funded by other clients’ money.
According to court documents, instead of placing his clients’ money into safe and secure investment accounts, Goodman deposited client funds into bank accounts he controlled. Goodman misappropriated his clients’ funds for his own use and benefit by, among other things, purchasing and remodeling his home in Maple Grove, using funds for the purchase and construction of a $1.69 million home in Plymouth, buying a 2019 Ford Expedition and a 2020 Ford Explorer, funneling approximately $700,000 toward his other business, MoneyVerbs, and paying for personal expenditures, including a hot tub, a cruise, fitness club memberships, jewelry, and credit card payments.
As part of his sentence, Goodman will forfeit his equity in real estate, a vehicle, and other items of personal property.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Matthew S. Ebert prosecuted the case.
Man who Escaped from Halfway House Sent to Federal PrisonRead the Press Release
A man who signed out to go to work from a residential correctional facility in Waterloo, Iowa, and never returned was sentenced today to two years in federal prison.
Michael Jon Rohrick, age 35, from Waterloo, Iowa, received the prison term after a February 1, 2021 guilty plea to escape from custody.
At the guilty plea, Rohrick admitted he left the halfway house on April 10, 2020, without authorization. He was on the loose for several months until he was apprehended in Waterloo as a result of a high-speed chase months later.
Rohrick was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Rohrick was sentenced to 24 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rohrick is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the U.S. Marshals Service and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2039.
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Man pleads guilty to hate crime that involved antisemitic threats to neighbors, breaking their windowRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in federal court to criminally interfering with the right to fair housing. The charges stem from antisemitic threats the defendant made to his neighbors.
According to court documents, Douglas G. Schifer, 66, threatened neighbors and their guests because of their religion during an outdoor gathering at the neighbors’ residence on Nov. 7, 2020.
Plea documents detail that Schifer stated in part, “all you f***ing people, it’s no wonder Hitler burned you people in ovens, “f***ing Hitler should have gassed you,” and “Jews burn, you belong in ovens.”
Plea documents say that Schifer also said to the neighbors, “f***ing dog” and “I will poison your dog if it comes back to the fence.” Schifer admitted to threatening to shoot the neighbors and their dog, and to “burn to the ground” a garage the neighbors were remodeling into an apartment.
Schifer shouted other antisemitic slurs, obscenities and other derogatory language about their religion at his neighbors and their guests on Nov. 7, 2020. He also broke one of their windows and spat on one of the neighbors. He also made reference to gassing Jewish people, chopping them up, and burning them in ovens.
Schifer was charged by a federal criminal complaint in March. Schifer faces up to one year in prison and a possible fine of up to $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the plea entered into on Monday, June 28 before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate, Senior Litigation Counsel Heather A. Hill, and Trial Attorney Cameron Bell of the Department of Justice’s Civil Rights Division are representing the United States in this case.
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Man Who Stole Firearm and Transported it to Wisconsin Sentenced to Federal PrisonRead the Press Release
A man who met an acquaintance at her home in Dubuque, Iowa, and stole a .380 caliber Smith and Wesson revolver from her was sentenced today to more than three years in federal prison.
Michael Coates, age 28, from Cassville, Wisconsin, received the prison term after a January 20, 2021 guilty plea to possession of a firearm by a felon.
At the guilty plea, Coates admitted he possessed the stolen revolver on November 30, 2019, and took it to Wisconsin. Coates was previously convicted of possession of a controlled substance with the intent to manufacture methamphetamine in Dubuque County, Iowa, in 2014.
Coates was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Coates was sentenced to 46 months’ imprisonment and fined $100. 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.
Coates is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Dubuque Police Department and the Department of Alcohol, Tobacco, Firearms and Explosives..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1025.
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Man Sentenced to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm was sentenced in federal court on June 28, 2021.
Jeremy Werneburg, age 41, from Carroll, Iowa, pled guilty on January 19, 2021, to conspiracy to distribute methamphetamine and possession of firearm by a prohibited person. Werneburg was previously convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, in November 2007, in the United States District Court for Northern District of Iowa. This conviction precluded Werneburg from legally possessing guns.
At the plea and sentencing hearings, evidence showed that from November 2017 and continuing to on or about December 2018, Werneburg and others distributed more than 150 grams of pure methamphetamine. On October 7, 2018, law enforcement, utilizing a confidential informant, conducted a controlled buy of over 27 grams of pure methamphetamine from Werneburg. On November 9, 2018, law enforcement received a tip that Werneburg’s vehicle contained drugs. On this same date, a search warrant was executed on the vehicle and law enforcement seized approximately one ounce of methamphetamine (pre-packaged in smaller quantities) and a handgun, from Werneburg’s vehicle. The methamphetamine and gun were located in two separate hidden compartments in the vehicle.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Werneburg was sentenced to 120 months’ imprisonment. He must also serve a 6 year term of supervised release. Werneburg remains in custody of the United States Marshal until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll County Sheriff’s Office, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3017.
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Man Sentenced for Holding a Woman at Knifepoint in an Attempted RobberyRead the Press Release
A felon who held a woman at knifepoint two days after he was released from prison was sentenced today in federal court, said Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Kuna-Gi Lowe to 70 months in federal prison followed by 3 years of supervised release.
He previously pleaded guilty to attempted robbery in Indian Country and assault with a dangerous weapon in Indian Country.
According to court hearings, after being released from prison on felony charges, the defendant took a bus to Tulsa and began drinking heavily over the next several days. Lowe was out of money on August 29, 2019, when he entered an insurance agency where the victim was working and inquired about “opening an account.” Lowe then grabbed the female victim, pulled out a large knife and demanded money as he asked the victim if she “knew what he could do to her”. The victim pulled out of the defendant’s grasp and told Lowe she was calling the police as she fled to the business next door. Tulsa police officers located Lowe a short distance away. The victim confirmed Lowe was the assailant, and he was arrested.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Ross Lenhardt and Benjamin Hargrove prosecuted the case. Mr. Lenhardt is a prosecutor from the Western District of Pennsylvania, and Mr. Hargrove is a prosecutor from the District of Montana. Both men volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations
Man Sentenced for Drug Conspiracy CaseRead the Press Release
Acting U.S Attorney Clint Johnson announced that Devin Hartzell, 26, of Catoosa, was sentenced to 108 months after pleading guilty to drug conspiracy.
In his written plea, Hartzell stated that he conspired with others to possess with intent to distribute and to distribute heroin beginning in January 2018 and continuing until June 2019. During that time, he admitted to purchasing up to one kilogram of heroin multiple times a week from Jose Garcia and Edson Garcia-Velasquez. He would then redistribute the heroin to third parties who redistributed the drug to others.
Devin Hartzell was among 29 individuals indicted for drug conspiracy and other crimes in the 2019 Operation Smack Dragon, an Organized Crime Drug Enforcement Task Force investigation.
The Court sentenced Hartzell to 108 months in federal custody and five years supervised release. Judge Claire V. Eagan presided over the case. Assistant U.S. Attorney Joel-lyn McCormick prosecuted this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department.
Man Pleads Guilty to Violating Endangered Species ActRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to the unlawful sale of endangered species, including elephant and whale ivory.
According to court documents, Gary L. Cooper, 60, operated online storefronts to sell elephant and whale ivory, all in violation of the Endangered Species Act. From at least June 2015 through early 2020, Cooper used online platforms, such as Craigslist and eBay, to list for sale individual carvings made in whole, or in part, from ivory. These items ranged in size, including two raw elephant tusks that measured at least 28 inches long. In addition to several raw and carved tusks, the advertisements offered numerous elephant ivory carvings and both raw and scrimshawed sperm whale teeth. Cooper told his clients, including an undercover agent, that he was selling off an estate belonging to an elderly couple in poor health, when in reality he was regularly buying ivory online and flipping the pieces for profit.
Over about a sixteen-month period beginning in September 2018, Cooper did business with United States Fish and Wildlife Service (USFWS) undercover agents by selling or offering for sale no less than 50 pieces of elephant ivory, with a total market value between $40,000 and $95,000. During their correspondence, Cooper and the undercover agents discussed the illegality of buying and selling ivory across state lines. On November 17, 2018, Cooper offered to sell to an undercover USFWS Special Agent multiple ivory pieces for a total cost of $8,125. On November 26, 2018, Cooper sold two pieces of carved elephant ivory to the undercover agent and mailed the items from Virginia to New York. Upon forensic investigation, the items were confirmed to be genuine elephant ivory.
Cooper is scheduled to be sentenced on August 31. As part of the plea, Cooper will forfeit approximately 136 pieces of raw and carved ivory. He faces a maximum penalty of 1 year in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Ryan Noel, Special Agent-in-Charge, United States Fish and Wildlife Service, Office of Law Enforcement, made the announcement after U.S. Magistrate Judge John F. Anderson accepted the plea.
This investigation was conducted by the United States Fish and Wildlife Service, Office of Law Enforcement, with assistance from the Virginia Department of Wildlife Resources.
Assistant U.S. Attorney Gordon Kromberg and Special Assistant U.S. Attorneys Alejandra Arias and Sara Hallmark are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-mj-212.
Long Haul Truck Driver Convicted of Transporting Children to Engage in Sexual ActivityRead the Press Release
EL PASO – A federal jury convicted 59-year-old Travis Wayne Vavra of transporting a minor with intent to engage in criminal sexual activity and of possession of child pornography.
Evidence presented during trial revealed that Vavra was a long-haul truck driver who advertised free amusement park passes and cross-country trips for boys to explore the United States. As a result of the advertisement, Vavra transported a minor in his tractor trailer from the El Paso, Texas area to different states, including New Mexico, Missouri, Arizona, California, Wisconsin, Illinois, Nebraska, Maryland, Oklahoma, and Louisiana from May 2015 to June 2019. Vavra sexually assaulted the minor during these cross-country trips which began when the victim was nine years old. Vavra had also previously molested two other victims. On the date of his arrest, Vavra posted another flyer for parents and boys advertising these free cross-country trips. Vavra was found to be in possession of child sexual abuse material on his phone at the time of his arrest.
Vavra remains in federal custody. He faces a mandatory minimum sentence of ten years up to life in federal prison on the transportation of minors charge and up to 20 years in federal prison for the possession of child pornography. A sentencing date has yet to be scheduled.
U.S. Attorney Ashley C. Hoff and FBI Acting Special Agent in Charge Jeffrey Coburn made today’s announcement.
The FBI investigated and Assistant U.S. Attorneys Sarah Valenzuela and Richard Watts are prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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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Logan County Man Pleads Guilty to Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to two federal gun crimes.
According to court documents, Clifford Lee Griffin, 38, of Bruno, admitted that on the evening of September 30, 2019, members of the West Virginia State Police executed a search warrant at a residence in the Gilman Bottom area of Logan County where he had been selling drugs. Troopers arrested Griffin and recovered two loaded handguns, over 75 grams of methamphetamine and over 100 grams of heroin. Griffin admitted that he possessed the guns to protect his drugs and money.
Griffin pleaded guilty to possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms. He faces up to life in prison when sentenced on October 4, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation, the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nowles Heinrich is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00163.
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Local Adoption Agency Bookkeeper Pleads Guilty in Scheme to Defraud Employer and FamilyRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon woman pleaded guilty today for engaging in a multi-year scheme to defraud her employer, a non-profit adoption and surrogacy agency operating in Oregon and Washington, and her extended family.
Melodie Ann Eckland, 55, pleaded guilty to wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.
According to court documents, from at least 2011 and continuing until April 2018, Eckland was employed as a bookkeeper for a local adoption and surrogacy agency. Her duties included maintaining agency books and records, managing payroll, filing employment tax returns, and paying quarterly employment taxes to the IRS. Eckland also provided financial statements to the agency’s board of directors, but did not have signature authority over the organization’s business bank account.
Eckland used her position to steal funds from the agency by making unauthorized wire transfers and writing unauthorized checks to herself. Eckland also transferred agency funds in the form of bonuses to her personal bank account. To conceal her scheme, Eckland maintained two sets of financial records. One version, which she provided to the board of directors, showed the business books as they should have been maintained. The other version showed the true payments she made to herself over the course of her employment.
To cover the money she had stolen, Eckland applied for loans from at least five lending agencies on behalf of the adoption agency, using the names of the agency’s owners without their permission. Eckland altered agency financial records to make it appear as though she owned the agency and was authorized to enter into the loan agreements. Beginning in 2016, Eckland stopped making the agency’s quarterly employment tax payments to the IRS and stopped filing employment tax returns. As a result, the agency owed more than $94,000 in past due employment taxes.
To further conceal her scheme, Eckland stole funds from a bank account opened on behalf of her deceased brother-in-law’s estate. As executor of the estate, Eckland’s husband was tasked with selling his brother’s assets, paying estate bills, and preserving the remaining funds for the benefit of his brother’s children. Eckland forged her husband’s signature on unauthorized estate checks and made unauthorized wire transfers of estate funds to herself. She sent a portion of the more than $123,000 stolen from the estate to the adoption agency’s bank account to conceal her theft of agency funds.
IRS records indicated that Eckland did not report any of the embezzled funds on her federal income tax returns for 2013, 2014, and 2017. In 2015 and 2016, she reported more than $550,000 as “other income,” but failed to pay the taxes due. Between 2013 and 2017, Eckland failed to report more than $675,000 in income, resulting in a tax loss of more than $345,000. As a result of her scheme, Eckland’s victims—including the adoption agency and its owners, her brother-in-law’s estate, and the IRS—suffered a total loss of more than $1.5 million.
On June 2, 2021, Eckland was charged by criminal information with wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.
Eckland faces a maximum sentence of 30 years in prison, a $750,000 fine, and three years’ supervised release. She will be sentenced on November 8, 2021 before U.S. District Court Judge Marco A. Hernandez.
As part of her plea agreement, Eckland has agreed to pay restitution of up to $2.5 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the Hillsboro Police Department. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Lehigh Acres Man Sentenced to 29 Years in Federal Prison for Using A Child to Produce Images Depicting Sexual AbuseRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced John Michael Breen (33, Lehigh Acres) to 29 years in federal prison for sexually abusing a child and taking photos of this abuse. Breen was also sentenced to a lifetime of supervised release and ordered to register as a sex offender.
Breen had pleaded guilty on August 19, 2020.
According to court documents, between April 28 and July 20, 2018, Breen used a child to engage in sexually explicit conduct for the purpose of producing images of this abuse. Breen subsequently uploaded these photos over the internet to a cloud-based storage service. On December 13, 2019, law enforcement officers executed a search warrant at Breen’s residence. During an interview with law enforcement, Breen admitted that he had sexually abused a 7-year-old child at his home and took pictures of the abuse using his cellphone.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Leader and 14 Members of Newark Drug Trafficking Ring ChargedRead the Press Release
NEWARK, N.J. – Fifteen people were charged today for their roles in a Newark heroin and crack cocaine distribution organization that sold hundreds of thousands of dollars’ worth of illegal drugs out of a residential building on Fairmount Avenue, Acting U.S. Attorney Rachael A. Honig announced.
The alleged leader of the operation, Jakai Dennis (see chart below), is charged with engaging in a continuing criminal enterprise. Dennis also is charged, along with the 15 other defendants, with one count each of conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, and conspiracy to possess firearms in furtherance of a drug trafficking crime. All of the defendants are in custody and are scheduled to have their initial court appearances later today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
“This drug trafficking organization attempted to take control of an entire neighborhood,” Acting U.S. Attorney Honig said. “The defendants’ use of violence and intimidation made life intolerable for the community members who live there. We will continue to work with our law enforcement partners to disrupt operations like these and make our streets safer for the people who call Newark home.”
“The residents of this section of Fairmount Avenue have lived as a captive audience, watching their neighborhood degrade due to the daily drug dealing on their street and the unwelcome violence it brings,” Special Agent in Charge George M. Crouch Jr. said. “As shootings and violent crime continue to escalate in this and other cities around the country, the FBI will remain vigilant, working with our law enforcement partners – including the Newark Police Department – to combat this ongoing epidemic.”
According to the complaint:
The defendants allegedly ran a sophisticated operation that took advantage of the residential building’s location to sell drugs from the porch area, which was guarded by a locked steel door and difficult for law enforcement to infiltrate despite a constant stream of buyers approaching the front porch area day and night. One of the defendants was the building’s superintendent, who was paid in money and heroin to store drugs in his apartment and to give the other defendants access to an empty apartment on the second floor, which they also used to store drugs and guns.
The defendants worked in shifts from 6:00 a.m. until late in the evening. Buyers came on foot, in vehicles and on bicycles to purchase the illegal drugs. The heroin sold was of a high quality and was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred. FBI surveillance witnessed hundreds of narcotics transactions from November 2020 to June 2021.
The charges are the result of an investigation by the FBI, which included surveillance, phone record review, the use of confidential informants to make more than 30 controlled purchases, and the review of arrests by local law enforcement, as well as seizures of heroin, crack cocaine and firearms. Based upon evidence obtained in the case, the defendants sold more than one kilogram of heroin and 280 grams of crack cocaine during the conspiracy period.
The count of running a continuing criminal enterprise carries a minimum sentence of 20 years in prison and a maximum of life in prison. The count of conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine carries a minimum sentence of 10 years and a maximum of life in prison. The charge of conspiracy to possess firearms in furtherance of a drug trafficking crime carries a maximum sentence of 20 years in prison.
Acting U.S. Attorney Honig credited special agents of the FBI under the supervision of Special Agent in Charge Crouch in Newark, with the investigation leading to the charges. She also thanked police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the East Orange and Bloomfield police departments and the Essex County Department of corrections for their assistance with the investigation.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized
Crime/Gangs Unit in the Criminal Division in Newark.
The charges and allegations contained in the federal criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charge
Jakai Dennis, a/k/a “Bop
31
Newark
Continuing criminal enterprise;
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Angel Kearney, a/k/a “Jim,” a/k/a “Dred”
31
East Orange, NJ
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Thomas Gibson, a/k/a “Tommy,”
44
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Jamar Hall, a/k/a “Goo”
35
Hamilton, NJ
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Kasim Thurston, a/k/a “Kai,” a/k/a “Kaz”
37
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Ibn Thurston, a/k/a “Wheezy,” a/k/a “Saheed”
33
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Antwan Williams, a/k/a “Ant,” a/k/a “Rue”
30
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Kevin Hall
31
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Andre Fuller, a/k/a “Draco”
31
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Akim Gibson, a/k/a “Ching”
24
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Shalamar McCall, a/k/a “Shaggy”
34
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Hakis Moses, a/k/a “Hak”
43
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Jaleel Drake, a/k/a “Lil”, a/k/a “SK”
27
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Elijah Shumate, a/k/a Eli”, a/k/a “E”
50
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
David Williams
51
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Lame Deer man sentenced to prison for assaulting womanRead the Press Release
BILLINGS – A Lame Deer man who admitted to assaulting a woman on the Northern Cheyenne Indian Reservation, was sentenced today to 18 months in prison and to three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Darrell Dean Fisher, 36, pleaded guilty on Jan. 28 to assault resulting in substantial bodily injury.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on Aug. 4, 2019, Fisher and the victim, identified as Jane Doe, returned to Ashland from a trip and argued. An altercation ensued and Fisher pushed the victim to the ground, injuring her.
Assistant U.S. Attorney Bryan T. Dake prosecuted the case, which was investigated by the FBI.
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Lake City Man to Federal Prison for Firearm ConvictionRead the Press Release
A man who illegally possessed a firearm was sentenced on June 28, 2021, in federal court in Sioux City.
Jeffrey Carothers, 52, from Lake City, Iowa, pled guilty on January 19, 2021, to possession of a firearm by a prohibited person. Carothers was previously convicted of a crime which prohibited him from possessing guns, namely, receiving stolen property, in the Superior Court for the State of California in and for the county of Plumas, on or about November 17, 1995.
At the hearings, Carothers admitted that around April or May 2019, Carothers possessed a stolen 9mm pistol and sold it to another person he knew to be prohibited from possessing a firearm. Carothers further admitted he was an illegal user of methamphetamine and that on approximately 6 occasions he traded methamphetamine and marijuana for guns over the last 1-2 years, using his home as a “clearing house” of stolen property.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Carothers was sentenced to 27 months’ imprisonment and must serve a 2-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, Lake City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3018.
Follow us on Twitter @USAO_NDIA.
Killeen Couple Admit to Multi-Million Dollar Fraud Scheme Involving Mass Transportation Benefit Program at Fort HoodRead the Press Release
WACO – Today, 42-year-old Kevin Romulus Pelayo and 37-year-old Cristine Furio Fredericks admitted to conducting a multi-million-dollar scheme to defraud the U.S. Army with respect to a mass transportation benefit program at Fort Hood.
On April 21, 2000, Presidential Executive Order 13150, subject Federal Workforce Transportation, directed all federal agencies to implement a Mass Transportation Benefit Program to qualified federal employees for individual employee commuting costs incurred through the use of mass transportation and van pools. On January 1, 2001, the Department of the Army (DA) implemented a mass transportation benefit program for Army soldiers and civilian employees.
Appearing before U.S. Magistrate Judge Jeffrey C. Manske, Pelayo and Fredericks pleaded guilty to two counts of engaging in monetary transactions with criminally derived property. Pelayo also pleaded guilty to one count of conspiracy to commit wire fraud. By pleading guilty, Pelayo and Fredericks admitted that from January 2014 to June 2020, they provided false documentation regarding their ride-share program on Fort Hood called Soldiers Vanpools, LLC, including names and other personal information of over 1,000 unsuspecting active-duty soldiers, in order to fraudulently collect Department of Transportation Mass Transportation Benefit Program funds.
U.S. Attorney Ashley C. Hoff; Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (Army CIC-MPFU); and Special Agent in Charge Richard D. Goss of the IRS Criminal Investigation’s Houston Field Office made today’s announcement.
The defendants face up to 10 years in federal prison for each money laundering charge. Pelayo faces up to 20 years in federal prison for the conspiracy charge. The defendants have agreed to forfeit to the government proceeds of their fraudulent scheme to include a dozen real estate properties in Killeen, Harker Heights, Copperas Cove and Kempner; 43 automobiles, SUVs, ATVs and a 5th-wheel trailer; over 120 designer tote bags, handbags and wallets; and, over $600,000 in cash. Sentencing has yet to be scheduled.
The Army CIC-MPFU’s Southwestern Fraud Field Office and IRS Criminal Investigation are conducting this ongoing investigation with valuable assistance from the Texas Department of Public Safety’s Criminal Investigations Division. Assistant U.S. Attorneys Greg Gloff and Robert Almonte are prosecuting this case.
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Justice Department Sues Florida Man for Flagrant Violations of the Rivers and Harbors ActRead the Press Release
The Justice Department’s Environment and Natural Resources Division (ENRD) announced that the United States has filed a civil lawsuit in the Southern District of Florida against Fane Lozman for violations of the Rivers and Harbors Act (RHA) in connection with Mr. Lozman’s obstruction of Lake Worth Lagoon, a navigable waterway, in Riviera Beach, Florida.
According to the Complaint filed on June 25, Lozman or persons acting at his direction constructed and/or installed structures in Lake Worth Lagoon, which is connected to the Atlantic Ocean and the largest estuary in Palm Beach County. Some of the structures are made of closed-cell polystyrene foam and concrete blocks and range from 30 to 100 feet long, with various materials attached to the structures (including a metal shipping container). In at least three separate incidents, one or more of Lozman’s unauthorized structures became unmoored and drifted into Lake Worth Lagoon creating increased risk to navigation, property, and public safety. The United States seeks an order to enjoin Lozman from further building or installing obstructions in waters of the United States, except in compliance with the RHA, and to compel him to remove the unauthorized structures from Lake Worth Lagoon.
The matter was referred to the Department by the U.S. Army Corps of Engineers Jacksonville District. The Corps issued a notice of violation and order to cease and desist in connection with Lozman’s actions earlier this year.
This case is being handled by ENRD’s Environmental Defense Section. Trial Attorneys Brandon N. Adkins and Sydney A. Menees are in charge of the case.
Justice Department Settles Language Access and Retaliation Investigation of Courts in Fort Bend County, TexasRead the Press Release
Note: This press release has been translated in various languages. See attachments below.
The Justice Department announced a settlement agreement with Fort Bend County (FBC) to improve access to court for people with limited English proficiency (LEP).
This agreement resolves a Justice Department investigation into allegations that FBC courts discriminated against LEP court users based on their national origin and retaliated against a complainant, both in violation of Title VI of the Civil Rights Act of 1964. Title VI prohibits race, color or national origin discrimination by recipients of federal financial assistance, such as FBC. The department’s investigation uncovered language barriers that make it difficult for LEP people to meaningfully access the court system. These barriers included requirements that LEP criminal defendants use a bilingual attorney instead of a qualified interpreter in plea proceedings, and policies that resulted in higher court costs for LEP parents in child custody cases.
“People with limited English proficiency can suffer the loss of their children, homes, and fundamental rights when they face language barriers that deny meaningful access to our judicial system,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “The Civil Rights Division will continue fighting to ensure that courts remove barriers that deny people access to equal justice. I commend Fort Bend County for taking actions necessary to ensure language access for court users in compliance with Title VI of the Civil Rights Act.”
“Fort Bend is one of the most diverse counties in our District,” said Acting U.S. Attorney Mark Donnelly for the Southern District of Texas. “This agreement will ensure everyone has access to our courts irrespective of national origin or limited English proficiency.”
Under the agreement, FBC will provide interpreter services at no cost to LEP individuals in civil and criminal cases in FBC courts. FBC courts will also review its language access plans over the next year, develop mandatory Title VI training for FBC courts, provide Title VI retaliation training and issue public notices that explain the Title VI nondiscrimination policy and complaint process in non-English languages. The department will monitor these and other requirements for two years. FBC also agreed to pay damages to an LEP court user for court costs and to an individual who alleged retaliation.
The enforcement of Title VI is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Jury convicts Cuban national for assaulting federal officersRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned a guilty verdict against a Cuban woman for assaulting two Border Patrol (BP) agents at the Javier Vega Checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 25 minutes before convicting Yaniuska Ordaz-Echevarria, 31, following a one-day trial.
The jury heard that just before midnight on Jan. 31, Ordaz-Echevarria arrived at the checkpoint in Sarita as a passenger on a commercial bus. Law enforcement removed her in order to inquire more about her citizenship status. Ordaz-Echevarria possessed no identification or other documents indicating she was in the United States lawfully. Authorities then escorted her into the checkpoint building for further processing.
Once inside, Ordaz-Echevarria became irate with authorities, refusing to answer their questions. When law enforcement attempted to peaceably escort her into a holding cell, she swung her fists violently. Her aggressive behavior required multiple agents to attempt to restrain her, during which time she continued to kick and punch them.
Two of the BP agents injured at the checkpoint testified and described attempting to subdue Ordaz-Echevarria while she swung and kicked wildly at agents. The jury also saw exhibits documenting their injuries as well as a video depicting Ordaz-Echevarria’s belligerent acts.
The defense attempted to convince the jury that Ordaz-Echevarria’s actions were unintentional and that Ordaz-Echevarria was just angry about possibly being deported for the fourth time. They were not persuaded and found Ordaz-Echevarria guilty as charged.
U.S. District Judge David Morales presided over the trial and set sentencing for Sept. 28. At that time, Ordaz-Echevarria faces up to eight years imprisonment and a possible $250,000 maximum fine.
She has been and will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorneys Yifei Zheng and Dennis Robinson are prosecuting the case.
Jury Convicts Cedar Park Man for Impersonating an FBI AgentRead the Press Release
WACO – A federal jury yesterday convicted 52-year-old Jonathan Jefferson Ferris on two counts of impersonating a federal agent.
Evidence presented during trial revealed that on multiple occasions in July and August 2019, Ferris entered a pharmacy in Temple looking to fill an out-of-state prescription for Fentanyl patches. Ferris always identified himself to the pharmacy employee as an out-of-town FBI agent on temporary assignment. Ferris wore a lanyard with a fake FBI identification card attached and used fraudulent documentation purportedly from the FBI to support his request for filling the Fentanyl prescriptions.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.
Ferris faces up to three years in federal prison. Sentencing is scheduled for September 29, 2021, before U.S. District Judge Alan Albright.
The FBI conducted this investigation together with investigators from DEA Diversion and the Cedar Park Police Department. Assistant U.S. Attorney Mark Frazier is prosecuting this case.
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Juror Fined $11,000 for Conducting Outside Research During Criminal Trial and Causing MistrialRead the Press Release
CAMDEN, N.J. – A Burlington County man today was held in criminal contempt and fined $11,227 for conducting outside research while serving on a federal criminal jury and sharing his findings with the other jurors, Acting U.S. Attorney Rachael A. Honig announced.
U.S. District Judge Robert B. Kugler made the contempt finding and imposed the sentence today in Camden federal court.
According to statements made in court:
Juror Number 7 was one of 12 jurors on a federal criminal trial held in Camden federal court before Judge Kugler. Before and during the trial, Juror Number 7 and the other jurors were instructed repeatedly, both in writing and verbally, not to conduct any research about the case, including through use of the Internet. During a recess in the trial, Juror Number 7 conducted internet research into evidence in the case. He then shared his findings with the other jurors during deliberations, causing a mistrial. The fine represents the court’s costs associated with empanelling the jury for the trial.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden and Deputy U.S. Attorney Andrew Carey.
Judge sentences Chesterfield man for sex traffickingRead the Press Release
ST. LOUIS – United States District Judge Audrey G. Fleissig sentenced Jeremy Rogers, 45, of Chesterfield, Missouri, to 10 years imprisonment on today’s date. Rogers pleaded guilty, in February, to one count of sex trafficking of a child.
Rogers, in the summer of 2019, contacted the child victim, via a social media application, utilizing an alias. By utilizing the alias, Rogers was able to hide his status as a registered sex offender. During the course of their communications, Rogers was made aware of the victim’s age. In July of 2019, Rogers persuaded the victim to meet him. Rogers drove the victim to his residence in Chesterfield where he subjected her to various sexual acts including sexual intercourse.
Prior to sentencing and by way of an impact statement, the child victim told the Court the following: “What happened has greatly hurt the way I value and view myself. It has caused anxiety and great emotional distress. I feel if he had not been caught, he definitely would have attempted this with some other innocent and naive person who doesn’t know any better.” The victim also stated, “He clearly had no regard for my age, or level of comfort. It will most likely be a very long while, if ever, before I gain complete closure, but knowing that this man will not be able to do this to anybody else will greatly help to give me peace of mind.”
On October 9, 2018, in an unrelated state case, Rogers pleaded guilty, in the Circuit Court of Boone County, Missouri, to the felony offense of attempted sexual exploitation of a minor in violation of Section 573.023, RSMo; after which, Rogers was sentenced to eight years of imprisonment. The execution of that sentence was suspended. Rogers was placed on five years of probation. Due to this state conviction, Rogers was required to register as a sex offender under federal law and the laws of the state of Missouri.
The above sex trafficking of a child case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jillian Anderson is handling the case.
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Jacksonville Man Sentenced to More Than 10 Years for Leading Cocaine Trafficking ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Paublo “Chandito” Rondon Quinones (30, Jacksonville) to 10 years and 1 month in federal prison for conspiring to possess with the intent to distribute and to distribute five or more kilograms of cocaine.
Quinones had pleaded guilty on January 24, 2019. As part of his plea agreement, Quinones agreed to the administrative forfeiture of an assortment of jewelry and numerous vehicles, including two jet skis, four motorcycles, two sport utility vehicles, a Porsche Panamera luxury sedan, and a Ferrari F430 sports car.
According to court documents, Quinones led a drug trafficking organization that supplied kilo-quantities of cocaine to drug dealers in Jacksonville. His organization had multiple sources of supply and obtained shipments of cocaine via couriers and through the U.S. Mail from suppliers in Puerto Rico and Orlando.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Florida Highway Patrol, and the North Florida High Intensity Drug Trafficking Area Task Force. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jackson Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Jackson man pled guilty today to possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Jeffery Rivers, Jr., 39, of Jackson, sold almost a half kilogram of methamphetamine on March 2, 2020. The drugs were analyzed by the Drug Enforcement Administration Laboratory and confirmed to be 437.5 grams of pure methamphetamine.
Rivers pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine. He is scheduled to be sentenced on October 6, 2021 and faces a mandatory minimum of 10 years and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Jackson Safe Streets Task Force investigated the case.
Assistant U.S. Attorney Keesha D. Middleton is prosecuting the case.
The case is the result of an extensive investigation, dubbed “Hailstorm,” which began as an operation targeting illegal methamphetamine distribution in central Mississippi.
Iowa Man Sent Back to Federal Prison for the Third Time Following his Second Escape from CustodyRead the Press Release
A man who escaped from federal custody twice in just over two years was sentenced today to nearly three years in federal prison.
Gabriel Mangum, age 45, from Iowa City, Iowa, received the prison term after a December 31, 2020 guilty plea to one count of escape from custody.
Evidence from Mangum’s plea and sentencing hearings showed that he was previously convicted of being a felon in possession of a firearm in federal court in 2009 and sentenced to seven years in prison. In June 2017, Mangum escaped from federal custody while in a halfway house. He was arrested approximately one month later and sentenced to another 18 months’ imprisonment.
Beginning on July 12, 2019, Mangum was in custody and under supervision at the halfway house again. On July 31, 2019, Mangum left the halfway house without permission and escaped from custody for the second time. Mangum remained on the loose and his whereabouts were unknown until October 25, 2020, when he was arrested by law enforcement.
Mangum has a long criminal history. This is his third federal conviction. He was first convicted of robbery in state court and sentenced to 25 years in prison when he was 18. He also has convictions involving drugs, thefts, forgery, and disorderly conduct.
Mangum was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mangum was sentenced to 33 months’ imprisonment, consisting of 18 months in prison for violating his supervised release conditions and 15 months in prison for his most recent escape. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mangum is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-97, 17-CR-56, and 09-CR-2008.
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Indictment targets large-scale drug trafficking operation in Coastal Georgia areaRead the Press Release
SAVANNAH, GA: More than a dozen defendants are charged in a major drug-trafficking conspiracy alleged in a 22-count indictment unsealed in U.S. District Court in the Southern District of Georgia.
Operation Snowplow II follows a series of indictments starting in June 2018 of 14 defendants in Operation Snowplow, an Organized Crime Drug Enforcement Task Force investigation into cocaine trafficking and money laundering in the Coastal Georgia area and beyond, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Building on the prosecutions in Operation Snowplow, the 29-page indictment in Operation Snowplow II, USA v. Gallegos et. al, charges 16 defendants with participating in a widespread, large-scale cocaine-trafficking conspiracy, and charges an additional defendant with trafficking marijuana.
Conviction on the conspiracy charge carries a statutory minimum sentence of 10 years in federal prison, with a maximum sentence of life. There is no parole in the federal system.
“In collaboration with our federal, state and local law enforcement partners in the Southern District, we continue to relentlessly pursue those who would gain profit from spreading poison in our communities,” said Acting U.S. Attorney Estes. “The indictments in Operation Snowplow II demonstrate the results of that commitment.”
“This organization’s alleged drug trafficking activities in association with gun violence, presented a clear and present danger to the safety and security of Savannah, Georgia residents,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Now that these individuals have been indicted, citizens of the Coastal Georgia area can sleep better at night. This investigation was a success because of spirited law enforcement cooperation between DEA and its law enforcement partners.”
“Those charged in this indictment allegedly harmed our community by spreading toxins throughout the area and further endangered our residents by allegedly using guns to do so,” said Chatham-Savannah Counter Narcotics Team Director Michael G. Sarhatt. “I am grateful for the support CNT continues to receive from our partners at the federal, state, and local levels. The cooperation in this case allowed CNT to conduct the far-reaching investigation necessary to keep our community safe.”
As alleged in the indictment, as early as April 2019, the defendants in the conspiracy coordinated shipments of kilogram quantities of cocaine into the Savannah area for distribution. The 14 firearms seized during the investigation were used to protect the drug trade and its proceeds.
Initial court appearances for the defendants charged in USA v. Gallegos et. al have been held, and all are awaiting further proceedings. Those charged in the indictment, and their charges, include:
- Victory Hugo Gallegos, 43, of San Antonio, Texas, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Robert Canseco, 39, of Houston, Texas, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Adam Mathias Garcia, a/k/a “Flako,” of Decatur, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; two counts of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime; and two counts of Possession of a Firearm by a Convicted Felon;
- William Richard Moore, a/k/a “Billy,” 43, currently incarcerated at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; and Possession with Intent to Distribute Marijuana;
- Aubrey Rodriquez Williams, a/k/a “Gab,” charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and Possession with Intent to Distribute Cocaine;
- Raphael Samuel Smith, a/k/a “Ray Ray,” 50, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine and Marijuana; two counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two counts of Possession of a Firearm by a Convicted Felon;
- Japheth Charles Orr, a/k/a “Fatz,” 41, of Pooler, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Eric Lavar Brown, a/k/a “Boss,” 37, of Pooler, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession of Cocaine with Intent to Distribute; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Harold Jenkins Jr., a/k/a “Pound,” 44, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and three counts of Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Suzana Salinas-Garza, a/k/a “Suzy,” 41, of Houston, Texas, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Christopher Joseph Shoemake, a/k/a “Shoe,” 44, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Ebony Antonia Perry, a/k/a “Eb,” charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and Possession with Intent to Distribute Cocaine;
- Reginald Java Brown, a/k/a “Spot,” a/k/a “Red,” 46, currently incarcerated at the Chatham County Detention Center, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; Possession with Intent to Distribute Cocaine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Nolan Sental Smith, a/k/a “Hot,” a/k/a “Dredd,” 40, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Vernest Cleveland, a/k/a Peanut,” a/k/a “Vito,” 40, of Springfield, Ga., charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine;
- Antonio Terez Graham, a/k/a “Weezy,” 36, of Savannah, charged with Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine; and,
- Tamika Lashaun Huff, 38, of Scottsdale, Ga., charged with Possession with Intent to Distribute Marijuana.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies involved in the investigation include the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, the FBI, the Savannah Police Department, the Chatham County Police Department, the Chatham County Sheriff’s Office, the Chatham County Aviation Unit, and the Clayton County Sheriff’s Office, with assistance from the U.S. Marshal’s Service.
The case is being prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and OCDETF Coordinator Marcela C. Mateo, and Special Assistant U.S. Attorney Tim Ruffini.
Honduran National Extradited to Eastern District of Texas Sentenced for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SHERMAN, Texas – A Honduran man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Oscar Ruiz Colon, 41, pleaded guilty on Feb. 4, 2021, to conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States and was sentenced to168 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
“The great work of law enforcement in this case demonstrates that criminals cannot avoid federal prosecution by conducting their activities abroad,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to aggressively fight the scourge of drug trafficking at the source, no matter how far away or well-concealed the offenders might be.”
“Criminals who attempt to broker and facilitate cocaine shipments into the United States will meet swift justice through DEA’s tireless efforts to dismantle Transnational Criminal Organizations across the world,” said DEA Special Agent in Charge Eduardo A. Chávez. “We applaud our South American counterparts to remain committed to the rule of law and the DEA will continue to work together to ensure consequences come to those who profit from illicit drugs in our neighborhoods.”
According to information presented in court, beginning sometime in 2017, Colon, a resident and national of Honduras, was a member of a drug trafficking organization responsible for multi-ton cocaine shipments which originated from Colombia, Ecuador, Panama, Costa Rica, Guatemala, and Mexico for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. A federal grand jury returned an indictment charging Colon with federal drug trafficking violations on August 8, 2018.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Hendersonville Man Pleads Guilty to Federal Arson Charges in Connection to Metro Courthouse FireRead the Press Release
NASHVILLE – A Hendersonville, Tennessee man charged last year with the malicious destruction of property at the Metro Courthouse pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. Wesley Somers, 26, was charged in a criminal complaint on June 3, 2020, following protests which escalated to acts of violence and intimidation on the evening of May 30, 2020. Somers was indicted by a federal grand jury on October 14, 2020.
On the afternoon of May 30, 2020, protesters gathered in downtown Nashville following the death of George Floyd in Minneapolis, Minnesota. Later in the evening, several persons gathered in front of the Nashville City Hall, also known as the Metro Courthouse, and began smashing the windows of the premises and spraying graffiti on the Courthouse facade. One or more fires were also set inside of the Courthouse at this time.
Numerous video clips and photographs of the destruction at the Courthouse were posted on social media websites, on the websites for news outlets, and on other Internet sites. Somers is depicted in video clips and photographs from that evening attempting to smash windows of the Courthouse. One photograph depicted Somers holding an unknown accelerant, which had been set on fire, and placing the accelerant through the window of the Courthouse.
Somers was quickly identified by the Metropolitan Nashville Police Department – Specialized Investigation Division, after receiving numerous tips from citizens.
Somers will be sentenced on December 1, 2021, and faces a mandatory minimum of five years and up to 20 years in prison.
This case was investigated by the Metropolitan Nashville Police Department; the FBI; and the Bureau of Alcohol, Tobacco, Firearms & Explosives; Assistant U.S. Attorney Ben Schrader; and Trial Attorney Justin Sher of the Department’s Counterterrorism Section are prosecuting the case.
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Helena man admits to meth trafficking, firearm crimesRead the Press Release
GREAT FALLS – A Helena man accused of trafficking methamphetamine and of possessing a stolen gun admitted charges on Monday, Acting U.S. Attorney Leif M. Johnson said today.
Robert Raymond Fasuga, 38, pleaded guilty during an arraignment and plea change hearing to conspiracy to possess with intent to distribute meth and to possession of a stolen firearm as charged in a superseding information. Fasuga faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the conspiracy charge and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the firearm charge.
Chief U.S. District Judge Brian M. Morris presided and set sentencing for Oct. 13. Fasuga was detained pending further proceedings.
In court documents filed in the case, the prosecution alleged that on June 14, 2020, Fasuga possessed at least one stolen firearm after he fled from law enforcement, pulled two firearms from his person and pointed them to his head. Officers talked him down, and Fasuga later told agents that he assumed the guns were stolen because he paid $50 for each one. Mountain Man Trading Post in Belgrade was the lawful owner of a .380 pistol recovered from Fasuga on that date. In addition, the government alleged that further investigation determined that Fasuga was a meth dealer. On March 24, 2021, during the execution of a federal search warrant, agents found about one pound of meth that Fasuga intended to sell and $6,779 in U.S. currency believed to be drug proceeds.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office investigated the case.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Georgia Woman Going to Prison for Providing Local Gang Members with Illegal GunsRead 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 Brittany Hutcherson, 30, of Lawrenceville, GA, who was convicted of transferring firearms to an out-of-state resident, was sentenced to serve six months in prison by U.S. District Judge John L. Sinatra Jr.
“Though theirs may not be the finger that pulls the trigger, straw purchasers, such as this defendant, help to put guns in the hands of criminals who use them for bad purposes,” noted U.S. Attorney Kennedy. “As such, they are deserving of federal criminal prosecution and being locked-up in federal prison right alongside those trigger pullers who they helped to arm.”
Assistant U.S. Attorney Meghan E. Leydecker, who handled the case, stated that on April 22, 2016, the defendant, a Georgia resident, purchased four firearms from Deaton’s Gun Shop, Inc. in Loganville, Georgia. Between April 22 and July 17, 2016, Hutcherson gave two of the firearms to an individual living in New York State who was a member of the BFL/CBL gang. The defendant knew the individual was a member of the gang and knew it would be unlawful for that individual to possess a firearm in New York State.
On July 17, 2016, Cheektowaga Police Officers conducted a traffic stop of the car Larell Watkins was driving. In the trunk of that vehicle was one of the firearms purchased by Hutcherson on April 22, 2016. Watkins was subsequently convicted for his role in the criminal activities of the BFL/CBL Gang.
On July 29, 2016, another one of the firearms purchased by the defendant was recovered by Buffalo Police Officers from Maurice Rice, another convicted CBL/BFL gang member.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Gary Man ChargedRead the Press Release
HAMMOND- Hailey Gist-Holden, age 26, of Gary, Indiana, has been charged by way of a criminal complaint with armed bank robbery, using, carrying, brandishing and discharging a firearm during the armed bank robbery, and causing death, that being a murder of the bank security guard, announced Acting U.S. Attorney Tina L. Nommay.
According to the complaint filed today, and charges filed in Cause No. 2:21-CR-71, on June 11, 2021, Gist-Holden and James Anthony King Jr. allegedly participated in the armed robbery of First Midwest Bank on Ridge Road in Gary, Indiana, where the use of a firearm resulted in the death of Richard Castellana. On June 17, 2021, co-defendant James Anthony King, Jr., age 24, of Miami, Florida, was indicted for armed bank robbery and for using, carrying, brandishing and discharging a firearm during that robbery causing the death of the security guard, such killing being a murder. Gist-Holden was arrested in Georgia in the early morning hours of June 18, 2021, following a police chase.
“The murder of Richard Castellana was a senseless act of violence,” said Acting United States Attorney Tina Nommay. “Our hearts go out to Mr. Castellana’s family and those other victims terrorized by these criminal acts. Thanks go out to all our law enforcement partners locally and around the country in their determined efforts to apprehend King and Gist-Holden.”
The United States Attorney’s Office emphasizes that both a complaint and indictment are merely allegations, and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This investigation was led by the Federal Bureau of Investigation Gang Response Investigative Team with the assistance of the Lake County Sheriff’s Department; the Lake County Prosecutor’s Office; the Indiana State Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gary Police Department. Additional investigative assistance was provided by FBI Chicago, FBI Miami, and FBI Atlanta along with the Georgia State Police, the Atlanta Police Department and the Lowndes County (GA) Sheriff’s Department. In addition, the U.S. Attorney’s Offices in the Northern District of Georgia, Middle District of Georgia and Middle District of Florida were involved in this cooperative effort. This case is being prosecuted by Assistant United States Attorneys Caitlin Padula, David Nozick, and Kevin Wolff.
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Gang members charged with trafficking young girls for sexRead the Press Release
HOUSTON – Four Houston-area gang members are in custody following the return of a federal indictment on allegations of human trafficking, announced Acting U.S. Attorney Jennifer B. Lowery.
Clarence Chambers aka Chris, 29, is expected to appear today before U.S. Magistrate Judge Peter Bray at 2 p.m. Also charged are Javon Opoku aka Glizzy, 20, Damarquis McGee aka Lil Blue, 23, and Andres Portillo aka Andro, 20. Portillo is set for an initial appearance on July 1 at 2 p.m., while McGee and Opoku are set for their initial appearances on July 6 at 10 a.m.
The defendants are charged with trafficking young runaway girls on what it known as the “Blade” or the Bissonnet Track. This is an area near Southwest 59 Freeway and Bissonnet Street in Houston where traffickers commonly place their victims, according to the charges.
According to the indictment, the defendants worked to recruit underage teenage girls and forced them to engage in sex acts for money in cars and hotels around the Blade. They allegedly passed around or reassigned victims amongst one another, taught each other “the pimp game” and required the young girls to walk the Blade and sell their bodies. They also kept the proceeds, according to the charges.
The indictment further alleges if any of the girls wanted to switch between pimps, they would have to pay an exit fee or get “beat out” to do so.
Some of the defendants also allegedly required daily quotas each night from their victims. If the victims failed to meet their daily quotas, they were severely punished through beatings and humiliation, according to the indictment.
If convicted, Chambers and the others face a minimum of 15 years and up to life in federal prison.
The Houston Police Department initiated the investigation and later partnered with Homeland Security Investigations and the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA). Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Richard Bennett and Kate Suh are 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.Four L.A. County Residents Found Guilty of Fraudulently Obtaining Millions of Dollars from COVID-Relief ProgramsRead the Press Release
LOS ANGELES – A federal jury has found four Los Angeles-area residents guilty of criminal charges for scheming to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
At the conclusion of an eight-day trial, the following defendants were found guilty on June 25:
- Richard Ayvazyan, 42, of Encino;
- Richard Ayvazyan’s wife, Marietta Terabelian, 37, of Encino;
- Richard Ayvazyan’s brother, Artur Ayvazyan, 41, of Encino;
- Vahe Dadyan, 41, of Glendale.
All four defendants were found guilty of one count of conspiracy to commit bank fraud and wire fraud, 11 counts of wire fraud, eight counts of bank fraud and one count of conspiracy to commit money laundering. Richard Ayvazyan also was found guilty of two counts of aggravated identity theft. Artur Ayvazyan also was found guilty of one count of aggravated identity theft. Vahe Dadyan also was found guilty of one count of money laundering.
On June 28, the jury found the defendants must forfeit bank accounts, jewelry, watches, gold coins, three residential properties and approximately $450,000 in cash.
According to the evidence presented at trial, the defendants used fake, stolen and synthetic identities – including the created identities of “Iuliia Zhadko” and “Viktoria Kauichko” – to submit fraudulent applications for PPP and EIDL loans guaranteed by the Small Business Administration (SBA) under federal law. In support of the fraudulent applications, the defendants often submitted false and fictitious documents to lenders and the SBA, including fake identity documents, tax documents and payroll records.
The defendants then used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags, clothing, and a Harley-Davidson motorcycle. The conspirators obtained more than $18 million in COVID-relief funds.
United States District Judge Stephen V. Wilson has scheduled a September 13 sentencing hearing, at which time each defendant will face decades in federal prison.
Prior to the verdict, the following defendants pleaded guilty to criminal charges in this case:
- Manuk Grigoryan, 46, of Sun Valley, pleaded guilty on June 7 to one count of bank fraud and one count of aggravated identity theft. Judge Wilson has scheduled a September 13 sentencing hearing, at which time Grigoryan will face a statutory maximum sentence of 32 years in federal prison.
- Edvard Paronyan, 40, of Granada Hills, pleaded guilty on June 11 to one count of wire fraud. He will face a statutory maximum sentence of 20 years in federal prison at his August 30 sentencing hearing.
- Tamara Dadyan, 39, of Encino, Artur Ayvazyan’s wife and Vahe Dadyan’s cousin, pleaded guilty on June 14 to one count of conspiracy to commit bank fraud and wire fraud, one count of aggravated identity theft and one count of conspiracy to commit money laundering. She will face up to 52 years in federal prison at her September 27 sentencing hearing.
- Arman Hayrapetyan, 41, of Glendale, pleaded guilty on June 21, to one count of conspiracy to commit money laundering. He will face up to 20 years in federal prison at his sentencing hearing, which is scheduled for September 20.
“Seeking quick riches, the defendants stole federal funds intended to help Americans harmed by the COVID-19 pandemic and the economic carnage left in its wake,” said Acting United States Attorney Tracy L. Wilkison. “The verdicts in this case are the first in this district resulting from a pandemic-related fraud scheme, and we are prepared to bring additional defendants to justice as we continue our efforts to safeguard our nation’s disaster-relief programs.”
The FBI, IRS Criminal Investigation, the Small Business Administration’s Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General investigated this matter.
Assistant United States Attorneys Scott Paetty and Catherine S. Ahn of the Major Frauds Section, Assistant United States Attorney Brian R. Faerstein of the Environmental and Community Safety Crimes Section, Assistant United States Attorney Daniel G. Boyle of the Asset Forfeiture Section, and Trial Attorney Christopher Fenton of the Fraud Section of the Justice Department’s Criminal Division are prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Four California Residents Found Guilty of Scheming to Fraudulently Obtain Millions of Dollars in COVID-19 Relief ProgramsRead the Press Release
A federal jury convicted four California residents on June 25, for scheming to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
After an eight-day trial, Richard Ayvazyan, 42, his wife Marietta Terabelian, 37, and his brother Artur Ayvazyan, 41, all of Encino, were each found guilty of one count of conspiracy to commit bank fraud and wire fraud, 11 counts of wire fraud, eight counts of bank fraud, and one count of conspiracy to commit money laundering. Richard Ayvazyan was also found guilty of two counts of aggravated identity theft and Artur Ayvazyan was found guilty of one count of aggravated identity theft. Vahe Dadyan, 41, of Glendale was found guilty of one count of conspiracy to commit bank fraud and wire fraud, six counts of wire fraud, three counts of bank fraud, one count of conspiracy to commit money laundering, and one count of money laundering.
On June 28, the jury found the defendants must forfeit bank accounts, jewelry, watches, gold coins, three residential properties, and approximately $450,000 in cash.
According to the evidence presented at trial, the defendants used fake, stolen, or synthetic identities – including the created identities of “Iuliia Zhadko” and “Viktoria Kauichko” – to submit fraudulent applications for the loans. In support of the fraudulent loan applications, the defendants also submitted false and fictitious documents to lenders and the Small Business Administration (SBA), including fake identity documents, tax documents, and payroll records. The defendants then used the fraudulently obtained funds as down payments on luxury homes in Tarzana, Glendale, and Palm Desert. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, fine imported furnishings, designer handbags, clothing, and a Harley-Davidson motorcycle. The conspirators obtained more than $18 million in COVID-19 relief funds.
Sentencing is scheduled for Sept. 13.
Prior to the verdict, the following defendants pleaded guilty to criminal charges in this case:
- Manuk Grigoryan, 46, of Sun Valley, pleaded guilty on June 7, to one count of bank fraud and one count of aggravated identity theft. The court has scheduled sentencing for Sept. 13. Grigoryan faces up to 32 years in federal prison.
- Edvard Paronyan, 40, of Granada Hills, pleaded guilty on June 11, to one count of wire fraud. The court has scheduled sentencing for Aug. 30. Paronyan faces up to 20 years in federal prison.
- Tamara Dadyan, 39, of Encino, Artur Ayvazyan’s wife and Vahe Dadyan’s cousin, pleaded guilty on June 14, to one count of conspiracy to commit bank fraud and wire fraud, one count of aggravated identity theft, and one count of conspiracy to commit money laundering. The court has scheduled sentencing for Sept. 27. Dadyan faces up to 52 years in federal prison.
- Arman Hayrapetyan, 41, of Glendale, pleaded guilty on June 21, to one count of conspiracy to commit money laundering. The court has scheduled sentencing for Sept. 20. Hayrapetyan faces up to 20 years in federal prison.
Acting Assistant Attorney General Nicholas L. McQuaid and Acting U.S. Attorney Tracy L. Wilkison of the Central District of California made the announcement.
The FBI, IRS Criminal Investigation, the SBA’s Office of Inspector General, and the Federal Housing Finance Agency – Office of Inspector General investigated this matter.
Trial Attorney Christopher Fenton of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Scott Paetty, Brian Faerstein, and Catherine Ahn of the Central District of California are prosecuting the case. Assistant U.S. Attorney Dan Boyle of the Central District of California is handling the forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fort Dodge Man Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 25, 2021, to more than 8 years in federal prison.
Joshua Minich, 43, from Fort Dodge, Iowa, received the prison term after a January 22, 2021, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Minich admitted his involvement from August 2017 through February 2018 in a conspiracy that distributed more than 50 grams of pure methamphetamine in the Fort Dodge area. Evidence showed that on three occasions in 2017 and 2018, Minich distributed meth to individuals cooperating with law enforcement. Evidence further showed that Minich possessed various firearms at various times in 2017 and 2018, including during the time period of his participation in the methamphetamine trafficking conspiracy.
Minich was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Minich was sentenced to 105 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Minich is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa State Patrol, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-3034.
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Fort Dodge Man Sentenced to Federal Prison for Drug and Gun CrimesRead the Press Release
A man who possessed a firearm on two occasions while he was prohibited was sentenced on June 24, 2021, to more than 4 years in federal prison.
Kwane Demarchel Wheat, age 27, from Fort Dodge, Iowa, received the prison term after a January 22, 2021, guilty plea to one count of possession of a firearm by a prohibited person and one count of possession of a firearm by a drug user.
At the guilty plea, Wheat admitted that on May 30, 2020, he was in possession of a firearm despite being prohibited under a June 6, 2019, protection order in Webster County. At that time, law enforcement also found marijuana in Wheat’s vehicle. During an April 27, 2019, traffic stop, Wheat was found in possession of a gun, two plastic baggies of marijuana, and cocaine.
Wheat was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Wheat was sentenced to 52 months’ imprisonment. He must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Wheat is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3031.
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Former U.S. Congressional Candidate Indicted for Federal Election Campaign Act Violations and False StatementsRead the Press Release
BOSTON – A former candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts was arrested today on charges of violating the Federal Election Campaign Act and false statements.
Abhijit Das, a/k/a “Beej,” 47, of North Andover, was indicted on one count of accepting excessive campaign contributions, one count of conduit contributions, one count of conversion of campaign funds, one count of engaging in a scheme to falsify, conceal, and cover up material facts and two counts of making a false statement. Das was arrested today and will make his initial appearance before U.S. District Court Magistrate Judge Jennifer C. Boal at 2:30 p.m.
“Mr. Das allegedly solicited illegal campaign donations, used the money for his own business expenses and debts, and then attempted to conceal his actions,” said Nathaniel R. Mendell, Acting United States Attorney for the District of Massachusetts. “We are committed to prosecuting this kind of criminal conduct, because doing so protects the election process and vindicates every voter’s right to law-abiding campaigns and transparent elections.”
“Today, we arrested Abhijit Das for allegedly soliciting his friends and family for at least $125,000 in illegal campaign contributions, repeatedly dipping into his campaign coffers to pay outstanding debts related to his hotel business, and falsifying campaign finance reports to try and cover his tracks,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We believe Mr. Das engineered this calculated scheme to show he was a viable candidate for office, at the expense of voters and the election process. The FBI will continue to investigate allegations of campaign finance abuse like these to ensure openness and fairness in our elections so that everyone’s interests are protected.”
“Campaigns funds are governed by strict federal rules so political contributions aren’t used as personal slush funds, among other reasons,” said Ramsey E. Covington, Boston Field Office Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division. “Today’s indictment alleging campaign finance violations for the personal benefit of the defendant, represent a flagrant violation of those laws and blatant betrayal of the public trust.”
According to the indictment, Das was a candidate for the U.S. House of Representatives in the 3rd Congressional District of Massachusetts in the 2017-2018 election. In order to overcome a fundraising deficit, Das allegedly devised a scheme in or about December 2017 to solicit personal loans from friends and close associates in excess of the legal limit. On or about Dec. 17, 2017, Das allegedly emailed a contributor asking for a friend to support his campaign to reach a specific fundraising goal of over $450,000 by the end of the year and indicated that reaching that goal might need “some engineering.” It is alleged that Das advised a member of his campaign that he would “aggregate” the loans into “one batch” and execute a main transfer into the campaign account.
The indictment further alleges that Das caused three different individuals to contribute approximately $125,000 to his campaign and structured the contributions as personal loans to a family member to circumvent Federal Election Commission (FEC) reporting requirement and contribution limits. Das allegedly concealed the excessive campaign contributions from the FEC, falsely claimed that the funds from the excessive contributions were his own personal funds and engaged in illegal conduit contributions to his campaign.
In addition, the indictment also alleges that between January and May 2018, Das withdrew approximately $314,500 in funds from his campaign account and used at least $267,000 of these funds to pay outstanding debts for his hotel business relating to vendors, the hotel’s yacht and real estate taxes unrelated to his congressional campaign. In making these withdrawals, Das allegedly sought to conceal his conversion of campaign funds by instructing bank tellers to report the withdrawals as separate withdrawal and deposit transactions, rather than direct transfers.
Das allegedly aided and abetted in the submission of false information in quarterly reports to the FEC by overstating the amount of cash-on-hand the Das-for-Congress Campaign had in its campaign bank account. For example, on June 30, 2018, Das allegedly reported that his campaign’s total amount of cash-on-hand was approximately $440,000, when in fact the amount of cash-on-hand in the campaign bank account was less than $5,000.
Each of the charges provide for a sentence of up to five years in prison, three years of supervised release and fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, FBI Boston SAC Bonavolonta and IRS-CI Acting SAC Covington made the announcement today. Assistant U.S. Attorney Neil J. Gallagher Jr. of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Corrections Officer Sentenced for BriberyRead the Press Release
Jackson, Miss. – A former federal corrections officer from Lauderdale County, Mississippi, was sentenced to 18 months in federal prison for bribery, announced Acting U.S. Attorney Darren J. LaMarca and James Boyersmith, Special Agent in Charge of the U.S. Department of Justice, Office of the Inspector General.
According to court documents, in approximately July 2018, Ashley Lovett began accepting payments in exchange for smuggling contraband into the Federal Prison in Yazoo County, Mississippi, where she was employed as a corrections officer. Lovett was paid approximately seven thousand dollars by inmates and others for delivering the contraband to inmates inside the facility.
Lovett was indicted and pled guilty to accepting bribe payments in exchange for bringing contraband items into the Yazoo City Federal Corrections Complex.
The case was investigated by the U.S. Department of Justice, Office of Inspector General
The case was prosecuted by Deputy Criminal Chief Dave Fulcher.
Former FEMA Employee Pleads Guilty to Fraudulently Obtaining the Proceeds of Covid-19 Paycheck Protection Program LoanRead the Press Release
Baltimore, Maryland – Tyrese Carter, age 21, of Baltimore, Maryland, pleaded guilty today to wire fraud, in connection with a scheme to obtain the proceeds of a COVID-19 Paycheck Protection Program Economic Injury Disaster Loan from a victim business owner.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Inspector General Hannibal “Mike” Ware of the U.S. Small Business Administration Office of Inspector General; and Inspector General Joseph V. Cuffari, Department of Homeland Security Office of Inspector General.
According to his guilty plea, Carter was employed by the Federal Emergency Management Agency as an Emergency Management Specialist since at least 2018. On April 9, 2020, Carter was detailed to work in a Small Business Administration (SBA) virtual call center, as part of FEMA’s response to the COVID-19 pandemic. Carter was assigned to assist potential disaster loan applicants by answering questions about the SBA’s Economic Injury Disaster Loan (EIDL) program.
As detailed in the plea agreement, Victim A runs a small organic skin care and event center business based in Colorado. In order to maintain her business during the COVID-19 pandemic, Victim A applied for both a Paycheck Protection Program (PPP) loan and an EIDL. On April 4, 2020, Victim A submitted an online EIDL application and requested an advance of $9,000. On April 13, 2020, concerned that the first application did not go through successfully Victim A submitted a second EIDL application. Unbeknownst to Victim A, the second EIDL application was rejected as a duplicate application.
Meanwhile, at the request of Victim A, another bank submitted a PPP application on Victim A’s behalf, which was subsequently approved. On April 30, 2020, Victim A received the proceeds of the PPP loan into her bank account. The next day, Victim A received the proceeds from her original EIDL application into her bank account.
Victim A was confused as to whether the funds from SBA deposited into her bank account was from the PPP or EIDL programs and was concerned that she may have mistakenly been granted two EIDL advances as a result of filing two online EIDL applications. Victim A called the SBA’s helpline on May 4, 2020, to report what she believed may have been an excess payment. Victim A spoke to Carter, telling him that she may have been overpaid by the SBA and requested information on the procedure for returning the excess funds. Carter stated he was not sure how Victim A could return the funds but told her a supervisor would call Victim A with further instructions. Approximately thirty minutes thereafter, Carter telephoned Victim A from a blocked telephone number and falsely identified himself as SBA supervisor Michael Valdes. In fact, there is no one working at SBA by that name. Carter, posing as Valdes, told Victim A that he would send her an email providing directions for returning the funds. That next day, Carter sent an email to Victim A from an email account he had created in the name of [email protected]. The email contained logos appearing to be those of the U.S. Department of the Treasury and the SBA. The email directed Victim A to send $8,738.00 to a PayPal account in the name of “SBA Financial” within one week. Based on the email, on May 5, 2020, Victim A directed her assistant to send $8,738 to the SBA Financial PayPal account as directed in the email. Carter created the SBA Financial PayPal account on May 4, 2020 and closed it on May 20, 2020.
According to the plea agreement, after Victim A sent the payment, she suspected the transaction may have been a fraud and contacted PayPal and her bank. Victim A’s bank reimbursed Victim A. The bank was never reimbursed, sustaining a loss of $8,738. On May 8, 2020, Victim A reported the suspected fraud to the SBA.
Carter admitted that on May 19, 2020, he attempted to transfer the funds from the SBA Financial PayPay account to a bank account he opened, but the transfer was initially held up by the bank. As Victim A was working with her bank to cancel the transaction, Carter again contacted Victim A, posing as Michael Valdes, and asked Victim A to provide an update on the PayPal transfer. In addition, Carter called Victim A posing as another fictitious SBA employee, Nathaniel Williams, in an effort to find out who Victim A had spoken to, purportedly so that Williams could “close her account.” Carter then emailed Victim A from a purported SBA email address Carter created in the name of Nathaniel Williams.
On October 19, 2020, Carter’s bank returned the funds to PayPal, which deposited the funds into a second PayPal account belonging to Carter, since the SBA Financial PayPal account had been closed. Carter then transferred to the funds to another bank account he controlled. The next day, Carter withdrew $6,600 in cash at the bank counter, and another $1,000 from an ATM.
A review of Carter’s phone records reveal that Carter called or attempted to call Victim A’s telephone number six times in May 2020, blocking his caller identification information in each instance.
“Those employed in the federal government make a commitment to serve their country,” stated Acting U.S. Attorney Jonathan F. Lenzner. “Taking advantage of a national emergency in this manner is not only criminal but it is also shameful and unpatriotic. Tyrese cater will now face the legal and financial consequences for exploiting a pandemic that has seriously impacted our nation”.
“This investigation and resulting guilty plea demonstrate our commitment to working with our law enforcement partners to detect, and hold accountable, corrupt Federal employees,” said Inspector General Joseph V. Cuffari. “There is no place in the Federal service for those who take advantage of the citizens they are sworn to protect.”
As part of his plea agreement, Carter will be required to forfeit and pay $8,738 in restitution.
Carter faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge Ellen L. Hollander has scheduled sentencing for October 8, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the SBA OIG and the DHS OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sean R. Delaney and Aaron S.J. Zelinsky, who are prosecuting the case.
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