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Monday 28 June 2021
Jury Convicts Georgia Resident on Dog Fighting ChargesRead the Press Release
WASHINGTON – A federal jury convicted a Georgia resident on federal charges stemming from violations of the Animal Welfare Act.
Kizzy Solomon, aka Kizzy Andrews, 44, of Camilla, was found guilty on June 22 of 15 counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture following a two-day trial that began on June 21 in federal court. Solomon is facing a maximum of five years in prison and a $250,000 fine per count and three years of supervised release.
Each defendant faces a maximum sentence of one to five years in prison and fines of $100,000 to $250,000, or both. Sentencing for certain defendants is scheduled for July 21-22 before U.S. District Judge Leslie Gardner. There is no parole in the federal system.
“The successful conclusion of this case highlights the division’s efforts to combat animal cruelty since we took responsibility for combating this vicious and cruel crime in 2014,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “We will continue to prosecute significant and major offenders to maximize the impact of these cases on this illegal industry.”
“Dog fighting is an atrocious crime that often serves as a breeding ground for other illegal behavior,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will vigorously prosecute individuals found abusing and using animals for illegal fighting and gambling. I want to thank the law enforcement agencies involved at the local and federal level for helping us obtain justice in this case, sending a message that dog fighting will not be tolerated in the Middle District of Georgia.”
“Individuals who support and facilitate the cold-hearted practice of dog fighting will face the fullest extent of criminal sanctions for their actions,” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our law enforcement partners to investigate and assist in the criminal prosecution of those who support the appalling abuse of these animals.”
According to court documents and evidence presented at trial, federal agents executed a search warrant at Solomon’s Camilla property on Sept. 12, 2018, seizing 27 pit bull-type dogs housed on chains, in poor living conditions. All but the puppies had scarring and injuries consistent with use in dog fighting. Agents also seized a large amount of dog fighting equipment in plain view throughout the primary living spaces of the house. Most notably, there was a large dog treadmill on which various dogs’ fighting histories, including whether they had perished during the fights, was written in print.
11 co-defendants previously entered guilty pleas to various offenses related to their participation in an animal fighting venture:
Leslie Meyers aka Les Meyers, 44, of Tallahassee, Florida;
Alonza Jordan, 48, of Americus, Georgia;
Germany Brockington aka Rat and Gator, 34, of Ambrose, Georgia;
Kevin Charles aka Trinidad, 45, of Jackson, Georgia;
Maurice Glover, 48, of Douglas, Georgia;
Orlando Johnson aka OJ and Juiceman, 35, of Americus, Georgia;
Shadon Johnson, 37, of Fitzgerald, Georgia;
Terry Driggers, 71, of Hoboken, Georgia;
Starlin Morgan, 39, of Plains, Georgia;
Kentre Gibson aka Gipp, 40, of Douglas, Georgia; and,
Timothy White, 51, of Patterson, Georgia.
Each defendant faces a maximum sentence of one to five years in prison and fines of $100,000 to $250,000, or both. Sentencing for certain defendants is scheduled for July 21-July 22 before U.S. District Judge Leslie Gardner. There is no parole in the federal system.
The case was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Sumter County Sheriff’s Office and Decatur County Animal Control.
Assistant U.S. Attorney Jim Crane for the Middle District of Georgia and Environment and Natural Resources Division Trial Attorney Ethan Eddy are prosecuting the case.
Jury Convicts Camilla, Georgia, Resident on Dog Fighting ChargesRead the Press Release
ALBANY, Ga. – A federal jury convicted a Camilla, Georgia, resident on federal charges stemming from violations of the Animal Welfare Act.
Kizzy Solomon, a/k/a Kizzy Andrews, 44, of Camilla, was found guilty on Tuesday, June 22 of 15 counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture following a two-day trial that began on Monday, June 21 in Albany federal court. Solomon is facing a maximum of five years in prison and a $250,000 fine per count, and three years of supervised release. Eleven co-defendants previously entered guilty pleas to various offenses related to their participation in an animal fighting venture:
Leslie Meyers aka Les Meyers, 44, of Tallahassee, Florida;
Alonza Jordan, 48, of Americus, Georgia;
Germany Brockington aka Rat and Gator, 34, of Ambrose, Georgia;
Kevin Charles aka Trinidad, 45, of Jackson, Georgia;
Maurice Glover, 48, of Douglas, Georgia;
Orlando Johnson aka OJ and Juiceman, 35, of Americus, Georgia;
Shadon Johnson, 37, of Fitzgerald, Georgia;
Terry Driggers, 71, of Hoboken, Georgia;
Starlin Morgan, 39, of Plains, Georgia;
Kentre Gibson aka Gipp, 40, of Douglas, Georgia; and,
Timothy White, 51, of Patterson, Georgia.
Each defendant faces a maximum sentence of one to five years in prison and fines of $100,000 to $250,000, or both. Sentencing for certain defendants is scheduled for July 21-22, 2021 before U.S. District Judge Leslie Gardner. There is no parole in the federal system.
“Dog fighting is an atrocious crime that often serves as a breeding ground for other illegal behavior. Our office will vigorously prosecute individuals found abusing and using animals for illegal fighting and gambling,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “I want to thank the law enforcement agencies involved at the local and federal level for helping us obtain justice in this case, sending a message that dog fighting will not be tolerated in the Middle District of Georgia.”
“The successful conclusion of this case highlights the Division’s efforts to combat animal cruelty since we took responsibility for combating this vicious and cruel crime in 2014,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “We will continue to prosecute significant and major offenders to maximize the impact of these cases on this illegal industry.”
“Individuals who support and facilitate the cold-hearted practice of dog fighting will face the fullest extent of criminal sanctions for their actions,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our law enforcement partners to investigate and assist in the criminal prosecution of those who support the appalling abuse of these animals.”
According to court documents and evidence presented at trial, federal agents executed a search warrant at Solomon’s Camilla property on September 12, 2018, seizing twenty-seven pit bull-type dogs housed on chains, in poor living conditions. All but the puppies had scarring and injuries consistent with use in dog fighting. Agents also seized a large amount of dog fighting equipment in plain view throughout the primary living spaces of the house. Most notably, there was a large dog treadmill on which various dogs’ fighting histories, including whether they had perished during the fights, was written in print.
The case was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Sumter County Sheriff’s Office and Decatur County Animal Control.
Assistant U.S. Attorney Jim Crane and Department of Justice Trial Attorney Ethan Eddy are prosecuting the case.
Iron Youth Member Sentenced to Federal Prison for Unlawfully Possessing a Machine GunRead the Press Release
SAN ANTONIO – A federal judge sentenced 19-year-old Iron Youth member and Smiley resident Caleb Nathaniel Oliver today to 18 months imprisonment for unlawfully possessing a machine gun.
In addition to the prison term, U.S. District Judge David A. Ezra ordered that Oliver be placed on supervised release for a period of three years after completing his prison term.
“The U.S. Attorney’s Office will continue to dedicate resources to the pursuit of those individuals who violate federal law by illegally possessing firearms, such as the machine gun in this case,” said U.S. Attorney Ashley C. Hoff. “I am proud of the collective efforts of our law enforcement partners who work so tirelessly to root out violent extremism and keep the public safe from harm.”
On March 18, 2021, Oliver pleaded guilty to the charge and admitted that he purchased a fully automatic machine gun from an undercover officer for $1,000 on February 5, 2021. Court documents reflect that Oliver is a member of the group called Iron Youth, a racially motivated violent extremist group that advocates violence in the furtherance of its objectives. Beginning in September 2020, Oliver had several meetings with undercover officers to discuss the purchase of the machine gun.
"Without the teamwork of the FBI Joint Terrorism Task Force and our local and state law enforcement partners in arresting this subject, we may have had yet another event of mass violence,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “The FBI is committed to doing everything we can to protect our community from violent extremists, regardless of ideology or motivation.”
The FBI conducted this investigation with assistance from the Wilson County Sheriff’s Office, Gonzales County Sheriff’s Office and Texas Rangers. Assistant U.S. Attorneys William R. Harris and Mark Roomberg prosecuted this case.
This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
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Huntington Man Sentenced to Six Years in Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Michael Stanley Wright, 34, of Huntington, was sentenced today to 72 months in federal prison for possession with intent to distribute methamphetamine and fentanyl.
According to court documents, on March 4, 2020, law enforcement officers searched Wright’s house located on Washington Avenue in Huntington and seized approximately 194.3 grams of methamphetamine mixture and approximately 4.7 grams of fentanyl. Wright also had methamphetamine and fentanyl on his person when he was searched following his arrest. In addition to the controlled substances, law enforcement officers also seized two firearms - a Colt, Model CF1911, .45 caliber pistol and a Taurus, “Judge” .45/.410 revolver – and approximately $5,536 in cash, which was money Wright had made from selling drugs. Wright admitted that he intended to sell the fentanyl and methamphetamine.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney Cremeans and Greg McVey handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00103.
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Huntington Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 30 months in prison for a federal drug crime. Aaron Howell, 46, previously pled guilty to possession with the intent to distribute heroin and methamphetamine.
According to court documents, Howell previously admitted that on November 12, 2020, he was being transported to the Huntington Police Department and removed heroin and methamphetamine from his person and left it in the back of the police cruiser.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00006.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Shawn E. Gilkerson, 40, of Huntington, pleaded guilty today to conspiracy to distribute heroin.
According to court documents, from at least December 2018, to on or about October 15, 2020, Gilkerson worked with other persons to sell heroin in Huntington. At first, Gilkerson and Lynndell Nicola Boling ran drugs to customers for their source of supply. Later, they began meeting a drug runner at the Greyhound bus station who was working for their source. The runner would provide them with approximately 500 grams to 800 grams of heroin to sell. Gilkerson and Boling received heroin in this manner several times. During a search of their residence, law enforcement officers seized over 300 grams of heroin and $17,960 in cash that was made from selling heroin. A Ruger 9-millimeter pistol seized during that search was used by Gilkerson to protect the heroin and drug proceeds. Boling pleaded guilty earlier this year and is awaiting sentencing.
Gilkerson faces a mandatory minimum sentence of 10 years and up to life in prison when he is sentenced on September 27, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00188.
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Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal drug charge.
According to court documents, on October 14, 2020, Cecil Monroe Bowman, 66, was pulled over by the West Virginia State Police. After giving Troopers consent to search his vehicle, Troopers found 23 grams of heroin under the driver’s seat. Bowman admitted he intended to sell the heroin.
Bowman pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on September 27, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00081.
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Houlton Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
BANGOR, Maine: A Houlton man pleaded guilty today in federal court in Bangor to conspiring to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately May 2018 and July 2018, Hayden Fogg, 34, was part of a drug distribution operation based out of Florida and operating in northern Maine. A co-conspirator obtained large quantities of methamphetamine from Florida and had it transported to Maine. Fogg sold the drug in the Houlton area while other members of the conspiracy sold it in Bangor and Howland.
Fogg faces up to 20 years in prison and a $1 million fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
Guatemalan Woman Sentenced for Document FraudRead the Press Release
A woman who used a false identification document and someone else’s name and social security number was sentenced today to five years of probation.
Xiomara Lopez-Martinez, age 26, a citizen of Guatemala illegally present in the United States and residing in Decorah, Iowa, received the sentence after an April 21, 2021 guilty plea to one count of unlawful use of an identification document.
In a plea agreement, Lopez-Martinez admitted she used someone else’s name and Social Security number, and also a fraudulent Social Security card, when she completed employment and tax forms in October 2017 and October 2018 at a business in Decorah. In September 2020, the victim of the identity theft from Texas contacted the Winneshiek County, Iowa, Sheriff’s Office and informed them that someone was using her name and Social Security number to work in Decorah and that the IRS had contacted her about paying back taxes on this employment. On December 2, 2020, immigration agents arrested Lopez-Martinez at her place of employment in Decorah where she initially identified herself to immigration agents using the victim’s name.
Lopez-Martinez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lopez-Martinez was sentenced to five years of probation.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations, and the Winneshiek County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2002.
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Former Waterloo Medicaid Provider Sentenced to More than Five Years in Federal Prison for Defrauding Elderly VictimRead the Press Release
A Waterloo woman who used a power of attorney to defraud a disabled elderly widow of nearly $500,000 was sentenced on June 25, 2021, to more than five years in federal prison. Kimberly Ann Henny, age 54, received the prison term after an August 5, 2020 guilty plea to one count of wire fraud.
Evidence presented at Henny’s sentencing showed that Henny operated Healing Harvest Ministries (“HHM”) in the Waterloo/Cedar Falls area. HHM was a charitable and religious organization that provided services to Medicaid recipients. In 2014, however, the Iowa Medicaid program discovered that HHM lacked required accreditation, suspended HHM, and ordered Henny to repay over $200,000 in Medicaid moneys. An FBI agent testified at Henny’s sentencing hearing about other irregularities at HHM, including alleged “exorcisms” performed on clients and failures to pay wages and withhold taxes.
Henny admitted that, between 2014 and 2016, she stole $494,724.12 from her victim, an elderly widow who lived in an assisted living facility and later a nursing home. Henny’s victim had dementia, was legally blind, and had difficulty hearing. United States District Court Judge C.J. Williams, who sentenced Henny, observed at Henny’s sentencing that Henny’s victim was “highly vulnerable” and perhaps one of the most vulnerable victims he had seen in a case.
As part of her fraud scheme, Henny used a power of attorney to gain access to her victim’s bank accounts and annuities. The victim already had a power of attorney in favor of one of the victim’s children, who lived out of state. In 2015, however, knowing that the victim clearly lacked the capacity to understand her actions due to severe cognitive and physical disabilities, Henny obtained a power of attorney over her victim’s finances. Henny then began transferring and spending the victim’s funds for her own purposes. The power of attorney form required Henny to act loyally for the victim’s benefit and not to make any gifts to herself, but Henny used the power attorney to drain her victim’s accounts and cash out her annuities, and then to make purchases for Henny’s own benefit, including a vacation, hair and spa expenses, and for rent and furniture.
In November 2018, state authorities arrested Henny on related criminal charges. The next month, Henny entered into a stipulation in a divorce proceeding, which Judge Williams found was a “sham divorce,” that awarded Henny $90,000 in retirement benefits. Over a four-month period in 2019, Henny transferred the $90,000 to other accounts she controlled, including a prepaid debit card, and then spent the funds. In addition, after she pled guilty in federal court, Henny understated to the probation office certain COVID-19 related unemployment benefits she was receiving from the government.
Henny was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Henny was sentenced to 70 months’ imprisonment. She was ordered to make $494,724.12 in restitution to her victim’s children. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Henny was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
In 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation, the Iowa Medicaid Fraud Control Unit, and the Waterloo Police Department. The United States Department of Labor, Office of Inspector General, assisted the investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2035.
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Former Member of Baltimore’s Safe Streets Program Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland –Ronald Alexander, age 50 of Baltimore, pleaded guilty today to conspiracy to distribute fentanyl, heroin, and powder and crack cocaine. While he was participating in the narcotics conspiracy, Alexander was employed by “Safe Streets,” an organization whose purpose is to reduce violence and crime in Baltimore through intervention. While he was engaged in the distribution of fentanyl and other dangerous narcotics, Alexander used his affiliation with Safe Streets to evade law enforcement in Baltimore, including on one occasion to avoid arrest when police seized from him a large quantity of fentanyl.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Alexander’s plea agreement, law enforcement obtained judicial authorization to intercept communications to and from cellular telephones used by Alexander from May through July 23, 2020. Alexander’s conversations revealed that he operated a “drug shop” in the vicinity of Spaulding Avenue and Palmer Avenue in Northwest Baltimore. Alexander and co-defendant Thomas Corey Crosby corresponded every week or two concerning the sale of narcotics, including heroin and fentanyl. After these conversations, which were often very brief, the pair would meet. Most meetings took place at a gas station located at the intersection of Druid Park Avenue and Liberty Heights in Baltimore, where Crosby supplied drugs to Alexander. Investigators conducted surveillance of many of these meetings and obtained surveillance video from the gas station.
“Ronald Alexander was an armed drug dealer who sold fentanyl and other dangerous drugs here in Baltimore,” said Acting U.S. Attorney Jonathan F. Lenzner. “Moreover, he shamefully used his employment with Safe Streets to evade law enforcement and avoid arrest when caught with fentanyl. Community outreach programs play an important role in deterring youth from a life of crime. Alexander had the opportunity to uplift his community but instead chose to pollute it with deadly narcotics that he sold to benefit only himself.”
As detailed in his plea agreement, on August 5, 2020, a Baltimore Police officer conducted a traffic stop of Alexander after Alexander rolled through a stop sign. During the encounter, Alexander used his affiliation with Safe Streets and the Baltimore City Mayor’s Office to try to deter further police investigation. Alexander called an associate afterwards, and said, “Yeah. Police hopped on me. Told me to get off the phone. You know they scared, you know they scared of the Mayor Office, I said man I work for Safe Streets from the Mayor Office. I was just coming from one of my participant house, in need with this, it was in need of food due to the pandemic. He say oh, ok ok.”
On August 9, 2020, Alexander received a call from Crosby arranging to meet at the gas station. At the gas station, Crosby was seen entering Alexander’s vehicle and the two had a brief conversation. Crosby then placed an item in the center console area of Alexander’s vehicle and then got out of the car. Alexander pulled away from the gas station and investigators performed a traffic stop and searched Alexander’s vehicle, recovering what was later determined to be 100 grams of fentanyl from a bag found in the center console. Alexander again informed law enforcement that he worked for Safe Streets and provided law enforcement with a letter from the Baltimore City Mayor’s Office. When asked about the bag in the center console, Alexander stated that he had taken the drugs from a member of the community as part of his work with the Safe Streets program in an attempt to prevent crime. According to court documents, law enforcement seized the drugs, but permitted Alexander to leave without being arrested. After the traffic stop, Alexander called Crosby and they met again at the same gas station. After the meeting, Crosby disposed of his cell phone, which investigators had obtained authorization to intercept and track.
On August 14, 2020, search warrants were executed at locations related to the investigation, including Alexander’s residence in the 1200 block of North Augusta Avenue and a second residence where Alexander sometimes stayed in the unit block of North Culver Street, both in Baltimore. Alexander was located at his residence. There, law enforcement seized a 9mm semi-automatic pistol and six cartridges of ammunition, a digital scale and drug packaging material, suspected cutting agents, and Safe Streets apparel. At the residence on North Culver Street, investigators located 80 grams of a heroin and fentanyl mixture, more than 100 grams of powdered caffeine, and a digital scale.
Alexander was prohibited from possessing a firearm and ammunition as the result of a 2001 conviction in the United States District Court for the District of Maryland for conspiracy to distribute and possess with intent to distribute heroin. Alexander was sentenced to 20 years in federal prison in that case and was released from the Bureau of Prisons in approximately May 2018.
Thomas Corey Crosby, age 51, of Woodlawn, Maryland, previously pleaded and was sentenced to 10 years in federal prison, for conspiracy to distribute controlled substances, specifically, 40 grams or more of fentanyl. Judge Russell also ordered Crosby to forfeit $134,499 in cash, seized during a search of his residence on August 14, 2020.
Alexander and the government have agreed that, if the Court accepts the plea, Alexander will be sentenced to between 11 and 13 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for September 17, 2021 at 11 a.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta and Daniel A. Loveland, Jr., who are prosecuting the case.
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Florida man admits to fraud charge involving nearly $5 millionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Phillip W. Conley, of Jacksonville, Florida, has admitted to a fraud charge, Acting U.S. Attorney Randolph J. Bernard announced.
Conley, 38, pleaded guilty to one count of “Securities Fraud.” Conley admitted to scheming approximately 18 individuals in excess of $5 million from 2014 to 2019. The victims were from all over the United States, including West Virginia and Maryland.
Conley operated a company by the name of Alpax, LLC, portraying himself as an investment advisor living and working out of Morgantown and Kingwood, West Virginia, Washington, D.C., and Virginia. He developed a scheme to defraud investors by convincing the victims to give him and his companies money for him to invest for returns for the victims. He gave the victims a false sense of security by mailing them false dividend statements, claiming a positive rate of return for their investments. Conley fraudulently obtained approximately $5.2 million dollars from 18 victims, but invested little or none of that money and spent much of it on private jet flights, expensive meals, clothes, jewelry, housing and living expenses for himself, returning only about $210,000 to the victims.
Conley faces up to 20 years of incarceration and a fine of up to $5 million. 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.
As a part of the plea agreement, Conley agreed to the forfeiture of any property purchased from the proceeds of the crimes, including a money judgment of $4,868,744.60.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Five More Defendants Plead Guilty in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS –U.S. Attorney Duane A. Evans announced additional guilty pleas related to a test score-fixing scheme at a United States Coast Guard exam center, bringing the total number of defendants convicted in this matter to 26.
On June 10, 2021, maritime industry worker ALONZO WILLAIMS pleaded guilty to conspiracy to defraud the United States. In a factual basis filed into the record, WILLIAMS admitted that he acted as an intermediary in the scheme to bribe a Coast Guard employee to enter false scores for another mariner. WILLIAMS also acknowledged that he had his own exam scores fixed.
Additionally, on June 24, 2021, ALEXIA LOVETT, FREDRICK NETTLES, STINSON PAYNE, and SHUNMANIQUE WILLIS each admitted to participating in the scheme by using false exam scores to obtain unearned licenses.
The exams at issue tested mariners’ knowledge and training to safely operate under the authority of merchant mariner licenses, which were legally required to work various positions on vessels. As alleged in the indictment, Coast Guard credentialing specialist DOROTHY SMITH entered the false scores in this scheme. The indictment alleges that SMITH accepted bribes and used a network of intermediaries. U.S. Attorney Evans reiterated that the indictment’s allegations against SMITH are merely charges and her guilt must be proven beyond a reasonable doubt.
The Honorable Barry W. Ashe presided over the guilty pleas and set sentencing dates of September and October 2021. The maximum penalty for each defendant is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the United States Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
Felon Pleads Guilty to Possession of Ghost Guns and Conspiracy to Commit Wire FraudRead the Press Release
Greenbelt, Maryland – Anthony Pelt, age 53, of Oxon Hill, Maryland, pleaded guilty today to conspiracy to commit wire fraud as well as being a felon in possession of a firearm and ammunition.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his plea agreement between March 2018 and July 2019, Pelt and a co-conspirator obtained the names, addresses, and bank information of over ten victim retailers to manufacture fraudulent checks in the names of the victim retailers.
As part of the scheme to defraud, Pelt and a co-conspirator returned merchandise for cash after purchasing items with bogus drivers’ licenses and fraudulently manufactured checks.
Over the course of the conspiracy, Pelt and his co-conspirator made over 75 transactions and caused a loss of over $224,000 in losses to victim retailers. Pelt obtained at least $154,000 as part of the conspiracy.
As stated in the plea agreement, on February 22, 2019, law enforcement officers executed a search warrant at Pelt’s residence and a storage unit controlled by Pelt in Oxon Hill, Maryland. Officers recovered Pelt’s cell phone, a machine used to create fraudulent checks, several receipts, stock checks, as well as a large cache of items purchased from victim retailers. Law enforcement seized over 67 items from Pelt’s Oxon Hill, Maryland storage facility including 18 cases of vinyl flooring, 39 white arabesque polished marble floor and wall tiles, eight cases of carpet tile, various home improvement items, and checks used at victim retail stores.
Law enforcement also seized two ghost guns from Pelt’s possession (firearms lacking a known manufacturer and serial number), an AR-style .223 caliber rifle and a 9mm handgun. Additionally, officers found Pelt in possession of one 8-round 9mm magazine, one 30-round 5.56X45 magazine, approximately 117 rounds of 9mm ammunition, and approximately 241 rounds of 5.56X45 ammunition. Prior to February 22, 2019, Pelt was previously convicted of a crime punishable by imprisonment for a term exceeding one year, and his civil rights had not been restored.
Officers also matched several of Pelt’s clothing items to the clothing seen in surveillance footage during the fraudulent transactions.
A subsequent forensic review of Pelt’s cell phone revealed evidence of check fraud including photographs of checks, account numbers, and routing numbers that were used to make transactions at victim retail stores.
As part of his plea agreement, Pelt will be required to pay $224,000 in restitution.
Pelt faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a maximum of 10 years in prison followed by three years of supervised release for being a felon in possession of a firearm. U.S. District Judge George J. Hazel has scheduled sentencing for September 20, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and the Maryland State Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dwight Draughon and Erin B. Pulice who are prosecuting the case.
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Federal Grand Jury B Indictments Announced – JuneRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the June 2021 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Rocky Carmello Breck. Kidnapping in Indian Country (Count 1), Obstruction of Justice by Threatening Physical Force Against a Witness (Count 2), Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 3), Carrying, using, and brandishing a firearm during and in relation to a crime of violence (Count 4), Witness tampering (Count 5 – 9). Breck, 25, of Broken Arrow, allegedly attempted to kidnap a female victim on June 6, 2021. He furthered brandished a firearm and used it to assault the victim by hitting her in the head. Breck reportedly used physical force or the threat of physical force against the victim to prevent communication to law enforcement. Breck is a citizen of the Muscogee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The FBI and Broken Arrow Police Department are the investigative agencies.
Jarrett Brooks. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Brooks, 25, of Tulsa, faces federal charges after using a loaded firearm to strike a male victim across the jaw on May 21,2021. This crime occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.
Ethan Michael Ciccone. Aggravated Sexual Abuse by Force and Threat in Indian Country (Count 1) and First Degree Burglary in Indian Country (Count 2). Ciccone, 25, of Vinita, allegedly broke into the house of a female victim on June 7, 2021. Upon entering the house, he engaged in sexual acts using force and threatening the victim. Ciccone is a citizen of the Cherokee Nation, and the alleged crime occurred within the Cherokee Nation Reservation. The FBI and Vinita Police Department are the investigative agencies.
Jason Sun Bear Costes. Assault with Intent to Commit Murder in Indian Country (Count 1), Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 2), and Robbery in Indian Country (Count 3). Costes, 21, of Sand Springs, faces federal charges after using an axe to assault a male victim on July 2, 2016. He is further alleged to have taken an automobile, wallet, and credit card by force after the axe attack. Costes is a citizen of the Cheyenne River Sioux Tribe, and the alleged crime occurred within the Muscogee Nation Reservation. Costes committed the crime as a juvenile. The FBI and Sand Springs Police Department are the investigative agencies.
Brittiny Linn Dick. Sexual Exploitation of a Child (Count 1); Attempted Coercion and Enticement of a Minor (Count 2). On May 7, 2012, Dick, 30, of Vinita, is alleged to have enticed and coerced a young child to engage in sexually explicit conduct for the purpose of producing child sexual abuse material, also known as child pornography. The alleged crimes occurred within the Cherokee Reservation. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
Jason Lenn Dufoe. First Degree Burglary in Indian Country. Dufoe, 42, of Bartlesville, broke into a home by opening a door and window to enter. It is alleged Dufoe had the intent to commit crime. Dufoe is a non-Indian, and the crime occurred within the Cherokee Nation Reservation. The FBI and Bartlesville Police Department are the investigative agencies.
Gabriel Escobedo-Escalera. Unlawful Reentry of a Removed Alien. Ebscobedo-Escalera, 22, an alien, was founded in the United States after deportation from Paso Del Norte, Texas, on August 17, 2019. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation.
Christopher W. Harjo. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Harjo, 24, of Tulsa, is charged with assaulting a victim by stabbing him with a sharp object. Harjo is a citizen of the Muscogee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.
Zachary Ray Harris. Arson in Indian Country. Harris, 27, faces federal charges after reportedly set a building on fire in Tulsa on May 30, 2021. Harris is a citizen of the Cherokee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The Tulsa Fire Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Allan Michael Hunter. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1); Possession of a Firearm with an Obliterated Serial Number (Count 2). Hunter, 30, allegedly assaulted an individual by pointing a firearm at the victim on June 21, 2021. Additionally, Hunter possessed a Jiminez Arms 9mm semi-automatic pistol with an altered and obliterated serial number. The defendant is a citizen of the Chickasaw Nation, and the alleged crime occurred within the Muscogee Nation. The Bureau of Alcohol, Tobacco, Firearms and Explosive and the Tulsa Police Department are the investigative agencies.
Zatayvia Johnson. Assault with Intent to Commit Murder in Indian Country. Johnson, 19, of Tulsa, faces federal charges for shooting a victim with a firearm with intent to commit murder on March 31, 2021. The defendant is non-Indian, and the alleged crime occurred within the Muscogee Nation Reservation. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Johnie Bernell Looney. Kidnapping in Indian Country (Count 1) and Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country (Count 2). Looney, 41, of Tulsa, unlawfully seized and kidnapped a female victim, his former intimate partner, on May 16, 2021. He is further charged with assaulting the female victim by strangulation. Looney is a citizen of the Cherokee Nation, and the alleged crime occurred within the Cherokee Nation Reservation. The FBI and Tulsa Police Department conducted the investigation.
Darian Resean Morris. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1) and Kidnapping in Indian Country (Count 2). Morris, 27, of Tulsa, faces charges after unlawfully seizing and kidnapped a Muscogee female victim on June 3, 2021. He reportedly used a knife to cause bodily harm and admitted his intent to kill her. Morris is non-Indian, and the alleged crime occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.
Earl Hardy Morrow and Kory Edwin Morrow. Distribution and Receipt of Child Pornography.(Counts 1 and 2); Possession of Child Pornography (Count 3) (superseding). From Feb. 20 to Feb. 27, 2020, Early Morrow, 39, of Broken Arrow, allegedly distributed and received child sexual abuse material. From Nov. 5, 2019 to Feb. 27, 2020, Kory Morrow, 41, of Broken Arrow, allegedly distributed and received child sexual abuse material. Both men are also charged with possessing child sexual abuse material, including images involving at least one prepubescent minor and a minor who had not attained 12 years of age from Nov. 5, 2019 to Feb. 27, 2020. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
David Mitchell Myall. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Myall, 40, of Salina, is charged with assaulting a victim with a knife on May 21, 2021. Mitchell is non-Indian, and the alleged crimes occurred on the Cherokee Nation Reservation. The FBI and Salina Police Department are the investigative agencies.
Roberto Carlos Rosales-Rojas. Unlawful Reentry of Removed Alien. Rosales-Rojas, 32, was found in the United States after having been deported on Nov. 6, 2012, near Calexico, California. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and Tulsa Police Department is the investigative agency.
Chloe Louise Stith; David William Morris; Breanna Lynn Sloan; Morgan Lee Bowman; Sarah Michelle Humbard; Megan Louise Detherage; Ariel Sue Paige Divine. Tampering with a Witness, Victim, and Informant Conspiracy (Count 1);Tampering with a Witness, Victim, and Informant by Threatening Physical Force (Counts 2-6); Tampering with a Witness, Victim, and Informant by Use of Physical Force (Counts 7-10); Tampering with Documents and Proceedings by Corruptly Altering, Destroying, Mutilating, and Concealing a Record, Document, and Other Object (Count 11) (second superseding). The defendants all reside in Missouri. Stith, 21, of Carthage; Morris, 33; Sloan, 22, of Joplin; Bowman, 25; Humbard, 24, of Joplin; Detherage, 27, of Joplin; and Divine, 29, of Webb City, are charged with conspiring with one another and others to tamper with witnesses/informants by threatening the use force and actually using force (assault and kidnapping) to prevent those individuals from communicating with law enforcement officials about the murder of Jolene Campbell Walker, a citizen of the Osage Nation. Ms. Walker was initially reported missing, and on July 15, 2020, her remains were discovered in Mayes County within the Muscogee Nation Reservation. Several defendants also allegedly altered and destroyed evidence with the intent to impair its integrity and availability for use in an official proceeding. The defendants carried out their conspiracy from July 5, 2020 through the date of the superseding indictment, June 23, 2021. The indictment goes on to charge defendants with specific offenses each carried out as part of the conspiracy. The FBI, Muscogee Creek Nation Lighthorse Police Department are the investigative agencies.
Kailee Sweezy. Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country. Sweezy, 20, of Bartlesville, is charged with strangling and attempting to strangle an intimate partner on June 9, 2021. Sweezy is a non-Indian, and the alleged crime occurred within the Cherokee Nation Reservation. The FBI and Bartlesville Police Department are the investigative agencies.
Wayne Harley White. Sexual Abuse of a Minor in Indian Country (Count 1); Abusive Sexual Contact with a Minor in Indian Country (Count 2). Between January 15, 2011 and April 3, 2012, White, 56, allegedly sexually abused a victim between the ages of 12 and 16 years of age. White is non-Indian, and the alleged crimes were committed within the Cherokee Nation Reservation. The FBI and Delaware County Sheriff’s Office are the investigative agencies.
Eleven Members of the Pagan’s Motorcycle Club Charged with Narcotics Distribution, Firearms Offenses, and Violent Crimes in Aid of RacketeeringRead the Press Release
NEWARK, N.J. – Two high-ranking members of the Pagan’s Motorcycle Club were arrested today for assault in aid of racketeering, Acting U.S. Attorney Rachael A. Honig announced.
Luis Arocho, aka “LuRoc,” 43, of Keansburg, New Jersey, and Maurice Guzman, aka “Dawg,” 51, of Newark, are charged by complaint with one count of aggravated assault in aid of racketeering. They are scheduled to appear by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre.
“Today’s arrests are the latest in a long-running investigation into the illegal activities of the Pagan’s Motorcycle Club,” Acting U.S. Attorney Honig said. “We have now charged 11 members of this outlaw gang with various weapons, drug-trafficking and violent crimes. Together with our federal, state, and local partners, we remain fully committed to combatting violent crime in New Jersey and prosecuting the members of the criminal organizations who are responsible for it.”
“This investigation has dealt a significant blow to the Pagans motorcycle gang,” Special Agent in Charge of the DEA’s New Jersey Division Susan A. Gibson said. “The use of violence, weapons, and intimidation was standard for this criminal organization, and law enforcement made it clear that their behavior would not be tolerated. It is a bad day for the Pagans when the combined forces of DEA, ATF, New Jersey State Police and Union County detectives come after you. These arrests made New Jersey safer and this investigation demonstrated the determination of DEA and our amazing partners to pursue the most violent criminal gangs who choose to violate the law.”
“I can say without question that our collective efforts have disrupted and dismantled the daily illegal activities of the Pagans outlaw motorcycle gang, by strategically removing their most violent and most egregious firearm and drug trafficking members and associates,” ATF Newark Field Division Acting Special Agent in Charge Toby C. Taylor said. “This collaborative investigation will undoubtedly make communities safer throughout our state and beyond.”
“The success and scale of this investigation is a testament to the impact a collaboration between law enforcement agencies can have on the safety and security of our communities,” Acting Union County Prosecutor Lyndsay V. Ruotolo said. “Thanks to the hard work and dedication of investigators and prosecutors in this long-term effort, which occurred during the height of the COVID-19 pandemic, dangerous actors, along with mass quantities of narcotics and firearms, have been removed from our streets.”
“Long-term operations of this magnitude require a tremendous amount of work and patience by cooperating detectives, and while the full scope and impact of this investigation may yet be fully realized, its success continues a year after it began,” Col. Patrick J. Callahan, Superintendent of the New Jersey State Police, said. “I commend the hard work and dedication of all the agencies involved. Their efforts have led to the arrests of violent offenders and the seizure of weapons and drugs, which has undoubtedly made our communities safer.”
According to documents filed in these cases and statements made in court:
On April 24, 2018, Arocho, Guzman, and other associates of the Pagans assaulted an associate of the Hells Angels Motorcycle Club at a gas station in Newark. The Pagans and the Hells Angels have a long-standing rivalry. The victim was beaten with an axe handle, punched, and kicked by the Pagans assailants, resulting in significant injuries. Both Arocho and Guzman are high-ranking leaders in the Pagans’ organization.
Acting U.S. Attorney Honig also announced that a federal grand jury returned an indictment today charging Nicholas Bucciarelli, aka “Booch,” 56, of Brooklawn, New Jersey, with aggravated assault in aid of racketeering, brandishing a firearm in furtherance of a crime of violence, and possession of firearms by a convicted felon, arising from his commission of a gang-related gunpoint assault in which an associate of the Pagans was assaulted for breaking the organization’s rules. Nicholas Marino, aka “Lefty,” 75, of Williamstown, New Jersey, Anthony D’Alessandro, aka “Fugit,” 55, of Williamstown, New Jersey, and Michael Dorazo, aka “Cage,” 42, of Gloucester City, New Jersey, were previously charged by federal criminal complaint for their roles in the assault. At the time of their arrests, Bucciarelli was the sergeant at arms for the Pagans’ Camden County membership chapter, Marino and D’Alessandro served as the president and sergeant at arms, respectively, for the Pagans’ Gloucester County membership chapter, and Dorazo was a member of the Pagans. Bucciarelli was also indicted for distributing five grams or more of methamphetamine.
These charges were filed as part of a multi-agency investigation into the Pagan’s Motorcycle Club – an outlaw motorcycle gang known to engage in illegal activity, including narcotics trafficking, weapons trafficking, and violent crimes. The Pagans have established membership chapters in numerous states and U.S. territories, including multiple active chapters in New Jersey. This investigation involved court-authorized wiretaps, the use of multiple undercover law enforcement agents, and execution of multiple search warrants at physical locations in multiple jurisdictions. Through the investigation, law enforcement seized 10 firearms and more than 800 grams of methamphetamine.
The U.S. Attorney’s Office previously announced the arrest of Keith Richter, aka “Conan” – the national president of the Pagans – in connection with his illegal possession of a firearm on Feb. 20, 2021. Those charges remain pending.
Law enforcement officials also previously arrested the following individuals in connection with the investigation. (Each of the defendants is charged by federal criminal complaint; the specific charges and corresponding penalties are listed in the chart below.)
Larry Ortiz, aka “Savage,” 31, of Elizabeth, New Jersey, and Junius Aquino, aka “Jayo,” 38, of Vauxhall, New Jersey, were charged with aggravated assault in aid of racketeering and discharging a firearm in furtherance of a crime of violence for their roles in a gang-related shooting. On Oct. 28, 2020, Ortiz and Aquino shot at an associate of a rival gang while driving on the New Jersey Turnpike. The shooting was committed as part of an ongoing dispute between the Pagans and the Hells Angels Motorcycle Club.
Aquino was also charged in a separate criminal complaint with possession of ammunition by a convicted felon in connection with a shooting that occurred three days later. On Oct. 31, 2020, Aquino shot at an occupied vehicle in Elizabeth. Law enforcement officers recovered seven .40 caliber shell casings from the shooting scene. On Nov. 5, 2020, law enforcement executed a search warrant at Aquino’s residence and recovered, among other items, multiple .40 caliber rounds of ammunition and approximately 50 grams of cocaine. After law enforcement officers recovered the cocaine from Aquino’s residence, Aquino was charged with possession with intent to distribute cocaine. At the time of Aquino’s arrest, he was the vice president of the Pagans’ Elizabeth membership chapter.
Ortiz was also charged with possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On Nov. 17, 2020, law enforcement officers executed a search warrant at Ortiz’s residence and recovered approximately 300 grams of methamphetamine and a loaded firearm. At the time of his arrest, Ortiz was the president of the Pagans’ Jersey City membership chapter.
Daniel Hooban, aka “Jersey,” 33, of Bayonne, New Jersey, was charged with possession of a firearm by a convicted felon; possession with intent to distribute a quantity of cocaine; and possession of a firearm in furtherance of a drug trafficking crime. On June 29, 2020, law enforcement officers executed a search warrant at Hooban’s residence and recovered approximately 30 grams of cocaine and a loaded firearm. At the time of Hooban’s arrest, he was the sergeant at arms for the Pagans’ Jersey City membership chapter.
Glen Turner, aka “Glenny,” 73, of Marcus Hook, Pennsylvania, was charged with possession with intent to distribute 50 grams or more of methamphetamine. Turner is a long-time member of the Pagans. On Dec. 10, 2020, law enforcement officers executed a search warrant at Turner’s residence and recovered approximately 450 grams of methamphetamine.
Acting U.S. Attorney Honig credited a joint task force comprised of special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Gibson; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Taylor; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Ruotolo; and the New Jersey State Police, under the direction of Col. Callahan, with the investigation leading to these charges.
Acting U.S. Attorney Honig also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr.; the Suffolk County District Attorney’s Office, under the direction of District Attorney Timothy D. Sini; the Elizabeth Police Department, under the direction of Chief Giacomo Sacca; special agents of the FBI Cherry Hill Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; and the West Deptford Police Department, under the direction of Chief John Chambers, for their assistance with this investigation.
These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government is represented by Assistant U.S. Attorneys Robert Frazer, R. Joseph Gribko, and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the complaints and indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defendant/Docket Number
Position
Charges
Penalties
Keith Richter,
aka “Conan”
Mag. No. 21-10099
National President
Possession of a firearm by a convicted felon
10 year statutory maximum
Luis Arocho
aka “LuRoc”
Mag. No. 21-9365
Mother Club Member, New Jersey
Aggravated assault in aid of racketeering
20 year statutory maximum
Maurice Guzman
aka “Dawg”
Mag. No. 21-9365
President of Presidents, New Jersey
Aggravated assault in aid of racketeering
20 year statutory maximum
Larry Ortiz,
aka “Savage”
Mag. Nos. 20-8455, 21-9041
President, Jersey City Chapter
Discharging a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering;
Possession with intent to distribute 50 grams or more of methamphetamine;
Possession of a firearm in furtherance of a drug trafficking crime
10 year mandatory minimum; up to life
20 year statutory maximum
10 year mandatory minimum; up to life
5 year mandatory minimum; up to life
Junius Aquino,
aka “Jayo”
Mag. Nos. 20-1188, 21-9041
Vice president, Elizabeth Chapter
Discharging a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering;
Possession with intent to distribute cocaine;
Possession of ammunition by a convicted felon;
10 year mandatory minimum; up to life
20 year statutory maximum
20 year statutory maximum
10 year statutory maximum
Daniel Hooban,
aka “Jersey”
Mag. No. 20-9262
Sergeant at arms, Jersey City Chapter
Possession of a firearm in furtherance of a drug trafficking crime
Possession with intent to distribute cocaine;
Possession of a firearm by a convicted felon;
5 year mandatory minimum; up to life
20 year statutory maximum
10 year statutory maximum
Nicholas Marino,
aka “Lefty”
Mag. No. 20-12328
President, Gloucester County Chapter
Brandishing a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering
7 year mandatory minimum; up to life
20 year statutory maximum
Anthony D’Alessandro,
aka “Fugit”
Mag. No. 20-12328
Sergeant at arms, Gloucester County Chapter
Brandishing a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering
7 year mandatory minimum; up to life
20 year statutory maximum
Nicholas Bucciarelli,
aka “Booch”
TBD
Sergeant at arms, Camden County Chapter
Brandishing a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering;
Possession of firearms by a convicted felon
Possession with intent to distribute 5 grams or more of methamphetamine
7 year mandatory minimum; up to life
20 year statutory maximum
10 year statutory maximum
5 year mandatory minimum; up to 40 years
Michael Dorazo,
aka “Cage”
Mag. No. 20-12328
Member
Possession of firearms by a convicted felon
10 year statutory maximum
Glen Turner,
aka “Glenny”
Mag. No. 20-13551
Member
Possession with intent to distribute 50 grams or more of methamphetamine
10 year mandatory minimum; up to life
Eau Claire Man Sentenced to 10 Years for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Zachary Tepsa, 33, Eau Claire, Wisconsin was sentenced on Friday, June 25 by Chief U.S. District Judge James D. Peterson to 10 years in federal prison for distributing 5 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release. Tepsa pleaded guilty to this charge on January 27, 2021.
On March 12, 2019, officers with the West Central Drug Task Force purchased 12.9 grams of pure methamphetamine from Tepsa through a confidential informant in Eau Claire. At the time, Tepsa was on state supervision for a prior conviction for delivery of methamphetamine. Through further investigation, law enforcement discovered that Tepsa was involved in extensive methamphetamine trafficking in western Wisconsin.
In imposing the sentence and discussing the severity of Tepsa’s drug trafficking, Judge Peterson said that Tepsa was a significant player and had people dealing underneath him. Additionally, Judge Peterson emphasized the need to protect the community from Tepsa’s drug dealing.
Tepsa is currently serving two state prison sentences for delivering methamphetamine and for fleeing or eluding an officer in a vehicle, with a projected release date in May 2023. Judge Peterson ordered this federal sentence to run concurrently with those state prison sentences.
The charge against Tepsa was the result of an investigation conducted by the West Central Drug Task Force, Chippewa and Eau Claire County Sheriff’s Departments, Eau Claire Police Department, Eau Claire District Attorney’s Office, and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson.
East St. Louis Woman Charged in $800,000 Unemployment Insurance ScamRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury in East St. Louis, Illinois, has
returned a 7-count indictment charging Talfanita M. Cobb, 49, of East St. Louis, with
participating in a scheme that fraudulently obtained more than $800,000 in unemployment insurance
benefits from three states. The indictment charges Cobb with conspiracy, mail fraud, and
aggravated identity theft. Some of the money allegedly came from federal pandemic unemployment
compensation funds.
“The COVID-19 pandemic has caused tremendous pain and suffering in our country,” said
U.S. Attorney Steven D. Weinhoeft. “So many Americans have lost their lives, and many thousands
more face severe economic hardship after losing their jobs. For those most affected, the federal
government has approved special funds. It is reprehensible that unscrupulous individuals would take
advantage of these new programs to line their own pockets. These individuals should take note: we
will investigate and prosecute them to the fullest extent of the law.”According to the indictment, Cobb’s co-conspirators used stolen identities to apply for
unemployment insurance benefits in Arizona, Ohio, and Texas. Each application allegedly listed
Cobb’s address in East St. Louis as the address of the applicant. The applications were approved,
and unemployment benefits were issued to the individuals whose names and identities had been
stolen. Some of the funds were allegedly deposited directly into a bank account controlled by Cobb.
After a short time, however, the co-conspirators were able to acquire debit cards, which
the states issued in the names of the identity theft victims and allegedly mailed to Cobb in
East St. Louis.The indictment alleges that, after she received the unemployment debit cards in the mail, Cobb went
to various ATMs in the Metro East and withdrew funds from the cards. She is accused of transferring
some of the funds to a co-conspirator using Bitcoin and keeping a percentage of the money for
herself.Inspector in Charge William Hedrick of the United States Postal Inspection Service’s
Chicago Division stated, “Individuals who use the U.S. Mail to steal public benefit money
designated for citizens suffering unemployment as a result of a pandemic must be held
accountable. The Postal Inspection Service and its law enforcement partners are committed to
investigating and prosecuting those who wish to exploit relief funding for their own personal
benefit.”An indictment is merely a formal charge against a defendant. Under the law, the defendant is
presumed to be innocent of the charges until proven guilty beyond a reasonable doubt
to the
satisfaction of a jury.Defendant Sentenced for Mail Theft and Possession of Stolen Mail, including Stimulus ChecksRead the Press Release
Assistant U. S. Attorney Vivian Sapthavee (619) 546-7696
NEWS RELEASE SUMMARY – June 28, 2021
SAN DIEGO – Theodore Bennett was sentenced in federal court today to 18 months in custody for mail theft and possession of stolen mail.
Bennett pleaded guilty in December 2020, admitting that on four different occasions in the summer of 2020, he pried open at least 94 post office boxes with a flathead screwdriver and prybar at post offices in San Diego and Imperial Counties. According to his plea agreement, he stole dozens of pieces of mail containing credit cards plus $6,500 in checks that belonged to individuals, business, and non-profit organizations and included Economic Impact Payments (stimulus checks) issued by the U.S. Department of Treasury.
At the time of his arrest, law enforcement agents discovered hundreds of pieces of stolen mail in Bennett’s possession, including the stolen stimulus checks. Bennett was eventually linked to at least three Post Office break-ins in the Southern District of California.
“Every American has the right to receive every piece of mail sent to them,” said Acting U.S. Attorney Randy Grossman. “When mail is stolen, particularly envelopes containing desperately-needed income during a pandemic, the impact on victims can be devastating. When you see someone raiding a mailbox or notice suspicious activity involving the mail, please immediately report this to the U.S. Postal Inspection Service and local law enforcement. Our office will vigorously investigate and prosecute these matters with our law enforcement partners.
Grossman commended Assistant U.S. Attorney Vivian Sapthavee and former Assistant U.S. Attorney Nicholas Hernandez, as well as the law enforcement officers in multiple agencies who investigated this case.
“Postal inspectors work aggressively to combat mail theft,” said Eric Shen, Acting Inspector in Charge of the Los Angeles Division. “In collaboration with U.S. Border Patrol Agents and the Treasury Inspector General for Tax Administration, we were able to prevent countless others from being victimized by this individual, who could have caused even more financial damage and personal inconvenience.”
DEFENDANT Case Number 20-CR-2650-AJB
Theodore Bennett Age: 33 Residence: Imperial County, CA
SUMMARY OF CHARGES
Mail Theft, 18 U.S.C. §1708 (Three Counts)
Possession of Stolen Mail, 18 U.S.C. §1708 (One Count)
Maximum Penalty: Five years in prison (per count); supervised release
AGENCY
U.S. Postal Inspection Service
U.S. Border Patrol
U.S. Dept. of Treasury
Convicted Felon Sentenced to 15 Years for Illegal Gun PossessionRead the Press Release
Memphis, TN – Floyd Wallace, 34, has been sentenced to 180 months in federal prison for being a convicted felon in possession of a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on July 4, 2019, Memphis Police officers conducted a traffic stop on a Honda Accord for an expired Mississippi license plate. The driver had a revoked driver’s license for failure to satisfy fines/costs/taxes on a prior criminal conviction.
The front seat passenger, later identified as Floyd Wallace, attempted to flee the vehicle but was quickly detained by officers. Wallace then told officers that he had a gun in his pocket. Officers also retrieved from Wallace’s person, a Taurus 9mm pistol, loaded with six live rounds in the magazine and one live round in the chamber; one bag of marijuana; and a digital scale.
At the time of the stop, Wallace had outstanding felony and misdemeanor warrants. With three prior violent felony convictions, two counts of aggravated robbery and one count of aggravated assault, Wallace was determined to be an Armed Career Criminal and sentenced to the mandatory minimum of 15 years. As a result of his prior felony convictions, he is prohibited by federal law from possessing firearms or ammunition.
Wallace, a member of the Travelling Vice Lords gang, was on probation for aggravated stalking and aggravated assault at the time of this offense.
On June 24, 2021, U.S. District Judge Thomas L. Parker sentenced Wallace to 180 months in federal prison to be followed by three years’ supervised release. There is no parole in the federal system.
This case was investigated by Project Safe Neighborhoods (PSN), the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The (PSN) Program 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 works 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."
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Charleston Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to distributing methamphetamine while on supervised release for a previous federal conviction.
According to court documents, Tiffany Shaffer, 32, admitted that on October 5, 2020, she distributed 53.88 grams of pure methamphetamine to a confidential informant in return for $1500 in United States currency. Shaffer also admitted, as part of her relevant conduct of ongoing drug dealing, that she distributed methamphetamine several other times in September, October, and December 2020, in and around the Dunbar area. Shaffer conducted the recent drug sales while on supervised release for a 2017 federal conviction on a firearms charge for which she was sentenced to four years in prison and three years of supervised release.
Shaffer faces a mandatory minimum sentence of five years in prison and up to 40 years in prison when she is sentenced on September 22, 2021. She also faces consecutive prison time as a result of violating her supervised release.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott 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-00076.
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Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of AmmunitionRead the Press Release
A man who possessed ammunition after having prior convictions for felonies and domestic abuse assaults, and who was subject to no contact orders, pled guilty today in federal court in Cedar Rapids.
Daryl Harden, age 41, from Cedar Rapids, Iowa, was convicted of one count of being a prohibited person in possession of ammunition. At the plea hearing, Harden admitted that, on January 11, 2020, he knowingly possessed five rounds of ammunition after having been convicted of six crimes punishable by more than one year of imprisonment, after having been convicted of nine misdemeanor crimes of domestic violence, and while he was subject to two no contact orders.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Harden remains in custody of the United States Marshal pending sentencing. Harden faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 20-46.
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Burlington County Man Sentenced to 28 Months in Prison for Interfering with Law Enforcement Officers during Civil DisorderRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man was sentenced today to 28 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a civil disorder in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Killian F. Melecio, 20, of Columbus, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to smash store fronts, loot stores, and attack multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Justin Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.
In addition to the prison term, Judge Martinotti sentenced Melecio to three years of supervised release. Spry and Dockery have previously pleaded guilty. Spry is scheduled to sentenced on Aug. 3, 2021, and Docker is scheduled to be sentenced Sept. 21, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Acting Police Director James Slack; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations remaining against Kadeem Dockery and Justin Spry are merely accusations, and they are presumed innocent unless and until proven guilty.
Birmingham Man Sentenced to 60 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced today for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and U.S. Marshal Martin Keely.
United States District Judge Madeline H. Haikala sentenced Lionel Caffey, 27, to 60 months in prison for being a felon in possession of a firearm. Caffey pleaded guilty to the charge in December 2020.
On April 28, 2020, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force went to a Birmingham hotel to arrest Caffey on an outstanding state warrant for attempted murder. According to testimony at his sentencing, Task Force officers encountered Caffey after he walked out of his third-floor hotel room. Caffey fought with officers and reached for his waistband during the struggle. One officer felt a pistol in Caffey’s waistband and alerted the other officers. Caffey broke free from the officers and kicked in the door of another third-floor hotel room. He then attempted to jump out of a closed window at the back of that room, but the window did not break. At that point, officers were able to gain control of him. Even after being cuffed, Caffey continued to reach for his waistband. The pistol was found on the floor in the room where he was handcuffed.
“Convicted felons who possess firearms are among those who are most likely to commit a violent crime,” U.S. Attorney Escalona said. “Prosecuting the drivers of violence in our communities is a top priority of my office.”
The United States Marshals Service Gulf Coast Regional Fugitive Task Force investigated the case. Assistant U.S. Attorney Alan Baty prosecuted the case.
Behavioral Health Specialist Sentenced to 15 Years in Federal Prison for Enticing a Minor Hopsital Patient for Sex, and Attempting to Obstruct His ProsecutionRead the Press Release
EAST ST. LOUIS, Ill. – Ricardo D. Minor, 40, of Cahokia, Illinois, will be spending 15 years in
federal prison for enticing a minor to have sex with him. Minor was sentenced to 180 months’
imprisonment for enticement of a minor; traveling with intent to have sex with a minor; and
attempting to obstruct his prosecution. Minor will also serve ten years of supervised release after
release from prison.
According to court documents, the crimes occurred between June 14, 2017 and September 3, 2017,
while Minor was working as a Behavioral Health Specialist at a local hospital and the victim was a
patient. Minor admitted that he used his cell phone and internet to contact the victim to have
sex with him on several occasions in homes in Collinsville, Illinois, and Cahokia, Illinois. Minor
was also a driver for Uber and would take the victim with him on trips to have sex. The Court also
heard evidence regarding other allegations of criminal and inappropriate sexual contact by Minor,
including with patients receiving therapy at the same hospital.The obstruction charge was based upon Minor’s activity between August 2017 and November 27, 2017.
During this time, he attempted to obstruct his prosecution by contacting the victim
and witnesses to get them to lie regarding his criminal conduct. One witness was asked to call
the family of the victim to get the family not to pursue charges.The Court in sentencing Minor said that his conduct was “reprehensible” and noted that the 15-year
sentence of imprisonment was needed to deter further criminal conduct.After the sentencing U.S. Attorney Steven D. Weinhoeft said, “This case is so egregious because the
defendant preyed on a vulnerable victim who he knew was receiving behavioral health treatment.” He
cautioned parents that, “The case serves to highlight how important it is for parents to monitor
their children’s internet and cell phone usage because sexual predators rely on their cell phones
to gain access to victims.”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 andabuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation
and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to
locate, apprehend, and prosecute individuals who sexually exploit children, and to
identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit
www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Collinsville Police Department, the St. Louis County
Police
Department and the FBI. Assistant United States Attorney Angela Scott prosecuted the case.Beech Grove Man Charged with Arson for Fire at Amtrak FacilityRead the Press Release
INDIANAPOLIS – A Beech Grove man was arrested today in Indianapolis on federal criminal charges related to his alleged setting fire to two buildings at the Amtrak Facility in Beech Grove, early morning on May 2, 2021.
According to court documents, on the night of May 1, 2021, Casey Sage, 34, trespassed onto the grounds of the Amtrak facility, which is located at 202 Garstang Street in Beech Grove. Surveillance video captured Sage as he moved around the Amtrak facility rail yard. Then, in the early morning hours of May 2, 2021, Sage entered two storage buildings in the rail yard containing various flammable or hazardous chemicals and other materials. Sage ignited each building and its contents using railroad flares he picked up at the site. Both buildings quickly erupted in flames, and video surveillance captured several explosions and flying debris as first responders arrived and fought the flames. The buildings and their contents were destroyed, and Amtrak has estimated that the fires resulted in approximately one million dollars in damages.
“Mr. Sage committed a violent and dangerous criminal act,” said Acting U.S. Attorney John E. Childress. “By burning down two buildings containing flammable and hazardous materials, Sage not only destroyed public property, he exposed first responders and Amtrak employees to a substantial risk of serious injury. We are grateful for our law enforcement partners’ quick response to the scene and their speedy efforts to investigate this case.”
“Today’s actions represent our commitment to pursuing every avenue possible to seek justice and hold accountable those who perpetrate extremely dangerous crimes like arson,” said Basil Demczak, the Special Agent in Charge of Amtrak Office of Inspector General’s Central Field Office. “These crimes not only put Amtrak’s property at risk but could have jeopardized the lives of Amtrak employees and first responders. We appreciate the seamless collaboration with the U.S. Attorney's Office as well as the sustained professionalism exhibited by our investigative staff and partner agencies throughout the investigation.”
Sage is charged with Arson. If convicted, Sage faces 5 to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Amtrak’s Office of the Inspector General, Amtrak Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Beech Grove Fire Department, Beech Grove Police Department, Homeland Security Investigations, and the Federal Bureau of Investigations.
Assistant United States Attorneys William L. McCoskey and Adam Eakman, are prosecuting this case for the government.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bank Employee Pleads Guilty to Defrauding Her Employer of Nearly $1.7 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that GANGADAI RAMPERSAUD AZIM, a/k/a “Julie Azim,” pled guilty today to a more than decade-long conspiracy to commit bank fraud, defrauding her employer, a Manhattan-based bank, by misappropriating approximately $1.7 million. AZIM pled guilty before U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Audrey Strauss said: “As she admitted today, Gangadai Azim betrayed her position as a trusted bank employee to defraud the bank and misappropriate nearly $1.7 million in client funds over the course of more than a dozen years. Now Azim awaits sentencing for her crime.”
According to the allegations in the Complaint, court filings, and statements made during plea proceedings:
Between August 2008 and January 2021, AZIM, a long-time employee of a New York, New York-based bank (“Bank-1”), stole approximately $1.7 million from her employer. Over the course of approximately 12 years, AZIM executed hundreds of wire transfers of Bank-1 funds to co-conspirators and related companies, who then sent portions of the ill-gotten funds to AZIM’s personal bank account.
In furtherance of her scheme to defraud Bank-1, AZIM repeatedly made false entries in Bank-1’s systems, misappropriating funds paid to Bank-1 by its clients to satisfy outstanding loan obligations and then extending the maturity dates of those loan obligations, making it appear as though the loan obligations had not yet been paid. When even the fraudulently extended maturity dates came due, AZIM originated new, fraudulent loans to help conceal the scheme. AZIM utilized the proceeds of those fraudulent loans to satisfy the loans for which she had previously stolen the client payments. Over the course of the approximately 12 years, AZIM caused approximately 200 improper wire transfers of Bank-1’s funds, each for an amount under $10,000, to be sent to third party accounts, including those of co-conspirators and related companies, which then returned portions of those funds to AZIM. In doing so, AZIM abused her position at Bank-1 and enriched herself at the expense of her employer.
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AZIM, 58, of Richmond Hill, New York, pled guilty to one count of conspiring to commit bank fraud, in violation of 18 U.S.C. §1349, which carries a maximum sentence of 30 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 the defendant will be determined by the judge.
AZIM is scheduled to be sentenced by Judge Failla on October 19, 2021, at 3:30 p.m.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
Associate of Former Fall River Mayor Sentenced for Extorting Marijuana Vendors and Making False StatementsRead the Press Release
BOSTON – An associate and co-conspirator of the recently convicted former Mayor of Fall River, Jasiel F. Correia II, was sentenced today in federal court in Boston for extortion and lying to federal agents about his role in assisting Correia to obtain money and property from local marijuana vendors.
Antonio Costa, 52, of Fall River, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three years of probation, with the first 15 months to be in home confinement with electronic monitoring, and ordered to complete 100 hours of community service to benefit the city of Fall River. Costa was also ordered to pay a $10,000 fine and $107,550 in forfeiture. In September 2019, Costa pleaded guilty to two counts of extortion conspiracy, two counts of extortion and one count of false statements.
Costa conspired with Correia and others to obtain cash bribes and other payments from local marijuana vendors in exchange for non-opposition letters and community host agreements. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River. Costa facilitated the bribe payments between two marijuana vendors and Correia in return for non-opposition letters. In one instance, Costa kept between $20,000 and $30,000 for himself and kept all of the approximately $77,550 paid by another vendor in cash and marijuana. In addition, Costa gave Correia a Rolex watch in return for the City’s activation of a water line to a commercial building owned by Costa.
On May 14, 2021, Correia was convicted by a federal jury of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. He is awaiting sentencing which is scheduled for Sept. 20, 2021.
Acting United States Attorney Nathaniel R. Mendell; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General made the announcement. Assistant U.S. Attorneys Zachary Hafer and David Tobin of Mendell’s Criminal Division prosecuted the case.
Arizona Man Pleads Guilty to Submitting 70 Fraudulent Loan Applications in $4 Million Covid-19 Relief Wire Fraud SchemeRead the Press Release
DENVER – Michael Lain, 56, of Queen Creek, Arizona, pleaded guilty today to wire fraud in front of U.S. District Judge William J. Martinez. His sentencing hearing has been set for December 3, 2021.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
From March through June 2020, defendant Michael Lain submitted fraudulent EIDL applications to the SBA on behalf of more than 70 LLCs seeking both loans and grants from the program. In these applications, Lain made false statements about the LLCs’ number of employees, gross revenues, and cost of goods sold during the 12 months prior to January 30, 2020. He also falsely agreed to use the funds solely as working capital for the LLCs when he intended to use the funds for other purposes, including the purchase of a new home. Seventy of his EIDL applications were approved and funded by the SBA out of its Denver Finance Center. Because of his false statements, Lain’s LLCs received $3,830,400 in EIDL proceeds and $336,000 in Economic Injury Disaster Grant (EIDG) proceeds. As part of his plea agreement, Lain has agreed to pay restitution and also to repay $294,900 that he received as a result of fraudulent PPP applications he also submitted to the SBA.
“Anyone who uses lies and deceit to defraud the generosity of the American taxpayer can expect to find the U.S. Attorney’s Office and its law enforcement partners standing guard,” warned Deputy U.S. Attorney J. Chris Larson. “Taxpayers want these funds to be used as intended -- to save businesses hit hard by the pandemic, not to line the pockets of criminals.”
“Today’s announcement should serve as a strong deterrent to anyone contemplating committing COVID-19 related fraud,” said Marc DellaSala, Special Agent in Charge, Secret Service Denver Field Office. “Actions taken by the Secret Service, our financial partners and the U.S. Attorney’s Office are ensuring that Small Business Administration Economic Injury Disaster Loans are getting to the individuals whose livelihoods have suffered during the global health crisis. The Secret Service is determined to protect the United States financial infrastructure against individuals and organizations attempting to profit with taxpayer funded stimulus at the expense of America’s small businesses.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The United States Secret Service and the Small Business Administration-Office of Inspector General investigated this case in connection with their work on the Colorado-based EIDL Fraud Task Force. Assistant United States Attorneys Pegeen Rhyne and Patricia Davies are handling the prosecution.
CASE NUMBER: 21-cr-00175-WJM
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36th Street Bang Squad Member Sentenced for Gang-Related Attempted MurdersRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 30 years in prison for his role in a gang-related racketeering conspiracy that engaged in multiple murders, attempted murders, and drug trafficking.
According to court documents, Eric Nixon, 25, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On January 2, 2017, Nixon and another gang member engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News. On February 26, 2017, Nixon shot a rival gang member in the head during a drive-by shooting in Newport News, because the rival had disrespected the gang on social media. The rival gang member survived the shooting after undergoing brain surgery.
On December 10, 2019, after a seven-week jury trial, Nixon was convicted on six counts of crimes in aid of racketeering, including racketeering conspiracy, two attempted murders, using a firearm in each crime, and having another person unlawfully purchase a firearm for him.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. In addition to Hunt and Nixon, five co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Howard Zlotnick and Brian Samuels and Special Assistant U.S. Attorney Amy Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.
Saturday 26 June 2021
Syracuse Man Admits Role in Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Luis Carrasquillo, age 35, of Syracuse pled guilty to conspiracy to distribute controlled substances, and distribution of a mixture of heroin and fentanyl, as well as cocaine, announced Acting United States Attorney Antoinette T. Bacon, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his guilty plea, Carrasquillo admitted that he conspired with Waldemar Colon and Isidro De Los Santos to sell heroin mixed with fentanyl, and cocaine from De los Santos’s apartment on Gifford Street in Syracuse as part of a conspiracy that existed from December 2018 through January 31, 2019. Carrasquillo also pled guilty to aiding and abetting the sale of a mixture of heroin and fentanyl, as well as a separate quantity of cocaine on December 6, 2018.
On January 31, 2019, ATF Special Agents assisted by DEA and the Syracuse Police Department-Special Investigations Division executed a federal search warrant at Isidro De Los Santos’s residence and recovered over twenty-one ounces (608 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the adjacent apartment of another involved defendant, Anthony Moreno, on the same day resulted in the seizure of over 18 ounces (521grams) of cocaine.
Sentencing for Luis Carrasquillo is scheduled for October 21, 2021 in Syracuse, at which time Carrasquillo faces a maximum sentence of up to 20 years in prison, a fine of up to $1,000,000.00, and term of post-imprisonment supervised release of at least three-years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Isidro De Los Santos pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and was sentenced on November 13, 2020 to serve a sentence of nine years (108 months) in prison, and a 5-year term of supervised release.
Anthony Moreno pled guilty to conspiracy to possess with intent to distribute controlled substances, and on November 17, 2020 was sentenced on to serve 51 months in prison, followed by a 5-year term of supervised release.
Waldemar Colon pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and is awaiting sentencing scheduled for August 11, 2021.
This case was investigated by the United State Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department-Special Investigations Division, and the United States Drug Enforcement Administration (DEA), and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Friday 25 June 2021
Wichita Man Sentenced for Distributing Thousands of Child Porn ImagesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced to 155 months for distributing child pornography, Acting United States Attorney Duston J. Slinkard announced.
Devan Navarette, 26, pleaded guilty to one count of Distribution of Child Pornography in February 2021. In his plea, he admitted to operating a Dropbox account to share files of child pornography with other users. Dropbox discovered Navarette’s activities and reported him to the National Center for Missing and Exploited Children. Investigators found thousands of images depicting children, including prepubescent children, made to engage in sex acts. As part of his sentence, Navarette will also pay $57,000 in restitution to victims.
Slinkard commended Homeland Security Investigations, the Kansas Internet Crimes Against Children Task Force, the Wichita Police Department and the Sedgwick County Sheriff’s Office for their work on the case.
Assistant U.S. Attorney Jason Hart prosecuted the case.
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Wagner Man Convicted of Abusive Sexual Contact of a Child Under 12 Years OldRead the Press Release
Acting United States Attorney Dennis Holmes announced that Frank Sanchez, age 66, of Wagner, South Dakota, was found guilty of one count of Abusive Sexual Contact, and was acquitted of one count of Aggravated Sexual Abuse and one count of Abusive Sexual Contact as a result of a federal jury trial in Sioux Falls, South Dakota.
The charge of conviction carries a maximum penalty of 10 years in federal prison and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Sanchez was indicted by a federal grand jury on December 3, 2019.
The conviction stems from an incident between June 1, 2006, and September 1, 2006, when Sanchez engaged in sexual contact with a female minor who had not attained the age of 12 years. The incident occurred while they were living with relatives in the Marty, South Dakota, area.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
A presentence investigation was ordered. The defendant was remanded to the custody of the U.S. Marshals Service.
Virginia Man Sentenced for Producing Images of Child Sex AbuseRead the Press Release
A Virginia man was sentenced today in the Eastern District of Virginia to 19 years in prison for the production and distribution of child pornography.
Kevin Hewlett, 36, of Bluemont, was convicted by a federal jury on Oct. 8, 2020, of producing and distributing child pornography. According to court documents and evidence presented at trial, Hewlett was a farrier, a craftsman who trims and shoes horses’ hooves. He was hired to be the farrier to a minor girl’s horses. Hewlett began communicating with the minor regularly through text messages and social media applications. Then in August 2018, Hewlett recorded himself engaging in sexually explicit conduct with the minor in his bedroom. A few months later, in January 2019, Hewlett sent the minor the recording.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.
This case was investigated by the Loudoun County Sheriff’s Office and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task force, which is composed of FBI agents along with local, state and federal partners.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section and former Assistant U.S. Attorney Nathaniel Smith III of the Eastern District of Virginia 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Man Sentenced for Child Exploitation OffensesRead the Press Release
ALEXANDRIA, Va. – A Bluemont man was sentenced today to 19 years in prison for the production and distribution of child pornography.
According to court documents, Kevin Hewlett, 36, was convicted by a federal jury on October 8, 2020, of producing and distributing child pornography. According to court documents and evidence presented at trial, Hewlett was a farrier, a craftsman who trims and shoes horses’ hooves. He was hired to be the farrier to a minor girl’s horses. Hewlett began communicating with the minor regularly through text messages and social media applications. Then in August 2018, Hewlett recorded himself engaging in sexually explicit conduct with the minor in his bedroom. A few months later, in January 2019, Hewlett sent the minor the recording.
Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.
This case was investigated by the Loudoun County Sheriff’s Office and the FBI’s Washington Field Office’s Child Exploitation and Human Trafficking Task force, which is composed of FBI agents along with local, state, and federal partners.
Former Assistant U.S. Attorney Nathaniel Smith III and Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-64.
U.S. Attorney Announces Extradition and Guilty Plea of Israeli Securities Trader for Participating in A Global Insider Trading RingRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of a 15-count superseding indictment charging DOV MALNIK and TOMER FEINGOLD with offenses relating to their roles as securities traders in a wide-ranging international insider trading ring who made millions of dollars in illicit profits by trading based on misappropriated inside information. MALNIK, a citizen of Israel and Lithuania, was arrested in Switzerland on October 7, 2020, was extradited on June 10, 2021, from Switzerland, and pled guilty today before U.S. Magistrate Judge Stewart D. Aaron. FEINGOLD remains at large. The case is assigned to U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Audrey Strauss said: “Today’s charges represent another step in our Office’s pursuit of transnational insider trading. Our Office, along with the FBI and our other law enforcement partners, will vigorously protect the integrity of our nation’s capital markets, regardless of where in the world the inside information is stolen and where tips are illegally passed.”
FBI Assistant Director William F. Sweeney Jr. said: “Whether it happens inside or outside our borders, trading securities based on misappropriated insider information that affects our financial markets in any way will ultimately lead to federal criminal charges here in the U.S. Protecting the integrity of our markets from threats both at home and abroad remains a top priority of our white collar crime division.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
DOV MALNIK, a citizen of Israel and Lithuania, and TOMER FEINGOLD, a citizen of Israel, were business partners and securities traders who traded in their own names and managed various companies and investment funds. From at least 2013 through 2017, MALNIK and FEINGOLD participated in a large-scale, international insider trading ring. Through the scheme, MALNIK and FEINGOLD received material, nonpublic information (“MNPI”) concerning acquisitions and potential acquisitions of publicly traded companies from a securities trader who resided in Switzerland (“CC-1”). MALNIK and FEINGOLD both knew that this MNPI was obtained by CC-1 directly and indirectly from individuals who were insiders at publicly traded companies and investment banks. These insiders breached their fiduciary duties and shared MNPI with others, including CC-1, in exchange for compensation, who in turn shared that information with MALNIK and FEINGOLD. MALNIK and FEINGOLD used that information to place timely, profitable securities trades resulting in millions of dollars of profits.
MALNIK and FEINGOLD began obtaining MNPI from CC-1 in approximately 2013. During that summer, CC-1 met MALNIK and FEINGOLD and explained to them that CC-1 had numerous sources of MNPI and CC-1 could share that MNPI with MALNIK and FEINGOLD. In return, MALNIK and FEINGOLD agreed to compensate CC-1 by buying additional securities on CC-1’s behalf and transmitting the profits from those trades to CC-1. Soon after meeting MALNIK and FEINGOLD, CC-1 explained to them the importance of CC-1 being paid CC-1’s share of the profits in cash because CC-1 needed cash to pay his sources of MNPI. MALNIK and FEINGOLD agreed to this arrangement and obtained MNPI about numerous companies from CC-1. Specifically, CC-1 obtained MNPI which was subsequently shared with MALNIK and FEINGOLD from numerous sources, including MNPI that was stolen by investment bank insiders from two different global investment banks.
Throughout the conspiracy, MALNIK and FEINGOLD, as well as the investment bank insiders, CC-1, and others involved in this scheme, took numerous steps to conceal their unlawful enterprise, including through the use of encrypted messaging applications and multiple unregistered “burner” cellphones to communicate with each other. MALNIK and FEINGOLD also attempted to avoid detection by engaging in securities trading through numerous offshore corporate entities. For example, in 2011, MALNIK incorporated a British Virgin Islands entity based in Geneva, Switzerland, and subsequently opened trading and/or bank accounts in that shell company’s name. During the insider trading scheme, MALNIK and FEINGOLD’s offshore companies traded in the stocks of companies about which MALNIK and FEINGOLD had received MNPI – often with multiple of those companies trading in the same stock and on the same days.
MALNIK and FEINGOLD also used these entities to transfer a portion of the profits of their illegal insider trading to CC-1 as per MALNIK and FEINGOLD’s agreement with CC-1. At first, MALNIK and FEINGOLD instructed their banks to send the funds to an account at a financial institution in Switzerland that agreed to hold the funds for the benefit of CC-1. After a short time, however, MALNIK and FEINGOLD’s banks questioned the purpose of the transactions and requested justification for the transfer of funds. Accordingly, in order to deceive the banks, MALNIK, FEINGOLD, and CC-1 agreed that CC-1 would issue fake invoices for consulting services to MALNIK and FEINGOLD’s various offshore entities. The offshore entities would then send the funds to CC-1’s account pursuant to the fake invoices.
To date, the investigation has also resulted in the conviction of other individuals who were involved in this global insider trading scheme, including investment banker Bryan Cohen, who pled guilty on January 7, 2020, to illegally passing MNPI related to his bank’s corporate clients, and entrepreneur and pharmaceutical company executive Telemaque Lavdias, who was convicted on January 15, 2020, of illegally passing MNPI related to Ariad Pharmaceuticals, Inc.
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MALNIK, 43, an Israeli and Lithuanian citizen and resident of Switzerland, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. Sentencing before Judge Marrero will take place on a date to be determined.
FEINGOLD, 42, an Israeli citizen, is charged with conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of 25 years in prison; securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; tender offer fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; securities fraud under Title 18, which carries a maximum sentence of 25 years in prison; and money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the investigative work of the FBI and also thanked the Securities and Exchange Commission for its assistance. Ms. Strauss also thanked the Office of International Affairs of the Department of Justice’s Criminal Division and the Swiss Federal Office of Justice for their assistance in the arrest and extradition of MALNIK.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two men sentenced for trafficking over 400 kilograms of methamphetamineRead the Press Release
ATLANTA - Juan Carlos Torres-Carranza and Luis Pineda-Soto have been sentenced for conspiracy to possess with intent to distribute 418.95 kilograms of methamphetamine.
"The trafficking of large amounts of methamphetamine into and through the Northern District of Georgia continues to be a problem," said Acting U.S. Attorney Kurt R. Erskine. "We and our law enforcement partners are using every tool available to combat this scourge, which breeds violent crime, and presents a major public health risk."
"This is a significant amount of poison that thankfully won’t reach the streets of our communities and continue to destroy lives," said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this are only possible because of the hard work and dedication of our agents, officers and law enforcement partners, and I am proud of their efforts.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On June 1, 2020, Homeland Security Investigations (HSI) agents began conducting visual surveillance at a warehouse located in McDonough, Georgia. The following day, as HSI agents continued their surveillance, they saw a semi-tractor trailer arrive at the warehouse. The trailer was then unhooked and the semi-tractor that was pulling the trailer drove off. According to Homeland Security databases, the trailer was taken across the border into the United States from Mexico on May 20, 2020.
Agents continued to perform surveillance on the warehouse and the trailer into the late evening and early morning hours of June 3, 2020. At approximately 11:30 p.m., Pineda-Soto and Torres-Carranza, driving a pickup truck, and another individual driving a car arrived at the warehouse. Shortly after arriving, all three individuals began working on the trailer over the next several hours, climbing on the top of the trailer, using power tools to remove panels from the top of the trailer, and dropping bundles of drugs from the top of the trailer to the ground. This process continued until 4:45 a.m. on June 3, 2020.
Before sunrise, the three individuals left the warehouse. Agents followed both vehicles until they split up and went in different directions. Agents following the pickup truck requested the assistance of the Clayton County Police Department who conducted a traffic stop. During a search of the truck, law enforcement found multiple black trash bags in the truck bed containing a total of 77 bundles of narcotics consistent with the bundles agents witnessed being removed from the trailer. Several of the bundles had cords attached to them, consistent with narcotics that are hidden in hard to reach voids found in semi-trailers, which are used as a method to retrieve the narcotics. In total, the bundles weighed 52 kilograms.
Simultaneously, agents followed the individual in the car to a house located in Ellenwood, Georgia. Once that individual arrived at the house, agents watched as he pulled into the garage, staying at the house for approximately ten minutes, long enough to unload anything stored in the trunk of the vehicle. HSI subsequently obtained a federal search warrant for the house and searched it on the afternoon of June 3, 2020. It was unoccupied and contained no furniture. However, in a closet near the front door, law enforcement found 66 black bundles of methamphetamine similar to the bundles found during the stop of the pickup truck. The bundles weighed approximately 51.45 kilograms.
HSI also obtained a federal search warrant for the trailer located at the warehouse. It was searched on June 4, 2020. Inside hidden compartments in the roof, law enforcement found 446 bundles of methamphetamine similar to those previously seized, weighing 315.5 kilograms. In all, between the three searches, HSI seized 418.95 kilograms of methamphetamine
Juan Carlos Torres-Carranza, 28, and Luis Pineda-Soto, 26, both of Michoacan, Mexico, who were both present in the United States illegally at the time of their crimes, were convicted of conspiracy to possess a controlled substance with the intent to distribute on March 22, 2021 after pleading guilty. U.S. District Judge Steve C. Jones sentenced each of them on June 22, 2021, to five years, three months in prison for their role in the conspiracy, followed by five years of supervised release.
Assistant U.S. Attorney Miguel R. Acosta prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
ATLANTA - Juan Carlos Torres-Carranza and Luis Pineda-Soto have been sentenced for conspiracy to possess with intent to distribute 418.95 kilograms of methamphetamine.
“The trafficking of large amounts of methamphetamine into and through the Northern District of Georgia continues to be a problem,” said Acting U.S. Attorney Kurt R. Erskine. “We and our law enforcement partners are using every tool available to combat this scourge, which breeds violent crime, and presents a major public health risk.”
“This is a significant amount of poison that thankfully won’t reach the streets of our communities and continue to destroy lives,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this are only possible because of the hard work and dedication of our agents, officers and law enforcement partners, and I am proud of their efforts.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On June 1, 2020, Homeland Security Investigations (HSI) agents began conducting visual surveillance at a warehouse located in McDonough, Georgia. The following day, as HSI agents continued their surveillance, they saw a semi-tractor trailer arrive at the warehouse. The trailer was then unhooked and the semi-tractor that was pulling the trailer drove off. According to Homeland Security databases, the trailer was taken across the border into the United States from Mexico on May 20, 2020.
Agents continued to perform surveillance on the warehouse and the trailer into the late evening and early morning hours of June 3, 2020. At approximately 11:30 p.m., Pineda-Soto and Torres-Carranza, driving a pickup truck, and another individual driving a car arrived at the warehouse. Shortly after arriving, all three individuals began working on the trailer over the next several hours, climbing on the top of the trailer, using power tools to remove panels from the top of the trailer, and dropping bundles of drugs from the top of the trailer to the ground. This process continued until 4:45 a.m. on June 3, 2020.
Before sunrise, the three individuals left the warehouse. Agents followed both vehicles until they split up and went in different directions. Agents following the pickup truck requested the assistance of the Clayton County Police Department who conducted a traffic stop. During a search of the truck, law enforcement found multiple black trash bags in the truck bed containing a total of 77 bundles of narcotics consistent with the bundles agents witnessed being removed from the trailer. Several of the bundles had cords attached to them, consistent with narcotics that are hidden in hard to reach voids found in semi-trailers, which are used as a method to retrieve the narcotics. In total, the bundles weighed 52 kilograms.
Simultaneously, agents followed the individual in the car to a house located in Ellenwood, Georgia. Once that individual arrived at the house, agents watched as he pulled into the garage, staying at the house for approximately ten minutes, long enough to unload anything stored in the trunk of the vehicle. HSI subsequently obtained a federal search warrant for the house and searched it on the afternoon of June 3, 2020. It was unoccupied and contained no furniture. However, in a closet near the front door, law enforcement found 66 black bundles of methamphetamine similar to the bundles found during the stop of the pickup truck. The bundles weighed approximately 51.45 kilograms.
HSI also obtained a federal search warrant for the trailer located at the warehouse. It was searched on June 4, 2020. Inside hidden compartments in the roof, law enforcement found 446 bundles of methamphetamine similar to those previously seized, weighing 315.5 kilograms. In all, between the three searches, HSI seized 418.95 kilograms of methamphetamine
Juan Carlos Torres-Carranza, 28, and Luis Pineda-Soto, 26, both of Michoacan, Mexico, who were both present in the United States illegally at the time of their crimes, were convicted of conspiracy to possess a controlled substance with the intent to distribute on March 22, 2021 after pleading guilty. U.S. District Judge Steve C. Jones sentenced each of them on June 22, 2021, to five years, three months in prison for their role in the conspiracy, followed by five years of supervised release.
Assistant U.S. Attorney Miguel R. Acosta prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Manatee County Fentanyl Dealers Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle today sentenced Raphael Simean Bennett, Jr. (35, Bradenton) and Andre Renodd Ackerman, Sr. (34, Palmetto) for their respective roles in a conspiracy to distribute fentanyl. Bennett was sentenced to 11 years in federal prison and Ackerman was sentenced to 30 months in federal prison.
Bennett had pleaded guilty on March 10, 2021, to one count of conspiracy to distribute fentanyl, four counts of distribution of fentanyl, and one count of possession with the intent to distribute fentanyl. Ackerman had pleaded guilty on March 11, 2021, to one count of conspiracy to distribute fentanyl and one count of distribution of fentanyl.
According to court documents, on August 14, 2019, Bennett and Ackerman sold one ounce of fentanyl to a confidential informant (CI) in Bradenton. On four other occasions, Bennett sold multiple ounces of fentanyl to the CI. On September 5, 2019, law enforcement officers executed a search warrant at Bennett’s residence and seized 626 grams of cocaine and 8 grams of fentanyl. On July 9, 2020, a deputy from the Manatee County Sheriff’s Office lawfully searched Bennett’s car and found 8 grams of fentanyl, 13 grams of heroin, and 16 grams of cocaine.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Bradenton Police Department, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Two Carjackers Who Beat 77-Year-Old Woman in Trujillo Alto Sentenced to 18 and 23 Years in PrisonRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Aida Delgado-Colón sentenced Eliezer Rosario-Ramos to 23 years in prison for the carjacking of a 77-year-old woman, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Co-defendant Orlando Miguel Martínez-Ramos was previously sentenced to 18 years in prison.
On August 15, 2018 around 9 PM, brothers Orlando Martínez-Ramos and Eliezer Rosario-Ramos broke into the house of a 77-year-old woman in Trujillo Alto. While she was watching television, the brothers threw a cloth over the victim’s head and beat her with a frying pan. After taking the victim’s debit cards, cellphone and television, the brothers stole her Toyota Corolla. The defendants withdrew hundreds of dollars from the victim’s bank account. The following day, agents from the Puerto Rico Police Bureau arrested Rosario-Ramos and Martínez-Ramos in the stolen vehicle while they were driving in Condado.
The Federal Bureau of Investigation was in charge of the investigation. Assistant United States Attorney Jonathan Gottfried prosecuted the case.
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Texas Man Sentenced in Heroin and Methamphetamine Smuggling CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Francisco Jesus Ramirez, 26, of Brownsville, Texas, was sentenced today for his participation in a conspiracy to possess with intent to distribute 30 kilograms of methamphetamine and five kilograms of heroin. Ramirez pled guilty to the charges in March of 2021.
According to the documents filed in connection with his guilty plea, Ramirez was identified following a traffic stop in January of 2020 on I-65 in Mobile County during which 30 kilograms of methamphetamine and five kilograms of heroin were seized from a co-conspirator driving Ramirez’s truck. The drugs were destined for delivery in Atlanta, Georgia, and investigators attempted to make a controlled delivery of the drugs at that destination. Ramirez was in telephone contact with the driver of the load during the trip and participated in the arrangements for the delivery of the drugs. A juvenile male picked up with heroin and was stopped and identified by authorities in Atlanta. No delivery of the methamphetamine could be accomplished following the seizure of the heroin. The truck driver assisted the investigators and Homeland Security agents were able to identify Ramirez as a participant in the scheme.
Chief United States District Court Judge Kristi K. Dubose imposed a 72-month sentence in Ramirez’s case, which would be followed by a five-year term of supervised release. Ramirez was also ordered to pay $100 in mandatory special assessments. No fine was imposed.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office, and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
St. Louis man pleads guilty to cocaine, fentanyl, and weapon chargesRead the Press Release
ST. LOUIS – Richard Lawrence Davis, 38, of St. Louis, Missouri, appeared before United States District Court Judge Stephen R. Clark on today’s date and pleaded guilty to conspiracy to distribute cocaine, possession with intent to distribute cocaine and fentanyl, and being a felon in possession of a firearm.
In September of 2019, investigators identified Davis as a distributor of narcotics, including cocaine and fentanyl. Investigators then initiated a surveillance of Davis’s activities in and around the 700 block of Greenway Manor Drive in Florissant, Missouri.
While conducting surveillance on September 25, investigators observed a narcotics transaction conducted by Davis, and subsequently seized over a half-kilogram of cocaine from Davis’s customer.
Investigators resumed their surveillance of Davis, where they observed other transactions. Investigators approached Davis, who fled and tried to discard approximately 80 grams of cocaine. Davis was ultimately apprehended. Investigators searched the apartment where Davis was storing his narcotics. Law enforcement officers seized over two kilograms of cocaine belonging to Davis, along with approximately one-half kilogram of fentanyl. Investigators also located and seized a Glock, .40 caliber, semi-automatic handgun and a Hi-Point, .45 caliber, semi-automatic handgun belonging to Davis, as well as a digital scale and wrappings for kilogram-amounts or “bricks” of cocaine.
Judge Clark has set sentencing for September 30, 2021. Davis faces a mandatory minimum term of imprisonment of ten years and a maximum term of imprisonment of life in the Federal Bureau of Prisons.
Davis was also on federal supervised release for previous federal drug and weapon offenses at the time of his above-described arrest.
This case was investigated by the Drug Enforcement Administration, with assistance from the Florissant Police Department, the Bridgeton Police Department, the St. Louis Metropolitan Police Department, and the St. Charles Police Department. Assistant United States Attorneys Lisa Yemm and Ricardo Dixon are handling the case.
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St. Louis Man Sentenced to Four Years for Unlawful Possession of a FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Drake L. Banks, Sr., age 30, of St. Louis, Missouri, was sentenced today to a 48-month term of imprisonment, to be followed by 3 years of supervised release, following his conviction for being an unlawful user of controlled substances in possession of a firearm. There is no parole in the federal system. Chief United States District Judge John M. Gerrard presided over this case, including the trial and sentencing.
A federal jury in Lincoln, Nebraska, returned a guilty verdict against Banks on March 3, 2021. The evidence at trial established that Banks and Zachary R. Macomber, age 29, of Annapolis, Missouri, were traveling eastbound on Interstate 80 a few miles west of Lincoln on September 19, 2019. They passed a police officer, who proceeded to stop them for following another vehicle too closely and cutting off a semi-truck. The officer soon discovered that there was marijuana inside the vehicle. Banks and Macomber were seated in the back of the patrol vehicle while the officer conducted a search of the vehicle. Methamphetamine, marijuana, and evidence of marijuana use were found in the front seats of the rental vehicle. In the trunk of the vehicle, the officer found the seven firearms listed below, numerous magazines for the firearms, and ammunition. Two of the Glock handguns were found to be loaded at the time of the traffic stop. The firearms included:
- a Palmetto State Armory PA-15, multi caliber pistol,
- a Kel-Tec PLR-16, 5.56 mm caliber pistol,
- a AA Arms AP9, 9 mm caliber pistol,
- a Glock 19, 9 mm caliber pistol,
- a Glock 22, .40 caliber pistol,
- a Glock 17, 9 mm caliber pistol, and
- a Glock 21, .45 caliber pistol.
While seated in the back of the patrol car, and while the officer was searching the rental car, the two defendants made considerable efforts to escape, including kicking the center divider and opening a sliding door on the center divider. At one point, Banks was heard asking Macomber something to the effect of ‘if he had one on him?’ At an earlier hearing, the officer testified that he understood Banks to be asking Macomber if Macomber was carrying a firearm.
Macomber pleaded guilty on August 6, 2020, to being a felon in possession of firearms. On November 6, 2020, he was sentenced by Chief Judge Gerrard to serve a 52-month term of imprisonment, to be followed by 3 years of supervised release.
This case was investigated by the Lincoln Police Department, the Lancaster County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Slidell Woman Pleads Guilty to Conspiracy to Alter Postal Money OrdersRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHASITY DOTEY a/k/a “CHASITY PINES”, age 27, of Slidell, Louisiana, pleaded guilty on June 24, 2021 to one count of conspiracy to alter U.S. Postal Money Orders before United States District Court Judge Mary Ann Vial Lemmon today.
According to court records, DOTEY cashed two altered U.S. Postal Money Orders in the amounts of $530.00 each at a U.S. Post Office located in Slidell, Louisiana. The two Postal Money Orders had been purchased in California for minimal value and then altered to reflect a higher amount by unknown co-conspirators.
Sentencing is scheduled for October 21, 2021. At that time, DOTEY faces up to five years in prison, up to $250,000 in fines, and up to three years of supervised release. There is also a $100 mandatory special assessment due after conviction.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
Rosebud Man Indicted on Drug and Firearm ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Cocaine and Marijuana and Prohibited Person in Possession of Firearm.
Blade Ryan Marshall, age 24, was indicted on October 7, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 21, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, three years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 2017 and March 2018, the Defendant conspired with others to distribute cocaine and marijuana on the Rosebud Indian Reservation. The Indictment further alleges that on January 16, 2018, the Defendant, who is a drug user, was in possession of several firearms.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Marshall was released on bond pending trial. A trial date has not been set.
Repeat Fraudster Sentenced for Embezzling more than $1.4 Million from Non-Profit EmployersRead the Press Release
BOSTON – A Canton woman was sentenced yesterday in connection with two fraud and embezzlement schemes that netted more than $1.4 million from her non-profit employers.
Nicole Lescarbeau, a/k/a “Nicole Coulibaly,” 53, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison, five years of supervised release and was ordered to pay restitution.
In December 2019, Lescarbeau pleaded guilty to wire fraud, bank fraud and aggravated identity theft in connection with an embezzlement scheme. In December 2020, Lescarbeau was charged again with a separate embezzlement scheme and agreed to plead guilty on May 3, 2021 to wire fraud and bank fraud.
From August 2013 until her termination in January 2018, Lescarbeau stole funds from her employer, a Boston-based non-profit, for her personal use. Specifically, Lescarbeau wrote unauthorized checks to herself using the non-profit’s accounting software and affixed the signatures of the authorized signers on the account. In addition, Lescarbeau repeatedly logged on to the non-profit’s online bank accounts and directed unauthorized payments and transfers for her personal benefit. Lescarbeau also made unauthorized personal charges using the non-profit’s business credit cards. In total, Lescarbeau embezzled more than $1.3 million from the non-profit organization.
While out on pre-trial release for the prior case, Lescarbeau was hired as an administrator at a small, Brookline-based non-profit organization. Lescarbeau did not tell the non-profit about her pending indictment and applied for the position using her married name in an effort to conceal the prior charges. From August 2019 until February 2020, Lescarbeau used her position to steal funds from the non-profit for her personal use by diverting checks to herself that the non-profit had issued for legitimate business and depositing them into her personal bank account. Lescarbeau also opened a PayPal account in the non-profit’s name to make unauthorized wire transfers from the non-profit’s bank account and made transfers directly from the non-profit’s bank account to pay for her personal rent. In total, as a result of this scheme, Lescarbeau embezzled nearly $57,000 from the non-profit’s bank account.
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. Assistant United States Attorney Justin D. O’Connell of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Prison Health Care Provider Naphcare Agrees to Settle False Claims Act AllegationsRead the Press Release
NaphCare Inc., headquartered in Birmingham, Alabama, has agreed to pay $694,593 to resolve allegations that the company violated the False Claims Act by knowingly submitting false claims to the Federal Bureau of Prisons (BOP) in connection with health care services provided to BOP inmates.
“Companies that do business with the government have an obligation to ensure that they charge only for the services they provide,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will hold accountable those who knowingly fail to comply with this obligation and seek taxpayer funds to which they are not entitled.”
NaphCare subcontracts with physicians to provide health care services to inmates who reside at BOP facilities located throughout the United States. The United States alleged that NaphCare submitted inflated claims for evaluation and management services provided by several physicians at BOP’s Terre Haute, Indiana, facility between January 2014 and June 2020. Specifically, the United States alleged that, when certain physicians did not indicate the type of service performed on onsite visit sheets, NaphCare charged the government for higher-level services than were provided. The settlement also resolves allegations that, for two other physicians at BOP’s facility in Victorville, California, NaphCare similarly submitted claims that included higher-level services than those that were actually performed.
“This settlement is the result of the OIG’s innovative data analytics and other efforts to identify health care claims anomalies to protect taxpayer dollars,” said Special Agent in Charge Kenneth R. Dieffenbach of the Justice Department’s Office of the Inspector General, Fraud Detection Office. “Government contractors have a responsibility to ensure that all claims presented to the government are accurate.”
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the Department of Justice Office of Inspector General. This matter was handled by Trial Attorney Jonathan Gold.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Preston County man admits to drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Ray Deberry, of Terra Alta, West Virginia, has admitted to drug and firearms charges, Acting U.S. Attorney Randolph J. Bernard announced.
Deberry, 34, of Terra Alta, West Virginia, pleaded guilty today to one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine” and one count of “Unlawful Possession of Firearm as Felon.” Deberry admitted to working with others to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere. Deberry, a person prohibited from having a firearm because of a prior conviction, admitted to having a .45 caliber pistol in January 2018 in Marion County.
Deberry faces at least five years and up to 40 years of incarceration and a fine of up to $5,000,000 for the conspiracy charge and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. 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 Andrew R. Cogar is prosecuting 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.
Pittsburgh man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raimonte Gordon Gaston, of Pittsburgh, Pennsylvania, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Gaston, also known as “Boog,” “Barkley Boo,” “Barkley,” and “Ray,” 28, pleaded guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Heroin and Fentanyl.” Gaston admitted to working with another to distribute heroin and fentanyl from September 2018 to January 2019 in Harrison County and elsewhere.
Gaston 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Felon Charged with Possessing a Stolen Firearm and FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been charged by criminal complaint with possessing a mixture of fentanyl and a stolen firearm, Acting United States Attorney Stephen R. Kaufman announced today.
The criminal complaint named Darion Ethridge, 21, as the sole defendant. Mr. Ethridge was arrested Thursday evening and made an initial appearance today in federal court in Pittsburgh.
According to the complaint, investigators had information a male matching Mr. Ethridge’s description and car would be bringing 10 bricks of heroin to the area of 2727 Mosside Blvd., in Monroeville, PA. When Mr. Ethridge arrived, he was stopped by police for a traffic violation, refused to exit the vehicle and then drove in reverse striking an officer’s vehicle. Mr. Ethridge then drove to the dead-end section of the parking lot, exited his vehicle, and engaged in a brief physical altercation with a detective. Mr. Ethridge then ran through two parking lots and onto Northern Pike where he stopped traffic and resisted multiple police officers. Mr. Ethridge was caught and taken into custody. In the car that Mr. Ethridge had been driving, investigators found a fully loaded, stolen firearm and 20 bricks, which is 1,000 stamp bags, of a substance that field-tested positive for fentanyl.
For the drug charge, the law provides for a maximum total sentence of 20 years in prison, a fine of $1 million or both, For the firearm charge, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Monroeville Police Department and the Pennsylvania Office of the Attorney General are leading the investigation and have been assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted as 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.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pine Ridge Man Indicted for Stealing Fuel TruckRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Interstate Transportation of a Stolen Vehicle.
Cole Brewer, age 29, was indicted on May 20, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on June 16, 2021, and pleaded not guilty to the Indictment. The penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, three years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Brewer stealing a Freightliner fuel truck from Hay Springs, Nebraska, in June 2020, and transporting it across the state line. The charge is merely an accusation and Brewer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and Sheridan County Sheriff’s Department. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Brewer was detained pending trial. A trial date has not been set.