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Tuesday 29 June 2021
Former City of Rochelle Employee Sentenced to Two Years in Prison for Fraudulently Obtaining $150,000 from Non-Profit Business AssociationRead the Press Release
ROCKFORD — A former employee of the city of Rochelle was sentenced today in federal court before U.S. District Judge Iain D. Johnston for wire fraud.
SCOTT KOTESKI, 58, of Rochelle, was sentenced to two years in federal prison and ordered to pay restitution in the amount of $150,332.17.
Koteski pleaded guilty to the wire fraud charge on March 9, 2021. According to a plea agreement, starting in 2011, Koteski was selected to sit on the board of directors of a non-profit business association and serve as the association's treasurer. As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012, Koteski had signatory authority on the association’s bank account. From September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent. Koteski wrote numerous checks to himself from the association’s bank account, and he deposited the checks into his personal bank account for his personal benefit. Koteski concealed his acts by writing false information on the memo line of the checks to make it appear they were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement.
Additionally, according to the plea agreement, in 2018 Koteski made online payments from the association’s bank account to pay for a personal credit card and a personal loan.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Illinois State Police assisted in the investigation. The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Former Branch Manager Charged with Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Derline Cunningham, 60, of Greece, NY, was arrested and charged by criminal complaint with bank fraud and conspiracy to commit bank fraud. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from July 2014 to March 2017, the defendant was employed as a bank branch manager, initially at Bank of America and later at Citizens Bank. One of Cunningham’s largest clients was Lucian Development, including Perry Santillo, Christopher Parris, and various entities they controlled, through which they are alleged to have operated a massive, decade-long Ponzi scheme. At the behest of Lucian Development, the defendant repeatedly lied to another bank, which extended millions of dollars of revolving credit to Santillo and Parris, regarding the extent of their assets. Santillo and Parris used the credit to finance the operations of their Ponzi scheme, and but for their access to such credit, the scheme would have collapsed years earlier. The victim bank ultimately lost approximately $335,968 to Santillo and Parris.
Cunningham made an initial appearance today before U.S. Magistrate Judge Mark W. Pedersen was released.
The criminal complaint is the result of an investigation by United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua W. McCallister of the Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Stephen Belongia, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Nikitas Splagounias, Acting Special Agent-in-Charge, New York Region; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the Federal Deposit Insurance Corporation, Office of Inspector General, under the direction of Shimon Richmond, Special Agent-in-Charge Mid-Atlantic Region, and Patricia Tarasca, Special Agent-in-Charge New York Region; and the Securities and Exchange Commission.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Jury Convicts Albert Lea Sex Offender for Online Child Sexual ExploitationRead the Press Release
ST. PAUL, Minn. – A federal jury convicted an Albert Lea man on charges related to sextortion and child pornography, announced Acting U.S. Attorney W. Anders Folk.
Following a six-day trial before Judge Wilhelmina M. Wright, Travis Kyle Mayer, 32, was convicted on two counts of production and attempted production of child pornography, one count of distribution of child pornography, one count of possession of child pornography, one count of receipt of child pornography, one count of coercion and enticement of a minor, one count of committing a felony offense involving a minor while required to register as a sex offender, and one count obstruction of justice.
According to the evidence presented at trial, in 2017, Mayer downloaded and received child pornography from a Russian-based child pornography distribution website. In 2018, Mayer sexually exploited a 15-year-old girl, through persuasion and coercion, into producing child pornography, which he then possessed and distributed. This entire time, Mayer was required to register as a sex offender. Between June 20, 2019, and October 11, 2019, Mayer attempted to obstruct the administration of justice by requesting a witness to testify falsely regarding the child sexual exploitation investigation.
Mayer faces up to life in prison. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the FBI and the Albert Lea Police Department.
This case was tried by Assistant U.S. Attorneys Alexander D. Chiquoine and Joseph H. Thompson.
Ex-Mayor of Columbia SentencedRead the Press Release
Columbia, Ill. – The former mayor of Columbia, Illinois, Kevin Hutchinson, was sentenced on Monday to two years’ probation, a $500 fine, and 40 hours of community service for lying to federal investigators about referral commissions he received on city contracts.
Hutchinson, 56, had been charged with one count of making a false statement to the federal Southern Illinois Public Corruption Task Force, also referred to as the Metro-East Public Corruption Task Force. He resigned as mayor of the Monroe County town after his indictment by a federal grand jury in February. Hutchinson pled guilty to the charge in March.
The federal indictment described Hutchinson as a licensed insurance agent who owned a closely held Illinois corporation called BMC Associates, Inc. Unbeknownst to the city council or the city manager, Hutchinson and his corporation received referral commissions from certain insurance contracts the city of Columbia placed with two other companies.
Under the Illinois Public Officer Prohibited Activities law, Hutchinson was prohibited from having a personal financial interest (direct or indirect) in any contract, work, or business of the municipality. Hutchinson failed to disclose his referral commissions on an annual ethics form filed with the county clerk in 2018. The following year, when questioned by an FBI agent and a federal task force officer, he falsely reported that he had no personal financial interest in the city’s insurance contract with one of the two companies.
FBI-Springfield investigated the case.
Assistant U.S. Attorney Norman R. Smith prosecuted the caseEl Departamento de Justicia Resuelve una Investigación sobre Acceso al Idioma y Represalias en los Tribunales del Condado de Fort Bend, TexasRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy un acuerdo con el Condado de Fort Bend (FBC) para mejorar el acceso de personas con dominio limitado del inglés (LEP) a sus tribunales.
Este acuerdo resuelve una investigación del Departamento de Justicia sobre las acusaciones de que los tribunales del FBC discriminaban a los usuarios con LEP por su país de origen, y tomaban represalias contra un denunciante, ambas en infracción al Título VI de la Ley de Derechos Civiles de 1964. El Título VI prohíbe la discriminación por raza, color o país de origen por parte de los beneficiarios de ayuda financiera federal, como el FBC. La investigación del departamento puso de manifiesto la existencia de barreras lingüísticas que dificultaban el acceso de personas con LEP al sistema judicial. Estas barreras incluían el requisito de que los acusados con LEP utilizaran un abogado bilingüe en lugar de un intérprete calificado durante los procesos de declaración de culpabilidad, así como políticas que daban lugar a mayores costos judiciales para padres con LEP en casos de custodia de sus hijos.
“Las personas con dominio limitado del inglés pueden sufrir la pérdida de sus hijos, sus hogares y sus derechos fundamentales cuando enfrentan barreras lingüísticas que les impiden un acceso significativo a nuestro sistema judicial”, dijo la Fiscal General Adjunta de la División de Derechos Civiles, Kristen Clarke. “La División de Derechos Civiles seguirá luchando para garantizar que los tribunales eliminen las barreras que niegan a las personas el acceso a la justicia en condiciones de igualdad. Felicito al condado de Fort Bend por tomar las medidas necesarias para garantizar el acceso lingüístico a los usuarios de tribunales en cumplimiento con el Título VI de la Ley de Derechos Civiles.”
“Fort Bend es uno de los condados con mayor diversidad en nuestro Distrito”, dijo el Fiscal Federal Interino del Distrito Sur de Texas, Mark Donnelly. “Este acuerdo garantizará que todas y todos tengan acceso a nuestros tribunales, independientemente de su país de origen o de su dominio limitado del inglés”.
En virtud del acuerdo, el FBC proporcionará servicios de interpretación sin costo a personas con LEP para casos civiles y penales en los tribunales del FBC. Los tribunales del FBC también revisarán sus planes de acceso lingüístico durante el próximo año, desarrollarán una capacitación obligatoria sobre el Título VI para los tribunales del FBC, proporcionarán capacitación sobre el Título VI en materia de represalias, y emitirán avisos públicos que expliquen la política de no discriminación del Título VI, así como el procedimiento para presentar denuncias en idiomas distintos del inglés. El departamento supervisará estos y otros requisitos durante dos años. El FBC también aceptó pagar una indemnización por daños y perjuicios a un usuario de tribunales con LEP por costos judiciales y a un individuo que alegó haber recibido represalias.
La aplicación del Título VI es una de las principales prioridades de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, consulte su sitio web: www.justice.gov/crt. La información sobre el dominio limitado del inglés y el Título VI está disponible en: www.lep.gov. Los ciudadanos pueden denunciar posibles violaciones de derechos civiles en: https://civilrights.justice.gov/report/.
Downtown Pittsburgh Tax Preparer Charged with Preparing False Income Tax ReturnsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, Acting United States Attorney Stephen R. Kaufman announced today.
The 10-count Indictment named Jessica D. Washington, age 34, as the sole defendant.
According to the Indictment, during 2018, Washington worked as a tax preparer at a tax preparation business in Pittsburgh called EasyTax Refund. It is alleged that Washington prepared tax returns that falsified Schedules C income, and claimed earned income tax credit and an unlawful tax refund.
The law provides for a sentence total sentence of not more than three 30 years imprisonment and a fine of $2,500,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Defendant Pleads Guilty to Stealing $24 Million in COVID-19 Relief Money Through Fraud Scheme that Used Synthetic IdentitiesRead the Press Release
Miami, Fl. -- Today, Hasan Hakim Brown, 45, pled guilty in Ft. Lauderdale federal district court to working with co-conspirators to steal $24 million of COVID-19 relief money by using synthetic identities and shell companies they had created years earlier to commit other bank fraud.
Criminals manufacture synthetic identities by using the personal and financial information of real people (such as stolen social security numbers) with fraudulent, made-up information (such as fake names and dates of birth). They use the new, synthetic identities to open fraudulent bank and credit card accounts and commit other fraud.
Years before the pandemic, Brown and his co-conspirators used complex computer data storage and virtualization machines to manufacture synthetic identities, automatically open bank accounts and shell companies, and monitor bank activity tied to the synthetic (as well as stolen) identities. In 2017, they used the synthetic and stolen identities and associated bank accounts and shell companies to steal money from a bank in Texas.
Then came the COVID-19 pandemic. In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the Paycheck Protection Program, which has authorized hundreds of billions of dollars in forgivable loans to small businesses to use for payroll, rent, utility, and other approved expenses.
Brown and his co-conspirators used their already-established synthetic identities and associated shell companies to fraudulently apply for financial assistance under PPP. They applied for and received $24 million dollars in PPP relief. The money was paid to companies registered to Brown and his co-conspirators, as well as to companies registered to synthetic identities that Brown and his co-conspirators controlled.
Brown pled guilty today to one count of conspiring to commit bank fraud. Brown’s sentencing hearing is scheduled for September 9, 2021, before U.S. District Judge Singhal. Brown faces up to 30 years in federal prison.
The following defendants have also been charged for their role in this scheme: Kevin Kirton and Jean Renald Fleuridor (20-20262-CR-Singhal), and Raul Mauricio Gonzalez (21-mj-02959-EGT). To date, law enforcement has seized approximately $11.5 million dollars in fraudulently obtained funds from members of the conspiracy, as well as Rolex, Baume & Mercier, Hubolt, and Cartier watches.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspection General - Investigations (FDIC-OIG), Atlanta Region; Brian Swain, Special Agent in Charge, United States Secret Service (USSS); Amaleka McCall-Brathwaite, Special Agent in Charge, Small Business Administration, Investigations Division (SBA-OIG), Eastern Regional Office; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Rod Owens, Special Agent in Charge, Social Security Administration, Office of the Inspector General; and Joseph W. Cronin, Inspector in Charge, Miami Division, United States Postal Inspection Service, USPIS, made the announcement.
FDIC-OIG, USSS Miami, SBA-OIG, FBI Miami, SSA-OIG, and USPIS handled the investigation, with assistance from Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Brooke Watson is prosecuting the case. Assistant U.S. Attorney Nicole S. Grosnof is handling asset forfeiture.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case n21-cr-20262.
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Colorado woman faces bank robbery charges in AlbuquerqueRead the Press Release
ALBUQUERQUE, N.M. – Keylee Rose Moore, 21, of Hesperus, Colorado, made an initial appearance on June 28 in federal court facing a charge of bank robbery. Moore will remain in custody pending a detention hearing scheduled for June 30.
According to a criminal complaint, on June 1, Moore allegedly entered a bank on Louisiana Avenue in Albuquerque and handed a demand note to a teller. After the teller handed money to Moore, Moore allegedly walked out of the bank and fled. On June 6, the FBI received a tip identifying Moore as the person who allegedly robbed the bank. Moore was arrested at her residence in Hesperus on June 17.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Moore faces up to 20 years in prison.
The FBI Albuquerque Division and the FBI Denver Division’s Durango Resident Agency are investigating this case with the assistance of the Colorado Bureau of Investigation, the Rocky Mountain High Intensity Drug Trafficking Area Southwest Drug Task Force, the La Plata County Sheriff’s Department and the Albuquerque Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting this case.
Clay County Man to Federal Prison for Possessing Stolen GunsRead the Press Release
A man who illegally possessed stolen firearms was sentenced June 23, 2021, to almost 6 years in federal prison.
Travis Grote, 43, from Webb, Iowa, pled guilty January 22, 2021, to possessing stolen firearms and possessing firearms as a prohibited person.
Evidence at the hearings, showed that on June 25, 2019, Grote was involved in a transaction to sell multiple stolen firearms to an undercover law enforcement officer. Grote also admitted that he knew he had previously been convicted of conspiracy to manufacture and distribute methamphetamine, in the United States District Court for the Northern District of Iowa, on or about December 19, 2001, and therefore was a felon and prohibited from possessing firearms.
Grote was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Grote was sentenced to 70 months’ imprisonment. He must also serve a 3-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.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, DCI Crime Laboratory, and Spencer Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4014.
Follow us on Twitter @USAO_NDIA.
Cheektowaga Man Pleads Guilty to Possession of Child PornographyRead 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 James Neyerlin, 36, of Cheektowaga, NY, pleaded guilty before U.S. District Judge John L. Sinatra to possession of child pornography. The charge carries a maximum penalty of 20 years in prison and $250,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that on August 2, 2019, a search warrant was executed at the defendant’s home and several electronic devices were seized. A review of the devices recovered approximately 7,284 images of child pornography, including images of prepubescent minors under the age of 12 engaged in sexually explicit conduct. Neyerlin used the peer-to-peer application BitTorrent to acquire and share videos of child pornography.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger; and the Town of Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
Sentencing is scheduled for October 28, 2021, at 4:00 p.m. before Judge Sinatra.
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Charleston Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to a federal drug charge.
According to court documents and statements made in court, on December 10, 2017, Drema Setliff, 37, sold a fentanyl and heroin mixture to an individual in South Charleston which resulted in the individual dying from a drug overdose.
Setliff pleaded guilty to distribution of heroin and fentanyl and faces up to 20 years in prison when she is sentenced on September 29, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department.
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Monica Coleman 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. 3:21-cr-00077.
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Camden Man Convicted of Illegal Possession of WeaponRead the Press Release
CAMDEN, N.J. – A Camden man was convicted today of unlawfully possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Marshall Onuorah, 31, of Camden, New Jersey, was convicted on one count of possession of a firearm and ammunition by a previously convicted felon. The jury deliberated two hours before returning the guilty verdict following a four-day trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Jan. 29, 2020, Camden County police officers patrolling in their marked patrol car observed Onuorah, a previously convicted felon, appearing to use his hands to conceal an object from the officers’ view. As one of the officers exited the car to approach Onuorah, Onuorah fled. Both officers pursued Onuorah on foot for several blocks before Onuorah surrendered. During his flight, Onuorah discarded a 50-round drum magazine loaded with 46 rounds of ammunition and a firearm with a Glock slide and polymer frame that had been modified to fire as an automatic weapon.
The felon in possession of a firearm and ammunition charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Acting Special Agent in Charge Toby C. Taylor in Newark; officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Senior Trial Counsel Jason Richardson of the U.S. Attorney’s Office in Camden.
California’s Second-Largest Skilled Nursing Facility Operator Pays $450,000 to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Skilled nursing facility operator Plum Healthcare Group LLC and its entity Azalea Holdings LLC, dba McKinley Park Care Center have agreed to pay more than $451,439 to resolve allegations that they violated the False Claims Act, Acting U.S. Attorney Phillip A. Talbert announced today.
Specifically, Plum Healthcare Group agreed to resolve allegations that an employee at its McKinley Park Care Center knowingly created billing records for services that were not actually provided. According to the settlement agreement, Plum Healthcare Group then used these false records to bill Medicare, leading it to obtain Medicare reimbursements that were higher than warranted. The government also alleges that the management of Plum Healthcare Group learned of the extent of these false billings to Medicare, did not conduct an adequate investigation into this conduct, and then failed to submit a refund to Medicare for the full amount management knew had been overbilled or otherwise disclose its false billings to the government.
“Medicare participants who fail to voluntarily disclose fraud risk significant consequences,” said Acting U.S. Attorney Talbert. “As this settlement makes clear, knowingly retaining Medicare funds obtained by fraud is itself a violation of the law, and this office is committed to pursuing enforcement actions to remedy this conduct.”
“It’s unacceptable to stick taxpayers with a bill for health care services that were never provided and for health care executives to look the other way when these false claims were submitted to Medicare,” said Special Agent in Charge Steven J. Ryan of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, we will continue to protect the integrity of Federal health care programs and investigate false billing allegations.”
“The FBI is committed to working with our partners to identify and investigate fraud, especially when it defrauds taxpayer-funded programs,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “This settlement serves as a warning to Medicare participants to carefully audit and investigate records and billing to ensure their business operations are not in violation of federal law.”
The settlement with Plum Healthcare Group resolves allegations originally brought in a lawsuit filed by a former employee under the whistleblower provisions of the False Claims Act. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblower will receive over $90,000 as her share of the recovery from Plum Healthcare Group. The whistleblower’s claims for retaliation and attorneys’ fees are not resolved by this settlement.
This case was the result of an investigation by the HHS Office of the Inspector General, the Federal Bureau of Investigation, along with the U.S. Attorney’s Office for the Eastern District of California. Assistant U.S. Attorney Steven Tennyson handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Caldwell Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
BOISE – Conrad Hull, 30, of Caldwell, pleaded guilty to two counts of sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Hull was indicted by a Boise federal grand jury on November 10, 2020.
According to court records, in October 2020, the Idaho Internet Crimes Against Children (ICAC) Task Force received a Cybertip from Kik Messenger. According to the Cybertip, child pornography had been uploaded to a Kik account that was later identified as belonging to Hull.
A state magistrate judge issued a search warrant for Hull’s residence in Caldwell. Law enforcement executed the search warrant and seized a cellphone belonging to Hull. A forensic examination of the cellphone revealed several files of child pornography, including files depicting a 5-year-old child and a 7-year-old child that Hull admitted producing. Hull told law enforcement that he used his cellphone to take explicit images of the two children so that he would have more files to trade on Kik. Hull admitted to distributing the images of the two children to obtain additional files of child pornography.
Hull is scheduled to be sentenced on September 16 and faces a mandatory minimum of 15 years and up to 30 years in federal prison. U.S. District Judge B. Lynn Winmill will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of his plea agreement, Hull agreed to forfeit the cellphone he used in the commission of the offense.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Idaho ICAC Task Force, Caldwell Police Department, and the Canyon County Prosecutor’s Office, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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Bộ Tư Pháp kết thúc cuộc điều tra về tiếp cận ngôn ngữ và các hành động trả đũa của các tòa án ở Quận Fort Bend, TexasRead the Press Release
WASHINGTON - Hôm nay, Bộ Tư pháp đã công bố một thỏa thuận dàn xếp với Quận Fort Bend (FBC) về cải thiện khả năng tiếp cận tòa án cho những người có trình độ tiếng Anh hạn chế (LEP).
Thỏa thuận này đưa ra kết luận cho một cuộc điều tra của Bộ Tư pháp về các cáo buộc rằng các tòa án FBC phân biệt đối xử với LEP vì nguồn gốc quốc gia của họ và trả đũa người khiếu nại, cả hai hành vi nói trên đều vi phạm Tiêu đề VI của Đạo Luật Dân Quyền năm 1964. Tiêu đề VI nghiêm cấm những đơn vị nhận hỗ trợ tài chính liên bang, ví dụ như FBC, phân biệt chủng tộc, màu da hoặc nguồn gốc quốc gia. Cuộc điều tra của Bộ Tư pháp đã phát hiện ra những rào cản ngôn ngữ khiến LEP khó tiếp cận hệ thống tòa án một cách hiệu quả. Những rào cản này bao gồm các yêu cầu bắt buộc các bị cáo LEP trong các vụ án hình sự phải sử dụng luật sư song ngữ thay vì thông dịch viên hữu thệ trong thủ tục bào chữa cũng như các chính sách dẫn đến việc các bậc phụ huynh LEP phải chịu án phí cao hơn trong các vụ tranh chấp quyền nuôi con.
Trợ Lý về Dân Quyền của Bộ Trưởng Bộ Tư Pháp Kristen Clarke cho biết: “Những người có trình độ tiếng Anh hạn chế có thể bị mất con cái, nhà cửa và các quyền cơ bản khi họ gặp phải rào cản ngôn ngữ mà khiến họ mất quyền tiếp cận hệ thống tư pháp của chúng ta một cách hiệu quả. Bộ phận Dân quyền sẽ tiếp tục đấu tranh để đảm bảo rằng các tòa án loại bỏ các rào cản khiến tất cả mọi người không thể tiếp cận công lý một cách bình đẳng. Tôi xin dành lợi khen cho Quận Fort Bend vì đã thực hiện các hành động cần thiết để đảm bảo quyền tiếp cận ngôn ngữ cho mọi người dân, tuân thủ Tiêu đề VI của Đạo Luật Dân Quyền.”
Quyền Luật sư Hoa Kỳ Mark Donnelly làm việc cho Hạt phía Nam của Texas cho biết: “Fort Bend là một trong những quận đa dạng nhất trong Hạt của chúng tôi. Thỏa thuận này sẽ đảm bảo tất cả mọi người đều có quyền tiếp cận các tòa án của chúng tôi bất kể nguồn gốc quốc gia của họ là gì hay trình độ tiếng Anh của họ ở mức độ nào.”
Theo thỏa thuận, FBC sẽ cung cấp dịch vụ thông dịch miễn phí cho LEP trong các vụ án dân sự và hình sự tại các tòa án của FBC. Các tòa án của FBC cũng sẽ xem xét các kế hoạch tiếp cận ngôn ngữ của mình trong năm tới, phát triển các khóa đào tạo Tiêu đề VI bắt buộc cho các tòa án FBC, cung cấp khóa đào tạo trả đũa Tiêu đề VI và đưa ra các thông báo công khai giải thích về chính sách không phân biệt đối xử và quy trình khiếu nại của Tiêu đề VI bằng các ngôn ngữ không phải tiếng Anh. Bộ Tư pháp sẽ giám sát các yêu cầu này và các yêu cầu khác trong hai năm. FBC cũng đồng ý bồi thường thiệt hại về án phí cho một LEP đã từng sử dụng dịch vụ của tòa án và cho cá nhân khiếu nại rằng mình bị trả đũa.
Việc thực thi Tiêu đề VI là ưu tiên hàng đầu của Bộ Phận Dân Quyền. Quý vị có thể tìm hiểu thêm thông tin về Bộ phận Dân quyền trên trang web của họ tại www.justice.gov/crt, và thông tin về trình độ tiếng Anh hạn chế và Tiêu đề VI tại www.lep.gov. Tất cả mọi người đều có quyền báo cáo các hành vi vi phạm dân quyền tại https://civilrights.justice.gov/report/.
Brownsville, PA Man Gets Lengthy Sentence for Producing and Possessing Sexually Exploitive Visuals of MinorsRead the Press Release
PITTSBURGH - A former resident of Washington County, Pennsylvania, has been sentenced in federal court to 28 years’ incarceration, consecutive to any state court sentence, and lifetime supervised release on his conviction of Production of Material Depicting the Sexual Exploitation of a Minor and Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Sean Houston, age 48, of Brownsville, Pennsylvania. As part of his sentence, the Court ordered Houston to pay $13,709.60 in restitution and a $15,000 special assessment under the Justice for Victims of Trafficking Act of 2015 (JVTA).
According to information presented to the court, on May 20, 2016 and from July 22, 2017 through October 2018, Houston produced and attempted to produce visual depictions of the sexual exploitation of a minor. Additionally, on October 29, 2018, Houston knowingly possessed visual depictions of the sexual exploitation of minors.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Kaufman commended the Homeland Security Investigations, the Centerville Police Department, the North Strabane Police Department, and the Washington County District Attorney’s Office for the investigation leading to the successful prosecution of Houston.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Birmingham Man Sentenced to 60 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced yesterday for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and U.S. Marshal Martin Keely.
United States District Judge Madeline H. Haikala sentenced Lionel Caffey, 27, to 60 months in prison for being a felon in possession of a firearm. Caffey pleaded guilty to the charge in December 2020.
On April 28, 2020, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force went to a Birmingham hotel to arrest Caffey on an outstanding state warrant for attempted murder. According to testimony at his sentencing, Task Force officers encountered Caffey after he walked out of his third-floor hotel room. Caffey fought with officers and reached for his waistband during the struggle. One officer felt a pistol in Caffey’s waistband and alerted the other officers. Caffey broke free from the officers and kicked in the door of another third-floor hotel room. He then attempted to jump out of a closed window at the back of that room, but the window did not break. At that point, officers were able to gain control of him. Even after being cuffed, Caffey continued to reach for his waistband. The pistol was found on the floor in the room where he was handcuffed.
“Convicted felons who possess firearms are among those who are most likely to commit a violent crime,” U.S. Attorney Escalona said. “Prosecuting the drivers of violence in our communities is a top priority of my office.”
The United States Marshals Service Gulf Coast Regional Fugitive Task Force investigated the case. Assistant U.S. Attorney Alan Baty prosecuted the case.
Monday 28 June 2021
Winchester Man Pleads Guilty to Robbing and Assaulting Federal Postal Worker and Cocaine PossessionRead the Press Release
BOSTON – A Winchester man pleaded guilty today to robbing and assaulting a federal postal worker and possessing cocaine.
Raymond Acevedo, 29, pleaded guilty in federal court in Boston to one count of robbing a federal postal worker, one count of assaulting a federal postal worker and one count of possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 26, 2021. Acevedo was arrested and charged in November 2019.
On Oct. 24, 2019, a U.S. postal worker attempted to deliver an Express Mail package from Puerto Rico to an addressee in Dorchester. The postal worker was unable to locate the addressee and was returning to his vehicle when another individual, later determined to be Acevedo, approached the postal worker and demanded the package. When the postal worker would not give Acevedo the package, Acevedo assaulted the postal worker, took the package, and a fight ensued. As the postal worker and Acevedo were fighting over the package, police arrived and eventually arrested Acevedo. The postal worker was transferred to a local hospital for the injuries he received during the altercation.
On Oct. 25, 2019, law enforcement officers opened the package pursuant to a federal search warrant and seized approximately 1.390 kilograms of cocaine.
The charge of robbery of United States’ property provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. The charge of assaulting a federal postal worker provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of distribution of cocaine provides for a minimum mandatory sentence of five years and up to 40 years in prison, four years and up to a lifetime of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
Wilmington Man Sentenced to over 3 Years in Federal Prison for Heroin SmugglingRead the Press Release
WILMINGTON, Del. – United States Attorney David C. Weiss announced that Jose E. Mateo-Nina, 33, of Wilmington, Delaware, was sentenced to 37 months in federal prison today. Mateo-Nina previously pled guilty to possessing over 500 grams of heroin with the intent to distribute. Or, as the Honorable Maryellen Noreika summarized, “You helped to import a lot of heroin—which is a deadly drug.”
According to court documents, on May 1, 2020, U.S. Customs and Border Protection (CBP) officers identified a parcel being sent from Mexico to Wilmington, Delaware. The parcel contained a wheelchair. A search warrant was obtained for the parcel, and over 600 grams of heroin were discovered in the tires of that wheelchair. Homeland Security Investigations (HSI) Agents arrest the Defendant with the parcel after it was delivered.
U.S. Attorney Weiss commented, “During the pandemic, law enforcement officers have seized increasing quantities of illegal drugs transported via the U.S. Postal Service. My office will continue to work with HSI, CBP and other state and federal investigative agencies to disrupt drug trafficking and hold those involved responsible for their actions.”
“Homeland Security Investigations is fully committed to disrupting and dismantling networks engaged in the trafficking of illicit drugs.” said Brian L. Jones, Resident Agent in Charge for Homeland Security Investigations Delaware. “Cases like this are only possible because of the hard work and dedication of our agents, officers and law enforcement partners assigned to the First State Border Enforcement Security Taskforce.
This case was investigated by the HSI Border Enforcement Security Taskforce, which is comprised of agents and task force officers from the Elsmere Police Department, Newport Police Department, Delaware State Police, Army National Guard and United States Postal Inspection Service. HSI was also assisted by the New Castle County Police Department. Assistant U.S. Attorney Christopher L. de Barrena-Sarobe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 01:20-cr-60.
Waterloo Woman Pleads Guilty to Falsifying ATF FormRead the Press Release
A woman who falsely claimed that she was purchasing a firearm for herself pled guilty on June 25, 2021, in federal court in Cedar Rapids.
Jamie Marie Graham, age 23, from Waterloo, Iowa, was convicted of one count of making a false statement during the purchase of a firearm.
At the plea hearing, Graham admitted that she purchased firearms from Mr. Guns in Waterloo in December 2020. Graham admitted that, in connection with those purchases, she filled out a form indicating that she was the actual purchaser of the firearms. She further admitted that those statements were knowingly false, as another person was actually buying the guns.
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.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Graham remains free on bond previously set pending sentencing. Graham faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Safe Streets Task Force and Waterloo Police Department. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-115-CJW.
Follow us on Twitter @USAO_NDIA.
Upper Darby Man Pleads Guilty to Straw Purchasing 20+ Handguns Last Summer at Dealers in Southeast PARead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Nafez Hutchings, 22, of Upper Darby, PA, entered a plea of guilty before United States District Court Judge Anita Brody to an Indictment charging 12 counts of providing false information to a federal firearms licensee.
Between June and August 2020, the defendant fraudulently purchased 23 handguns over 12 separate transactions with several different Federal Firearms Licensees (licensed gun stores) in Philadelphia, Montgomery, and Delaware Counties. During each purchase, Hutchings falsely reported his address and declared on Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 that he was the actual purchaser of the firearms, when in reality it was not his intention to keep possession of the weapon. Before his arrest, the defendant admitted to ATF agents that he provided a false address and falsely certified on the ATF forms that he was buying the firearms, when in fact he was buying them on behalf of other individuals.
“Our Office is doing all we can to stem the tide of violent crime in Philadelphia, including indicting and prosecuting criminals who possess firearms when they’re prohibited by law from doing so. But the efforts of law enforcement to keep guns out of the wrong hands are thwarted every time someone straw purchases a weapon like this defendant did, 23 times over,” said Acting U.S. Attorney Williams. “Make no mistake -- If you knowingly buy a handgun for someone else who cannot legally purchase one, and they use it to commit a crime, it is no better than if you had fired that gun yourself. And that is exactly how you will be treated by the federal authorities.”
“Knowingly buying and selling firearms without a license is a violation of federal law, and by doing so, Hutchings circumvented the laws which are designed to protect communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The investigation of firearms diversion from the legal to the illegal market place is ATF’s top priority, and we are committed to working alongside our law enforcement partners to seek justice above anything.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
Union County Man Charged with Transacting in Criminal Proceeds of a Romance ScamRead the Press Release
NEWARK, N.J. – A Union County man was arrested at Dallas Fort Worth International Airport for transacting in the criminal proceeds of an elaborate romance scam, Acting U.S. Attorney Rachael A. Honig announced today.
Eseosa Obaseki, 36, of Linden, New Jersey, is charged by complaint with engaging in monetary transactions in property derived from wire fraud. He appeared this afternoon before U.S. Magistrate Judge Jeffrey L. Cureton in federal court in the Northern District of Texas and was released in the custody of a third-party custodian pending his initial appearance in the District of New Jersey.
According to documents filed in this case and statements made in court:
Obaseki was the owner of MKO Deliveries Inc. (MKO), a New Jersey-based corporation, and the signatory on a bank account held at Bank-1 (the “Bank-1 account.”) Victim-1 was a resident of Washington State. Individual-1 was a fictious online persona created to defraud Victim-1 and others on online dating and social media applications.
In March or April 2019, Victim-1 was contacted by Individual-1 while playing an internet-based word-game. The pair continued the conversation on a separate internet-based communications platform. Individual-1 and Victim-1 communicated for months on the platform before Individual-1 began asking Victim-1 for money in July 2019. Individual-1, under false pretenses, convinced Victim-1 of his romantic interest in Victim-1, and in doing so, gained Victim-1’s trust.
In June 2019, Individual-1 utilized the communications platform to ask Victim-1 for money. Individual-1 falsely stated to Victim-1 that the money was for business expenses and shipping expenses for a package containing a “box of valuables” that he said he intended to ship to Victim-1. Individual-1 sent Victim-1 emails and messages containing false invoices from a fake shipping company for various fictitious customs fees related to the package.
In January 2020, Individual-1 asked Victim-1 to transfer $100,000 into the Bank-1 account, which only contained $0.41 at the time. Individual-1 falsely represented to Victim-1 that this payment was for expenses associated with the “box of valuables.” On Jan. 9, 2020, based on the fraudulent pretenses, representations, and promises of Individual-1, Victim-1 arranged to have $100,000 wire-transferred from her bank account to the Bank-1 account.
Over the next several weeks, Obaseki systematically drained the Bank-1 account through a series of withdrawals, cashier’s checks, and other transactions. For instance, on Jan. 15, 2020, Obaseki withdrew $12,370 from the Bank-1 account at a branch in Elizabeth, New Jersey, in the form of cash, cashier’s checks, and bank fees.
On Feb. 6, 2020, based on the fraudulent pretenses, representations, and promises of Individual-1, Victim-1 arranged to have $210,000 wire-transferred from her bank account to the Bank-1 account. Again, Obaseki systematically drained the funds from the Bank-1 account through a series of withdrawals, cashier’s checks, and other transactions. For instance, on or about February 7, 2020, Obaseki withdrew $24,394 from the Bank-1 account at a branch in Newark, in the form of cash, cashier’s checks, and bank fees.
Victim-1 never received a package from Individual-1, including any package containing the “box of valuables.” On Feb. 21, 2020, an investigator employed by Bank-1 contacted Obaseki to discuss the wire transfers that occurred in January and February 2020. In a recorded call, Obaseki falsely stated that the recent $210,000 wire transfer had come from someone with whom he had just started working in his car part business.
Each charge of transacting in criminal proceeds is punishable by a maximum potential penalty of 10 years or twice the amount of criminally derived property involved in the transaction.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of George M. Crouch Jr., with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Shawn Barnes and Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney's Office and Fulton County District Attorney launch Summer Initiative to support youth as part of violence-prevention strategyRead the Press Release
ATLANTA – The Atlanta Police Foundation’s At Promise Center hosted the inaugural event for the Project Safe Neighborhoods (PSN) Credible Messenger Youth Summer Violence Intervention (the “Summer Intervention”), a joint project of the U.S. Attorney’s Office for the Northern District of Georgia and the Fulton County District Attorney’s Office.
“We know from experience that intensive mentoring, such as that provided by our PSN Credible Messenger partners, decreases recidivism and bolsters community safety,” said Acting U.S. Attorney Kurt R. Erskine. “The enthusiasm for this project highlights the recognition among our partners, as well as the law enforcement leaders who support these youth, that prevention and violence interruption must play a central role in making Atlanta safer.”
“Our partnership with the At Promise Youth Center is an important part of our effort to provide young people in Fulton County with a better path forward. We are thrilled that the U.S. Attorney's Office and the Atlanta Police Foundation are working with us this summer to prevent violence through intensive engagement with at risk young people. This program will help the participants live better lives and make our community safer and stronger,” said Fulton County District Attorney Fani Willis.
The Summer Intervention will engage up to 20 youth between the ages of 13 and 17 who are on juvenile or adult probation, in a 10-week intensive mentorship initiative. Through 10 hours of mentor engagement per week, youth will participate in support forums, career readiness training, community engagement and an evidenced-based, cognitive-behavioral, life-skills session utilizing the Forward Thinking and Project EGRESS Curriculum. Youth who satisfy the program’s requirements will receive a weekly stipend, made possible by a generous donation from the Arthur M. Blank Family Foundation.
This initiative is being implemented by a team of Southeast Credible Messengers, in connection with the PSN Prevention and Reentry strategy of the U.S. Attorney’s Office. Southeast Credible Messengers are a Community-Based Collaboration between organizations and individuals working together to achieve common goals: positive youth and young adult mentorship, recidivism reduction, public safety, and family & community engagement. The Southeast Credible Messenger team for this initiative, led by the Offender Alumni Association (OAA), includes Freedom is a Choice, Inc., EGRESS Consultants & Services, LLC., Mothers Against Gang Violence, Inc., Jump Forward, Inc., and Offender Alumni Association, Inc.
We would also like to thank leadership from the Atlanta field offices of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department for their attendance and support of this inaugural event to provide encouragement to the invited youth.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two men indicted on tax fraud and operating an unlicensed money transmitting businessRead the Press Release
ALBUQUERQUE, N.M. – David Wellington, 62, of Albuquerque, and Jerry Shrock, 46, of Meadowview, Virginia, were indicted on June 23 by a federal grand jury charging them with conspiracy to defraud the United States. Wellington faces an additional count of operation of an unlicensed money transmitting business. Shrock is scheduled for an arraignment on July 15, while Wellington is scheduled to make an initial appearance on July 7.
According to the indictment, since at least 2005, Wellington and his business partner operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services allegedly would open bank accounts under the names and IRS employer identification numbers (EIDs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts.
Since at least 2006, Shrock was a client of Wellington and National Business Services. Through National Business Services, Wellington allegedly created multiple LLCs in New Mexico for Shrock, including White Top Enterprise LLC. National Business Services allegedly opened a bank account in the business name and EID of White Top Enterprise and provided Shrock with access to the funds in the account. Between May 9, 2011, and June 30, 2015, Shrock allegedly deposited and withdrew approximately $4,875,940, of which at least $4,347,101 was income for which Shrock never filed a personal or business tax return with the IRS.
At the time of the deposits and withdrawals, Shrock was subject to an outstanding IRS lien for unpaid taxes, penalties and interest in the amount of approximately $1 million. Because it was not in his name, using the White Top Enterprise account allegedly allowed Shrock to generate and access income while evading both the outstanding assessment and personal and business income taxes.
An indictment is only an allegation. Defendants are presumed innocent unless and until proven guilty. If convicted, Shrock faces up to five years in prison and Wellington faces up to 10 years in prison.
IRS Criminal Investigation investigated this case. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Tulsa Man Found Guilty of Voluntary ManslaughterRead the Press Release
A federal jury found a Tulsa man guilty of voluntary manslaughter in Indian Country after killing an Indian man with a knife, announced Acting U.S. Attorney Clint Johnson.
Bradon Kemp, 24, of Tulsa, maliciously killed an Indian man by stabbing him in the head, neck, and torso with a knife on August 4, 2020.
“Bradon Kemp will now be held responsible for his violent criminal behavior. My office takes seriously its special trust responsibility to prosecute violent crimes in Indian Country. I’m extremely proud of the FBI and Tulsa Police Department as well as Assistant U.S. Attorneys Steven Briden and Ed Snow for their tireless preparation and successful prosecution of Mr. Kemp in federal court,” said Acting U.S. Attorney Clint Johnson.
On August 4, 2020, Tulsa Police Department officers responded to a 911 call involving a stabbing at an apartment complex. Kemp and the victim both lived within the same apartment complex. Kemp approached the Indian man through an upstairs landing outside two separate apartment units. He began attacking the male victim with a knife starting on the landing and traveling down the stairs to the sidewalk. Upon landing on the sidewalk, Kemp continued to stab the victim. The victim suffered 12 fatal stab wounds.
Another resident of the apartment complex observed the altercation and intervened to stop Kemp from fleeing the crime scene. Kemp stayed until officers arrived and took him into custody. Officers discovered the deceased victim lying next to Kemp’s knife on the sidewalk.
The victim was a citizen of the Cherokee Nation and the crime occurred within the Muscogee Nation Reservation.
The FBI and Tulsa Police Department served as the investigative agencies. Judge Claire V. Eagan presided over the case. Assistant U.S. Attorneys Steven Briden and Ed Snow prosecuted the case. Braden Bennet Kemp will be sentenced on October 5, 2021.
Target of U.S. Attorney’s Office Anti-Violent Crime Initiative Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jarrel Jakeem Joseph, 25, pleaded guilty to receipt of a firearm while under indictment today before U.S. District Judge Michael J. Truncale.
“We take violent crime seriously in Southeast Texas, and violent individuals who possess firearms will be held accountable,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s guilty plea represents another step forward in making Port Arthur a safer community.”
According to court documents, on March 31, 2021, Joseph and several other individuals were observed fighting by law enforcement in the 1600 block of Vicksburg Avenue in Port Arthur. Joseph left the fight on foot and was observed discarding an object, which was found by law enforcement and determined to be a stolen semiautomatic pistol. Further investigation revealed that on Oct. 8, 2020, Joseph was placed on probation for seven years after a deferred adjudication of guilt for felony possession of a controlled substance in Jefferson County, Texas. Joseph is prohibited from possessing or receiving firearms as part of the deferred adjudication.
Joseph was indicted by a federal grand jury on May 13, 2021. He faces up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Matthew Quinn.
Surgical Care Affiliates and Orlando Surgery Center Agree to Pay $3.4 Million to Settle False Claims Act LiabilityRead the Press Release
Orlando, FL – Acting United States Attorney Karin Hoppmann announces today that the Surgical Care Affiliates, LLC and Orlando Center for Outpatient Surgery, LP have agreed to pay the United States $3.4 million to resolve allegations that both companies violated the False Claims Act by submitting claims for kidney stone procedures that were not medically justified and for engaging in an illegal kickback arrangement.
The United States previously intervened in a whistleblower lawsuit against SCA and the Orlando Center on October 15, 2019. The lawsuit and settlement relate to the submission of claims for extracorporeal shock wave lithotripsy, a procedure used to break up kidney stones. According to the lawsuit, Dr. Patrick Hunter was a urologist who performed lithotripsy procedures at the Orlando Center, a facility affiliated with SCA. According to the settlement agreement, between January 2010 and April of 2016, the Orlando Center submitted claims for lithotripsy procedures performed on Medicare and TRICARE patients by Dr. Hunter that were medically unnecessary because the procedures were not medically indicated or because the patients did not have kidney stones.
The settlement agreement also resolves allegations that Dr. Hunter, SCA, and the Orlando Center engaged in an illegal kickback arrangement, where Dr. Hunter performed the lithotripsy procedures in exchange for per-procedure payments from the Orlando Center. Dr. Hunter allegedly agreed to perform his lithotripsy procedures at the Orlando Center in exchange for payments from the Orlando Center, in violation of the Anti-Kickback Statute. SCA vetted and approved the agreement. These procedures were then billed to and paid by Medicare and TRICARE in violation of the False Claims Act.
“Medicare and TRICARE patients are some of our most vulnerable populations,” said Acting U.S. Attorney Karin Hoppmann. “The United States Attorney’s Office will always pursue providers who seek and pay illegal kickbacks or bill for baseless procedures.”
“My office remains steadfast in our commitment to address illegal kickback arrangements within the federal healthcare system,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable individuals and entities who pay or receive kickbacks.”
“We owe it to our beneficiaries to ensure their needs are placed first and the commitment to their care is unwavering. Any time the government is defrauded, it is unacceptable to the American taxpayer, and in this case, Medicare also was a victim. We are grateful to the Department of Justice for working to maintain trust and transparency by ensuring medical providers continue to put their patients’ needs first,” said Defense Health Agency Director, Lt. Gen. Ronald J. Place, M.D.
The settlement resulted from a lawsuit originally filed in the United States District Court for the Middle District of Florida by Scott Thompson. Mr. Thompson sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. The United States intervened in this matter and litigated the case. Mr. Thompson will receive $748,000 of the proceeds from the settlement with SCA and the Orlando Center.
Dr. Hunter passed away in March of 2019. In November 2020, Dr. Hunter’s estate paid the United States $1.75 million to resolve the government’s claims arising from Dr. Hunter’s alleged participation in the scheme.
The United States’ intervention in and settlement of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the HHS Office of Inspector General, and the Defense Health Agency. Assistant United States Attorneys Jeremy R. Bloor and Sean Keefe led the investigation.
The case is captioned United States ex rel. Thompson v. Surgical Care Affiliates et al., Case No. 6:16-cv-2189-PGB-LRH. The settlement resolves the United States’ claims against SCA and the Orlando Center in that case. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Stamford Man Charged with Federal Firearm OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a two-count indictment charging AMIN HASAN, 44, of Stamford, with unlawful firearm possession offenses.
The indictment was returned on March 29, 2021, and Hasan appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charges. Hasan has been detained since his arrest on related state charges in December 2020.
The indictment alleges that, on December 6, 2020, Hasan possessed a loaded Glock 9mm pistol. In May 2019, Hasan was convicted in state court of assault of public safety, emergency medical, public transport or health care personnel.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
It is further alleged that Hasan possessed the pistol while subject to a court order.
The indictment charges Hasan with one count of unlawful possession of a firearm by a felon and one count of unlawful possession of a firearm as a prohibited person. If convicted, Hasan faces a maximum term of imprisonment of 10 years on each count.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Bureau of Investigation and Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
St. Louis man pleads guilty to drug and weapon chargesRead the Press Release
ST. LOUIS – Landon Whitfield, 26, of St. Louis, Missouri, appeared before United States District Court Judge Ronnie L. White on today’s date and pleaded guilty to one count of possession with intent to distribute fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime.
On November 6, 2019, members of the St. Louis Metropolitan Police Department, while in the Mark Twain Neighborhood, observed Whitfield driving a vehicle with heavily tinted windows. Knowing that this vehicle had previously fled from the officers on several occasions, the officers attempted to conduct a traffic stop on the vehicle. Whitfield fled from the officers and committed numerous traffic violations in the process. In an effort to disable the vehicle, the officers successfully deployed spike strips, deflating two of its tires. Undeterred and causing a substantial risk of death or serious bodily injury, Whitfield continued to flee in the vehicle and almost struck a police car in the process. Whitfield eventually abandoned his vehicle and fled from officers on foot while armed with an AR-15-type firearm.
Several officers confronted Whitfield in an alley. Whitfield raised his firearm. An officer, fearing for his safety, fired one shot in response. Whitfield then dropped his firearm and a green bag he had over his shoulder. Whitfield tried to continue his escape by climbing a nearby fence. Officers deployed a department-issued Taser. allowing them to take Whitfield into custody. The firearm Whitfield possessed was a Matrix Aerospace M556-SC semi-automatic pistol. It was loaded with 22 rounds of ammunition in an extended magazine. Inside Whitfield’s green bag were 345 capsules of fentanyl weighing approximately 37 grams.
Judge White has set sentencing for September 21, 2021.
This case was investigated by the St. Louis Metropolitan Police Department.
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St. Albans Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Antoine Louis, 37, of St. Albans, was sentenced today to 100 months in prison for possession with intent to distribute methamphetamine and heroin, and eight months in prison, to run consecutively, for violating his supervised release from a previous federal drug conviction.
According to court documents and statements made in court, Louis was stopped by law enforcement in St. Albans on October 19, 2020. A police K-9 alerted to the presence of controlled substances and Louis admitted to officers that he had hidden controlled substances on his person. Louis also gave his consent for law enforcement officers to search his residence. During the search of Louis’ home, law enforcement officers located two firearms, six rounds of ammunition, approximately 27.1 grams of methamphetamine and approximately 47.3 grams of heroin. At that time, Louis was on supervised release for a previous federal drug conviction. Louis also admitted that on October 6, 2020, he sold over five grams of heroin to a confidential informant that was working with law enforcement.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney L. Alexander Hamner handled 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 Nos. 2:20-cr-00195 and 3:11-00049-01.
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Reno Man Sentenced for Robbing Two Stores at GunpointRead the Press Release
RENO, Nev. — A Reno resident was sentenced on Friday to 14 years and one month in federal prison for robbing a liquor store and a convenience store at gunpoint in July 2019.
In March 2021, a federal jury convicted Edward Monet Knight, 32, of Reno, of two counts of interference with commerce by robbery and two counts of use of a firearm during and in relation to a crime of violence. Knight already had prior felony convictions, three of which stemmed from incidents where he robbed commercial establishments at gunpoint. On June 25, 2021, Chief U.S. District Judge Miranda M. Du sentenced Knight to 30 days for the two most recent robberies and the statutory mandatory minimum of 14 years for the use of a firearm during those robberies.
According to court documents and evidence presented during trial, on July 7, 2019, Knight racked the slide of a firearm while threatening a clerk at a liquor store in Sparks, Nevada. The next day, on July 8, Knight entered a convenience store and told a clerk: “what do you mean knock it off, with a real gun that’s a good way to get yourself killed.” Knight then pointed a semi-automatic handgun at the clerk and ordered the clerk to give him all the money in the cash register. After Knight fled the store with the stolen money, Sparks Police Department officers responded to the scene. A search of an abandoned vehicle that was seen fleeing the convenience store revealed: a handgun matching the description of the gun used in the robbery; Knight’s identification card; and the stolen money.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF and the Sparks Police Department. Assistant U.S. Attorneys Megan Rachow and Penelope Brady prosecuted the case.
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Real Estate Developer Convicted of BriberyRead the Press Release
UPDATE: In an opinion handed down on Aug. 23, 2022, the Fifth Circuit Court of Appeals vacated the below conviction and remanded it for further proceedings.
A Dallas real estate developer has been convicted of bribing two former Dallas City Council members, Carolyn Davis and Dwaine Caraway, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following two weeks of trial, a federal jury convicted Ruel Hamilton, the president of AmeriSouth Realty Group, of one count of conspiracy and two counts of bribery of an agent of a local government receiving federal funds.
“The people of Dallas deserve true public servants, not those bought and paid for by the city’s elite. By using money to bend elected officials to his will, Mr. Hamilton betrayed the communities he purports to hold dear,” said Acting U.S. Attorney Prerak Shah. “The U.S. Attorney’s Office will not allow a kickback culture to fester at City Hall. To anyone considering this sort of unscrupulous behavior: Think twice. Our prosecutors are tenacious, and we are determined to root out corruption wherever we find it.”
“Public corruption is one of the FBI’s top criminal priorities, it erodes the public’s trust and wastes valuable resources intended for taxpayers," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. "Mr. Hamilton used his influence and money to circumvent the system by bribing two city council members to earn incentives for an affordable housing project and push an agenda to increase his political influence. The FBI and our law enforcement partners will continue to ensure that those who pay bribes, accept bribes and facilitate bribe payments are held fully accountable.”
According to evidence presented at trial, from 2013 to 2015, Mr. Hamilton shelled out tens of thousands of dollars in bribes to Carolyn Davis, who was then serving as chair of the city’s Housing Committee.
In return, Ms. Davis – who pleaded guilty to her role in the scheme prior to her death in 2019 – supported Mr. Hamilton’s Royal Crest housing project, voting to authorize a real estate development loan and resolutions supporting an award of a 9 percent tax credit for Royal Crest. Ms. Davis supported the Royal Crest housing project, despite the fact that it failed to meet the city’s enumerated multifamily housing priorities.
In an attempt to disguise the bribe payments, Mr. Hamilton funneled payments to Ms. Davis through a not-for-profit intermediary run by Jeremy “Jay” Scroggins. Mr. Scroggins – who also previously pleaded guilty – testified at trial that he cashed thousands of dollars’ worth of checks, solicited by Ms. Davis and made out to him personally or to his not-for-profit, “Hip Hop Government. Mr. Scroggins testified that he used $15,000 for a Freedom Ride Tour in November 2014, and cashed the remainder of the checks, turning most of the money over to Ms. Davis. The councilwoman told Mr. Scroggins payments would not pose a problem, because people “don’t go to prison for $2,000,” according to a recorded phone call played in court.
Evidence showed that Mr. Hamilton also paid Ms. Davis directly. Over the course of the conspiracy, Mr. Hamilton forked over cash, and on at least one occasion he invited her to accompany him to the bank to make a cash withdrawal. At Ms. Davis’ urging, Mr. Hamilton also directed campaign contributions to a political protégé. Further, Mr. Hamilton promised Ms. Davis a job once she was off the counsel. Evidence showed that Mr. Hamilton paid Ms. Davis in excess of $145,000, once she left the council.
At one point, Mr. Hamilton became concerned that a former city council member was going through their financial dealings with a “fine tooth comb,” telling Ms. Davis, “she scares me.” Even so, he continued to bribe Ms. Davis.
Three years later, in 2018, Mr. Hamilton paid a $7,000 bribe to councilman Dwaine Caraway, who Mr. Hamilton believed could persuade the mayor to put a paid sick leave referendum on the city council’s agenda. Mr. Hamilton hoped the referendum would increase turnout in the polls, advantaging his preferred political candidates.
Video admitted into evidence at trial shows the pair meeting at Mr. Caraway’s office on August 3, 2018:
“I want to do that, so… what can I do for you, right now, today?” Mr. Hamilton asks.
“You can answer that bill I just threw out there for about 62 [$6,200] today,” Mr. Caraway responds.
“Okay,” Mr. Hamilton says. “Can you follow through with the mayor?”
The pair then discuss what Mr. Hamilton should put in the memo line “for posterity” so that “if somebody ever asks, I can come up with a reference.”
[Video clips available to credentialed press upon request.]
Mr. Hamilton, who was originally charged in February 2019, now faces up to 25 years in federal prison – up to five years for the conspiracy count and up to ten years for each bribery count. (He was acquitted of count of use of an interstate facility to commit bribery in violation of the Travel Act, a count that carried a sentence of up to five years.) His sentencing has been set for Nov. 9, 2021.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Tiffany H. Eggers, Chad E. Meacham, Joe A. Magliolo, Andrew Wirmani (fmr.), and Marcus Busch prosecuted the case with support from their appellate liaison, Assistant U.S. Attorney Stephen S. Gilstrap. Chief U.S. District Judge Barbara M. G. Lynn presided over the trial.
Owner of Two Pharmacies Pays $300,000 to Resolve Controlled Substances Act ViolationsRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Lisa G. Johnston announced today that Jawed Ali Khan Sherwani, Beckley Pharmacy and Bee Well Pharmacy have agreed to pay $300,000 in civil monetary penalties to resolve allegations that the pharmacies violated the Controlled Substances Act (CSA) by filling illegitimate prescriptions. Beckley Pharmacy has two locations in the Beckley, West Virginia area. Bee Well Pharmacy is located in South Charleston, West Virginia. Sherwani is a pharmacist who owns and operates the pharmacies. The settlement provides that from on or about March 1, 2015 to in or about March 2020, both Beckley Pharmacy locations and Bee Well Pharmacy violated the CSA by filling prescriptions the pharmacies knew or should have known were not issued for a legitimate medical purpose. Bee Well Pharmacy also agreed to surrender its Drug Enforcement Administration (DEA) registration which will result in the pharmacy being unable to fill prescriptions for controlled substances. As part of the settlement, Beckley Pharmacy has entered into a Memorandum of Agreement with DEA which imposes heightened regulatory and reporting obligations but will allow both Beckley Pharmacy locations to retain their respective DEA registrations. The CSA prohibits the distribution or dispensing of a controlled substance without a valid prescription. A valid prescription for a controlled substance must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his or her practice. Based on the investigation, the United States maintains that the pharmacists at the Beckley Pharmacy locations and Bee Well Pharmacy knew or had reason to know that patients had presented illegitimate prescriptions that should not have been filled.
“There has been a tremendous amount of damage caused by prescription drug abuse in the Southern District of West Virginia,” said Acting United States Attorney Lisa G. Johnston. “In response, we have made it a priority to target different components of the opioid supply chain for their contributing roles to the crisis. Pharmacies must keep accurate records and maintain strong controls when handling controlled substances. Those that fail to do so open the door to the potential diversion of drugs, the illegal distribution, and abuse of these drugs.”
Assistant United States Attorneys Alan G. McGonigal and Gregory P. Neil handled the case. The Drug Enforcement Administration (DEA) Diversion Group and the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG) investigated the case.
Congress passed the CSA to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer or sell controlled substances must comply with strict inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting and distribution of controlled substances.
The settlement is a result of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud.
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.
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Owner and Principal of Investment Firm Found Guilty of Insider Trading and Investment Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that, following a two-week trial presided over by U.S. District Judge Edgardo Ramos, and approximately one hour of deliberations, DONALD BLAKSTAD, the owner and principal of a California-based investment firm, was found guilty on all counts for committing insider trading and a securities offering fraud scheme. BLAKSTAD’s offenses yielded more than $7 million in criminal profits.
U.S. Attorney Audrey Strauss said: “As a unanimous jury found, Donald Blakstad used his connections to a company insider to gather inside information that he and his associates then traded on, raking in more than $6 million in illegal profits. In addition, Blakstad defrauded investor clients out of more $1 million, funds he purported would be invested but he instead misappropriated, in some cases for personal expenses. Now Donald Blakstad awaits sentencing for his crimes.”
According to the allegations contained in the Indictment and the evidence presented at trial:
BLAKSTAD was a stock trader and the owner and principal of an investment fund known as Midcontinental Petroleum Inc. (“Midcontinental Petroleum”), which purported to be in the business of soliciting investments in the energy industry. Martha Bustos was a former certified public accountant who worked in the finance department at Illumina, Inc. (“Illumina”), a San Diego-based biotechnology company whose securities trade on NASDAQ. By virtue of her employment at Illumina, Bustos had access to material nonpublic information about Illumina’s financial condition, including its earnings.
On several occasions, from 2016 through 2018, BLAKSTAD obtained inside information about Illumina’s financial condition from Bustos before Illumina publicly announced its earnings and financial results. As BLAKSTAD knew, Bustos owed a duty to keep inside information about Illumina confidential.
BLAKSTAD, aware of Bustos’s breach of duty to Illumina, used this inside information to make profitable trades in Illumina securities shortly before Illumina’s earnings announcements. At times, BLAKSTAD tipped his associates so that they could trade Illumina stock and options based on the inside information. At other times, in order to avoid detection, BLAKSTAD arranged for his associates to purchase Illumina securities for BLAKSTAD’s benefit in accounts controlled by his associates.
Following the public announcement of Illumina’s earnings, BLAKSTAD and his associates sold the Illumina securities at a significant profit, sometimes exceeding more than 2,000 percent. In total, BLAKSTAD and his associates made more than $6 million in profits from purchasing and selling Illumina securities.
In addition, from at least in or about 2015 through at least in or about 2019, BLAKSTAD devised and operated a securities offering fraud to fraudulently obtain more than a $1 million from a number of investors. BLAKSTAD fraudulently induced victim investors to make up-front, lump-sum investments for securities issued by Midcontinental Petroleum, which funds BLAKSTAD then misappropriated, in substantial part.
To facilitate the scheme, BLAKSTAD made false and misleading representations to investor victims regarding how their investment funds would be utilized. During the scheme, at BLAKSTAD’s direction, victims transmitted their funds, including by wire transfer, into bank accounts that were controlled by BLAKSTAD. Once he obtained these investor funds, BLAKSTAD did not use them for the purposes he had represented to investors. Instead, BLAKSTAD diverted a substantial portion of victims’ funds to himself and to co-conspirators. For example, BLAKSTAD used the funds to pay for a variety of personal expenses and for purposes that were unrelated to the business of Midcontinental Petroleum.
BLAKSTAD also made a series of false and misleading statements to victims designed to avoid detection, perpetuate the scheme, and keep the victim funds he received as a result of the fraud.
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BLAKSTAD, 62, of San Diego, California, was convicted on all counts of the Indictment. He was convicted of one count of conspiracy to commit securities fraud, two counts of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud for his participation in the insider trading scheme. He was also convicted of one count of conspiracy to commit securities fraud and wire fraud and one count of wire fraud for his participation in the securities offering fraud scheme. The securities fraud counts and the conspiracy to commit wire fraud count each carry a maximum sentence of 20 years in prison. The conspiracy to commit securities fraud and the conspiracy to commit securities fraud and wire fraud counts each carry a maximum term of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
BLAKSTAD is scheduled to be sentenced before Judge Ramos, who presided over the trial, on October 28, 2021, at 11:00 a.m.
Bustos pled guilty in June 2019 for her participation in the insider trading scheme. Bustos, who is cooperating with the Government, has yet to be sentenced.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation. Ms. Strauss also thanked the Securities and Exchange Commission, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Unit. Assistant U.S. Attorneys Edward A. Imperatore and Jared Lenow are in charge of the prosecution.
Oklahoma Man Charged with Receipt and Distribution of an Obscene Visual Presentation of Sexual Abuse of ChildrenRead the Press Release
A Grand Jury in the Northern District of Oklahoma has charged a former dependent of an United States Armed Forces member with two counts of receipt and distribution of an obscene visual presentation of sexual abuse of a minor child under the Military Extraterritorial Jurisdiction Act (MEJA), announced Acting U.S. Attorney Clinton J. Johnson.
On Thursday, June 24, 2021, Derek Ray Flaming, 35, of Salina, Oklahoma, appeared for his initial appearance in the Northern District of Oklahoma on two counts of Receipt and Distribution of an Obscene Visual Representation of Sexual Abuse of Children in violation of 18 U.S.C. Sections 1466A(a)(1) and 3261(a)(1).
“My office is committed to protecting minor children from all manner of alleged abuse, neglect, and exploitation,” said Acting U.S. Attorney Clinton J. Johnson. “Derek Flaming has been charged with knowingly receiving and distributing an obscene picture of a minor child engaging in sexually explicit conduct while residing in South Korea with a member of the United States Armed Forces.”
According to the indictment, during 2016 and 2017, Flaming was the dependent of an United States Armed Forces member stationed at United State Army Garrison (USAG) – Youngsan, within the Republic of Korea. During this time, Flaming received and later distributed an image depicting a minor child engaged in sexually explicit conduct.
MEJA gives U.S. courts jurisdiction to prosecute crimes committed outside the United States by, among others, dependents of United States Armed Forces Dependents residing with members of the armed forces stationed outside the United States.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the U.S. Department of Justice, 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 http://www.justice.gov/psc.
An indictment is a charging instrument alleging violation of the law. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Army Criminal Investigative Command, the CEOS High Technology Investigative Unit, U.S. Marshals’ Northern Oklahoma Violent Crime Task Force and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case is being prosecuted by CEOS Trial Attorney Ralph Paradiso and Assistant U.S. Attorney Aaron Jolly of the Northern District of Oklahoma.
Nine Face Federal Drug and Firearms ChargesRead the Press Release
BINGHAMTON, NEW YORK – Nine defendants were arrested and charged with federal drug conspiracy and drug possession charges, conspiracy to commit money laundering and federal firearms offenses, announced Acting United States Attorney Antoinette T. Bacon, Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and Acting New York State Police Superintendent Kevin P. Bruen.
The following defendants were arrested from June 17, 2021 through June 26, 2021:
Tushaun Merritt, 44, of Michigan, was arrested in the District of Nevada on an indictment filed in the Northern District of New York. He is charged in an Indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Demarrio Shell, 47, of Michigan, was arrested in the District of Nevada on an indictment filed in the Northern District of New York. He is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, Possession with Intent to Distribute Methamphetamine, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Michael Hawkins, 38, of Michigan, was arrested in the Western District of Michigan on an indictment filed in the Northern District of New York. He is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, Possession with Intent to Distribute Methamphetamine, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
David Wemmer, 51, of Spencer, New York, is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Jennifer Patton, 40, of Spencer, New York, is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine. If convicted she faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Brandon Vanorman, 45, of Spencer, New York, is charged in a criminal complaint with Possession with Intent to Distribute Methamphetamine and Cocaine. If convicted he faces between 5 and 40 years in prison, a fine of up to $5,000,000 and a supervised release term of at least 4 years and up to life.
Philip Acciarito, 34, of Owego, New York, is charged in a criminal complaint with Possession of a Firearm by a Convicted Felon. If convicted he faces up to 10 years in prison, a fine of up to $250,000.00, and a period of supervised release of up to 3 years.
David Cobb, 32, of Spencer, New York, is charged in a criminal complaint with Possession of a Firearm by a Convicted Felon. If convicted he faces up to 10 years in prison, a fine of up to $250,000.00, and a period of supervised release of up to 3 years.
Eini Raupers, 44, of Spencer, New York, is charged in a criminal complaint with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Cocaine. If convicted, she faces up to 20 years in prison, a fine of up to $1,000,000 and a supervised release term of at least 3 years and up to life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The charges in the indictments and complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Several of the defendants appeared in Binghamton, New York, before United States Magistrate Judge Miroslav Lovric. Others appeared in front of magistrates in the District of Nevada and the Western District of Michigan. To date, they are all currently detained pending further proceedings.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation (IRS-CI), the United States Postal Inspection Service (USPIS), the New York State Police Violent Gang and Narcotics Enforcement Team (NYSP VGNET, Troop C and E), the New York State Police Special Investigations Unit (SIU), the Broome County Special Investigations Unit Task Force (BCSIUTF), the Tioga County District Attorney’s Office, the Elmira Police Department, the Michigan Jackson Narcotics Enforcement Team (JNET), with the assistance of the Tioga County Sheriff’s Office, the Owego Police Department and the Sayre Police Department and is being prosecuted by Assistant U.S. Attorney Kristen Grabowski, with the assistance of the United States Attorney’s Offices in the Eastern and Western Districts of Michigan, the Western District of New York and the District of Nevada.
New York Man Sentenced to One Year in Prison for Role in Defrauding Banks in $9 Million Shotgun Loan SchemeRead the Press Release
NEWARK, N.J. – A Freeport, New York, man was sentenced today to 12 months and one day in prison for participating in a conspiracy to carry out a $9 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a scheme known as “shotgunning,” Acting U.S. Attorney Rachael A. Honig announced.
Yorce Yotagri, 54, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Yotagri was a business partner of Jorge Flores of Oakdale, New York, and Jose Piedrahita of Freeport, two conspirators also charged in the indictment. From 2010 through February 2018, Yotagri, Flores, Piedrahita, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In August 2016, Yotagri lived at a property in Freeport. A quitclaim deed was prepared that facilitated the transfer of ownership of the property to Yotagri and Piedrahita even though Piedrahita did not own the property.
In September 2016, with the Freeport property now in the names of Yotagri and Piedrahita, the conspirators applied for a $290,000 HELOC from a victim bank in Yotagri’s and Piedrahita’s names using the property as collateral. Piedrahita’s contact information appeared on the HELOC application on the Freeport property, which also contained inflated income and assets for Piedrahita. On Dec. 2, 2016, based on the false representations contained in the application, the victim bank issued a HELOC to Piedrahita for $290,000. Piedrahita then disbursed the $290,000 to himself, Yotagri, and Flores. The HELOC funds were never repaid.
In January 2017, Flores called another victim bank and applied for a second HELOC in Piedrahita’s name for $250,000 – again using the Freeport property as collateral. This time Flores’ email address and phone number appeared on the HELOC application on the Freeport property. To demonstrate to the second victim bank that the property was unencumbered by any senior mortgages, Flores and Piedrahita sent several fraudulent documents to the victim bank to conceal the existence of or amounts owed on senior mortgages. The false documents the defendants submitted included a series of false payoff letters and fake checks from other banks, all submitted to deceive the victim bank into believing that the remaining value of the senior mortgages on the Freeport property was far less than what was actually owed.
On March 22, 2017, the second victim bank issued a HELOC to Piedrahita for $250,000. Piedrahita then disbursed nearly the entirety of the HELOC funds to himself and Yotagri. The funds obtained by Piedrahita and Yotagri from the HELOC were not repaid and were overdrawn, causing losses to the second victim bank totaling approximately $290,000.
At the time the applications for the two HELOCS were made, there was not sufficient equity in the Freeport property to support the $540,000 in HELOC applications made by Flores, Piedrahita, and Yotagri.
The overall scheme, which included HELOC loans for approximately 17 different properties, resulted in over $9 million in losses to the victim banks.
In addition to the prison term, Judge Vazquez sentenced Yotagri to three years of supervised release and ordered him to pay restitution of $580,048.
Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), Northeast Region, under the direction of Special Agent in Charge Robert W. Manchak; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.
The charges and allegations against Yotagri’s co-defendants contained in the indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
New Orleans Men Plead Guilty to Their Roles in a Federal Drug ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on June 21, 2021, that TAURUS RUSSELL, a/k/a “Scrappy,” age 44, a resident of New Orleans, plead guilty to a three-count Superseding Bill of Information. In Count 1, RUSSELL is charged with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846. In Counts 2 and 3, RUSSELL is charged with use of communication facilities to further a drug trafficking crime in violation of Title 21, United States Code, Section 843(b).
According to court documents, RUSSELL conspired with other members of a drug trafficking organization to distribute and possess with the intent to distribute cocaine hydrochloride and cocaine base. Additionally, RUSSELL used a communication facility, the telephone, to facilitate the distribution and possession with intent to distribute cocaine base.
United States District Court Judge Susie Morgan will sentence RUSSELL on October 13, 2021. For Count 1, RUSSELL faces a mandatory minimum term of imprisonment of 5 years, with a possible maximum sentence of 40 years, a fine of up to $5,000,000.00, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.00. For Counts 2 and 3, RUSSELL faces a maximum term of imprisonment of 4 years, a fine of up to $250,000.00, a period of supervised release of up to 1 year, and a mandatory special assessment fee of $100.00.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office. This case is being prosecuted by Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Muscatine Woman Sentenced to Federal Prison for Drug Conspiracy ChargeRead the Press Release
DAVENPORT, IOWA – A Muscatine woman, Kayla Jean Crabtree, was sentenced on June 22, 2021, by United States District Court Chief Judge John A. Jarvey to 180 months in prison for Conspiracy to Distribute a Controlled Substance. Following her prison term, Crabtree was ordered to serve five years of supervised release and pay $100.00 to the Crime Victims’ Fund.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
According to court documents, Crabtree, age 34, was identified as a drug trafficking suspect in approximately January of 2019. When attempting a traffic stop on Crabtree for an outstanding arrest warrant based on a parole violation, Crabtree fled by striking into police squad cars that were blocking her path. When apprehended, a glass methamphetamine pipe and functioning compact digital scale were found on her. A search warrant was executed on Crabtree’s vehicle and officers found approximately 70 grams of methamphetamine, drug packaging materials, and $3,389.25 cash. As part of the investigation, law enforcement learned Crabtree was involved with the distribution of over 1.5kg of ice methamphetamine. Crabtree pleaded guilty to the conspiracy charge on January 28, 2021 and admitted to being involved in an ice methamphetamine distribution conspiracy beginning by as early as January 1, 2019, and continuing until April 23, 2019, when Crabtree was arrested.
The Muscatine County Sheriff’s Department investigated the case and the United States Attorney’s Office for the Southern District of Iowa prosecuted this matter.
Monroe County Man Pleads Guilty to Distributing A Designer DrugRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Hernandez, age 43, of Tobyhanna, Pennsylvania, pleaded guilty today before U.S. District Court Judge Robert D. Mariani to distributing a “designer drug” which is a controlled substance analog.
According to Acting United States Attorney Bruce D. Brandler, Hernandez admitted to distributing a “designer drug” known as “4-choroethcathinone,” a controlled substance analog which mimics the effects of other drugs, in the Monroe County area in June and July 2019.
Under federal law, such “designer drugs” are controlled substance analogues, which are chemically similar to controlled substances in Schedule I or II, to the extent they are intended for human consumption, and are treated as controlled substances.
This matter was investigated by the Drug Enforcement Administration and the Pocono Mountain Regional Police Department. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Judge Mariani ordered that a presentence report be completed for Hernandez. Sentencing will be scheduled at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
The charge carries a maximum sentence of up to twenty years in in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mobile Man Sentenced to Eighty Months in Prison in Firearm CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that United States District Judge Jeffrey Beaverstock sentenced defendant Hannibal Moore, 37, to 80 months imprisonment after a federal jury found him guilty at trial in December 2020 on a charge of being a felon in possession of a firearm. As part of his sentence, the judge ordered that the defendant receive substance abuse treatment as directed by the U.S. Probation Office, pay a special assessment of $100, and be supervised by federal probation officers for 3 years after finishing his prison term.
The jury heard two days of evidence during the trial, which began on December 7, 2020. According to the evidence introduced at trial, Moore was staying with his then-girlfriend at her home in Mobile. Moore had been arrested the day prior in Hoover, Alabama, for a domestic violence incident involving the same woman. The woman’s ex-husband was concerned for her well-being and went to her house to check on her. Once there, he encountered Moore, who refused to leave the home. The ex-husband could see visible bruising to the woman’s face. The ex-husband did leave but returned to the home about two hours later with a friend. The friend had a key to the woman’s house, because he had changed the locks on the house the day prior, at her request. The friend was similarly concerned about the woman’s welfare and used his key to go into the house. As he entered the house, he was shot by Hannibal Moore. The man did survive his injury.
Moore had previously been convicted of the same offense, being a felon in possession of a firearm, in Birmingham on May 26, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Mobile Police Department investigated the case. Assistant United States Attorney Kacey Chappelear prosecuted the case on behalf of the United States.
Meth trafficking on Northern Cheyenne Indian Reservation sends Ashland man to prison for 10 yearsRead the Press Release
BILLINGS – An Ashland man who admitted trafficking methamphetamine on the Northern Cheyenne Indian Reservation was sentenced today to 10 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Robert Joseph Speelman, 48, pleaded guilty on Jan. 27 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on Jan. 21, 2020, a Bureau of Indian Affairs canine officer, while on patrol on the Northern Cheyenne Indian Reservation, saw Speelman, a known drug user and dealer on the reservation, sitting in his truck on the side of the road. Speelman had outstanding tribal warrants. A cursory search by the officer in a subsequent arrest resulted in the recovery of a small amount of meth. There also was a rifle mounted above the back window. The truck was impounded and searched, which resulted in the recovery of about 68 grams of meth, $179 in cash and two more firearms.
Assistant U.S. Attorney Lori H. Suek prosecuted the case, which was investigated by the Bureau of Indian Affairs.
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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Metairie Man Pleads Guilty to a Federal Drug Trafficking ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on June 15, 2021, that COREY DUNN, age 48, a resident of New Orleans, Louisiana, pled guilty to a one count Superseding Bill of Information. In Count 1, DUNN is charged with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride, and 28 grams or more of a mixture or substance containing a detectable amount of cocaine base in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846.
According to court documents, DUNN conspired with other members of a drug trafficking organization to distribute and possess with the intent to distribute cocaine hydrochloride and cocaine base beginning in October 2018 until August 2019.
United States District Court Judge Susie Morgan will sentence DUNN on September 30, 2021. DUNN faces a mandatory minimum term of imprisonment of 5 years. The maximum sentence the Court may impose is a term of imprisonment of 40 years. DUNN also faces the imposition of a fine up to $5,000,000.00, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.00.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
The case was investigated by the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office. This case is being prosecuted by Brittany Reed of the Violent Crime/Strike Force Unit.
Man caught attempting to pass counterfeit currency sentenced to federal prisonRead the Press Release
A man who purchased printers and counterfeiting materials at Wal-Mart in in an attempt to create and pass off counterfeit notes in order to defraud a victim was sentenced today to two years in federal prison.
Peter Hobart, age 23, from Lisbon, Iowa, received the prison term after a guilty plea to dealing in counterfeit currency.
In a plea agreement, Hobart admitted he intended to defraud a victim by attempting to pass counterfeit currency in exchange for the victim’s Dodge Charger in addition to other vehicles, including a Jeep and water skis. At sentencing, the victim testified that he abandoned the transaction. Shortly thereafter, while on the phone, Hobart threatened to put a bullet in the victim if the victim did not return to complete the transaction. Hobart stated he knew all about the victim and could kill his family.
Hobart was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hobart was sentenced to 24 months’ imprisonment and fined $100. He was ordered to make $650.16 in restitution to the victim. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hobart 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 United States Secret Service, the Pocahontas Police Department, and the Emmetsburg Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3037.
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Man Who Tried to Breach Cockpit, then Opened Emergency Exit and Jumped from Departing Plane at LAX Faces Federal ChargeRead the Press Release
LOS ANGELES – A Mexican national, who was aboard a SkyWest Airlines flight taxiing to the runway at Los Angeles International Airport Friday evening, allegedly approached the cockpit – banging on the cockpit door and trying to enter the restricted space – before opening an emergency exit and jumping to the tarmac, according to a federal criminal complaint made public today.
Luis Armando Victoria Dominguez, 33, of La Paz, Mexico, was charged with interference with flight crew members and attendants. Victoria Dominguez, who suffered a broken leg when he fell to the tarmac and later underwent surgery, is expected to make his initial appearance later this week in United States District Court.
The complaint alleges that Victoria Dominguez was a passenger on United Airlines flight 5365, operated by SkyWest Airlines, that was scheduled to fly from Los Angeles to Salt Lake City. Soon after the plane pushed back from the gate, Victoria Dominguez “sprinted” to the front of the aircraft past a seated flight attendant and “began banging on the cockpit door and manipulating the locked doorknob,” according to an FBI affidavit that was filed with the complaint.
When he failed to gain entry to the cockpit, Victoria Dominguez pushed past the flight attendant and went to the emergency exit on the right side of the plane, where he managed to partially open the door, causing the emergency slide to partially deploy, the affidavit states. While a nearby passenger attempted to restrain him, Victoria Dominguez managed to get away and jump from the aircraft, missing the emergency slide.
“Once Victoria Dominguez landed on the tarmac, he began crawling away from the aircraft. His right leg appeared broken,” the affidavit states.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The criminal complaint naming Victoria Dominguez was signed by a United States magistrate judge on Sunday and docketed by the court this afternoon.
The charge of interference with flight crew members and attendants carries a statutory maximum penalty of 20 years in federal prison.
The FBI is investigating this matter and received substantial assistance from the Los Angeles Airport Police Department.
Assistant United States Attorney Solomon Kim of the General Crimes Section is prosecuting this case.
Man Who Sold Murder Weapon Pleads Guilty to Federal Firearms ChargeRead the Press Release
A Wichita Falls man who sold a weapon to a murderer has been convicted of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Devin DeAndre Mullins, 21, pleaded guilty on Friday to possession of a firearm by a convicted felon.
According to court documents, Mr. Mullins – who had been convicted of felony robbery in 2018 – admitted that he possessed a lime green 9mm Keltec pistol, which he later sold to a man named Gage Gillentine. Shortly thereafter, Mr. Gillentine used that gun to fatally shoot his girlfriend, 19-year-old Klowie Moore, inside a hotel room in Graham, Texas.
The pistol used in the murder, seized at the scene of the crime, matched photographs of a pistol Mr. Mullins posted to his social media accounts.
In a text message to a friend a few weeks before the murder, Mr. Mullins stated “Fin sell a pistol.” The following day, Mr. Gillentine messaged Mr. Mullins, “yo can bring that gun rn.”
In a noncustodial interview after the murder, Mr. Gillentine admitted to law enforcement that he purchased the murder weapon from Mr. Mullins.
Mr. Mullins now faces up to 10 years in federal prison. (Mr. Gillentine has been charged by the state in connection to the killing.)
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Texas Rangers conducted the investigation with the assistance of the Graham Police Department and the Young County Sheriff’s Office. Assistant U.S. Attorney Rob Boudreau is prosecuting the federal case against Mr. Mullins.
The case was brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws.
Maine Man Pleads Guilty to Wire FraudRead the Press Release
CONCORD - David Keene, 38, of North Berwick, Maine pleaded guilty in federal court to wire fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, John Doe is a minor child known to Keene. In July 2020, Doe’s legal guardian reported to the Rochester Police Department that Keene had used Doe’s Social Security Number (“SSN”) to open many accounts and incur significant debt. Credit reports showed that the accounts were opened between December 2016, when Doe was seven years old, and August 2019, when Doe was ten years old. Documents and records showed that Keene used Doe’s SSN to acquire, among other things, utility services and several credit cards. Keene also used Doe’s SSN to obtain loans to purchase a snowmobile, motorcycle, and multiple cars. For example, one of the loans was for $56,648.50 to purchase a BMW SUV. Overall, Keene fraudulently obtained at least $227,828 in money and property that he was not entitled to receive.
Keene is scheduled to be sentenced on October 7, 2021.
“Those who misuse Social Security numbers to commit fraud are committing a serious federal crime,” said Acting U.S. Attorney Farley. “We work closely with our law enforcement partners to protect the integrity of the Social Security system and to identify and prosecute those who use other people’s identities to commit fraud. By coordinating with our law enforcement partners, we are holding criminals accountable for their conduct and obtaining justice for crime victims.”
“This guilty plea demonstrates our commitment to hold accountable those who intentionally misuse the Social Security numbers of others for their own personal gain,” said Jermaine Jack, Acting Special Agent-in-Charge of the Social Security Administration Office of the Inspector General, Boston Field Division. “I want to thank the Rochester and the Strafford Police Departments, and the Stafford County Attorney’s Office, as well as Special Assistant U.S. Attorney Alexander S. Chen for their efforts in investigating and prosecuting this case.
This matter was investigated by the Social Security Administration’s Office of the Inspector General, Rochester Police Department, and Strafford Police Department, with assistance from the Strafford County Attorney’s Office. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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Las Vegas Man Indicted for Distribution of Fentanyl Resulting in DeathRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man has been indicted by a federal grand jury for distributing fentanyl that caused the death of another person.
According to the indictment and allegations made at the initial court appearance, Gabriel Ulloa, 29, distributed fentanyl to the 27-year-old victim, who believed he was buying Oxycodone pills from Ulloa. The victim died as a result of ingesting the drugs.
Classified as a Schedule II controlled substance, fentanyl is a synthetic opioid drug that is approximately 80-100 times more potent than morphine and 50 times more potent than heroin. A few milligrams of fentanyl, which is equivalent to a few grains of table salt, may be deadly.
Ulloa is charged with one count of distribution of a controlled substance. Ulloa made his initial appearance on June 25, 2021 before U.S. Magistrate Judge Brenda Weksler, who scheduled a jury trial for August 23, 2021. If convicted, Ulloa faces a statutory minimum penalty of 20 years imprisonment, and a statutory maximum penalty of life imprisonment and a $10,000,000 fine.
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration (DEA) made the announcement.
This case was investigated by the Las Vegas Metropolitan Police Department Major Violators Narcotics Crimes Bureau, Overdose Response Team, HSI, DEA, and the Henderson Police Department.
This case was part of the Southern Nevada’s High Intensity Drug Trafficking Areas program that enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
Assistant U.S. Attorney Kimberly Sokolich is prosecuting the case.
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Jury finds Webster aviation company liable for violating FAA regulationsRead the Press Release
HOUSTON – Ascent Aviation Solutions LLC and its owner have been ordered to pay nearly $240,000 in penalties for violating safety regulations, announced acting U.S. Attorney Jennifer B. Lowery.
Michael King had been operating the Webster-based company as a direct air carrier without the necessary Federal Aviation Administration (FAA) certification. A direct air carrier is one who provides, or offers to provide, air transportation and who maintains control over the operational functions performed in providing the transportation. In order to operate as a direct air carrier, one must hold an FAA-issued certificate after demonstrating they meet the requisite requirements.
The jury heard that Ascent used what is known in the industry as a “dry lease” to circumvent the FAA requirements for direct air carriers. Under such lease, the lessee simply leases the equipment and is responsible for all aspects of operational control of the plane.
Authorities learned of the illegal charter operation and checked one of the flights. At that time, they found evidence of a sham lease agreement between themselves and an unsuspecting third party.
That party did not have operational control of the plane. Testimony revealed he only paid Ascent to fly him from one city to another. The jury heard Ascent retained operational control of the aircraft meaning Ascent, not the passenger, handled all flight logistics including hiring the pilots.
Further investigation revealed King and Ascent had operated 14 unregulated charter flights which all had the potential to endanger public safety.
The jury ultimately found King and his company liable for violating 14 FAA regulations, including one for the careless and reckless operation of a plane. They were ordered to pay $239,872.
The FAA conducted the investigation. Assistant U.S. Attorneys Ariel N. Wiley, Julie Redlinger and Keith Wyatt represented the United States during the proceedings.
Jury convicts Westerville man of sexually exploiting a five-year oldRead the Press Release
COLUMBUS, Ohio – A United States District Court jury has convicted Christopher M. Sammons, 28, of four counts related to creating child pornography of his sexual abuse of a five-year old. Sammons faces at least 15 years in prison.
The jury reached the verdict late Friday, June 25 following a trial that began on June 21 before U.S. District Judge Sarah D. Morrison.
According to court documents and trial testimony, on March 11, 2019, an undercover FBI agent in Little Rock, Arkansas, received a message from Sammons regarding sexual interest in children.
Throughout their conversations, Sammons encouraged the undercover agent to “just make some homemade stuff” when discussing the availability of child pornography.
Sammons detailed sexually abusing a then five-year-old victim and also offered to “share her next time if you’re interested in a long-term thing.” Sammons sent the agent child pornography files and suggested plans for he and the agent to exchange videos of them sexually abusing minors.
Based on IP address information, the investigative lead was forwarded to FBI Columbus and a Task Force Officer here began communicating with Sammons. Sammons told the task force officer he had been sexually abusing the victim for a year.
The jury convicted Sammons of one count of sexually exploiting a minor (punishable by 15 to 30 years in prison), two counts of making a notice for child pornography (15 to 30 years in prison) and one count of distributing child pornography (five to 20 years in prison).
Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
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 District; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced today’s verdict. Senior Litigation Counsel Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, represented the United States in this case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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