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16 August 2021
Florida Woman Convicted of Damaging Her Former Employer’s Computers After She Was FiredRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict today against MEDGHYNE CALONGE, on one count of intentionally causing damage to a protected computer, and one count of accessing a protected computer and recklessly causing damage. Both counts relate to CALONGE’s deletion of tens of thousands of human resources records of her former employer (“Employer-1”). U.S. District Judge Gregory H. Woods presided over the six-day trial.
U.S. Attorney Audrey Strauss said: “As a unanimous jury found today, Medghyne Calonge intentionally and maliciously caused severe damage to the computers of her former employer. Her actions wiped out information vitally important to the employer company, and cost the company money and time to repair. Now Calonge awaits sentencing for her crimes.”
According to the Indictment and the evidence at trial:
In January 2019, CALONGE was hired by Employer-1, a Manhattan-based online provider of professional services, to serve as the head of human resources in their St. Petersburg, Florida, office. On June 28, 2019, CALONGE was terminated for failing to meet the minimum requirements of her job after, among other things, she improperly downgraded a colleague’s access to a computer system following an argument with the colleague.
While she was being terminated, and just before she was escorted from the building, CALONGE was observed by two employees of Employee-1 repeatedly hitting the delete key on her desktop computer. Several hours later, CALONGE logged into a system (“System-1”) used by Employer‑1 to receive and manage applications for employment with the company, which the company had invested two years and over $100,000 to build. During the next two days, CALONGE rampaged through System-1, deleting over 17,000 job applications and resumes, and leaving messages with profanities inside the system. Ultimately, CALONGE completely destroyed all of Employer-1’s data in System-1. Employer-1 subsequently spent over $100,000 to investigate and respond to the incident and to rebuild System-1. To this day, Employer-1 has been unable to recover all of its data.
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CALONGE, 41, of Tampa, Florida, was convicted of one count of intentionally damaging computers, which carries a maximum prison term of 10 years, and one count of recklessly damaging computers, which carries a maximum prison term of five years.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Timothy V. Capozzi and Louis A. Pellegrino are in charge of the prosecution.
Federal Court Bars Florida Tax Preparation Businesses and Their Tax Return Preparers from Preparing Tax ReturnsRead the Press Release
A federal court in the Southern District of Florida, West Palm Beach Division, has permanently enjoined four Palm Beach-area tax return preparers from preparing federal income tax returns for others and from owning or operating any tax return business in the future.
In issuing an injunction against Marcus Alty; Jeanait Mathurin; Prestige Tax Services Inc. (dba Just Tax Services LLC); and Excellent Tax Services “LLC” (dba Excellent Tax Services), the court found that the defendants prepared tax returns making false or fraudulent claims for the American Opportunity Tax Credit and Earned Income Tax Credit, often based on fabricated business income and expenses. The order further holds that the defendants prepared returns that falsely claimed fuel tax credits and that reported false education expenses. The civil complaint filed against the defendants alleged that their fraudulent activities resulted in a loss to the Treasury of over $5 million.
The injunctions against defendants were entered by default: according to the order against them, Alty, Mathurin, and Prestige Tax Services failed to appear in the action, while Excellent Tax Services filed an answer but otherwise failed to participate in the litigation. The court also ordered a 90-day discovery period to allow the United States to determine the appropriate disgorgement amount for the ill-gotten gains that defendants received for the preparation of tax returns containing falsely reported items.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
FCC Allenwood Inmates Charged with Possession of ContrabandRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Townsend, age 40, and Geraldo Rodriguez Diaz, age 27, inmates at the United States Federal Correctional Institution, Allenwood (FCC Allenwood), White Deer, Pennsylvania, were charged in a criminal information on August 10, 2021, for possessing contraband in prison.
According to Acting United States Attorney Bruce D. Brandler, the criminal information alleges that Townsend and Rodriguez Diaz were each found in possession of cellular telephones on May 10, 2021.
The charges stem from an investigation by officers at FCC Allenwood and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The defendants face a maximum of one year of incarceration 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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Drug Trafficker Involved in the Importation of Cocaine from Connecticut to New Hanover and Brunswick Counties Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Marcus Robinson, 45, of Winnabow, North Carolina, was sentenced on August 13, 2021 to 128 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute 280 grams or more of Crack Cocaine and 500 grams or more of Cocaine and Possess with the Intent to Distribute 280 grams or more of Crack Cocaine and 500 grams or more of Cocaine.
According to court documents, evidence presented in court and other documents, on April 17, 2018, a New Hanover County Sheriff’s Deputy conducted a traffic stop on a car that Robinson was a passenger. Following a K-9 alert on the car for the presence of narcotics, law enforcement found more than 6 ounces of cocaine and 2 ounces of crack cocaine underneath the hood of the car. Law enforcement uncovered that ROBINSON was bringing the drugs from New Haven, Connecticut to New Hanover County. The investigation was able to establish that Robinson had delivered more than a kilogram of cocaine and crack cocaine combined from November 2017 until his arrest in April to Eastern North Carolina.
The investigation was part of OCDETF Operation Angry Penguins. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity distributing large amounts of heroin and cocaine into Eastern North Carolina.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation, New Hanover County Sheriff’s Office and the Holly Ridge and Wilmington Police Departments investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-00103-FL.
Dominican National Pleads Guilty to Making False Statements and Illegal ReentryRead the Press Release
BOSTON - A Dominican national pleaded guilty today in federal court in Boston in connection with making false statements in an application for a replacement Social Security card and illegal reentry.
Francis Yohan Mateo Guerrero, 29, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of making a materially false statement and one count of illegal reentry of a previously deported alien. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Jan. 5, 2022. Mateo Guerrero was indicted in December 2020.
In August 2017, Mateo Guerrero applied for a Massachusetts driver’s license by submitting the name of a U.S. citizen from Puerto Rico and that individual’s Social Security card as proof of identity. In March 2019, prior to this case being resolved, Mateo Guerrero was deported to the Dominican Republic. In December 2020, Mateo Guerrero illegally returned to the United States and was arrested. He was subsequently charged with, and also pleaded guilty today to, illegal reentry.
The charge of making materially false statements provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of illegal reentry provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. Mateo Guerrero will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Todd Lyons, Field Office Director of Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement (ICE) Boston made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.
Detroit man admits to his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Doriawn Eduane-Draphel Rogers, of Detroit, Michigan, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Rogers, 21, pleaded guilty today to one count of “Possession with Intent to Distribute Heroin and Fentanyl in Proximity to a Protected Location.” Rogers admitted to distributing heroin and fentanyl near Fairmont Senior High School and Fairmont State University in August 2020.
Rogers faces at least one and up 40 years of incarceration and a fine of up to $2,000,. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Cumberland County Man Admits Methamphetamine DistributionRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man today admitted his role in a conspiracy to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Joan Benitez, 41, of Millville, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute at least 50 grams of methamphetamine.
According to documents filed in this case and statements made in court:
On numerous occasions between Jan. 22, 2020, and Sept. 9, 2020, Benitez sold crystalized methamphetamine, also called “ice,” as part of a conspiracy to distribute those drugs. Benitez distributed approximately 1.7 kilograms of “ice” in furtherance of the conspiracy.
The count of conspiracy to which Benitez pleaded guilty is punishable by a maximum sentenced of life in prison and a maximum $10 million fine. Sentencing is scheduled for Dec. 20, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI of the Newark Field Office, Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the New Jersey State Police, the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Atlantic County Prosecutor’s Office, the Atlantic County Sheriff’s Office, the Pleasantville Police Department, and the Atlantic City Police Department, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.
Council Bluffs Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced Thursday, August 12, 2021, by United States District Court Judge Stephanie M. Rose to 121 months in prison for Possession of Child Pornography. His term of imprisonment will be followed by 10 years of supervised release. According to court documents, Cody Goodwin Taylor, age 31, of Council Bluffs, pleaded guilty to Possession of Child Pornography in April 2021.
In July 2020, a cybertip was received by Council Bluffs Police Department that numerous images of suspected child pornography had been uploaded to a Google drive account. While CBPD was investigating the cybertip, they received a report that Taylor’s cellular phone contained child pornography. A search warrant was executed on Taylor’s cell phone and a forensic analysis discovered over one hundred photos and videos of child pornography.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department investigated the case and the United States Secret Service National Computer Forensics Institute provided computer forensic training and equipment.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man, Dylan Michael Joseph Hoffman, age 30, was sentenced on Thursday, August 12, 2021, by United States District Court Judge Stephanie M. Rose to 63 months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment will be followed with three years of supervised release. According to court documents, Hoffman pleaded guilty to the offense in March of 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Convicted Felon Twice Caught in Possession of Unlawful Items Sentenced to over Five Years in PrisonRead the Press Release
A convicted felon who was found with a firearm magazine on one day and a firearm for that magazine nine days later was sentenced on August 12, 2021, to more than five years in federal prison.
Mar’yo Doyuan Lindsey, age 26, from Waterloo, Iowa, received the prison term after a March 18, 2021 guilty plea to one count of possession of a firearm as a felon.
In a plea agreement, Lindsey admitted he was in a vehicle on July 3, 2020, when the Iowa State Patrol stopped the vehicle for speeding. Lindsey was a front seat passenger and had a baggie of marijuana protruding from in his pants pocket. The trooper searched the vehicle and found a high-capacity magazine loaded with ammunition for a Canik firearm. Later, on July 12, 2020, the Waterloo Police Department Violent Crime Apprehension team were conducting an unrelated firearms investigation and found Lindsey in a car in possession of a loaded Canik firearm that fit the magazine seized days earlier.
Lindsey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lindsey was sentenced to 70 months’ imprisonment, and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Lindsey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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 J. Reinert and investigated by the Waterloo Police Department, the Iowa State Patrol and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2049.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Sentenced for Federal Firearms OffensesRead the Press Release
BOSTON – A Templeton man was sentenced today in federal court in Worcester for federal firearms offenses.
John Shaw, 32, was sentenced by U.S. District Court Judge Timothy S. Hillman to 21 months in prison and three years of supervised release. In September 2020, Shaw pleaded guilty to one count of being a felon in possession of ammunition and one count of unlawful possession of a firearm not identified by serial number.
During a search at Shaw’s residence on Sept. 24, 2019, an AR-15 short-barreled rifle that did not bear a serial number, over 50 rounds of .22 Long Rifle caliber ammunition, 27 rounds of .357 Sig caliber ammunition, 10 expended brass cartridge cases and one complete round of 30-06 ammunition were seized. Shaw was previously convicted in Winchendon District Court of breaking and entering in the night with intent to commit a felony and assault and battery with a dangerous weapon. As a previously convicted felon, Shaw is prohibited from possessing a firearm and ammunition.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Joseph Bennett made the announcement today. Assistant U.S. Attorneys Kristen Noto and Michelle L. Dineen Jerrett of Mendell’s Worcester Branch Office prosecuted the case.
Cleveland, Ohio Man Charged with Producing Files Depicting the Sexual Victimization of Children and Extorting 11-Year-Old Female to Send Sexually Explicit DepictionsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JAVAN BAILEY, age 19, a resident of Cleveland, Ohio, was charged on August 13, 2021 by a federal grand jury sitting in the Eastern District of Louisiana in a two-count Indictment with producing images and videos depicting the sexual exploitation of an eleven-year-old female, Victim 1, in violation of 18 U.S.C. ' 2251(a), and transmitting interstate threats for the purpose of extorting a thing of value, in violation of Title 18, United States Code, Section 875(d). Specifically, BAILEY is alleged to have extorted Victim 1 into sending him additional sexually explicit depictions by threatening to “expose” Victim 1 by sending prior depictions of Victim 1 to her family members.
BAILEY faces a mandatory minimum term of imprisonment of fifteen (15) years and a maximum term of imprisonment of thirty-two (32) years. BAILEY also faces up to a lifetime of supervised release and $250,000 fine. He must also pay a mandatory special assessment cost of $100 for each count. BAILEY can be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Charleston Man Pleads Guilty to Distributing FentanylRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty to distributing fentanyl.
According to court documents, Brian Vineyard, 49, sold approximately 3.5 grams of fentanyl to a confidential informant in exchange for $450 on September 9, 2020.
Vineyard pleaded guilty to distribution of fentanyl and faces up to 20 years in prison when he is sentenced on November 17, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Metropolitan Drug Enforcement Network Team (MDENT) and the Kanawha County Sheriff’s Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Monica D. 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. 2:21-cr-00106.
Central Coast Man Sentenced to 15 Years in Federal Prison for Receiving and Sending Child Pornography, Some Involving ToddlersRead the Press Release
LOS ANGELES – A San Luis Obispo County man was sentenced today to 15 years in federal prison after pleading guilty to two child pornography offenses and admitting that some of images in his collection depicted the sexual abuse of very young victims.
James Davolt, 53, of Templeton, was sentenced after pleading guilty on June 4 to receipt of child pornography and distribution of child pornography.
United States District Judge Virginia A. Phillips imposed the 180-month sentence and further ordered that, once he completes his sentence, Davolt be under supervised release for the rest of his life.
When he pleaded guilty, Davolt admitted that he used email to receive and share child pornography. When special agents with the FBI examined his computers and email accounts, they uncovered approximately 738 images and 204 videos depicting child pornography, including videos involving the sexual abuse of toddlers and infants.
In seeking a 15-year sentence, prosecutors argued that some of images depicted children under the age of 2 being used for sexual acts, and other images portrayed sadistic or masochistic sexual conduct involving children.
In addition to the images and videos, FBI agents discover chat messages, some dating back to 2009, in which Davolt chatted with women in the Philippines and not only “explicitly requested child pornography videos, but also directed the sexual exploitation of children via webcam,” according to a sentencing memorandum filed by prosecutors. “Even more troubling, [Davolt] bragged about how he previously had sex with children while visiting the Philippines (which defendant, in fact, traveled to on 12-13 occasions) and made plans to have sex with children in an upcoming visit.”
In a victim impact statement submitted to the court and excerpted in the sentencing memorandum, the mother of one victim said her daughter suffered from “prolonged major trauma” that will affect “her mind for the rest of her life.”
The FBI conducted the investigation in this case.
Assistant United States Attorney Amy E. Pomerantz of the Violent and Organized Crime Section prosecuted the case.
Boston Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
BOSTON – A Boston man who is allegedly a member of the St. James/Marcella gang pleaded guilty today to distributing crack cocaine.
Anthony Jackson, a/k/a “Hollywood,” 30, pleaded guilty to distribution and possession with intent to distribute cocaine base. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 21, 2021. Jackson was indicted in November 2020.
Between Sept. 1, 2020 and Oct. 3, 2020, Jackson distributed crack cocaine to a cooperating witness on five occasions in Cambridge and Boston. Jackson was also found in possession of crack cocaine at the time of his arrest on Oct. 29, 2020. Jackson has prior state convictions for unlawfully carrying a dangerous weapon, carrying a loaded firearm and possession of illegal substances.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of up to $1 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Mendell’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bond Denied for South Florida Serial RobberRead the Press Release
Miami, Florida – Today, a federal magistrate judge denied bond for 39-year-old Fort Lauderdale resident Denorio Humes. Humes will remain behind bars as he awaits trial on charges of using force and fear to rob tobacco products from truck drivers during deliveries.
According to allegations in the indictment and earlier-filed criminal complaint affidavit, Humes was part of a crew operating from April 2020 to March 2021 that robbed cigarettes and other tobacco products from trucks whose drivers had stopped at gas stations and other stores in Miami-Dade, Broward, and Collier counties to deliver the products. The robbery crew is alleged to have assaulted some of the truck drivers and threatened others.
The indictment charges Humes with one count of conspiring to commit a Hobbs Act robbery and one count of committing a Hobbs Act robbery. Humes faces up to 40 years in prison if convicted.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge for FBI Miami, made the announcement.
FBI Miami investigated the case with assistance from the Miami-Dade County Police Department, Collier County Sheriff's Office, Broward County Sheriff's Office, and City of Doral Police Department. The Broward County State Attorney’s Office also assisted. Assistant U.S. Attorneys Yara Dodin and Ignacio J. Vázquez, Jr., are prosecuting the case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to partner with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also is part of the Miami-Dade Chiefs of Police Operation Summer Heat Initiative. Anyone with information related to possible violent crimes in Miami-Dade County is asked to call Crime Stoppers at 305-471-TIPS.
A criminal indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-20430.
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Atlantic County Man Sentenced to 151 Months in Prison for Trafficking and Unlawfully Possessing FirearmsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man with five prior felony convictions was sentenced today to 151 months in prison for illegally selling and possessing multiple firearms, Acting U.S. Attorney Rachael A. Honig announced.
Brandon Groce, 37, of Newtonville, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of illegally engaging in the business of dealing in firearms and one count of possession of a firearm by a convicted felon. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On six different dates between February 2019 and September 2019, Groce met with an individual at a parking lot in Paulsboro, New Jersey, to sell firearms. Groce sold at least one firearm and ammunition for cash at each meeting. Groce lacked a license to sell firearms. At the time of the sales, Groce had previously been convicted in New Jersey Superior Court of five felonies, including a firearms offense, resisting arrest, and three controlled substances offenses.
In addition to the prison term, Judge Kugler sentenced Groce to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Newark Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office Criminal Division in Camden.
Army Veteran Sentenced in Maryland to Federal Prison for Supplying Forged Military Discharge Certificates to Individuals Applying for Military Waivers to Obtain Commercial Driver’s LicensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Philip Mungin, age 58, formerly of Bryans Road, Maryland and currently residing in Mira Loma, California, to three months in federal prison, followed by three years of supervised release, for forgery of a military discharge certificate and for identity theft, in connection with a scheme in which Mungin provided fraudulent DD-214 discharge certificates to individuals for fraudulent military waiver applications for commercial driver’s licenses in exchange for payment. Judge Xinis also ordered Mungin to forfeit $13,000, and to pay a money judgment of $2,000.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jamie Mazzone, U.S. Department of Transportation, Office of Inspector General (DOT OIG), Mid-Atlantic Region; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office.
According to his guilty plea, between 1997 and 1999, Mungin was enlisted in the Army. Upon Mungin’s discharge in 1999, Victim 1 was the “Senior Transition Specialist” who helped process Mungin’s discharge and signed Mungin’s military discharge certificate, known as the DD-214.
Federal law mandates that drivers of commercial vehicles, such as tractor-trailers and semi-trucks, obtain a commercial driver’s license (CDL). Among other requirements, CDL applicants must pass both a written test and a driving skills test. Third-parties, such as driving schools, are authorized to train prospective CDL holders and administer the necessary tests, however, this training generally takes weeks to complete and may cost students between $3,000 and $7,000. The Department of Transportation implemented a program in 2011, aimed at helping U.S. military veterans to get jobs by allowing states to waive the driving skills test for U.S. military veterans who could provide proof that they had been trained to operate the relevant vehicles in the military. To demonstrate their eligibility, veterans had to submit their DD-214 and complete an application, signed by the applicant’s commanding officer to certify that they had the relevant driving experience.
As detailed in the plea agreement, in December 2018, employees at the Maryland Department of Transportation (MDOT) Motor Vehicle Administration (MVA) office in Waldorf, Maryland, became suspicious of waiver documents submitted by an applicant and confronted the applicant. The applicant, who had never been in the military, identified Mungin as the person who offered to help him get a CDL by submitting falsified military paperwork. MVA investigators subsequently learned that 44 individuals had submitted fraudulent waiver applications. Many of the drivers who obtained CDLs based on fraudulent military paperwork identified Mungin as the person who helped them. Thirty-four of the fraudulent applications had Victim 1’s name and title at the bottom of the form, many of which included a forged or photocopied version of Victim 1’s signature. The certifying commanding officer on nearly all of the fraudulent waiver forms was the same, a purported colonel. Department of Defense records showed that no person by that name had ever served in the U.S. military.
Specifically, Mungin admitted in his plea agreement that he falsified DD-214s and military waiver forms for drivers wanting to obtain CDLs, in exchange for the drivers paying Mungin—reportedly between $500 to $2,000 each. Mungin often accompanied applicants with fraudulent paperwork to obtain their licenses, typically wearing a military uniform while doing so. At times, Mungin told the employees he was a member of the military police accompanying members who were about to be discharged to obtain their CDLs. At least one fraudulent CDL was issued in Virginia using the same forged DD-214 that Mungin had used with the Maryland drivers. In that application, Mungin listed himself as the commanding officer on the waiver form.
Mungin acknowledged that he received between $15,000 and $40,000 to create false military paperwork, including DD-214s, to assist drivers in fraudulently obtaining CDLs.
Acting United States Attorney Jonathan F. Lenzner commended the DOT OIG, DCIS, and the MDOT MVA for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Caitlin R. Cottingham, who prosecuted the case.
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13 August 2021
William Stenger Pleads Guilty to False Document Charges Related to the Anc Vermont Eb-5 Project in Northeast VermontRead the Press Release
The United States Attorney’s Office announced that today William Stenger, 72, of Newport, Vermont, pleaded guilty before Chief Judge Geoffrey W. Crawford in United States District Court in Burlington to a felony count of knowingly and willfully submitting false documents to the Vermont Regional Center (“VRC”) in connection with his involvement in the Jay Peak Biomedical Research Park EB-5 investment project, also called the AnC Vermont project.
Stenger pleaded guilty to using false documents in a matter within the jurisdiction of a federal agency, namely United States Citizenship and Immigration Services (USCIS), which oversaw the EB-5 program. According to court records and proceedings, the AnC Vermont project was designed to raise $110 million from 220 immigrant investors in order to construct and operate a biotechnology facility in Newport, Vermont. EB-5 immigrant investors could qualify for permanent resident status (commonly known as a green card) by investing $500,000 in a commercial enterprise approved by the VRC, which had the authority to approve and monitor EB-5 projects in Vermont, and by USCIS. In order to obtain a green card, each investor needed to demonstrate to USCIS that his or her investment had created, or would create within a few years, ten jobs. So, for the AnC Vermont project, it was necessary to demonstrate a plan to create at least 2,200 jobs in a short time frame in order to obtain USCIS approval.
As described during today’s hearing, according to materials provided to investors, to the VRC, and to USCIS, the AnC Vermont project would include three lines of business: clean room rentals, sales of stem cell products, and sales of artificial organs. The financial projections for the project forecasted that the three lines of business would generate over $40 million in revenue within three years, and would generate over $300 million in revenue in six years. These financial projections impacted both the potential that investors would have their investments repaid, and the predicted number of jobs that the project would create.
In the end of June 2014, Stenger agreed with the VRC to suspend offering and marketing the AnC Vermont project due to the VRC’s concerns about a number of aspects of the project. Stenger understood that, in order to be permitted to market the AnC Vermont project again, he needed to provide answers to questions the VRC had asked about the financial projections and about the status of U.S. Food and Drug Administration (“FDA”) approvals needed for commercialization of the products. Stenger made a number of submissions to the VRC in an effort to convince the VRC to allow continued marketing of the AnC Vermont project, including a submission on January 9, 2015. The January 2015 submission addressed, among other things, the AnC Vermont financial projections and the timeline for commercialization of the products.
As to the financial projections, during the plea hearing Stenger admitted that he engaged a third-party consulting firm in October 2014 and asked the consulting firm to conduct a market demand study to analyze the potential market size of the AnC Vermont products and services, if the products and services were developed and FDA approved. Throughout the rest of 2014, the consulting firm, which spent many hours working on the market demand analysis and had regular update meetings with Stenger and his team, was never asked to review, analyze, or opine on the project’s financial projections. Instead, the process of working with the consulting firm made clear to Stenger that the AnC Vermont project had no stem cell products, and that the artificial organs either did not exist yet or required updating. In the waning days of December 2014 and beginning of January 2015, Stenger asked the consulting firm’s project lead to write a letter stating that the AnC Vermont project’s business projections were reasonable. Although the consulting firm had not assessed the project’s financial projections, the project lead ultimately signed a letter that falsely asserted that, based upon the consulting firm’s market analysis, the financial projections in the AnC Vermont business plan appeared reasonable. Stenger knew that the consulting firm had not analyzed the financial projections. Nonetheless, Stenger provided the letter to the VRC as part of the January 9, 2015 package of materials in support of reopening project fundraising.
As to the product commercialization timeline, during today’s hearing Stenger admitted that he knew that each of the three lines of business—clean room rentals, sales of stem cells, and sales of artificial organs—required approvals from the FDA in order to generate revenue. Stenger also knew that the FDA approval process was potentially a lengthy one, that obtaining FDA approval would require assistance from someone with regulatory expertise, and that no one associated with the AnC Vermont project had communicated with the FDA about any of the AnC Vermont business line ideas since Stenger exchanged letters with the FDA about one of the artificial organs in 2011. As part of Stenger’s effort to convince the VRC to allow continued marketing of the AnC Vermont project, Stenger caused to be modified a commercialization timeline that he had previously received from co-defendant Alex Choi. The timeline listed various steps required in order to commercialize the stem cell therapies and artificial organs referenced in the business plan, along with how long each step was expected to take. In modifying Choi’s timeline, Stenger had the initial year changed from 2012 to 2015, reflecting the delays in the project’s development. He also had four prominent red boxes, which contained text that read “Need to consult with FDA or experts in FDA’s regulation,” removed from the timeline. As modified, the timeline downplayed uncertainty and lack of progress on FDA approvals, supporting the narrative that the AnC products would become profitable and create jobs in a short time. Stenger submitted this modified timeline to VRC as part of the January 9, 2015 set of materials. In the same submission, Stenger represented to the VRC that he had engaged FDA consultants to assist with the FDA process. Stenger had the red caveats removed from the timeline without receiving any information from the consultants that might provide further support for the timeline, and without asking the consultants to start any work on the AnC Vermont project. From 2012 to 2016, approximately 169 investors invested approximately $85 million in the AnC Vermont project, in addition to paying approximately $8 million in “administrative fees.” Fundraising was never completed, and the AnC Vermont facility was never constructed. Court records show that over $47 million of AnC Vermont investor funds were paid to Jay Construction Management, a Quiros-controlled company, and almost all of those $47 million were used for purposes unrelated to the AnC Vermont project.Stenger faces up to five years in prison and three years of supervised release for his knowing and willful submission of false documents to the VRC. For sentencing, as stated in the plea agreement, the government will offer evidence about Stenger’s broader involvement in the fraud scheme as alleged in other counts of the indictment. The Court will determine the sentence with reference to the federal sentencing guidelines. The government has agreed that it will not recommend a fine or forfeiture, but instead will focus on seeking a restitution order for victims.
Co-defendant Ariel Quiros pleaded guilty to wire fraud conspiracy, money laundering, and concealment charges in August 2020 and currently awaits sentencing. Co-defendant William Kelly pleaded guilty to wire fraud conspiracy and concealment charges in July 2021. Both Quiros and Kelly have agreed to cooperate in the government’s ongoing matters. Co-defendant Choi remains at large.
Jonathan A. Ophardt, Acting United States Attorney, expresses his gratitude for the outstanding investigation assistance by the Federal Bureau of Investigation, the IRS Criminal Investigation, the Food and Drug Administration, and for the assistance of the Justice Department’s Fraud Section and Office of International Affairs. The prosecutors handling the case are Assistant U.S. Attorneys Nicole Cate and Paul Van de Graaf. William Stenger is represented by Brooks McArthur, Esq. and David Williams, Esq. Ariel Quiros is represented by Neil Taylor, Esq. and Robert Katims, Esq. William Kelly is represented by Robert Goldstein, Esq. and Mary Kehoe, Esq.
United States Attorneys' Joint Statement Regarding Oklahoma Court of Criminal Appeals Decision State Ex Rel. Matloff v. WallaceRead the Press Release
"This morning the Oklahoma Court of Criminal Appeals issued its decision in State ex rel. Matloff v. Wallace holding the United States Supreme Court’s ruling in McGirt v. Oklahoma does not apply retroactively. The United States Attorney’s offices in Oklahoma are reviewing today’s OCCA opinion and assessing its potential impact on cases previously referred to the United States for potential federal criminal prosecution,” said Acting United States Attorneys Christopher Wilson, Clint Johnson and Robert Troester. “In the interim, our offices will continue to focus on our mission of ensuring public safety and holding defendants accountable for their criminal acts.”
Uniontown Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
PITTSBURGH, PA- A resident of Uniontown, Pennsylvania, has pleaded guilty to violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Ryan Huffman, 33, from Uniontown, Pennsylvania, pleaded guilty before Senior United States District Judge Donetta W. Ambrose to possessing of a firearm with an obliterated serial number.
In connection with the guilty plea, the court was advised that on December 30, 2019, Uniontown Police responded to a break-in at Huffman’s residence. During a protective sweep, officers saw in plain view ammunition, suspected drugs, and drug paraphernalia. Officers obtained a warrant to search the residence. During the search, officers seized three firearms, including a .40 caliber rifle, a .45 caliber pistol, and a .22 caliber revolver with an obliterated serial number. Huffman later confessed to possessing all of the firearms seized from his home.
The law provides for a term of imprisonment not more than five years, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Judge Ambrose scheduled sentencing for December 13, 2021 and order the defendant to remain on bond pending the sentencing of this case.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Uniontown Police Department conducted the investigation leading to these charges.
Three Phoenix Men Indicted for Conspiracy to Purchase Firearms Using False StatementsRead the Press Release
PHOENIX, Ariz. – On August 3, a federal grand jury in Phoenix returned a 65-count indictment against Chris Oliver, 23, of Gilbert, Arizona, Michael Kelly, 23, of Tempe, Arizona, and Dion Delpino, 23, of Gilbert, Arizona, for conspiracy to make false statements in acquisition of firearms and 63 instances of making a false statement during the purchase of firearms. In addition, the indictment charges Oliver with dealing firearms without a license.
The indictment alleges that Oliver, Kelly, and Delpino conspired to purchase firearms from licensed dealers by means of false statements and representations. It also alleges that, on 63 occasions between September 2019 and November 2020, Oliver, Kelly, and Delpino used false statements to successfully purchase 102 firearms from 14 licensed dealers throughout the Phoenix metropolitan area. Oliver then sold these firearms to persons known and unknown in Arizona and elsewhere.
“Evidence shows that illegally-trafficked firearms go hand-in-hand with violent criminal acts,” said Acting U.S. Attorney Glenn McCormick. “The District of Arizona remains steadfast in its commitment to work with law enforcement partners to identify and prosecute those who fuel dangerous offenses by violating federal firearms laws.”
On July 22, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces are working to stem the supply of illegally trafficked firearms from source cities, like Phoenix, into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
“The District of Arizona’s indictment is an important example of the partnership across jurisdictions to identify and prosecute the sources of illegally trafficked firearms,” said Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California. “As part of the new firearms trafficking strike force for the San Francisco Bay Area/Sacramento Region, the Eastern District of California commends the District of Arizona for its important work in holding traffickers accountable.”
“I wish to commend the efforts of our agents and the United States Attorney’s Office as these indictments exhibit our collective efforts in combating firearms trafficking. Together, with our law enforcement partners, we will continue to focus on these criminals that promote gun violence in our community,” said ATF Special Agent in Charge, Gabriel Pinon.
Convictions for conspiracy, false statement during the purchase of a firearm, and dealing firearms without a license, are each punishable by a maximum fine of $250,000, a maximum term of imprisonment of five years, or both, and a term of supervised release of three years.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Phoenix, Mesa, Gilbert, and Scottsdale Police Departments, as well as Homeland Security Investigations and Phoenix Police Department – Commercial Narcotics Interdiction Unit, is conducting the investigation in this case. Coleen Schoch, Assistant U.S. Attorney, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR 21-00600-DLR (DMF)
RELEASE NUMBER: 2021-049_Oliver# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tampa Men Plead Guilty to Armed Robbery Spree and A Shooting, Possessed Notebook of Criminal AmbitionsRead the Press Release
Tampa, Florida – Tyee Spike II (18, Tampa) and Jeffrey L. Davis (22, Tampa) have pleaded guilty to committing a string of armed commercial robberies. Spike pleaded guilty to participating in 10 armed robberies, discharging a firearm in furtherance of a robbery, and possessing a firearm and ammunition after being convicted of a felony. Davis pleaded guilty to participating in 8 armed robberies. They both face a maximum sentence of life in federal prison. Sentencing dates have not yet been set.
According to their plea agreements, Spike and Davis committed a series of commercial armed robberies, which took place in Tampa, Fishhawk, and Riverview, between October 13 and October 19, 2020. Firearms were brandished during every robbery. In the first robbery, an individual confronted Spike, and Spike shot him in the stomach. The victim remained hospitalized for 12 days but survived. Prior to the spree, Spike committed a carjacking to obtain the getaway vehicle which the men used for the robberies. The robbery spree ended with a high-speed chase, in which the defendants crashed the getaway vehicle before being apprehended. At the time of the defendants’ arrest, their getaway vehicle contained a “list of criminal achievements and/or ambitions,” which itemized various houses they intended to target and personal possessions they intended to take, including the names and locations of several commercial establishments.
In the year prior to the robbery spree, Spike had been convicted of battery on a law enforcement officer with a deadly weapon, resisting an officer with violence, grand theft of a motor vehicle, two counts of robbery, and burglary of an unoccupied conveyance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives It is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.
Suburban Chicago Man Sentenced to Three Years in Prison for Scheming to Defraud the IRS Out of $815,000Read the Press Release
CHICAGO — A suburban Chicago man has been sentenced to three years in federal prison for causing the IRS to issue more than $815,000 in fraudulent tax returns.
SHAWN P. STEWART filed eight fraudulent returns seeking more than $3.1 million in refunds, causing the IRS to issue him more than $815,000. Stewart created construction and other companies that barely did any business, and he used those businesses to create false W-2 forms that falsely listed him as earning hundreds of thousands or millions of dollars in wages. The large wages allowed him to list correspondingly large federal income tax withholdings, and he used purported Schedule E losses from the businesses to greatly reduce the purported wage income and then claim entitlement to the large tax refunds.
After fraudulently receiving the money from the IRS, Stewart used it to fund a luxurious lifestyle. He purchased several BMW vehicles, a trailer for a truck, expensive dinners, and items at luxury retail stores.
Stewart, 50, of Matteson, Ill., pleaded guilty to a charge of presenting a false claim upon the United States. U.S. District Chief Judge Rebecca R. Pallmeyer imposed the 36-month sentence Wednesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Stewart’s tax fraud was brazen,” Assistant U.S. Attorney Vikas Didwania argued in the government’s sentencing memorandum. “He was stealing from funds that go to schools, soldiers, veterans, senior citizens, and others for vital services provided by our government.”
Stroudsburg Man Sentenced to 120 Months’ Imprisonment for Attempted Online Enticement of A MinorRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Duus, age 35, of Stroudsburg, Pennsylvania, was sentenced on August 11, 2021, to 120 months’ imprisonment to be followed by a 5-year term of supervised release, by United States District Court Judge Malachy E. Mannion for using the internet to attempt to entice a 12-year-old minor female to engage in prohibited sex acts.
According to Acting United States Attorney Bruce D. Brandler, on September 24, 2020, during an on-line communication with a law enforcement officer posing as the mother of a minor female, Duus agreed to pay money to the mother in exchange for sexual intercourse with the minor and then traveled to a location in Tannersville, PA for the purpose of meeting the mother and minor and paying for sex. Duus was arrested on scene.
At sentencing, Judge Mannion also ordered Duus to comply with the Sex Offender Registration and Notification Act (SORNA).
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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St. Joseph Woman Sentenced to 15 Years for Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, woman was sentenced in federal court today for her role in a conspiracy to distribute methamphetamine and for illegally possessing firearms.
Caci R. Clizer, 32, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
On Oct. 16, 2020, Clizer pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing firearms in furtherance of a drug-trafficking crime.
According to the plea agreement, Clizer traveled to Kansas City, Mo., every two or three days to pick up cocaine and methamphetamine, and would pick up approximately one pound of cocaine and approximately one pound and 10 ounces of methamphetamine.
On June 16, 2015, Missouri Department of Corrections officials intercepted a controlled substance sent into the prison by Clizer. Investigators also used a confidential informant to purchase methamphetamine, and interviewed buyers who purchased methamphetamine from Clizer.
On July 29, 2015, law enforcement officers executed a search warrant at Clizer’s residence. Officers found approximately 484 grams of pure methamphetamine, approximately 103.55 grams of cocaine, approximately 18.12 grams of crack cocaine, pills, a Glock 9mm semi-automatic handgun, a Bersa .380-caliber semi-automatic handgun, a Springfield Armory 9mm semi-automatic handgun, a 9mm 50-round drum (magazine), a Savage .22-caliber rifle, a box that contained ammunition, $3,025 in cash, five cell phones, and drug paraphernalia in the master bedroom.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Social Security Employee Charged with Pandemic Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Takiyah Gordon Austin, age 46, of Wilkes Barre, Pennsylvania, was charged in a 29-count Indictment on July 20, 2021, which conducting a scheme to fraudulently obtain unemployment benefits related to COVID-19 emergency relief funds. The case was unsealed on August 12, 2021, following Austin's initial appearance.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits was predicated on the applicant’s unemployment for reasons related to the pandemic; however, the applicant must also have been able to work each day and, if offered a job, the applicant must have been able to accept it. Once the applicant was approved to receive benefits, the applicant was required to submit weekly certifications that indicated that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and, had reported any employment during the week and the gross pay or other payments received.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment charges Austin with 21 counts of wire fraud, four counts of aggravated identify theft, and four counts of theft of government funds. The Indictment alleges that from in or about May 2020 to in or about May 2021, Austin, a claims specialist with the Social Security Administration, filed PUA claims for ineligible recipients. As part of the scheme, Austin filed PUA claims for ineligible individuals in exchange for payment from the individuals. Additionally, Austin filed claims after accessing SSA databases to obtain the personal identifying information from unsuspecting individuals and then diverted the unemployment funds to addresses she controlled in order to use the funds for her own personal expenses. Through the scheme, Austin is alleged to have defrauded the government of over $288,000.
“Fighting pandemic fraud is a high priority for our office and the Department of Justice,” stated Acting U.S. Attorney Bruce D. Brandler. “When public officials are engaged in the fraud it is particularly disappointing because public officials know all too well how much these diverted funds are needed by those truly affected by the pandemic. I want to thank all the law enforcement agents and prosecutors who investigated this matter for their diligence and hard work in bringing this fraud to light.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to Unemployment Insurance Programs,” stated Syreeta Scott, Acting Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to protect the integrity of programs intended for unemployed American workers.”
“The public trusts Social Security employees to handle their sensitive information and records appropriately. Mrs. Gordon violated that trust to perpetrate a fraud scheme to take advantage of COVID-related assistance at a time when so many others have a legitimate need for those funds,” said Gail S. Ennis, Inspector General of the Social Security Administration. “I am grateful for our partnerships with the U.S. Department of Labor Office of Inspector General and the United States Postal Inspection Service, and I thank the U.S. Attorney’s Office for their continued efforts to prosecute those who violate public trust and commit fraud.”
The case was investigated by the Social Security Administration, Office of Inspector General, the Department of Labor, Office of Inspector General, and the United States Postal Inspection Service. Special Assistant United States Attorney Megan Curran and Assistant United States Attorney Alisan V. Martin are prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for wire fraud is 20 years’ imprisonment. Aggravated identity theft carries a mandatory two-year sentence consecutive to sentences imposed for other offenses. Theft of government funds has a maximum penalty of 10 years’ imprisonment. All three charges may also carry a fine and a term of supervised release following imprisonment. 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.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Robertsdale Man Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Robertsdale, Alabama, man was sentenced on August 13, 2021, to 84 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Jason Charles Diard, 41, distributed methamphetamine ice he obtained from various suppliers in Baldwin County, Alabama, and in Pensacola, Florida. Diard was distributing the drugs from various places in the county, including hotels in Robertsdale and Bay Minette.
Chief United States District Court Judge Kristi K. Dubose imposed the 84-month sentence and ordered that Diard undergo drug abuse counseling while in custody. Chief Judge DuBose further ordered that Diard would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Diard will also undergo testing and treatment for drug abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but Chief Judge Dubose ordered that Diard pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.Pura Vida Boat Trips Owner Indicted and Arrested for Operating Business Without Appropriate LicensesRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a three-count indictment charging Carlos J. Izquierdo-Carrero with obstruction of justice and two counts of failure to obey Captain of the Port Orders related to a boat charter business Izquierdo-Carrero operated from La Parguera in Lajas, PR, to Caracoles Bay, without the appropriate licenses to do so, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The United States Coast Guard (USCG) and Coast Guard Investigative Section (CGIS) were in charge of the investigation.
According to the Indictment, on October 28, 2019, USCG Prevention Department personnel contacted Izquierdo-Carrero, owner of Pura Vida Boat Trips, and advised him of the requirements to obtain the necessary licensing to commercially operate vessels with passengers for hire. Izquierdo-Carrero utilized various vessels as a part of Pura Vida Boat Trips, a commercial charter business, including the Bertram, the Pura Vida, and the Kaira.
On or about April 17, 2021, the USCG determined that the operation of the Bertram, the Pura Vida, and the Kaira represented a significant unsafe boating condition and environmental threat to the port and navigable waterways of the United States given Izquierdo-Carrero’s failure to comply with the applicable licensing laws and regulations for commercial charters. Izquierdo-Carrero was served with Captain of the Port Orders for his three vessels and formally warned regarding his non-compliance with the applicable regulatory and licensing requirements. Despite the warnings, Izquierdo-Carrero continued to commercially operate those three vessels, among others, without complying with the USCG Captain of the Port Orders and applicable regulations related to the safe operation of commercial charters.
On May 7, 2021, during an undercover operation, Izquierdo-Carrero, aided and abetted by others, operated commercial charters from La Parguera to Caracoles Bay, including on the Pura Vida, the Kaira, and the Mirta Iris, in violation of the USCG Captain of the Port Orders and applicable licensing regulations. Further, Izquierdo-Carrero obstructed the inspection of the Mirta Iris by instructing undercover USCG agents to lie and misrepresent that they were friends of Izquierdo-Carrero and not paying charter passengers.
“Unfortunately, Pura Vida Boat Trips is not the only company illegally operating in Puerto Rico beach and tourist areas,” said US Attorney Muldrow. “This prosecution should serve as a warning to other boat operators who are not complying with important safety and other regulations designed to protect local citizens and tourists.”
“Illegal passenger operations represent a threat to the safety of life at sea and the environment, those who continue this practice may be facing stiff fines and possible prosecution,” said Capt. Gregory H. Magee, Sector San Juan commander. “The Coast Guard is committed to identifying and eradicating this illegal practice. In doing so, our Sector San Juan Prevention Department will continue to work closely with our Coast Guard Investigative Service, and our partners in the U.S. Department of Justice and local and federal law enforcement to protect the people of Puerto Rico, the U.S. Virgin Islands, and our visitors from this threat.”
“Illegal charter operations pose a significant threat to our communities, they can also become a pathway to other illegal activity and must be dealt with aggressively by the maritime law enforcement community,” said Zinnia James, Coast Guard Investigative Service Southeast Region Special Agent in Charge.
Assistant U.S. Attorney María L. Montañez-Concepción of the Financial Fraud and Public Corruption Section is in charge of the prosecution of the case. If convicted, the defendant faces up to 5 years in prison for obstruction of justice and up to 6 years in prison for failure to obey the Captain of the Port Orders, plus the imposition of a fine and supervised release.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Prison Inmates Among Four Defendants Indicted for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Two New York State prison inmates and two others were indicted last week for conspiring to defraud COVID-19 pandemic-related unemployment insurance programs administered by the New York State Department of Labor (NYSDOL).
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Nikitas Splagounias, Acting Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Joshua McCallister, Acting Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and Roberta Reardon, Commissioner of NYSDOL.
In one indictment, Reginald Thornton, age 28, an inmate at the Bare Hill Correctional Facility in Malone, New York, and Briana Garland, age 28, of Uniondale, New York, were charged with conspiracy to commit mail fraud and aggravated identity theft.
In a second indictment, Thornton and Rhasha Wright, age 29, of Roosevelt, New York, were charged with conspiracy to commit mail fraud and aggravated identity theft. Another Bare Hill inmate, Lord Paulin, age 40, was also charged with conspiracy to commit mail fraud in the second indictment.
The indictments, returned on August 5, 2021, allege conspiracies to submit fraudulent unemployment insurance claims in the names of Bare Hill inmates. Specifically, Thornton provided his own means of identification to Garland, and the means of identification of Paulin and another inmate to Wright, in order for the non-inmates to submit claims. NYSDOL paid over $30,000 as a result of the scheme. The charges in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Garland and Wright were arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and were released with conditions. Thornton and Paulin will be arraigned on August 19.
The charges for conspiracy to commit mail fraud carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charges for aggravated identity theft carry a mandatory term of 2 years in prison, to be imposed consecutive to any other term of imprisonment. 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.
These cases are being investigated by USDOL-OIG, HSI, USPIS, and the Offices of Special Investigations of NYSDOCCS and NYSDOL. The cases are being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Philadelphia Man Charged with Seven Armed Robberies of Philadelphia and Montgomery County Banks and PharmaciesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Daniel King, 25, of Philadelphia, PA, was charged by Superseding Indictment with three counts of bank robbery; four counts of armed robbery of commercial businesses; one count of using and carrying a firearm during and in relation to a crime of violence; and one count of possessing a firearm after having been convicted of a felony.
The Indictment alleges that the defendant robbed the following banks and commercial businesses: the Rite Aid on Windrim Avenue in Philadelphia on June 10, 2018; the PNC Bank on North Broad Street in Philadelphia on June 18, 2018; the Santander Bank on Easton Road in Wyncote on June 20, 2018; the Citizens Bank on South Easton Road in Glenside on June 16, 2018; the Family Financial Check Cashing on West Girard Avenue in Philadelphia on August 28, 2018; the Rite Aid on Rising Sun Avenue in Philadelphia on September 10, 2018; and the Walgreens in Yorktown Plaza in Elkins Park on September 17, 2018.
King allegedly robbed the pharmacies and the check cashing business while armed with a handgun. The Superseding Indictment further charges the defendant with knowingly possessing a firearm loaded with 18 live rounds of ammunition, while also knowing he had previously been convicted of a felony offense which precluded him from possessing firearms.
“As alleged, this defendant went on a prolific armed robbery spree in the summer of 2018, wreaking havoc on businesses and their employees,” said Acting U.S. Attorney Williams. “Law enforcement experts have said that the majority of violent crimes committed in and around Philadelphia are perpetrated by a small number of brazen criminals. The charges in this Indictment are a perfect case-in-point and exactly why our All Hands On Deck initiative is committed to investigating and prosecuting the most violent criminals; by focusing on the most violent among us, we will have a big impact.”
“The FBI is committed to keeping the Philadelphia area and its citizens safe from predators like Daniel King. Today’s indictment sends a message to violent criminals that if you terrorize our community, we will find you and bring you to justice,” said Acting Special Agent in Charge Brian T. Herrick.
If convicted, the defendant faces a maximum possible sentence of life in prison, with a mandatory seven-year sentence, five years supervised release, and a $2,250,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Cheltenham Township Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Okaloosa Drug Trafficking Organization Members Sentenced to Federal Prison for Drug and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced today the sentences of defendants who were indicted in multiple cases and convicted for their participation in an opioid, methamphetamine, and cocaine distribution ring previously active in Okaloosa County. The prosecutions were the result of a large-scale multi-agency investigation spearheaded by the Drug Enforcement Administration and the Okaloosa County Sheriff’s Office over the past two years.
In the summer of 2019, federal agents seized over 16.5 kilograms of methamphetamine, over 7 kilograms of fentanyl/heroin mixtures, over 2 kilograms of opioid pills, over a kilogram of cocaine, and almost 2 kilograms of marijuana from locations in the Fort Walton Beach, Destin, and Sandestin areas. Over $180,000 in drug proceeds, eight vehicles, five firearms, and over 1300 rounds of ammunition were seized and forfeited to the government.
As a result of the investigation, the following defendants were convicted and have been sentenced to the following prison terms in federal court:
- Henry Clay White IV, 43, of Fort Walton Beach—120 months for conspiracy to distribute controlled substances and four counts possession of a firearm or ammunition by a convicted felon;
- Jonah R. Jack-Fuller, 40, of Fort Walton Beach—66 months for two counts of possession of a firearm by a convicted felon;
- Gesnan Mejia-Urbina, 32, of Fort Walton Beach—30 months for illegal reentry by a removed alien and possession of a firearm by a convicted felon and removed alien;
- Joshua K. Bailey, 40, of Miramar Beach—300 months for conspiracy to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon as an armed career criminal;
- Stephannie N. Macnew, 31, of Fort Walton Beach—120 months for conspiracy to distribute controlled substances and possession with intent to distribute controlled substances;
- Alexander X. Evans, 34, of Fort Walton Beach—75 months for conspiracy to distribute controlled substances and possession with intent to distribute controlled substances;
- Thomas A. Mitchell, 37, of Mary Esther—28 months for conspiracy to distribute controlled substances and possession with intent to distribute controlled substances;
- Stephen S. Wilson, 31, of Fort Walton Beach—120 months for two counts of possession with intent to distribute controlled substances;
- Barry D. Harrelson, 37, of Navarre—360 months for conspiracy to distribute controlled substances, four counts of possession with intent to distribute controlled substances, and possession of a firearm by a convicted felon as an armed career criminal;
- Milton C. Pruitt, 60, of Fort Walton Beach—36 months for conspiracy to distribute controlled substances and two counts of possession with intent to distribute controlled substances;
- Nicholas D. Latson, 36, of Mary Esther—69 months for conspiracy to distribute controlled substances and violation of federal supervised release;
- Ira D. Alston, 40, of Atlanta, Georgia—awaiting sentencing on September 1, 2021, for conspiracy to distribute controlled substances and conspiracy to use a communication facility in furtherance of drug trafficking;
- Tommy Lee Lovett, III, 37, of Milton—awaiting sentencing on September 16, 2021, for three counts of possession with intent to distribute controlled substances and violation of federal supervised release; and
- Andre Pierre Frank, 32, of Navarre—awaiting sentencing on November 29, 2021, for possession with intent to distribute controlled substances.
“This multi-year investigation and the resulting sentences demonstrate our law enforcement partners’ tireless efforts and commitment to public safety,” stated Acting U.S. Attorney Coody. “As a result of our partners’ collective efforts, a dangerous trafficking organization has been dismantled and its members have been held to account for their distribution of deadly substances.”
“This investigation is an outstanding example of what we can accomplish through our law enforcement partnerships,” said Drug Enforcement Administration Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “These sentences should serve as a deterrent to those who engage in criminal activities that put our communities at risk and reaffirms the Drug Enforcement Administration’s commitment to keeping our communities safe from these violent criminals.”
“This complex investigation exemplifies how leveraging law enforcement partnerships and expertise can thwart violent crime,” said ATF Special Agent in Charge Craig W. Saier. “Together we are removing criminal organizations from our communities who commit firearms crimes and other dangerous acts that pose a threat to public safety.”
These cases resulted from a joint investigation by the Drug Enforcement Administration, Okaloosa County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement, Santa Rosa County Sheriff’s Office, Florida Highway Patrol, Florida Department of Law Enforcement, Fort Walton Beach Police Department, Crestview Police Department, Gulf Breeze Police Department, and Walton County Sheriff’s Office. Assistant United States Attorney Alicia Forbes prosecuted these cases.
These prosecutions are all part of Organized Crime Drug Enforcement Task Forces (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Okaloosa Drug Trafficking Organization Members Sentenced to Federal Prison for Drug and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced today the sentences and upcoming sentence of defendants who were indicted in multiple cases and convicted for their participation in a methamphetamine, cocaine, heroin, and marijuana ring previously active in Crestview. The prosecutions were the result of a large-scale multi-agency investigation spearheaded by the Drug Enforcement Administration and the Okaloosa County Sheriff’s Office during a two-year investigation.
From the summer of 2018 through the fall of 2019, law enforcement seized over 12 kilograms of marijuana, 9 kilograms of methamphetamine, over 3 kilograms of cocaine, 680 grams of crack cocaine, 1.5 kilograms of heroin, 10 firearms, $71,094.00 in U.S. Currency, and $15,845 in drug proceeds, from multiple locations in Crestview, Fort Walton Beach, and Cottondale.
As a result of the investigation, the following defendants were convicted and have been sentenced to the following in federal court:
- Johnnie Hill Callahan III, 38, of Crestview— 20 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm or ammunition by a convicted felon;
- Arthur John Collins III, 39, of Crestview—10 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute of controlled substances;
- Cavese Marcus Will Charles Barnes, 38, of Crestview—10 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances and distribution of controlled substances;
- Rusty Zakee Moorer, 41, of Crestview—5 years’ imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances and possession with intent to distribute controlled substances;
- Daniel Glenn Capps, 40, of Crestview—40 months imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances;
- Stephanie Anne Martin, 29, of Crestview—30 months imprisonment conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances;
- Derrick Lavert Lewis, 39, of Crestview—30 months imprisonment for conspiracy to distribute and possess with intent to distribute controlled substances and distribution of controlled substances;
- Dewayne Anthony Marion, 33, of Crestview— 5 years’ supervised release conspiracy to distribute and possess with intent to distribute controlled substances, distribution, and possession with intent to distribute controlled substances;
- Ghazwan Famil Brown, 38, of Crestview—5 years’ probation for conspiracy to distribute and possess with intent to distribute controlled substances and distribution of controlled substances; and
- Kenneth N. Harrison, 40, of Crestview—awaiting sentencing on November 29, 2021, for conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm or ammunition by a convicted felon.
“This multi-year investigation and the resulting sentences demonstrate our law enforcement partners’ tireless efforts and commitment to public safety,” stated Acting U.S. Attorney Coody. “As a result of our partners’ collective efforts, a dangerous trafficking organization has been dismantled and its members have been held to account for their distribution of deadly substances. I want to commend both the former Okaloosa County Sheriff Larry Ashley and the current Okaloosa County Sheriff Eric Aden for their leadership and exceptional efforts to partner local, state, and federal agencies together to remove drug traffickers from our streets.”
“This investigation is an outstanding example of what we can accomplish through our law enforcement partnerships,” said Drug Enforcement Administration Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “These sentences should serve as a deterrent to those who engage in criminal activities that put our communities at risk and reaffirms the Drug Enforcement Administration’s commitment to keeping our communities safe from these violent criminals.”
“This complex investigation exemplifies how leveraging law enforcement partnerships and expertise can thwart violent crime,” said ATF Special Agent in Charge Craig W. Saier. “Together we are removing criminal organizations from our communities who commit firearms crimes and other dangerous acts that pose a threat to public safety.”
These cases resulted from a joint investigation by the Drug Enforcement Administration, Okaloosa County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Santa Rosa County Sheriff’s Office, Florida Highway Patrol, Florida Department of Law Enforcement, Crestview Police Department, and Gulf Breeze Police Department. Assistant United States Attorney J. Ryan Love prosecuted these cases.
These prosecutions are all part of Organized Crime Drug Enforcement Task Forces (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
New York Investment Adviser Charged with Defrauding Clients and Misappropriating Their MoneyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced the unsealing of a Complaint charging MARTIN RUIZ with investment adviser fraud in connection with his fraudulent scheme to defraud investors using his investment advisory firm, Carter Bain Wealth Management (“CBWM”). RUIZ was arrested yesterday morning and presented yesterday afternoon before Magistrate Judge Barbara C. Moses.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Martin Ruiz promised his elderly investment advisory clients safe investments but in fact stole his clients’ retirement savings and lined his own pockets. Now, for this alleged violation of the law and of his fiduciary duty to his clients, Ruiz faces federal criminal charges.”
Special Agent-in-Charge Peter C. Fitzhugh said: “As alleged, with more than $8 million in misappropriated funds, Ruiz acted with impunity while building his own personal investments. Ruiz allegedly padded his lavish lifestyle by defrauding investors, many of them elderly working-class retirees, out of their life savings. No one should live their own version of ‘Lifestyles of the Rich and Famous’ by swindling others out of their hard-earned money. HSI New York’s El Dorado Task Force worked closely with the United States Attorney’s Office for the Southern District of New York to see that Ruiz will now face the consequences of these alleged actions.”
According to the allegations contained in the Complaint[1] unsealed yesterday in Manhattan federal court:
From at least in or about March 2011 through in or about the present, RUIZ induced multiple individual investment advisory clients of CBWM, many of whom are elderly, to retain RUIZ and CBWM to advise them on how they should invest their retirement savings. While ostensibly acting in his fiduciary capacity as their investment adviser, RUIZ instead induced more than a dozen such clients to invest more than $10 million in an investment fund called RAM Fund through the purchase of limited partnership interests. RUIZ did not disclose to those clients that RUIZ controlled RAM Fund and that he planned to misappropriate their funds.
In fact, rather than invest the funds in legitimate investment projects and real estate, as he represented to clients, RUIZ misappropriated more than $8 million of client funds from the RAM Fund, transferred those funds through a series of entities RUIZ also controlled, and spent the vast majority of the funds on personal expenses, including the purchase of a home, rent payments on several apartments, and the payment of his personal credit card bills. In so doing, he violated his fiduciary duty to act in his clients’ best interest and avoid self-dealing.
* * *
RUIZ, 45, of New York, New York, and Santa Fe, New Mexico, is charged with one count of investment adviser fraud. RUIZ faces a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
Ms. Strauss praised the investigative work of HSI. Ms. Strauss also thanked the Securities & Exchange Commission, which brought a related civil action against RUIZ.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Nashua Man Pleads Guilty to Firearm ChargeRead the Press Release
CONCORD - Paul Channell, 31, of Nashua, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on December 13, 2020, Channell was arrested for driving under the influence by the Hudson Police Department. As a result of the arrest, a tow truck was called and the police began an inventory of the vehicle pursuant to their inventory policy. The police located a Glock 26 handgun with an extended magazine and a round in the chamber. Channell was prohibited from possessing a firearm and ammunition because he was convicted of a felony in 2018. He was also on supervised release at the time of his arrest.
Channell is scheduled to be sentenced on November 30, 2021.
“To protect our community from violence, it is vital to keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute armed criminals who threaten public safety in the Granite State.”
“Today’s guilty plea demonstrates the outstanding partnership between the Hudson Police Department and the ATF as well as the commitment we share to work together to interdict illegal firearms and the criminals that compromise the safety of our communities” said ATF Special Agent in Charge James M. Ferguson
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Hudson Police Department. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
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Member of Brooklyn-Based “KavKaz Nation” Crime Syndicate Indicted for Extortion and Other ChargesRead the Press Release
A five-count indictment was filed yesterday in federal court in Brooklyn charging Roman Nikoghosyan, a member of a violent, Brooklyn-based Eurasian organized crime syndicate that operated primarily in the Manhattan Beach and Brighton Beach neighborhoods, with two counts of Hobbs Act extortion conspiracy, one count of Hobbs Act extortion, interstate transportation of stolen property and being a convicted felon in possession of a firearm. Nikoghosyan was arrested in Los Angeles, California on July 20, 2021 and ordered detained pending trial. He will be arraigned in the Eastern District of New York at a later date.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Jacqueline Maguire, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the indictment.
“As alleged, the defendant is an extortionist who uses threats of violence and intimidation to coerce his victims into making extortionate payments to him for refusing to participate in his life of crime, which also includes illegally possessing a Hi-point 995 rifle despite his having a prior felony conviction,” stated Acting United States Attorney Kasulis. “Together with our law enforcement partners, this Office is working tirelessly to dismantle violent criminal organizations like KavKaz that threaten the safety of communities in the Eastern District.” Ms. Kasulis thanked the FBI and NYPD for their contributions to date in the investigation.
“Crime syndicates thrive on creating a deep fear in the communities where they operate, and members of these syndicates instill this fear through a range of criminal tactics to include violence, extortion, and narcotics trafficking,” stated FBI Assistant Director-in-Charge Maguire. “Forcing someone against their will to transport drugs through threats of violence, as alleged done by the defendant, is criminal behavior. Our FBI Eurasian Organized Crime Task Force, together with our NYPD partners, have made great strides in ridding local neighborhoods of these violent offenders, and we won’t stop our pursuit of them until they are stopped.”
“The NYPD remains vigilant in its work to prevent the violence so often associated with gangs and crews that tear at the fabric of life in New York. I commend our NYPD investigators, federal partners and prosecutors in the United States Attorney’s Office in the Eastern District of New York for their relentless work in this case,” stated NYPD Commissioner Shea.
As set forth in court filings, KavKaz is a criminal enterprise that operates in the Eastern District of New York and elsewhere, with Brooklyn as its largest base of operation. Members of KavKaz refer to their membership as the “KWAY” or “K WAY,” and often wear jewelry or articles of clothing emblazoned with the word “KavKaz.” Brooklyn-based members of KavKaz draw on ties to the Caucus region of Eurasia, namely Armenia, Uzbekistan, parts of Southern Russia and Azerbaijan, in furtherance of accomplishing their criminal goals, including extortion and narcotics trafficking.
In early 2021, Nikoghosyan was operating a narcotics distribution scheme in which he employed the victim of one of his extortionate schemes to transport packages containing marijuana. When the victim discovered the illicit content of the packages and refused to continue distributing the narcotics, Nikoghosyan, with the assistance of coconspirators, demanded $10,000 in extortionate payments from the victim, threatening to stab him or break his legs if he did not comply.
In addition, Nikoghosyan and co-conspirators plotted to transport luxury vehicles acquired by fraud from California to New York. Finally, Nikoghosyan, having been previously convicted of a felony, was charged with possessing a firearm, a Hi-point 995 rifle found during the execution of a search warrant on July 20, 2021 at a stash house in Brooklyn that was allegedly used by Nikoghosyan. During that search, law enforcement also recovered ammunition and a quantity of marijuana.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Matthew Galeotti and Dana Rehnquist are in charge of the prosecution.
The Defendants:
ROMAN NIKOGHOSYAN
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 21-cr-421 (RJD)
Maryland man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Antonio Cortez Darden, of Maugansville, Maryland, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Darden, 44, pleaded guilty this week to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Darden admitted to having cocaine hydrochloride in September 2019 in Berkeley County.
Darden faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Man Sentenced to 7 ½-Year Prison Term for Fraud, Money Laundering, and Identity Theft SchemeRead the Press Release
WASHINGTON – Kelvin Otunyo, 37, of Hyattsville, Md., was sentenced today to 90 months in prison on federal charges stemming from his role in at least six schemes to deposit and launder stolen and unauthorized checks valued at more than $350,000.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office, Criminal Division, and Special Agent in Charge Shimon R. Richmond, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).
Otunyo, a Nigerian national, pleaded guilty on April 1, 2021, in the U.S. District Court for the District of Columbia, to two counts of bank fraud, one count of aggravated identity theft, and two counts of conspiracy to commit money laundering. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Following his prison term, he will be placed on four years of supervised release. Otunyo also was ordered to pay a restitution judgment in the amount of $124,157, and a forfeiture money judgment in the amount of $303,207.
According to court papers, between August 2017 and at least August 2018, Otunyo and co-conspirators engaged in a series of schemes in which they obtained stolen or unauthorized checks from victims, established fraudulent shell corporations and bank accounts, and deposited or attempted to deposit the checks before laundering the resulting proceeds. The frauds were committed using false IDs and fraudulent aliases. Otunyo also procured the real name and Social Security number of an identity theft victim for use in one of the schemes.
In total, the six schemes involved nine stolen or unauthorized checks from eight victims totaling $355,745.29.
As part of the larger investigation of Otunyo and others involved in laundering the proceeds of various frauds, business email compromises, and bad check schemes, at least three other defendants have been charged. In June 2019, Chief Judge Howell sentenced Michael Orji, 42, formerly of Washington D.C, to 10 years of incarceration, five years of supervised release, and $905,274 in restitution. One of Otunyo’s co-conspirators, Samson Olawale Afolabi, 36, of Hyattsville, Md., has pleaded guilty and is awaiting sentencing on Oct. 1, 2021. Another defendant, Jamar Skeete, 37, of Washington, D.C., has been indicted in connection with similar, related fraud and money laundering; he has pleaded not guilty to charges.
The case was investigated by the FBI’s Washington Field Office and the Federal Deposit Insurance Corporation-Office of Inspector General. Assistance was provided by the U.S. Postal Inspection Service, and the U.S. Department of Homeland Security-Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Christopher B. Brown and Charles Willoughby, Jr., with assistance from Paralegal Specialists Chad Byron, Rhonda Richardson, and former Paralegal Specialist C. Rosalind Pressley.
Man Sentenced to 33 months in Prison for Possessing Molotov Cocktails at La Mesa ProtestRead the Press Release
Man Sentenced to 33 months in Prison for Possessing Molotov Cocktails at La Mesa Protest
NEWS RELEASE SUMMARY – August 13, 2021
SAN DIEGO – Zachary Alexander Karas was sentenced in federal court today to 33 months in prison for possessing incendiary devices known as Molotov cocktails at a protest that began on May 30, 2020, in La Mesa.
“This defendant’s conduct endangered the welfare and safety of officers and protesters,” said Acting U.S. Attorney Randy Grossman. “He knowingly and intentionally constructed and brought Molotov cocktails to a crowded and volatile situation with the intention of using them, and this sentence reflects the very serious nature of his offense.” Grossman commended prosecutors Matthew Brehm and Joseph Orabona, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI, and investigators from the San Diego County Sheriff’s Department for their excellent work on this case.
“Today’s sentence should send a clear message to those who choose violence as a form of expression,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our local, state, and federal partners on the Joint Terrorism Task Force to protect the right to peacefully assemble while keeping our communities safe.”
“The possession of the destructive devices known as Molotov cocktails has the potential to lead to violent crime,” said Los Angeles Field Division ATF Special Agent in Charge Monique Villegas. “Molotov cocktails can destroy lives and damage property. This prosecution and sentencing is a prime example of our commitment to the communities we serve to prevent individuals from possessing such destructive devices. Strong partnerships with our partner law enforcement agencies and the U.S. Attorney’s Office result in safer communities.”
Karas was convicted by a federal jury on May 11, 2021 and was immediately taken into custody following the verdict.
According to evidence presented at trial, on May 31, 2020, at 2:00 a.m., hours after police had declared an unlawful assembly and given numerous dispersal orders, Karas was standing in the middle of the road at the intersection of Allison Avenue and Spring Street, blocking traffic as part of the protest in La Mesa.
At the time of the protest in La Mesa, several fires had been set, and those fires damaged buildings and property. In fact, Karas was standing in the street in front of the Chase and Union banks that had been set ablaze. In the early morning hours of May 31, 2020, at approximately 2:00 a.m., officers gave orders to the crowd, including Karas, to disperse for an unlawful assembly. However, Karas and others refused, and Karas was arrested for refusing to leave his position in the middle of the street. After his arrest, officers discovered that Karas possessed two glass bottles with wicks that contained gasoline and two smoke bombs.
In video-recorded statements, after being read his Miranda rights, Karas stated that he made the Molotov cocktails and brought them to the La Mesa protest because he intended to use them to set fires, but claimed he ultimately did not cause any fires. Karas said he got the bottles from a Rite Aid parking lot and used 87 octane gasoline as the fuel.
A chemist with the ATF laboratory in Atlanta, Georgia, tested the liquid found inside Karas’ Molotov cocktails and confirmed it was gasoline. An explosives enforcement officer with the ATF received the chemist’s analysis, inspected the physical evidence, and found that the Molotov cocktails were functioning destructive devices.
DEFENDANT Case Number 20CR1842-DMS
Zachary Alexander Karas Age: 29 San Diego, CA
SUMMARY OF CHARGES
Possession of an Unregistered Destructive Device – Title 26, U.S.C., Section 5861
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
San Diego County Sheriff’s Department
Lowell Man Sentenced for Gun TraffickingRead the Press Release
BOSTON - A Lowell man was sentenced on Wednesday, Aug. 11, 2021 for firearms trafficking related to five separate sales, including the sale of an illegal sawed-off shotgun.
Rathsomnang Neth, 24, was sentenced by U.S. District Court Judge Indira Talwani to time served (approximately two days) and three years of supervised release. The government recommended a sentence of 30 months in prison. In January 2019, Neth pleaded guilty to one count of dealing in firearms without a license and two counts of possessing and transferring an unregistered shotgun with a shortened barrel.
From December 2016 to April 2017 in Lowell, Neth sold four handguns and a .20 gauge pump-action shotgun with a barrel that had been sawed-off below 18 inches.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boson Field Office, made the announcement. Assistant U.S. Attorney Robert E. Richardson of Mendell’s Major Crimes Unit prosecuted the case.
Justice Department Settles with Iowa-Based Nursing Home and Management Company to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Department of Justice announced today that it reached a settlement with JP Senior Healthcare LLC and JP Senior Management LLC, resolving the department’s claims that these companies violated the Immigration and Nationality Act (INA) by discriminating against a Latino employee based on assumptions that the worker was not a U.S. citizen.
JP Senior Management manages two nursing facilities owned by JP Senior Healthcare: Pioneer Valley Living and Rehab located in Sergeant Bluff, Iowa, and Goldenrod Manor Care Center located in Clarinda, Iowa.
Based on its investigation, the department determined that while verifying a new employee’s legal right to work in the United States, JP Senior Healthcare and JP Senior Management rejected the U.S. citizen’s valid driver’s license and unrestricted Social Security card. The investigation further concluded that the companies demanded that the worker instead present a Permanent Resident Card based on the companies’ incorrect belief that the worker was not a U.S. citizen, even after the worker explained that he was a U.S. citizen, and therefore, not eligible for a Permanent Resident Card. Additionally, the department determined that these documentary demands resulted in the end of the worker’s employment. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin. Instead, all work-authorized individuals, regardless of citizenship status or national origin, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States.
“Employers must treat all workers fairly and consistent with the law, without making assumptions about a worker’s citizenship based on appearance or Hispanic national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that workplaces are free of discrimination.”
Under the terms of the settlement agreement, JP Senior Healthcare LLC and JP Senior Management LLC will pay a civil penalty to the United States; pay the injured worker back pay plus interest; and train relevant employees on the INA’s anti-discrimination provision.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Announces Expansion of Firearms Technical Assistance Project to Strengthen Community Response to Domestic Violence Incidents Involving FirearmsRead the Press Release
BIRMINGHAM, Ala. — The U.S. Department of Justice’s Office on Violence Against Women (OVW) announced the expansion of its Firearms Technical Assistance Project (FTAP) to help communities across the country reduce domestic violence homicides and injuries committed with firearms. OVW will award an estimated $6 million for up to 12 sites and $4 million for training and technical assistance on firearms and domestic violence.
“We are grateful that Birmingham is one of the sites chosen to receive FTAP support,” U.S. Attorney Prim Escalona said. “Much of the violent crime committed in Jefferson County is perpetrated by domestic violence offenders. In 2021, there have already been 22 intimate partner homicides in Jefferson County. Moreover, we know that a majority of the people committing overall homicides in Jefferson County are domestic violence offenders. Domestic violence is community violence. In October 2020, my office announced a new initiative, Operation Safe Families, to enhance protections and support for victims of domestic violence and enforcement of laws to keep guns away from domestic abusers. Resources and support from FTAP will be a tremendous asset to our local partners who aid and protect victims of domestic violence.”
“Enforcing gun laws and keeping firearms from the hands of perpetrators of domestic violence is crucial to keeping victims safe,” said OVW Acting Director Allison Randall. “The FTAP expansion is another example of the Department’s commitment in its efforts to reduce violent crime. The funding will help our grantees develop and implement community-based and culturally specific strategies to enforce firearms laws and is an important part of preventing homicides.”
In 2019, OVW and the National Council of Juvenile and Family Court Judges launched FTAP, which was designed to help communities implement policies, protocols and promising practices to prevent abusers from having access to firearms in domestic violence cases. As part of the announcement, OVW released a solicitation to fund six new FTAP sites in addition to the six existing FTAP sites, which include: Birmingham, Alabama; Muscogee (Creek) Nation; Columbus, Ohio; Brooklyn, New York; the state of Vermont; and Spokane, Washington. The deadline for applications in Grants.Gov is Sept. 20, 2021, and the JustGrants deadline is Sept. 22, 2021. Applicants are strongly encouraged to submit a non-binding Letter of Intent by Sept. 7, 2021.
The FTAP expansion will provide direct financial support for all sites, as well as new technical assistance designed to help each site incorporate community partners, particularly partner organizations that center underserved populations, into their efforts to implement effective responses to firearms and domestic violence. Training and technical assistance projects will include $2 million to help the sites implement an effective firearms response. Of particular importance will be an additional $2 million to train and support the sites on the cultural context of domestic violence in underserved communities. Additionally, OVW will award $750,000 to continue a domestic violence and firearms national resource center.
This solicitation supports the Justice Department’s comprehensive strategy for reducing violent crime. Under federal law, individuals with domestic violence misdemeanor and felony convictions, as well as individuals subject to domestic violence protective orders, are prohibited from possessing firearms. The data shows that offenders with domestic violence in their past pose a high risk of homicide. In fact, domestic violence abusers with a gun in the home are five times more likely to kill their partners.
About the Office on Violence Against Women
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Judge sentences St. Louis man for tax evasionRead the Press Release
ST. LOUIS – On Wednesday, August 12, 2021, United States District Court Judge Henry E. Autrey sentenced Nicholas Franke, 58, of St. Louis, Missouri, to a 24-month term of imprisonment to be followed by a 2-year term of supervised release. Franke pleaded guilty in May to one count of tax evasion.
Franke, an attorney, operated a solo law practice that generated business revenue. Franke paid himself from those proceeds. Franke filed income tax extension requests for the years 2013-2015, stating zero taxes were due or owed. Franke knew that those statements were false. Franke then failed to file tax returns for those years. As a result of Franke’s actions, he failed to pay more than $300,000 in taxes.
“Franke was a licensed attorney who knew his duty to file an accurate income tax return and pay his fair share of taxes. He knowingly violated the law and admitted to his conduct through his guilty plea. This sentence shows that IRS Criminal Investigation will investigate those individuals who intentionally violate tax laws and work with the United States Attorney’s Office to bring these individuals to justice,” said Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office following Wednesday’s sentencing.
This case was investigated by the Criminal Investigative Division of the Internal Revenue Service.
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John Thomas Burnette Convicted of Five CountsRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee has convicted John Thomas Burnette, 44, of Tallahassee, Florida of one count of Extortion Under Color of Official Right, two counts of Honest Services Fraud by Bribery, one count of Use of Interstate Commerce Facilities to Promote Bribery, and one count of Making False Statements to a Federal Officer. The guilty verdict was returned August 13, 2021, at the conclusion of a fifteen-day trial.
Acting United States Attorney for the Northern District of Florida, Jason R. Coody, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office made the announcement.
In December 2018, a federal grand jury charged Tallahassee City Commissioner Scott Maddox and Paige Carter-Smith in a forty-four count indictment. In May 2019, a grand jury returned a superseding indictment adding Burnette as a defendant. Maddox and Carter-Smith subsequently pleaded guilty to two counts of Honest Services Fraud by Bribery and one count of Conspiring to Interfere with the Lawful Function of the IRS. In October 2019, a grand jury returned a second superseding indictment against Burnette.
At trial, the government presented evidence that Burnette engaged in a multi-year scheme with Maddox and Carter-Smith to commit extortion, fraud, and bribery. During the scheme, Burnette and Maddox extorted bribe payments from FBI undercover agents (“UCs”) who were posing as real estate developers and entrepreneurs. Burnette instructed the UCs that to obtain preferential treatment, they must pay bribes to Maddox through Governance Services. Burnette, Maddox, Carter-Smith, and the UCs agreed that the UCs would pay Governance Services $10,000 per month in exchange for Maddox agreeing to perform official acts meant to benefit the UCs’ sham development company.
In 2017, FBI agents approached Burnette, identified themselves as FBI agents, and asked Burnette about his involvement in the bribe payments to Maddox. During the interview, Burnette repeatedly lied about his knowledge of the UCs’ payments to and involvement with Maddox.
"Today's verdict affirms a multi-year investigation of public corruption in the City of Tallahassee," stated Acting U.S. Attorney Coody. "Our citizens deserve and expect that those in public office will act in the public's interest, rather than their own and that of their confederates. Those who violate their oath and betray the public's trust will be the subject of this office and our law enforcement partners' unwavering efforts, which will continue beyond this verdict."
“Our citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying business owners seeking to line their own pocketbooks,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Let there be no doubt - bribes are not good business in Tallahassee, nor anywhere else. The FBI remains fully committed to ensuring that anyone who violates the public’s trust is held accountable.”
Burnette’s sentencing hearing is scheduled for October 28, 2021, at 1:00 pm at the United States Courthouse in Tallahassee before the Honorable United States District Judge Robert L. Hinkle. Burnette faces maximum penalties of 20 years in prison for Counts Two, Five, and Six (the Extortion and Honest Services Fraud offenses) and 5 years for Counts Eight and Nine (the Use of Interstate Facilities to Promote Bribery and Making False Statements to a Federal Officer offenses).
Scott Maddox and Paige Carter-Smith’s sentencing hearing is scheduled for September 9, 2021, at 10:00 am at the United States Courthouse in Tallahassee before the Honorable United States District Judge Robert L. Hinkle. Both Maddox and Smith face maximum penalties of 20 years in prison for the Honest Services Wire Fraud and Honest Services Mail Fraud offenses and 5 years in prison for the Conspiracy to Defraud the United States offense.
The conviction was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case against Maddox and Carter-Smith was prosecuted by Assistant United States Attorneys Stephen M. Kunz, and Andrew J. Grogan of the Northern District of Florida, and Deputy Chief Peter M. Nothstein, and Trial Attorney Rosaleen T. O’Gara of the Department of Justice, Criminal Division’s Public Integrity Section.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 11 was:
Adrian Gutierrez, 20, of Gallatin County, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Gutierrez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gutierrez was detained pending further proceedings. The Missouri River Drug Task Force investigated the case. PACER case reference. 21-18.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 12 was:
Colleen Denise Abresch, 64, of Great Falls, and Mark Edwin Abresch, 63, of Great Falls, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, both defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Both defendants were detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-49.
Ashley Nicole Rico, 34, of Great Falls, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Rico faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Rico was detained pending further proceedings. The FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis and Clark County Sheriff’s Office investigated the case. PACER case reference. 21-52.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 12 was:
Tirrell Lewis, 40, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Lewis faces a maximum 10 years in prison, $250,000 fine and three years of supervised release. Lewis was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-46.
Jerry Allen Stone Jr., aka Joshua Ivan Doefer, 38, of Culbertson, on charges of felon in possession of a firearm and ammunition. If convicted of the most serious crime, Stone faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Stone was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-54.
Roy “Doc” Rosales, 27, of Dickinson, North Dakota, on charges of possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Rosales faces a maximum 20 years in prison, a $1 million fine and at least three years of supervised release on the drug offense and a mandatory minimum five years to life in prison consecutive to any other crime and a $250,000 fine on the firearm offense. Rosales was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-26.
Donald Ray Gardner, 58, of Lodge Grass, on charges of aggravated sexual abuse of a child and abusive sexual contact. If convicted of the most serious crime, Gardner faces life in prison, a $250,000 fine and five years to life of supervised release. Gardner was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-70.
Dakota James Calendrillo, 30, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Calendrillo faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Calendrillo was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-48.
Appearing on Aug. 13 and pleading not guilty was:
Lydia Lynn Doney, 29, address unknown, on charges of distribution of meth. If convicted of the most serious crime, Doney faces a maximum 20 years in prison, a $1 million fine and at least four years of supervised release. Doney was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-104.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Idaho Falls Man Sentenced to 5 Years for Trafficking LSDRead the Press Release
POCATELLO – John Morgan McComas, 25, of Idaho Falls, was sentenced to 60 months in federal prison for trafficking lysergic acid diethylamide (LSD), Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. McComas was indicted by a federal grand jury on January 28, 2020.
According to court records, the Bonneville County Sheriff’s Office served a search warrant at McComas’ Idaho Falls residence in April 2019. During the search, law enforcement located indicia of drugs sales, a large amount of LSD, firearms, and a book entitled “How to Be a Drug Dealer.”
Acting U.S. Attorney Gonzalez highlighted the cooperative efforts of the Bonneville County Sheriff’s Office and the Idaho Falls Police Department, which led to charges.
This case is being prosecuted by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 174 defendants have been indicted by the EIP SAUSA. Of these defendants, 127 have been indicted on drug trafficking charges. Collectively, the defendants indicted under the program have been sentenced to 7,468 months (approximately 622 years) in federal prison, representing an average prison sentence of 53.72 months (4.47 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 60.33 months (5.02 years) in federal prison.
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High-Ranking Member of MS-13 Sentenced to More Than 9 Years in Prison for Racketeering and Narcotics OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JAIME SANTANA, a/k/a “Smiley,” a high-ranking member of Mara Salvatrucha, or MS-13, was sentenced by U.S. District Judge Vernon S. Broderick to 110 months in prison. SANTANA previously pled guilty to participating in a racketeering conspiracy, and participating in a conspiracy to distribute and possess with intent to distribute methamphetamine and cocaine.
U.S. Attorney Audrey Strauss said: “Jaime Santana, a leader of the L.A. Program of MS-13, trafficked in weapons and cocaine and helped plan a cross-border methamphetamine distribution network. Santana was also party to an extortion in which he and others threatened to murder the victim. Thanks to our partners at HSI and the NYPD, Santana was arrested, convicted, and has now been sentenced to prison for his crimes.”
According to the Indictment, other filings in this case, and statements during court proceedings:
SANTANA is a member of MS-13, a transnational racketeering enterprise that operates throughout North and Central America, including in El Salvador, Mexico, New York, California, Texas, Virginia, Tennessee, and North Carolina. In order to enrich the enterprise, protect and expand its criminal operations, enforce discipline among its members, and retaliate against members of rival gangs, members and associates of MS-13 committed, conspired, attempted, and threatened to commit acts of violence, distributed and possessed with intent to distribute narcotics, including methamphetamine and cocaine, and obtained, possessed, and used firearms.
MS-13 is organized into chapters called “cliques.” Groups of cliques, in turn, are aligned as “programs.” Each program is governed by a group of senior gang leaders known as the “table.” SANTANA is a high-ranking member of the table of the “L.A. Program” of MS-13.
In July and September 2019, SANTANA sold a 9mm handgun, a .40 caliber handgun, a .45 caliber handgun, boxes of ammunition, and cocaine to individuals working at the direction of law enforcement.
Furthermore, in the summer and fall of 2019, SANTANA was involved, with other high-ranking members of MS-13, in planning for the establishment of a methamphetamine distribution network that started in Mexico and operated throughout the United States, including North Carolina, New York, Virginia, and Tennessee.
In addition, in September 2019, SANTANA and other senior members of MS-13 conspired to extort another gang member, who was told that he either had to repay money or be “green lit” (i.e., killed) for introducing a “bad connection” who supplied poor quality narcotics to the gang.
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In addition to the prison term, Judge Broderick sentenced SANTANA, 41, of Galatin, Tennessee, to five years of supervised release.
Ms. Strauss praised the investigative work of Homeland Security Investigations and the New York City Police Department.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Michael D. Longyear, Justin V. Rodriguez, and Jacob Warren are in charge of the prosecution.
High Desert Doctor Arrested on Federal Narcotics Charges for Issuing Prescriptions Without Medical Need after Telemedicine SessionsRead the Press Release
LOS ANGELES – A High Desert physician remains in federal custody today after his arrest Wednesday on charges of illegally dispensing prescriptions for often-abused controlled substances – including opioid-based medications – during telemedicine sessions with “patients” from across the United States.
Dr. Raphael Tomas Malikian, 36, who resides in Llano and Palmdale and called his medical practice Happy Family Medicine, was arrested Wednesday afternoon by special agents with the Drug Enforcement Administration.
An indictment naming Malikian was unsealed at his arraignment Thursday evening, when Malikian entered not guilty pleas and a United States Magistrate Judge ordered him detained pending trial, which is currently scheduled for October 5.
Malikian is charged in an 11-count indictment with illegally distributing narcotics “while acting and intending to act outside the usual course of professional practice and without a legitimate medical purpose.” The controlled substances that Malikian allegedly distributed are oxycodone, hydrocodone, alprazolam, promethazine and codeine.
The DEA investigation was prompted by multiple reports in February 2020 of suspicious prescriptions issued by Malikian. The indictment alleges specific incidents in which Malikian prescribed controlled substances without a medical purpose after seven telemedicine consultations – including one conducted entirely via text message – starting in April 2020 and continuing through July 2020. None of the consultations involved any physical exam or diagnostic tests, and the appointments lasted as little as 2 minutes and 20 seconds.
A federal judge on Thursday unsealed search warrants executed at Malikian’s residences in conjunction with his arrest. The affidavit in support of the search warrants outlines the DEA’s investigation, which included various undercover operations in which agents from the DEA and California DOJ posed as patients and received the prescriptions that form the basis of the indictment. The DEA agent who authored the affidavit concluded that Malikian “effectively sells prescriptions for controlled substances to patients upon request, and does so without obtaining a patient’s medical history or conducting a physical examination.”
According to the affidavit, an independent medical expert reviewed the interactions between Malikian and the undercover agents and “concluded that Malikian ‘did not thoroughly evaluate his patients’ before prescribing ‘potent and potentially deadly medications,’ and had done so ‘without any regard to what is required of conscientious physicians in the United States before proceeding with controlled medications.’”
A DEA investigator also reviewed patient records maintained by Malikian, which showed that Malikian saw patients across the United States and that about 43 percent of them shared common addresses, email addresses, “caregivers” or phone numbers with other patients. According to the affidavit, one of those patients was a convicted narcotics trafficker and another was stopped at Los Angeles International Airport while carrying over $19,000 in cash and approximately 1,764 Hydrocodone and Alprazolam pills.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges alleged in the indictment carry different statutory maximum sentences. Seven of the counts allege the illegal distribution of opioids, such as oxycodone, and those charges carry a maximum possible penalty of 20 years in federal prison.
The DEA is conducting an ongoing investigation in this case. The California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse provided substantial assistance.
Assistant United States Attorney Marina A. Torres of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Hartford Optician and Business to Pay More Than $678K to Resolve False Claims Act AllegationsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that LISA AZINHEIRA and L.A. VISION LLC, have entered into a civil settlement agreement with the federal and state governments and have agreed to pay $678,901.21 to resolve allegations that they violated the federal and state False Claims Acts.
Azinheira is a licensed optician and an owner of L.A. Vision, a business located on South Whitney Street in Hartford that offers optical goods and services. The allegations against Azinheira and L.A. Vision concern the submission of claims for optical goods and services that were not medically necessary.
The government alleges that starting in January 2014, every time Azinheira and L.A. Vision billed Connecticut Medicaid for a pair of eyeglasses, they also submitted a claim to Medicaid for “miscellaneous vision services or items,” using procedure code V2799. Pursuant to the Department of Social Services (“DSS”) fee schedule, procedure code V2799 can only be billed for medically necessary vision services, and must be billed at actual acquisition cost. The United States and the State of Connecticut allege that Azinheira and L.A. Vision did not provide any services or items that would justify billing that procedure code, and if any services or goods were provided, they were not medically necessary, and not billed at acquisition cost.
The government also alleges that starting in January 2014, Azinheira and L.A. Vision encouraged Medicaid beneficiaries under the age of 21 to choose up to three pairs of eyeglasses at a time. Relevant Medicaid guidance indicates that spare pairs of eyeglasses are not medically necessary and are not covered. The federal and state governments contend that Azinheira and L.A. Vision knowingly submitted false claims to Medicaid for multiple pairs of eyeglasses that were not medically necessary.
To resolve the allegations under the federal and state False Claims Acts, Azinheira and L.A. Vision have agreed to pay $678,901.21 to the federal and state governments for conduct occurring between January 1, 2014, and November 10, 2018.
As part of the settlement, Azinheira and L.A. Vision have entered into a three-year billing Integrity Agreement with the U.S. Department of Health and Human Services that is designed to ensure future compliance with the requirements of federal healthcare programs.
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek, and by Assistant Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.
Harrison County woman sentenced for meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Amber Ramos, of Hepzibah, West Virginia, was sentenced today to 37 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Ramos, also known as “Amber Finch,” 33, pleaded guilty in April 2021 to one count of “Distribution of Methamphetamine.” Ramos admitted to selling methamphetamine in July 2018 in Harrison County.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.