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13 August 2021
Grant County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Bryan Edward Summerton, of Petersburg, West Virginia, has admitted to a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Summerton, 35, pleaded guilty today to one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Summerton admitted to having a 9mm pistol during drug trafficking in April 2020 in Grant County.
Summerton faces at least five years and up to life incarceration and a fine of up to $5,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Grant County Sheriff’s Office investigated. The Task Force consists of members from the Drug Enforcement Administration, West Virginia State Police, the FBI, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Original case press release here: https://www.justice.gov/usao-ndwv/pr/grant-and-hardy-county-residents-indicted-fentanyl-and-firearms-charges
Georgia man admits to having more than 50 grams of methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – James Matthew Hembree, of Snellville, Georgia, has admitted to a methamphetamine charge, Acting U.S. Attorney Randolph J. Bernard announced.
Hembree, 40, pleaded guilty today to one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Hembree admitted to having more than 50 grams of methamphetamine in September 2019 in Ohio County. During a traffic stop of a vehicle in which Hembree was a passenger, Wheeling Police officers found more than 371 grams of methamphetamine, also known as “ice,” a digital scale, and baggies typically used for resale.
Hembree faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. 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 Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Former Social Services Employee in Harnett County Sentenced for Theft of Government FundsRead the Press Release
RALEIGH, N.C. – A Fayetteville, North Carolina woman, Lakisha Victoria McDougald, was sentenced today to 30 months and three years of supervised release for theft of government funds. McDougald was also ordered to pay $233,913 in restitution to the U.S. Department of Agriculture. On May 11, 2021, McDougald pled guilty to the charge.
According to court documents and other information presented in court, McDougald was employed as an income maintenance caseworker for the Department of Social Services in Harnett County. Between approximately 2014 and 2019, McDougald used state computer networks to unlawfully access the accounts of individuals who were enrolled in the federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. The targeted individuals were no longer eligible to collect benefits. McDougald, however, used her access privileges to cause food stamp EBT cards registered in the names of the beneficiaries to be sent to her home address, added false dependents to increase the monthly benefit allotment, sold the cards to others, and used the cards herself to purchase merchandise. For example, one of McDougald’s clients in Harnett County moved to Florida, disqualifying her from receiving further SNAP benefits from the State of North Carolina. McDougald accessed the client’s account and changed the address on file to her own address, thereby causing multiple EBT cards loaded with government funds to be sent to her. Later, McDougald added three false dependents to the account to drive up the benefit amount and converted the funds for her own use.
McDougald’s unlawful activities resulted in the loss of over $200,000 in government funds.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge W. Earl Britt. The U.S. Department of Agriculture, Office of Inspector General, with the assistance of the Harnett County Sheriff’s Office and the Harnett County Social Services Department investigated the case. Assistant U.S. Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00524-BR.
Former Pharmacy Technician Pleads Guilty to Prescription FraudRead the Press Release
NORFOLK, Va. – A Virginia Beach man pleaded guilty today to acquiring over 50,000 dosage units of prescription medications through fraudulent means.
“Pharmacy technicians are entrusted with safeguarding and maintaining prescription medications in a responsible manner,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This defendant did the opposite. He stole a large supply of prescription medications from a hospital that were intended for the treatment of deserving patients. As this case demonstrates, those who masquerade as health care professionals and abuse their trusted positions will be prosecuted in the Eastern District of Virginia.”
According to court documents, Justin Feliciano Agloro, 40, a former licensed pharmacy technician at Sentara Norfolk General Hospital, had the role of ensuring that the hospital’s controlled substance distribution system, a machine known as an Omnicell, was filled with the correct amounts of various controlled substances. From April 2018 to October 2019, Agloro executed a scheme by which he would steal controlled substances and falsify the Omnicell records to cover his theft. In this manner, Agloro was able to steal a variety of prescription medications, including thousands of prescription opioid pills and other medications.
According to court records, the supervising pharmacist and an Omnicell technician uncovered Agloro’s fraudulent scheme when he was on personal leave from the hospital. Agloro avoided camera systems and successfully intercepted daily Omnicell reports that would have confirmed his diversion of controlled substances while on duty at the hospital. Agloro also removed reports related to cabinets from which he had diverted controlled substances and replaced them with ones from cabinets he had not accessed or from which he had not diverted controlled substances. In total, Agloro stole over 50,000 units of controlled substances.
Agloro is scheduled to be sentenced on December 17. He faces a maximum penalty of four years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Joseph Kosky are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-75.
Former Mayor of Adelanto Arrested on Wire Fraud and Bribery Charges Alleging Illicit Payments for Support of Commercial Marijuana ActivityRead the Press Release
RIVERSIDE, California – The former mayor of Adelanto was arrested today by special agents of the FBI on a federal grand jury indictment alleging he accepted more than $57,000 in bribes and kickbacks in exchange for approving ordinances authorizing various types of commercial marijuana activity within the city, and ensuring his co-schemers obtained city licenses or permits authorizing certain commercial marijuana activities.
Richard Allen Kerr, 64, of Adelanto, was taken into federal custody without incident this morning. He is charged with seven counts of honest services wire fraud and two counts of bribery.
Kerr, who served as Adelanto’s mayor from 2014 to 2018, is expected to make his initial appearance this afternoon in United States District Court in Riverside.
According to the indictment returned on August 11, as part of his official duties, Kerr voted on ordinances governing zoning regulations in the city and served on Adelanto’s Cannabis Dispensary Permit Committee, which determined the number of dispensary permits that would be issued and which applicants would receive them.
As mayor, Kerr supported marijuana legalization, voted in favor of an ordinance authorizing marijuana cultivation in the city, voted in favor of an ordinance authorizing the operation of medical marijuana dispensaries, and voted to authorize the distribution, transportation and testing of medical marijuana, among other commercial marijuana activities. At the same time, Kerr secretly used his official position to enrich himself and his co-schemers by passing these same ordinances, according to the indictment.
Kerr allegedly also drafted zones for commercial marijuana activities to include locations used by his co-schemers, and he ensured they obtained the licenses and permits they sought – in exchange for bribes, kickbacks and gifts.
Kerr’s alleged co-schemers were a lawyer who specialized in plaintiffs’ tort litigation – identified in the indictment as “Person A” – and two individuals – labeled “Person C and “Person D” – who had business interests in the city, including those involving marijuana cultivation.
The bribes and kickbacks were disguised by Kerr and his co-schemers as gifts, donations to a charitable fund, donations to Kerr’s election campaign, or advance payments for the proceeds of planned litigation associated with a motorcycle accident.
In exchange for the bribes and kickbacks, Kerr provided favorable official action on behalf of the city to Person A, Person C, and other co-schemers with business interests in the city by authorizing various types of commercial marijuana activities, ensuring his supporters obtained the licenses or permits they sought, and interfering with enforcement activities by city officials.
For example, on November 29, 2016, the Adelanto City Council held a public discussion related to an ordinance, including discussion of “overlay zones” within which medical marijuana dispensaries would be located. The initial proposal included two zones, neither of which included a former restaurant – purchased two months earlier by Person A and his spouse.
During the discussion, Kerr requested a change in the boundaries of the second overlay zone, which expanded the zone to include Person A’s business. The plans for the business initially called for the building to be an attorney’s office, although they included items such as “elongated sales counters,” a “dispensing room,” “cashier,” and “security room,” the indictment alleges.
On December 5, 2016, Kerr deposited a $5,000 check – dated November 29, 2016 – from Person A’s real estate trust account into his bank account, and the check’s memorandum line read, “ADV XMAS FUND.”
In May 2017, Kerr voted twice in favor of a city ordinance that included Person A’s business in the marijuana dispensary overlay zone. In February, June and August of 2017, Kerr deposited three $10,000 checks from Person A’s law firm, with the memorandum lines of each check stating, “ADVANCE.”
In total, Kerr accepted at least $57,500 in bribes and kickbacks from Person A, Person C and other co-schemers.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Kerr would face a statutory maximum sentence of 160 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office is prosecuting this case.
Former Ft. Bragg Employees Accused of Receiving BribesRead the Press Release
RALEIGH, N.C. – Three men formerly employed at Ft. Bragg, North Carolina were arrested today on charges of bribery of a government official. Calvin Alfonza Jordan, 64, Edward Wade Crisco, 59, and Stephen Paul Sabato, 50, were charged via indictment with Jordan also charged with money laundering.
According to court documents, from 2011 to 2019, Jordan was a procurement agent assigned to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC, and entrusted to contract for services for DPW. DPW is responsible for design, construction, maintenance, and operation of utility systems on Ft. Bragg. The indictment alleges that Jordan, Crisco, a flooring technician assigned to DPW, and Sabato, a roofing technician assigned to DPW, each accepted payments from companies and individuals in return for increasing the amount of federal contracts with those companies and individuals. In particular, Jordan is alleged to have received thousands of such payments of at least $200 each. Over the 8-year period, payments received for such work orders amounted to a total estimated income to Jordan of $1,080,400. It is alleged that Jordan laundered some of that money by making cash deposits and then, in turn, withdrawing money to make large purchases including a BMW. It is alleged that during that time, Sabato profited at least $200,000, and Crisco profited at least $50,000.
Sabato and Crisco are charged with two counts of receiving bribes and gratuities for steering contracts to vendors and for recommending particular contractors for jobs and by passing their work on inspection without regard to completion workmanship. Jordan is charged with multiple counts of bribery and also faces charges of money laundering. If convicted, Jordan would face up to a maximum term of 30 years’ imprisonment, a $250,000 fine as to each of the counts, and a term of up to three years supervised release following any term of imprisonment. Crisco and Sabato face up to 15 years’ imprisonment, a $250,000 fine as to each count, as well as supervised release following any imprisonment. The indictment also gives notice that the defendants may be subject to substantial forfeiture of the proceeds of these crimes.
“Any allegations of bribery by a government employee are disheartening. In this case, it is alleged these men, tasked with maintaining and contracting to maintain the very spaces in which the members of our military live and work, put their own monetary gain above that task,” said Acting United States Attorney, Norman Acker.
"The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of the Department of Defense (DoD) procurement system," said Special Agent in Charge Christopher Dillard, DCIS, Mid-Atlantic Field Office. "This indictment demonstrates our resolve, alongside our law enforcement partners, to bring to justice those who subvert the DoD contracting process for their own gain, jeopardizing the combat readiness of our military."
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Defense Criminal Investigative Service and the U.S. Army Criminal Investigative Division, Major Procurement Fraud Unit, are investigating the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:21-CR-313-M.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Former D.C. Everest Teacher Sentenced to 8 1/2 Years for Secretly Recording StudentsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Travis Greil, 40, Wausau, Wisconsin, was sentenced today by U.S. District Judge William Conley to 8 ½ years in prison for secretly producing videos that depict minors engaging in sexually explicit conduct. This term of imprisonment is to be followed by three years of supervised release. Greil pleaded guilty to this charge on May 13, 2021.
Greil was a teacher at D.C. Everest Senior High School for approximately 15 years. On February 12, 2020, a parent reported that his daughter, one of Greil’s students, thought that Greil had taken a picture of her, up her skirt. The daughter was interviewed and explained that something similar had also happened to one of her friends.
Later that night, school officials obtained Greil’s electronic devices and turned them over to law enforcement. Law enforcement eventually searched the defendant’s personal iPad and found 132 videos of 81 underage female students and 1 adult, dating from September 2015 to February 2020. It appeared that all the videos were taken at Greil’s desk at the school and were either “up-blouse” images that focused on the victim’s breasts or “up-skirt” images that focused on victim’s pubic area or buttocks.
At the sentencing, numerous victims told the Court how Greil’s actions had impacted their lives, expressing feelings including anger and betrayal. Judge Conley noted the defendant used his position of trust as an educator to manipulate his bright and ambitious students and called the defendant’s conduct predatory.
The charge against Greil was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation – Internet Crimes Against Children Task Force; Wisconsin Department of Justice Office of Crime Victim Services; Everest Metro and Wausau Police Departments; Marathon County Sheriff’s Office; Marathon County District Attorney’s Office; and the Wausau Police Department – Victim Resource Unit, with the assistance of the D.C. Everest Area School District. The prosecution of the case has been handled by Assistant U.S. Attorneys Elizabeth Altman and Chadwick Elgersma and State of Wisconsin Assistant Attorney General David Maas.
Former City of Shreveport Employee Sentenced for Conspiracy and Aggravated Identity TheftRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Tory Deshawn Jackson, 42, of Shreveport, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to 32 months in prison, followed by 3 years of supervised release, for his involvement in a scheme to commit credit card fraud. Jackson was also ordered to pay restitution in the amount of $409,769.56.
Jackson was indicted by a federal grand jury in July 2020 for engaging in a scheme with a co-conspirator to fraudulently purchase fuel using Fuelman credit cards stolen from the City of Shreveport. He pleaded guilty on April 7, 2021 to conspiracy to commit credit card fraud and aggravated identity theft. According to information presented in court at the guilty plea hearing, Jackson was employed by the Solid Waste Department in the City of Shreveport Public Works. In September 2017, using his position, Jackson stole three City of Shreveport Fuelman credit cards which he and his co-conspirator would use to unlawfully purchase gasoline and other items at Shreveport area gas stations.
The way the fraudulent scheme was carried out is that Jackson would meet a co-conspirator and others at a local gas station where they would use one of the stolen Fuelman credit cards, along with the Fuelman personal identification number of a Solid Waste Department supervisor, to pump fuel into large containers which could hold up to 500 gallons of fuel. Jackson’s co-conspirator and others would then take the tanks to a third party to sell, and the profit would be split among the co-conspirators. Many times, they would have to run multiple, successive transactions in order to fill up the tanks. From September 3, 2017 through Jackson’s arrest on October 16, 2019, the three credit cards belonging to the City of Shreveport were used to make transactions totaling $409,769.56.
Jawaski Johnson, Jackson’s co-defendant, is scheduled to be sentenced December 7, 2021.
The Federal Bureau of Investigation and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
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Former CEO of Publicly Traded Houston Company Pleads Guilty to Accounting Fraud SchemeRead the Press Release
Ilan Graff, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced today the guilty plea of JEFFREY HASTINGS, the former chief executive officer and chairman of the board of directors of SAExploration Holdings, Inc. (“SAEX” or the “Company”), a publicly traded seismic data company based in Houston, Texas, for his role in a scheme to fraudulently and materially inflate the publicly reported revenue of SAEX by tens of millions of dollars, in 2015 and 2016, and also for misappropriating millions of dollars from the Company. HASTINGS pled guilty before U.S. District Judge Gregory H. Woods to conspiracy to commit securities fraud and wire fraud offenses.
Ilan Graff, Attorney for the United States, said: “As he acknowledged in court today, Jeffrey Hastings schemed to inflate his company’s revenue, making it appear more profitable than it was. Hastings then stole money from the company for his own use. Hastings now awaits sentencing for his admitted fraud and deception.”
According to the allegations contained in the Superseding Information, the Superseding Indictment, and the Complaint filed in this case, and statements made during the plea proceeding:
At all times relevant to the Information until August 2016, HASTINGS was the executive chairman of the board of directors of SAEX (the “Board”). After August 2016, HASTINGS served as both the chairman of the Board and the chief executive officer (“CEO”) of SAEX until he separated from the company in August 2019. SAEX was a publicly traded seismic data acquisition company headquartered in Houston, Texas, that traded under the symbol “SAEX” on the NASDAQ. In May 2020, SAEX was delisted from the NASDAQ and, in December 2020, was taken private. SAEX provided land- and marine-based seismic acquisition services, including program design, planning and permitting, camp services, survey, drilling, recording, and processing. Seismic data is used by oil and gas companies to identify and analyze drilling prospects and maximize successful drilling.
From February 2015 through May 2019, HASTINGS, together with Brent Whiteley, the then chief financial officer and general counsel of SAEX, Michael Scott, the then executive vice president of operations at SAEX, and “CC-1,” the founder and at various times president, CEO, and chief operating officer of SAEX, devised and carried out a scheme to defraud SAEX’s shareholders, bondholders, and the investing public by artificially and materially inflating SAEX’s reported revenue by making it appear that Alaskan Seismic Ventures, LLC (“ASV”) was an independent and reliable source of tens of millions of dollars of revenue.
In February 2015, HASTINGS and Whiteley discussed finding a way for SAEX to take advantage of certain tax credits offered by the State of Alaska to seismic data library companies, to offset the costs of exploring for oil and gas in Alaska (the “Alaska Tax Credits”). The Board of SAEX was opposed to operating its own data library company because of concerns about the ability to ensure payment to SAEX, including through the monetization of Alaska Tax Credits, among other reasons. To avoid the appearance that SAEX was operating a data library company that licensed data to third parties, HASTINGS and Whiteley set up ASV, to purport to operate as an independent customer purchasing seismic data from SAEX and licensing it to third parties. HASTINGS recruited an acquaintance to serve as the owner and sole employee of ASV. In truth and in fact, and as hidden from investors, ASV was not independent and could not pay SAEX for its seismic data.
After setting up ASV, HASTINGS and Whiteley created and caused to be created a number of shell companies (the “Shell Companies”) for the purpose of secretly transferring funds from SAEX into ASV. One of the Shell Companies, Global Equipment Solutions (“Global Equipment”), was purportedly an equipment rental company from which SAEX rented seismic acquisition equipment. In truth and in fact, and as HASTINGS and his co-conspirators well knew, SAEX did not rent any equipment from Global Equipment and did not owe Global Equipment any money. The co-conspirators took steps to make the payments from SAEX to Global Equipment appear legitimate to others at SAEX. For example, Whiteley drafted a lease agreement between SAEX and Global Equipment, and Scott caused fake purchase orders to be created that purported to show expenses incurred by SAEX as a result of renting equipment from Global Equipment.
By the end of 2015, SAEX had recorded on its books approximately $12 million in payables to Global Equipment. HASTINGS and his co-conspirators ultimately routed approximately $5.8 million of SAEX’s funds through Global Equipment and the other Shell Companies to ASV. That money then went from ASV back to SAEX to pay outstanding receivables. The fact that these funds belonged to and originated with SAEX was not disclosed to investors. HASTINGS and his co-conspirators referred to this portion of the scheme as “round-tripping.” In addition, HASTINGS and Whiteley then misappropriated more than $5 million of the funds that SAEX transferred to Global Equipment for their own use, including making payments to Scott and CC-1, among others.
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HASTINGS, 63, of Anchorage, Alaska, and British Columbia, Canada, pled guilty to one count of conspiracy to commit securities fraud, to make false statements in annual and quarterly SEC reports, and to make false statements to SAEX’s auditors, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HASTINGS is scheduled to be sentenced by Judge Woods on November 15, 2021, at 1:00 p.m.
Whiteley and Scott have already pled guilty and await sentencing before Judge Woods.
Mr. Graff praised the investigative work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant, for its assistance in the investigation.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo, Gina Castellano, and Robert Boone are in charge of the prosecution.
Florida Man Pleads Guilty to Wire Fraud Conspiracy SchemeRead the Press Release
BOSTON – A Florida man pleaded guilty yesterday in federal court in Boston in connection with a scheme to defraud a Massachusetts-based company by falsifying invoices.
Brian Halpern, 48, pleaded guilty to conspiracy to commit mail and wire fraud, wire fraud and money laundering. U.S. District Judge George A. O’Toole Jr. scheduled sentencing for Dec. 16, 2021. Halpern was charged on May 5, 2021.
Between approximately 1998 and April 2019, Halpern and others defrauded a Massachusetts-based uniform supplier by falsifying invoices for products that were not actually delivered and diverting other products that they re-sold for their own benefit.
The charge of wire fraud and conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater, restitution and forfeiture. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Sara M. Bloom and Ian J. Sterns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Financial Adviser Sentenced to Three and a Half Years in Prison for Swindling Millions from ClientsRead the Press Release
CHICAGO — A Chicago financial adviser has been sentenced to three and a half years in federal prison for swindling more than $3 million from clients, including a man who received compensation from the State of Illinois in a wrongful conviction settlement.
MARCUS E. BOGGS represented to clients and his employer, an investment advisory firm, that he would use client funds to buy and sell securities. In reality, Boggs spent more than $3 million of his clients’ funds over a ten-year period to pay his personal credit cards and the mortgage on his residence. His credit card purchases included international vacations, expensive dinners at restaurants, and rent for multiple apartments that Boggs leased in Chicago.
One of the defrauded clients was wrongfully imprisoned for several years after being convicted of a 1991 sexual assault, kidnapping, and murder of a teenage girl. After DNA testing exonerated the client and led to his release from prison, he received approximately $5 million from the State of Illinois and retained Boggs to manage and invest some of the money. Boggs instead stole approximately $800,000 of the client’s funds.
Boggs, 51, of Chicago, pleaded guilty earlier this year to a charge of wire fraud. In addition to the 36-month prison sentence, U.S. District Judge Mary M. Rowland on Thursday ordered Boggs to pay more than $3.08 million in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which filed a civil enforcement action against Boggs.
“Defendant had a personal relationship with his clients and knew what they hoped to achieve with their life savings and retirement,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum. “But that didn’t stop him from stealing their hard-earned money.”
Felon Sentenced to Nearly Five Years in Federal Prison for Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Dwayne Purdie Jr., age 28, of Baltimore, Maryland to 57 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).
According to his plea agreement, on November 14, 2019, Baltimore Police Department officers saw a male suspect and Purdie conduct a suspected drug transaction in a Baltimore alley way. After Purdie began to leave the alley, he noticed the police officers, and quickly returned to the alley.
Believing that they had just interrupted a drug transaction, the BPD officers drove into the alley to investigate. Purdie then fled on his bicycle and threw a clear bag that appeared to contain small objects consistent with street-level packaged drugs.
Eventually, Purdie abandoned his bicycle and fled on foot, and hid behind a truck. When a BPD officer located Purdie, he was in the motion of reaching for his right leg. Upon his apprehension, a BPD officer found a loaded 9mm semi-automatic firearm, a total of 13 rounds of ammunition, and two vials of cocaine under Purdie’s right pant leg.
After canvasing the area where Purdie threw the bag while riding his bicycle, an officer found a clear bag containing a total of 51 vials and gel caps of cocaine and 31 of the gel caps also contained a fentanyl mixture. The two vials recovered from Purdie also contained cocaine. The amount and packaging of the drugs suggest that they were intended for distribution rather than personal use.
Prior to possessing the firearm, Purdie had a felony conviction and as a result, knew that he was prohibited from possessing a firearm or ammunition.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney James C. Tuomey and Assistant U.S. Attorney Brandon K. Moore, who prosecuted the case.
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Federal Jury Convicts Oklahoma City Man of Illegal Possession of Firearm after Previous Domestic Abuse ConvictionsRead the Press Release
OKLAHOMA CITY – Earlier this week, a federal jury convicted TRACI ASHFORD, 34, of Oklahoma City, of possessing a firearm after a prior felony conviction of domestic assault and battery, announced Acting U.S. Attorney Robert J. Troester.
On February 19, 2021, a federal grand jury returned a single-count Indictment against Ashford, charging him and a co-defendant with possessing a firearm after a former felony conviction. Federal law prohibits a person who has previously been convicted of felony from possessing a firearm.
On August 11, 2021, after a two-day trial, a federal jury returned a guilty verdict against Ashford. Evidence at trial showed that, on October 6, 2020, Ashford engaged in an altercation with his girlfriend, which resulted in Ashford brandishing an AK-47 style rifle. Soon after the altercation, Ashford was stopped by Oklahoma City Police Department officers who located the rifle in the backseat of the car Ashford was driving. Prior to being found in possession of the firearm, Ashford had been convicted of a felony domestic assault and battery in Oklahoma County, as well as domestic battery in Jefferson County, Arkansas.
Ashford’s co-defendant, DARIUS HEAD, 25, of Oklahoma City, pled guilty to the Indictment on June 3, 2021.
At sentencing, Ashford and Head each face up to ten years in federal prison, followed by up to three years of supervised release, in addition to a fine of up to $250,000. Both continue to be detained pending sentencing.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Jacquelyn Hutzell and Travis Leverett prosecuted the case.
This case is part of "Operation 922," the Western District’s local implementation of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s initiatives to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
Federal Jury Convicts Man of Illegally Possessing Handgun on Evanston StreetRead the Press Release
CHICAGO — A federal jury in Chicago convicted a man of illegally possessing a semi-automatic handgun in Evanston after he tried to flee from police in a car and on foot.
DARIUS MORALES illegally possessed the firearm in Evanston on May 8, 2019. Evanston Police responded to gun shots fired in an alley and saw a silver Jeep Commander pull out and speed away. An officer pursued the vehicle at a high rate of speed until the Jeep crashed into a fence in the backyard of a residence. Morales, who was a passenger in the Jeep, left the gun on the fence and fled on foot. He was arrested a few blocks away.
After a three-day trial in federal court in Chicago, the jury on Thursday convicted Morales, 31, of Evanston, of illegally possessing the firearm. Morales had previously been convicted of multiple felonies and was not legally allowed to possess a gun.
Judge Amy J. St. Eve of the U.S. Court of Appeals for the Seventh Circuit, sitting by designation in the U.S. District Court, heard the trial and scheduled sentencing for Nov. 29, 2021, at 1:00 p.m.
The conviction is punishable by a sentence of up to ten years in federal prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Evanston Police Department, and Cook County State’s Attorney’s Office. The government was represented by Assistant U.S. Attorneys Jeannice Appenteng and Charles W. Mulaney.
Fairbanks Man Convicted for Stalking and Murder for Hire PlotRead the Press Release
FAIRBANKS – A federal jury today convicted a Fairbanks man for stalking and attempting to arrange a murder for hire.
According to court documents and evidence presented at trial, Roger Keeling, 55, devised and solicited a murder for hire plot targeting his former girlfriend while he was in custody on stalking charges.
In October 2020 Keeling placed his hands around his girlfriend’s neck, told her he should rip her heart out and threatened to burn her house down. Keeling pleaded guilty to a misdemeanor assault charge in state court. The victim applied for and was granted a Domestic Violence Protective Order (DVPO) and it was served on Keeling before his release on the assault charges. Over the next six weeks, Keeling was arrested – and released by the state court – for violating this DVPO multiple times in an escalating pattern that included following the victim, slashing her tires, sending dozens of threatening emails from various “disguised” email accounts and planting disturbing handwritten notes along her usual running route.
Keeling was arrested for stalking the victim in December 2020. While in custody, Keeling told his cellmate he wanted to find someone to harm his girlfriend. During the next few days, Keeling agreed to pay his cellmate $1,500 to arrange for a hitman to kill her, and after being released by a state court judge, he made an initial payment of $500. During a search of Keeling’s home, Alaska State Troopers and the Federal Bureau of Investigation found numerous notes and documents confirming the existence of the plot, as well as multiple documents and drawings created by Mr. Keeling that showed his desire to see her harmed, including a hand-drawn picture of her home in flames.
“Every citizen has the right to feel safe as they go about their daily life. With today’s conviction, the victim will no longer live in fear always looking over her back and worried about her personal safety,” said Acting U.S. Attorney Bryan Wilson, District of Alaska.
“The Alaska State Troopers are committed to working with our law enforcement partners to keep the citizens of our great state safe,” said Colonel Bryan Barlow, Director of the Alaska State Troopers. “Investigations like these should serve as a warning to anyone considering soliciting a murder; the Alaska State Troopers and our local, state, and federal law enforcement partners will aggressively investigate and hold accountable anyone that perpetrates these unconscionable acts.”
Keeling faces up to a five year sentence on the stalking conviction and up to a 10 year sentence on the murder for hire conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Alaska State Troopers, the Federal Bureau of Investigation and the Fairbanks Police Department conducted the investigation.
Assistant U.S. Attorneys Daniel Doty and Ryan Tansey are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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El Departamento de Justicia Resuleve Una Acusación de Discriminación Relacionada Con La Inmigración Con Una Compañía de Gestión y Residencias de Tercera Edad Ubicados en IowaRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con JP Senior Healthcare LLC y JP Senior Management LLC, el cual resuelve las acusaciones del Departamento de que estas compañías vulneraron la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a un empleado Latino con base en suposiciones que el trabajador no era ciudadano de los EE. UU. JP Senior Management gestiona dos centros de cuidados, de los cuales JP Senior Healthcare es el dueño: Pioneer Valley Living and Rehab, ubicado en Sergeant Bluff, Iowa, y Goldenrod Manor Care Center, ubicado en Clarinda, Iowa.
Con base en su investigación, el Departamento determinó que a la hora de verificar el derecho legal de un empleado nuevo a trabajar en los Estados Unidos, JP Senior Healthcare y JP Senior Management rechazaron el carnet de conducir válido y tarjeta de seguro social sin restricciones del ciudadano estadounidense. Más aún, la investigación concluyó que las compañías pidieron que, en su lugar, el trabajador presentase una Tarjeta de Residente Permanente, todo esto porque las compañías creían, por error, que el trabajador no era ciudadano de los EE. UU., incluso después de que el ciudadano había explicado que era ciudadano estadounidense y, por lo tanto, no era elegible para una Tarjeta de Residente Permanente. Asimismo, el Departamento determinó que estas solicitudes documentales llevaron al fin del empleo de dicho trabajador. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios para demostrar la autorización para trabajar con base en el estatus de ciudadanía del empleado o bien por su nacionalidad de origen. En su lugar, todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía o nacionalidad de origen, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos.
«Los empleadores deben tratar a todos sus trabajadores de una manera justa y coherente con la ley, sin basar ninguna conclusión acerca de la ciudadanía de un trabajador en la apariencia o nacionalidad de origen hispana del trabajador», afirmó la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia, Kristen Clarke. «La División de Derechos Civiles se ha comprometido a garantizar que los lugares de trabajo estén libres de discriminación».
Conforme los términos del acuerdo conciliatorio, JP Senior Healthcare LLC y JP Senior Management pagará una sanción civil a los Estados Unidos; emitirá pagos retroactivos más intereses al trabajador afectado y capacitará a los empleados relevantes acerca de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dracut Man Arrested for Armed RobberyRead the Press Release
BOSTON – A Dracut man was arrested yesterday and charged in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Christmas Eve 2020.
Michael Vangpa, 32, was charged with interfering with commerce by robbery and using a firearm in furtherance of a crime of violence. Following an initial appearance today before U.S. District Court Magistrate Judge Donald L. Cabell, Vangpa was detained pending a detention hearing scheduled for August 16, 2021.
According to the charging documents, on Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa brandished a firearm and demanded money from the store clerks. He also discharged the firearm during one of the robberies.
The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of discharging a firearm in furtherance of a crime of violence provides for a sentence of up to life in prison and a mandatory consecutive term of imprisonment of 10 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Denton Sex Offender Indicted for Failing to RegisterRead the Press Release
SHERMAN, Texas – A Denton man has been indicted on federal sex offender registry violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Chad Allan Titus, 35, was named in an indictment returned by a federal grand jury in Sherman, Texas on July 14, 2021, charging him with failure to register as a sex offender. Titus has pleaded not guilty and appeared in federal court on August 12, 2021, for a detention hearing before U.S. Magistrate Judge Kimberly C. Priest Johnson. At that time, Titus was ordered to be held until trial.
“Sex offender registration serves an important public information and safety function. When sex offenders evade registration requirements, they place the entire community at risk,” said Acting U.S. Attorney Nicholas J. Ganjei. “The public can count on the U.S. Department of Justice aggressively prosecuting sex offenders that seek to evade their monitoring requirements and slink unnoticed in our communities.”
According to court documents, Titus was convicted of assault with intent to commit sexual abuse, a felony, in Iowa in 2011. As a result of that conviction, he is required to register as a sex offender in the jurisdictions where he lives and works. In the spring of 2020, Titus came to North Texas from Iowa and registered as a sex offender. Shortly thereafter, he returned to Iowa, and properly deregistered in Texas and registered in Iowa. However, in October of 2020, Titus left Iowa and returned to North Texas, ultimately residing in an apartment in Denton, Denton County, Texas. Titus failed to deregister in Iowa or register in Texas as required. Members of the U.S. Marshals Service and the North Texas Fugitive Task Force became aware of Titus’ presence in the Eastern District of Texas in May 2021. Specifically, a caller reported that Titus had exposed himself in the parking lot of a business in Denton, Texas.
This case is 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If convicted, Titus faces up to 10 years in federal prison.
This case is being investigated by the U.S. Marshals Service, the North Texas Fugitive Task Force, and the Denton Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Crownpoint man charged with two counts of abusive sexual contactRead the Press Release
ALBUQUERQUE, N.M. – Emerson Pinto, 58, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty on Aug 11 in federal court to two counts of abusive sexual contact in Indian Country. Pinto will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, between on or about Sept. 1, 2009, and Oct. 31, 2009, Pinto knowingly engaged in unlawful sexual contact with two girls who were under the age of 12 at the time of the offenses. Pinto admitted to touching the girls for sexual gratification at a home in Little Water, New Mexico, on the Navajo Nation.
Under the terms of his plea agreement Pinto faces up to eight years and one month in prison and will be required to register as a sex offender.
The FBI investigated this case. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Cherry Creek Man Sentenced for Assault and Tampering with EvidenceRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Cherry Creek, South Dakota, man was sentenced for Assault by Striking, Beating, or Wounding and Tampering with Evidence on August 12, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Samuel Francis White Horse, age 33, was sentenced to 30 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $125.
White Horse was indicted by a federal grand jury on March 9, 2020. He was convicted after a three-day federal jury trial in Pierre, South Dakota, on June 25, 2021.
The jury found that on February 12, 2020, White Horse assaulted a man, who crashed his vehicle into White Horse’s yard while suffering from a medical emergency, by punching him in the head. Jerome White Horse, Jr., the defendant’s father, also used a garden hoe to strike the victim in the head multiple times. The victim died several days later after suffering from significant bleeding in his brain. Jerome White Horse, Jr. pled guilty to and was convicted of Voluntary Manslaughter. After witnessing his father beat the victim with the garden hoe, the defendant took control of the weapon and hid it under the front porch of his home to conceal it from law enforcement. The garden hoe was recovered during the execution of a search warrant a couple days later and found by the South Dakota Forensic Laboratory to have the victim’s DNA on the blade and Jerome White Horse, Jr.’s DNA on the handle.
The investigation was conducted by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Services, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
White Horse was immediately remanded to the custody of the U.S. Marshals Service after the sentencing.
California Men Sentenced for Conspiracy to Commit Bank FraudRead the Press Release
CONCORD - Vahan Aghajanyan, 26, of Glendale, California, and Garnik Saroyan, 27, of Sun Valley, California, were sentenced for conspiracy to commit bank fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in October of 2018, Aghajanyan and Saroyan traveled from California to New Hampshire and Maine to use fraudulent debit cards encoded with other persons’ bank account information to make ATM withdrawals and purchase postal money orders. On October 31, 2018, postal employees in New Hampshire and Maine reported suspicious transactions involving the two men. The York, Maine police department located and stopped their vehicle. Three cell phones were seized from the men and a federal search warrant was sought to search the phones. A search of the phones revealed a map of post office locations in New Hampshire and photographs of Aghajanyan holding stacks of cash and postal money orders.
Bank records and surveillance videos showed that, on at least 15 occasions, Aghajanyan or Saroyan used a fraudulent debit card to check the balance of a bank account at an ATM. Subsequently, the card was used to purchase a postal money order at a post office in New Hampshire. Records confirm that between October 25, 2018, and October 31, 2018, the two men withdrew at least $2,673 from other persons’ bank accounts and purchased at least 35 postal money orders worth more than $22,000 using fraudulent debit cards.
Aghajanyan and Saroyan previously pleaded guilty on March 18, 2021. Aghajanyan was sentenced to 12 months and one day in federal prison. Saroyan was sentenced to time served and three years of supervised release with 6 months home detention. In addition, the court ordered full restitution in the amount of $25,533.65.
“Fraudsters who come to New Hampshire to commit crimes will be held accountable for their criminal actions,” said Acting U.S. Attorney Farley. “As this case demonstrates, we work closely with our law enforcement partners to seek justice for victims of financial crimes.”
This matter was investigated by the United States Postal Inspection Service with assistance from the York, Maine, Police Department. The case was prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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California Man Charged with Unemployment Insurance Benefits FraudRead the Press Release
LAS VEGAS, Nev. – In a criminal complaint unsealed Thursday, a Stockton, California, man has been charged for allegedly using multiple California Employment Development Department (EDD) unemployment insurance benefits debit cards in other peoples’ names without their authorization.
According to allegations in court documents, on September 20, 2020, Breon Dante Mims, 30, was stopped by Las Vegas Metropolitan Police Department officers after he was observed smoking a marijuana blunt in public. During the stop, officers obtained Mims’ consent to search his backpack, which revealed: (a) ten EDD debit cards, none of which were in Mims’ name; (b) $10,080 in cash; and (c) narcotics, including marijuana, ecstasy, and hydrocodone pills. Between August 19, 2020, and September 19, 2020, Mims allegedly withdrew at least $77,000 from various ATMs in Nevada and California using these fraudulently obtained EDD debit cards. At least $261,600 in benefits were approved for the unemployment claims associated with the cards.
Mims is charged with one count of illegal transaction with access devices issued to other persons and one count of aggravated identity theft. He made his initial court appearance yesterday before U.S. Magistrate Judge Elayna J. Youchah. If convicted, Mims faces a statutory maximum penalty of 17 years in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
In May, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Arizona man sentenced to eight years in prison for trafficking methamphetamineRead the Press Release
ALBUQUERQUE, N.M. – Arturo Muñoz, 67, of Phoenix, Arizona, was sentenced in federal court on Aug. 11 to eight years in prison for possession with intent to distribute 50 grams and more of a mixture and substance containing methamphetamine and conspiracy to distribute methamphetamine. Muñoz pleaded guilty on Nov. 24, 2020.
According to the plea agreement and other court records, from on or about Feb. 19, 2019, to March 19, 2019, Muñoz conspired with his co-defendant, Ricardo Osornio, 44, also of Phoenix, to transport methamphetamine from Arizona to be sold in and around Deming, New Mexico. On March 19, 2019, Lordsburg Police conducted a traffic stop on Muñoz’s vehicle on Interstate 10 in Hidalgo County, New Mexico. After Muñoz consented to a search of his vehicle, officers discovered drugs in a compartment hidden in a speaker box in the trunk. Officers found a total of 2.17 kilograms of methamphetamine in the vehicle.
Osornio pleaded guilty on July 10, 2019, and was sentenced to five years and three months in prison.
Upon his release from prison, Muñoz will be subject to four years of supervised release.
Homeland Security Investigations investigated this case with assistance from the Lordsburg Police Department. Assistant U.S. Attorneys Ry Ellison and Maria Armijo prosecuted the case.
Allentown Man Now Facing Federal Charges in Murder-For-Hire PlotRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Dominic Luis Escalera, 37, of Allentown, PA, was charged by Indictment on charges of murder-for-hire and being a felon in possession of a firearm related to a plot to kill two individuals in the Allentown area earlier this year.
The Indictment alleges that from about January 28, 2021 to about February 17, 2021, the defendant used a cell phone and traveled from Newark, NJ to Allentown to arrange for the murders of two individuals, M.R. and A.R., and made an agreement to pay someone to commit the murders using controlled substances and cash. The Indictment further alleges that the defendant, knowing he had previously been convicted of a felony offense, illegally possessed a firearm loaded with four live rounds of ammunition. The previous felony conviction precludes the defendant from possessing a firearm.
“This is the second murder-for-hire case our office has announced in the last three weeks,” said Acting U.S. Attorney Williams. “These charges are a warning to anyone thinking that solicitation of homicide is a solution to your problems: This is not a game. If you try to hire someone to commit murder, you will face an aggressive federal investigation and very serious charges. Our office is committed to working with our law enforcement partners across the District to do all we can do prevent senseless violence.”
“This indictment illustrates the power of the combined efforts of ATF and our law enforcement partners,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The vigilant work of our law enforcement partners enabled them to prevent a murder and hold the defendant responsible for his alleged crimes. I want to thank the Allentown Police Department, the Pennsylvania State Police, and the U.S. Attorney’s Office for their continued effort in combatting violent crime.”
“The Pennsylvania State Police worked in collaboration with local, state, and federal law enforcement partners to ensure a thorough and prompt investigation,” said Major Jeremy Richard, director of the Pennsylvania State Police Bureau of Criminal Investigation. “I would like to extend my gratitude to these joint forces whose teamwork spoiled Mr. Escalera’s efforts. Plots to potentially harm or kill another person are serious crimes that carry severe consequences. The Pennsylvania State Police is committed to ensuring the safety of Commonwealth residents.”
If convicted, the defendant faces a maximum possible sentence of 30 years in prison, three years of supervised release, and a $750,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, and the Allentown Police Department, and is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
12 August 2021
“11 Hunnit” Gang Member Sentenced to 6½ Years for RICO ConspiracyRead the Press Release
PITTSBURGH - A member of the 11 Hunnit street gang from the Hill District neighborhood of Pittsburgh has been sentenced in federal court to 78 months’ imprisonment on his conviction for violating the Racketeer Influenced and Corrupt Organizations (RICO) Act, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Richard Kelly (aka “RB,” aka “Rack Boy”), 26, formerly of the Hill District neighborhood of the City of Pittsburgh, following his April 15, 2021 guilty plea to one count of RICO conspiracy.
According to information presented to the court, Kelly, a member of the violent street gang known as “11 Hunnit,” conspired with codefendants Sydney Pack, Dionte Griffin, and others, to conduct and participate in the affairs of the 11 Hunnit gang through a pattern of racketeering activity consisting generically of acts involving murder, robbery, and the distribution of controlled substances. Mr. Kelly acknowledged his personal participation in certain overt acts that were done in furtherance of the RICO conspiracy, which included a June 2015 incident wherein Mr. Kelly was found by police in a stolen vehicle with other gang members along with heroin and a stolen firearm previously used in a shooting; an incident in October 2016 wherein Mr. Kelly and another 11 Hunnit member conspired to rob an unknown person in the Hill District neighborhood; and two shootings on December 4, 2016, one of which rendered the victim permanently paralyzed.
In accordance with the United States Sentencing Guidelines, the Court directed a portion of the federal sentence to run concurrently to Kelly’s state sentence of imprisonment of five to ten years for related offenses. Upon Kelly’s release from imprisonment, he will be supervised by the United States Probation Department for three years.
Assistant United States Attorney Jerome A. Moschetta prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, together with the Pittsburgh Bureau of Police, for the investigation leading to the successful prosecution of Kelly. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Young soldiers admit to transporting undocumented citizensRead the Press Release
LAREDO, Texas – Two military men stationed at Fort Hood have entered guilty pleas to conspiring to transport undocumented aliens within the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Ralph Gregory Saint-Joie, 18, pleaded guilty today, while Emmanuel Oppongagyare, 21, entered his plea Aug. 11.
Saint-Joie has been identified as an active duty member of the U.S. Army while Oppongagyare is from the Pennsylvania National Guard. At the time of arrest, each noted they were stationed at Fort Hood.
On June 13, Oppongagyare and Saint-Joie attempted to go through the Border Patrol (BP) Checkpoint in Hebbronville wearing their army-issued uniforms. Upon inspection, authorities discovered two individuals hidden in the trunk who were determined to be in the country illegally. Authorities promptly took them and the soldiers into custody.
At the time of his plea, Oppongagyare admitted a person he met through Saint-Joie recruited him to pick up the aliens from McAllen and drive them to San Antonio. They expected to be paid once they arrived the destination.
The man who hired them had instructed the soldiers to wear their Army-issued uniforms to avoid questioning at the checkpoint.
The two Mexican nationals hidden in the vehicle admitted to paying Oppongagyare and Saint-Joie a fee in exchange for passage into the United States. They also identified Oppongagyare and Saint-Joie as the driver and the passenger, respectively, of that vehicle.
U.S. District Judge Diana Saldana accepted the plea and will set sentencing for a later date. At that time, Oppongagyare and Saint-Joie face up to 10 years in prison and a possible $250,000 maximum fine. They were permitted release upon posting bond. Oppongagyare remains in custody, while Saint-Joie is on bond pending that hearing.
Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
Wichita Man Sentenced to 135 Months for Child PornRead the Press Release
WICHITA, KAN. –Thomas Schindler, 69, of Wichita was sentenced to 135 months years in prison after pleading guilty to one count of Possession of Child Pornography.
According to court documents, detectives with the Kansas Internet Crimes Against Children Task Force conducted an undercover operation on a peer-to peer file sharing network called BitTorrent. During the investigation, law enforcement identified Schindler as a network user in possession of child pornography. Detectives went to Schindler’s home, where he admitted accessing and using the BitTorrent network to obtain child pornography. A subsequent seizure of his computers revealed pornographic images of prepubescent girls.
The Kansas Internet Crimes Against Children Task Force and the Homeland Security Investigations (HSI) investigated the case.
Assistant U.S. Attorney Jason Hart prosecuted the case.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Virginia Man Sentenced for String of Armed Robberies in Hampton RoadsRead the Press Release
NORFOLK, Va. – A Newport News man was sentenced today to 25 years in prison for his role in a series of armed convenience store robberies.
“The defendant and others committed a series of terrifying armed robberies and stole from community members throughout the Hampton Roads region,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will not tolerate the spreading of fear or violence in our neighborhoods, and our residents—including the hard-working entrepreneurs who run these businesses—deserve to feel safe at all times. This case serves as another example of our continued commitment to working closely with our federal, state, and local partners to combat violent crime and hold accountable those who commit such crimes.”
According to court documents, Daniel Zeigler-Irizarry, Jr., 22, and other co-conspirators, committed a string of armed robberies throughout the Hampton Roads region in November and December 2019. Zeigler-Irizarry and others robbed six different stores at gunpoint in four different cities in Hampton Roads of U.S. currency and commercial products. Zeigler-Irizarry and a co-conspirator stole vehicles belonging to others and used them to move between their targeted locations. During the final robbery, a tracker was concealed in one of the money packs stolen by Zeigler-Irizarry and a co-conspirator. The signal emitting from the tracking device allowed authorities to track their movements from the scene of the final robbery to a neighborhood in Newport News. To avoid being arrested, Zeigler-Irizarry and a co-conspirator fled at high speeds in a stolen vehicle through a neighborhood until they crashed the vehicle and were ultimately apprehended. At that point, law enforcement recovered the tracker, a firearm, commercial products, and U.S. currency.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Scott Burke, Interim Chief of Portsmouth Police; Col. K.L. Wright, Chief of Chesapeake Police; Kenneth Mark Talbot, Chief of Hampton Police; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Sherrie Capotosto 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. 2:20-cr-87.
Victorville Man Sentenced to One Year in Prison for Causing False Statements to Be Made in Bankruptcy Court PetitionsRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 12 months and one day in federal prison for continuing to act as a bankruptcy petition preparer (BPP) – despite court orders and injunctions barring him from doing so – and then repeatedly lying to bankruptcy courts about it.
Richard Allen Mease, 63, of Victorville, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $84,005 in restitution split among 30 victims. Mease pleaded guilty on May 20 to one felony count of making a false statement during a bankruptcy proceeding.
In June 2010, a bankruptcy court imposed a $4,000 fine on Mease for violating a federal law concerning individuals who negligently or fraudulently file bankruptcy petitions. The court also ordered Mease to pay $2,000 to the debtor in that case. In May 2011 the court further issued an injunction barring him from preparing or assisting in preparing bankruptcy petitions in the Central District of California until he had paid the fine and the $2,000 he owed to the debtor. The injunction was never lifted because Mease never complied with the court’s June 2010 order.
In November 2013, in a separate bankruptcy proceeding, Mease was held in civil contempt for continuing to act as a BPP in violation of the May 2011 injunction. Mease then proceeded to circumvent the injunction by falsely representing in bankruptcy petitions his involvement as a BPP.
For example, in May 2018, Mease willfully caused a false declaration and statement under penalty of perjury to be made in a bankruptcy case pending in the Central District of California. Mease caused to be submitted an official form which stated “No” to the question, “Did you pay or agree to pay someone who is not an attorney to help you fill out your bankruptcy forms?” In fact, Mease was the BPP for the bankruptcy petition in that case.
From November 2011 to May 2018, Mease prepared at least 10 bankruptcy petitions in this manner.
Mease sometimes charged debtors between $300 and $500 to prepare their bankruptcy petitions, and, in some cases, charged debtors between $1,000 and $3,000 to do so – despite a court injunction barring him from working as a BPP. Under applicable law and regulations, a BPP is permitted to charge fees of up to $200 to prepare and file a bankruptcy petition.
The FBI investigated this matter. The Office of the United States Trustee provided substantial assistance.
Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office prosecuted this case.
Utah Man Convicted for Tax FraudRead the Press Release
A chiropractor and health-care products business owner was convicted yesterday by a jury in Salt Lake City, Utah, of attempting to evade the payment of his federal income taxes and corruptly endeavoring to impair the administration of the internal revenue laws.
According to the evidence presented at trial and other court documents, in March 2012, Louis Hansen, of Orem, presented a check to the IRS in the amount of $342,699.41 that was drawn on a closed bank account in a fraudulent attempt to pay taxes, penalties, and interest that he owed for a number of years. In June 2012, Hansen presented another 10 additional checks to the IRS drawn on a different closed bank account in a second attempt to fraudulently discharge his tax debt. Each of these 10 checks was in the amount of $425,000, and the evidence showed that they were sent to at least six different IRS offices.
U.S. District Judge Howard C. Nielsen Jr. scheduled Hansen’s sentencing for Nov. 4. Hansen faces a maximum sentence of five years in prison for tax evasion and three years in prison for corruptly impeding the internal revenue laws.
Acting U.S. Attorney Andrea T. Martinez for the District of Utah and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
The case was investigated by IRS – Criminal Investigation.
Assistant U.S. Attorney Kevin L. Sundwall and Special Assistant U.S. Attorney Andrew Kameros are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Attorneys' Joint Statement Regarding Oklahoma Court of Criminal Appeals Decision State Ex Rel. Matloff v. WallaceRead the Press Release
This morning the Oklahoma Court of Criminal Appeals issued its decision in State ex rel. Matloff v. Wallace holding the United States Supreme Court’s ruling in McGirt v. Oklahoma does not apply retroactively. The United States Attorney’s offices in Oklahoma are reviewing today’s OCCA opinion and assessing its potential impact on cases previously referred to the United States for potential federal criminal prosecution,” said Acting United States Attorneys Christopher Wilson, Clint Johnson and Robert Troester. “In the interim, our offices will continue to focus on our mission of ensuring public safety and holding defendants accountable for their criminal acts.”
Two Bakersfield Men Charged with Unlawful Possession of FirearmsRead the Press Release
RESNO, Calif. — Two Bakersfield men were charged today by a federal grand jury in separate indictments with being felons in possession of firearms, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Duwayne Payton, 25, is a documented and active member of the East Side Crips criminal street gang in Bakersfield. On March 11, 2021, Payton possessed in his residence a stolen Glock Model 17 9 mm handgun. Payton may not lawfully possess firearms because of his prior felony convictions, including convictions in Bakersfield in 2014 for first degree burglary and vehicle theft.
According to the indictment in a separate case, on July 8, 2021, as Sabino Ramos, 45, was driving in Bakersfield, law enforcement officers attempted to stop him in order to serve an arrest warrant for probation violations. Ramos led officers on a high-speed chase, reaching speeds up to 90 mph, before losing control of his vehicle while exiting Highway 99 at Ming Avenue. Ramos then ran from pursuing officers but was eventually subdued. Ramos was found to be in possession of two handguns and approximately 30 rounds of ammunition. Ramos may not lawfully possess firearms because of his prior felony convictions, including convictions in 1995 for assault with firearm on a person and in 2017 for possessing controlled substances for sale.
These cases are the product of investigations by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the cases.
If convicted, the defendants each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are 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.
Tri-County Hospitalists, LLC Agrees to Pay $200,000 to Resolve Allegations of Overbilling MedicareRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Tri-County Hospitalists, LLC (“TCH”) has agreed to pay a total of $200,000 plus interest to resolve alleged violations of the False Claims Act by overbilling Medicare for advanced care planning (“ACP”) and tobacco cessation counseling (“TCC”) services. In many instances, TCH sought Medicare reimbursement for ACP and TCC services regardless of whether the counseling was necessary, voluntary, or performed with patient consent.
The settlement resolves allegations that, between January and September 2019, TCH engaged in a coordinated effort to defraud the United States by pressuring TCH personnel to seek Medicare reimbursement for ACP and TCC services for patients TCH treated, regardless of medical need. In most cases, the prerequisites for ACP and TCC services were not met and not every patient required the services that were billed. In some instances, TCH allegedly billed Medicare four or more times where ACP services were provided to a single patient over a short time frame with no evidence of any documented changes in patient condition to justify its billing activities. TCH also allegedly unnecessarily sought and received Medicare reimbursement for tobacco cessation counseling where patients did not use tobacco.
TCH is a physician-owned medical group that employs over 75 health care providers, also referred to as hospitalists, who specialize in internal medicine, family practice, pulmonary medicine, hospital medicine, emergency medicine and cardiology. TCH has offices in Philadelphia, Montgomery, and Chester Counties and provides its services in hospitals, skilled rehabilitation facilities, outpatient practices, and urgent care centers.
“Receiving payments from Medicare while providing medically unnecessary services to patients who rely on their doctors for their professional judgment cheats patients and defrauds the federal government,” said Acting United States Attorney Williams. “This resolution represents our commitment to holding accountable those who engage in fraud that affects the residents of this city and this district.”
The allegations were brought by a former TCH hospitalist under the qui tam (or whistleblower) provisions of the False Claims Act. The qui tam provisions permit private parties to sue for false claims on behalf of the government and to receive a share of any recovery. The relator was represented by Christopher J. DelGaizo, Esquire of the Derek Smith Law Group, PLLC.
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800‑HHS‑TIPS (1-800-447-8477).
This case was investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania with assistance by Auditor Dawn Wiggins. The lawsuit is captioned United States ex rel. Zeth Holbert v. Tri-County Hospitalists, LLC (“TCH”) et al., Civil Action No. 19-4099.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Titusville Man Sentenced to More Than 13 Years in Federal Prison for Attempting to Entice and Meet A 13-Year-Old Child for SexRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Michael Craig Gorycki (51, Titusville) to 13 years and 4 months in federal prison for attempted enticement of a 13-year-old child to engage in sexual activity. Gorycki was also ordered to serve a 10-year term of supervised release and register as a sex offender.
Gorycki was found guilty on May 27, 2021, following a jury trial.
According to testimony and evidence presented at trial, in August 2020, Gorycki engaged in online chats with an undercover Homeland Security Investigations (HSI) task force agent who was posing as the father of a 13-year-old girl. During the conversation, Gorycki expressed interest in meeting the father in order to gain access to and sexually assault his minor daughter. Gorycki expressed in detail his intention to rape the child and teach her to perform a specific sexual act. Gorycki was arrested when he traveled to meet the father at a prearranged meeting place in Titusville so that he could have sex with the child.
“Thanks to HSI special agents and the Brevard County Sheriff’s Office, this child predator will now spend more than 13 years in prison for his crimes,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “Taking child predators off the streets has a direct effect in making our communities safer for everyone.”
This case was investigated by the Brevard County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang and John M. Gardella.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Man Sentenced to Prison for Role in Gun Smuggling RingRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven has sentenced Sergio David Hernandez-Zuluaga (41, Tampa) to one year and one day in federal prison for providing a firearm to a prohibited person.
Hernandez-Zuluaga had pleaded guilty on May 14, 2021.
According to court documents, in December 2017 and February 2018, authorities in Bogota, Colombia seized multiple assault rifles and pistols that had been shipped from Tampa, Clearwater, and Kissimmee. The firearms were concealed in packages containing household items. Law enforcement agencies in the United States traced some of the weapons and determined that most of them had been acquired in the Tampa area. The agencies later discovered that Hernandez-Zuluaga had purchased and stored at least seven of the firearms before they were shipped to Colombia. Hernandez-Zuluaga transferred the firearms to his friend, Jhon Marin-Moreno, a dual citizen of the United States and Colombia, who arranged for their illegal export. At the time, Hernandez-Zuluaga knew that Marin-Moreno was a convicted felon who could not possess firearms.
Marin-Moreno was charged separately and sentenced to three years and three months in federal prison.
“This criminal thought he could circumvent our nation’s firearms laws with his participation in this international weapons smuggling operation,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran. “But thanks to the law enforcement partnership between HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives, a criminal conspiracy has been stopped, making our local communities safer.”
“Collaboration with our law enforcement partners is essential in firearms trafficking investigations,” said ATF Special Agent in Charge Craig W. Saier. “We will continue to work with our law enforcement partners to detect, disrupt, and interdict illegal firearms trafficking schemes. This sentencing demonstrates that working jointly with HSI makes communities safer at home and abroad.”
This case was investigated by Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance from Colombian authorities. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
San Fernando Valley Man Found Guilty in Terror Plot to Bomb a Rally in Long BeachRead the Press Release
A federal jury convicted a California man today for attempting to bomb a rally in Long Beach for the purpose of causing mass casualties.
According to court documents and evidence presented at trial, Mark Steven Domingo, 28, of Reseda, was found guilty of providing material support to terrorism and attempting to use of a weapon of mass destruction. The investigation into Domingo was prompted by his online posts and conversations in an online forum in which he expressed support for violent jihad, a desire to seek retribution for attacks against Muslims and a willingness to become a martyr. After considering various attacks – including targeting Jewish people, churches and police officers – Domingo decided to bomb a rally scheduled to take place in Long Beach in April 2019.
As part of the plot, Domingo asked a confederate – who was working with the FBI as part of the investigation – to invite a bomb-maker into the scheme. Domingo then purchased and provided to the confederate and the bomb-maker – who in fact was an undercover law enforcement officer – several hundred 3½-inch nails to be used as shrapnel for the bombs. Domingo specifically chose those nails because they were long enough to penetrate organs in the human body.
Leading up to the attack, Domingo called for another event like the October 2017 mass shooting in Las Vegas. Following an attack on Muslims in New Zealand in March 2019, Domingo called for retribution in an online post.
Domingo selected the Long Beach rally as his target and, in April 2019, drove his confederate and the undercover officer to Long Beach to scout the location he planned to attack. While there, Domingo discussed finding the most crowded areas so he could kill the most people. On April 26, 2019, Domingo received what he thought were two live bombs, but were inert explosive devices delivered by an undercover law enforcement officer. He was arrested that same day with one of the bombs in his hands.
Domingo was convicted of providing material support to terrorism and attempting to use a weapon of mass destruction. He is scheduled to be sentenced on Nov. 1 and faces a statutory maximum sentence of life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Joint Terrorism Task Force, Los Angeles Police Department, the Naval Criminal Investigative Service, the Los Angeles County Sheriff's Department and the Long Beach Police Department investigated the case.
Assistant U.S. Attorneys Reema M. El-Amamy and David T. Ryan of the Terrorism and Export Crimes Section of the U.S. Attorney’s Office for the Central District of California and Trial Attorneys Lauren Goddard and Joshua Champagne of the National Security Division's Counterterrorism Section are prosecuting the case.
Rutherford County Man Is Sentenced to 11 Years in Prison for Receipt of Child PornographyRead the Press Release
ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced today Jason Michael Miles, 37, of Forest City, N.C., to 132 months in prison for receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Miles was ordered to serve a lifetime of supervised release and to register as sex offender after his incarceration.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to admissions contained in plea documents and today’s sentencing hearing, on February 24, 2018, New Zealand investigators became aware that an individual later identified as Miles was utilizing the username “PURSEANON” to post pictures of children to a foreign image website. Court records show that Miles had posted approximately 15 photos albums containing images of young girls secretly taken in public places. One of the albums, titled “GIRL AT CVS,” contained information that helped investigators determine the images were taken a CVS store located in Morganton, N.C.
According to court documents, on February 25, 2018, New Zealand investigators began undercover communications with Miles, during which Miles expressed his interest in children and distributed files containing depictions of the sexual abuse of children to the undercover investigator. After law enforcement determined Miles’ identity, the investigation was transferred to the HSI office in Hendersonville, N.C. On May 31, 2018, HSI agents executed a search warrant at Miles’ residence in Rutherford County. During the execution of the search warrant, law enforcement seized multiple electronic devices. An analysis of the seized devices revealed that Miles had an extensive library of child pornography that contained more than 7,193 images and videos depicting the sexual abuse of children, including infants and toddlers.
Court records show that while Miles was serving in the U.S. Air Force, he was convicted of two counts of Indecent Liberties With a Child Under Age 16 and was sentenced to four years in prison. As a result of that conviction, Miles was also ordered to register as sex offender for a period of 30 years.
Miles pleaded guilty to receipt of child pornography on February 24, 2021. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer commended HSI for their investigation of the case.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rockport Man Pleads Guilty to Operating Nationwide Scheme to Steal Social Media Accounts and CryptocurrencyRead the Press Release
BOSTON – A Rockport man pleaded guilty today to conducting a scheme to take over victims’ social media accounts and steal hundreds of thousands of dollars in cryptocurrency.
Declan Harrington, 21, pleaded guilty to one count of conspiracy, five counts of wire fraud, one count of computer fraud and abuse and one count of aggravated identity theft. A sentencing date has not yet been scheduled by the Court. Harrington was charged along with co-conspirator, Eric Meiggs, in November 2019.
Harrington, Meiggs, and co-conspirators targeted victims who were believed to have had significant amounts of cryptocurrency and those who had high value or “OG” (slang for “Original Gangster”) social media account names. Using an illegal practice known as “SIM-swapping,” Harrington, Meiggs, and others conspired to hack into and take control of these victims’ online accounts to obtain things of value, including OG social media account names and cryptocurrency.
“SIM swapping” attacks involve convincing a victim’s cell phone carrier to reassign the victim’s cell phone number from the SIM card inside the victim’s cell phone to the SIM card inside a cell phone controlled by the cybercriminals. Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by the cybercriminals. The cybercriminals can then reset the victim’s account log-in credentials and use those credentials to access the victim’s account without authorization, or “hack into” the account.
Harrington, Meiggs, and their co-conspirators targeted at least 10 identified victims around the country and stole (or attempted to steal) more than $530,000 in cryptocurrency from these victims. Meiggs also took control of two victims’ “OG” accounts with social media companies.
Meiggs pleaded guilty on April 28, 2021 and is scheduled to be sentenced on May 24, 2022.
The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $$250,000. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of computer fraud and abuse provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identify theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ramsey E. Covington, Acting Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Seth Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit and Senior Trial Attorney Mona Sedky of the Justice Department’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Reed Point man admits, sentenced for unlawful use of strychnine to poison wolf on Ennis area ranchRead the Press Release
BUTTE – A Reed Point man today admitted to and was sentenced for unlawfully using strychnine in a manner inconsistent with its labeling to poison a wolf on a ranch near Ennis, Acting U.S. Attorney Leif M. Johnson said.
Jeffrey Scott Wood, 49, pleaded guilty to an information charging him with unlawful use of a registered pesticide, a misdemeanor, and was ordered to pay a $500 fine and to pay $1,000 restitution to the Montana Department of Fish, Wildlife and Parks.
U.S. Magistrate Judge Kathleen L. DeSoto presided.
"Misusing strychnine to lace a cow carcass to kill predators is a violation of federal law that results in the indiscriminate killing of all kinds of animals, large and small, wild and domestic, common and endangered. Wood not only killed a wolf, but he also likely killed a pet dog and probably countless other smaller birds and mammals. This office will continue to prosecute this kind of unlawful and irresponsible use of registered pesticides to the fullest extent of federal law. I want to thank Assistant U.S. Attorney Ryan G. Weldon and the Environmental Protection Agency-Criminal Investigation Division, the U.S. Fish and Wildlife Service and the Montana Department of Fish, Wildlife and Parks for investigating and prosecuting this case,” Acting U.S. Attorney Johnson said.
The government alleged in court documents that in October 2019, Wood unlawfully used a registered pesticide, strychnine, in a manner inconsistent with its labeling to poison a wolf on the Sun Ranch, near Ennis. An investigation into the death of the wolf determined that the wolf had ingested strychnine oats rolled in meat, which appeared to have been placed beside a previously dead cow. A ranch employee had shot the cow because it was sick and not from it being poisoned. A necropsy of the wolf found grains containing strychnine in its stomach and intestines and that the grains were the likely cause of death. A ranch employee’s dog also was suspected of dying from ingesting the strychnine.
The government further alleged that law enforcement learned Wood had called a witness and said to “play stupid” if anyone asked questions about the dead wolf. Wood explained that he placed the poison around the cow carcass because he saw a grizzly sow and two cubs nearby. Wood initially denied to investigators that he had any involvement in the wolf’s death, then admitted he put out the poison to kill wolves—not grizzly bears. Wood admitted it was wrong to use the poison to kill wolves and was aware he could not put strychnine oats in meat.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Environmental Protection Agency-Criminal Investigation Division, the U.S. Fish and Wildlife Service-Office of Law Enforcement and the Montana Department of Fish, Wildlife and Parks law enforcement.
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Rapid City Man Sentenced for Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Karen E. Schreier, U.S. District Judge.
Alex Usher, age 32, was sentenced on August 9, 2021, to four years and nine months in federal prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to pay $600 in restitution.
Usher was indicted by a federal grand jury in January 2019. The charge relates to Usher, who is a previously convicted felon and prohibited from possessing firearms, being found in possession of a Winchester shotgun, which was found after a search of Usher’s residence in November 2018.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Usher was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jesse David Tolson, of Elkins, West Virginia, was sentenced today to 150 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Tolson, 35, pled guilty in December 2020 to one count of “Possession with Intent to Distribute More Than Fifty Grams of Methamphetamine.” Tolson admitted to having more than 50 grams of methamphetamine in December 2019 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Produce Importer Sentenced in Brooklyn Federal Court to 13 Years’ Imprisonment for Conspiring to Import Cocaine in a Shipment of Chili PeppersRead the Press Release
Earlier today, in federal court in Brooklyn, Humberto Baez, a produce importer based in Pennsylvania, was sentenced by United States District Judge Allyne R. Ross to 13 years’ imprisonment for conspiring to import and distribute cocaine, and for possessing with intent to distribute cocaine. Baez was convicted by a jury in February 2019 following a two-week trial before the late United States District Judge Jack B. Weinstein.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence demonstrates that this Office and its law enforcement partners are committed to stopping the flow of dangerous drugs into this country and to bringing drug traffickers like Baez to justice,” stated Acting United States Attorney Kasulis. Ms. Kasulis expressed her grateful appreciation to the New York Organized Crime Drug Enforcement Strike Force for their work on the long-term investigation, the DEA’s Santo Domingo Country Office (SDCO) and the Sensitive Investigative Unit (SIU) for their assistance.
“Concealing drug shipments with produce is one way drug traffickers try to elude law enforcement. This cat and mouse game evolves over time resulting in law enforcement recovering drugs in various places; such as inside coconuts, wheelchairs, animals, people, tombstones, etc. just to name a few. I applaud the members of the New York Strike Force and the U.S. Attorney’s Office Eastern District of New York for their dedicated work throughout this investigation,” stated DEA Special Agent-in-Charge Donovan.
“By conspiring to import cocaine hidden in a carton of chili peppers, Humberto Baez was fueling a violent trade that victimizes New Yorkers. His conviction and sentencing today sends a clear message that the NYPD and our law enforcement partners will stop at nothing to track these kinds of schemes and protect the public from the impact of illegal narcotics,” stated NYPD Commissioner Shea.
Between August 2016 and March 2018, Baez conspired with others to import cocaine hidden inside a shipping container into the United States. Baez had contacted an importing company to use as a front to transport cocaine from Baez’s source of supply in the Dominican Republic. Baez and his co-conspirators then arranged for two “dry run” shipments containing only produce into the Red Hook Terminal in Brooklyn to establish the appearance of a legitimate business relationship between the exporter and importer, thereby avoiding scrutiny when subsequently shipping cocaine. In late February 2018, a third shipment arrived in Miami, Florida with approximately 16 kilograms of cocaine concealed in the flaps of cardboard boxes containing chili peppers. Baez relayed information that a third shipment contained “ripe tomatoes,” using agreed upon code words for cocaine that would be transported by truck to Baez’s warehouse in Pennsylvania. On March 1, 2018, members of law enforcement searched the container and seized the hidden cocaine.
The Strike Force is a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the New York/New Jersey High Intensity Drug Trafficking Area. It is housed at the DEA’s New York Division and includes agents and officers of the DEA; the NYPD; the New York State Police; HSI; the U.S. Internal Revenue Service Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nomi D. Berenson and Erin M. Reid are in charge of the prosecution.
The Defendant:
HUMBERTO BAEZ
Age: 52
Lancaster, PennsylvaniaE.D.N.Y. Docket No. 18-CR-168 (S-1) (ARR)
Primghar Man Sentenced to Federal Prison for Distribution of MethamphetamineRead the Press Release
A man who distributed methamphetamine was sentenced on July 28, 2021, to more than 6 years in federal prison.
Jeremiah Bottjen, age 38, from Primghar, Iowa, received the prison term after a March 4, 2021, guilty plea to one count of possession with intent to distribute a controlled substance.
In a plea agreement, Bottjen admitted that on September 24, 2020, he was the driver of a vehicle that led a Clay County Sheriff’s Deputy on a high-speed chase where he eventually drove through a stop sign going 60mph while construction workers were present and ultimately crashed his vehicle. Deputies searched Bottjen and his vehicle and found a digital scale with methamphetamine residue and a torch. They also found a grocery sack at the scene of the accident containing a softball-sized amount of methamphetamine. Bottjen later admitted to distributing meth in Iowa from July of 2020 until his arrest.
Bottjen was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bottjen was sentenced to 78 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bottjen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala M. Steenholdt and investigated by the Clay County Sheriff’s Office, the Iowa Great Lakes Drug Task Force, and the O’Brien County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4009.
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Postal Employee Sentenced for Stealing Medication Intended for VeteransRead the Press Release
ABINGDON, Va. – A former employee of the United States Postal Service was sentenced today to 24 months in federal prison for stealing mail containing medication intended for United States Veterans.
Ammie Hale, 46, of Raysal, West Virginia, pleaded guilty in March 2021 to three counts of theft by mail by an employee of the postal service for stealing mail on February 26, 2020, July 1, 2020, and August 5, 2020, and one count of making false statements.
According to court documents, from September 2019 through July 2020, the United States Postal Service, Office of the Inspector General (USPS-OIG) received over 40 reports from the Salem, Virginia Veterans Affairs Medical Center of medication parcels mailed to veterans in the Tazewell, Virginia area that were never delivered.
Agents of the USPS-OIG reviewed available video footage and observed Hale on two different occasions, while working at the Tazwell Post Office, removing parcels from the sorting area, and taking them to an area of the Post Office where employees keep personal belongings and hiding the parcels in her purse. On August 5, 2020, agents conducted on-site surveillance and caught Hale stealing pills from a package addressed from the Veterans Affairs Medical Center. Hale was interviewed on August 5 and falsely told investigators that she had never stolen mail prior to that day.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Kenneth Cleevely, Special Agent in Charge, United States Postal Service, Office of Inspector General Eastern Area Field Office made the announcement.
The United States Postal Service, Office of Inspector General investigated the case.
Assistant U.S. Attorney Randy Ramseyer prosecuted the case.
Portland Man Who Struck Sheriff's Deputy in the Face with Motorcycle Helmet After 100 MPH Chase Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—Today, as part of a joint resolution of state and federal criminal cases, a local man was sentenced to federal prison for possessing with intent to distribute methamphetamine, and possessing a firearm as a convicted felon, after fleeing from law enforcement officers at more than 100 miles per hour and striking a sheriff’s deputy in the face with his motorcycle helmet. He was sentenced in state court for second degree assault and assaulting a public safety officer, both felonies.
Marcus Gene St. Clair, 44, of Portland, Oregon, was sentenced to 144 months in federal prison and five years’ supervised release. St. Clair was previously sentenced to 70 months in state prison. He will serve his state and federal prison sentences concurrently in federal prison.
According to court documents, on July 29, 2019, St. Clair fled from Hood River County Sheriff’s Office deputies on a motorcycle at more than 100 miles per hour. A Multnomah County Sheriff’s Office sergeant spotted St. Clair traveling westbound on Interstate-84 toward Portland. St. Clair left I-84 before the sergeant could stop him. The sergeant located St. Clair in a gravel lot off the highway and approach him on foot. Without warning, St. Clair hurled his motorcycle helmet toward the sergeant, striking the sergeant in the face and opening a large gash on his forehead.
Thinking quickly, the deputy pushed St. Clair’s motorcycle over so St. Clair could not flee and drew his gun. St. Clair fled on foot, yelling “I have a gun.” Another deputy deployed a taser, bringing St. Clair to the ground and, after a brief struggle, St. Clair was placed under arrest. Once St. Clair was secured, deputies search his backpack and found a loaded 9mm semi-automatic pistol with a round chambered, $1,440 in cash, and more than 300 grams of methamphetamine. The gun had been reported stolen. The deputies later learned St. Clair was traveling with a revoked driver’s license and had two outstanding felony arrest warrants.
On September 11, 2019, a federal grand jury in Portland indicted St. Clair for possessing with intent to distribute methamphetamine. A Multnomah County grand jury indicted St. Clair on several other offenses, including second degree assault and assaulting a public safety officer. Later, St. Clair was charged by federal criminal information with illegally possessing a firearm as a convicted felon.
On May 14, 2021, St. Clair pleaded guilty in federal court. He was sentenced in state court on June 4, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon and Multnomah County District Attorney Mike Schmidt made the announcement.
This case was investigated by the Multnomah County Sheriff’s Office and the FBI. Assistant U.S. Attorney Gary Sussman and Multnomah County Deputy District Attorney David Hannon prosecuted the cases.
Pittsburgh Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH, PA – A resident of the Western District of Pennsylvania been indicted by a federal grand jury in Pittsburgh on a charge of production and attempted production of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Shawn Michael Hoffman, age 38, formerly of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Indictment, on or about September 8, 2019, Hoffman coerced and induced a child victim to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
The law provides for a maximum total sentence of 30 years in prison, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Cameo Witherspoon, age 32, as the sole defendant.
According to the Indictment, on or about July 6, 2021, Witherspoon possessed a firearm and ammunition as a convicted felon. Under federal law, possessing a firearm and/or ammunition is a violation of federal law for those who have previously been convicted of a crime punishable by greater than a year in prison.
The law provides for total sentence of not less than 15 years’ imprisonment, 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 Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierre Woman Charged with Wire Fraud, Mail Fraud, and Money LaunderingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pierre, South Dakota, woman has been indicted by a federal grand jury for Wire Fraud, Mail Fraud, and Money Laundering.
Marietta Ravnaas, age 52, was indicted on August 3, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 10, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $500,000 fine, three years of supervised release, and up to $700 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Ravnaas participated in a scheme involving CARES Act unemployment benefits. Specifically, other participants in the scheme unlawfully obtained, possessed, and shared with one another the personal identifying information (PII) of various individuals. The PII was used to falsely and fraudulently apply for unemployment benefits from various states. The Indictment alleges that Ravnaas knowingly allowed the fraudulently obtained unemployment benefits payments to be deposited into her bank account, and then transferred money at the direction of other participants in the scheme. Ravnaas frequently transferred the funds to other participants using WorldRemit, an international money transfer service. Ravnaas also kept some of the funds to use for her own purposes.
The charges are merely accusations and Ravnaas is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Social Security Administration-Office of the Inspector General, the Department of Labor-Office of the Inspector General, the Internal Revenue Service-Criminal Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Ravnaas was released on bond pending trial. A trial date has been set for October 12, 2021.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Parent in College Admissions Case Agrees to Plead GuiltyRead the Press Release
BOSTON – The former chief executive of a California-based media company has agreed to plead guilty in connection with her involvement in the college admissions case.
Elisabeth Kimmel, 57, of La Jolla, Calif., will plead guilty to one count of conspiracy to commit mail and wire fraud. According to the terms of the plea agreement, the parties have agreed to a sentence of six weeks in prison and two years of supervised release, with the first year spent in home confinement. Should the Court accept the plea, Kimmel will also be required to pay a $250,000 fine and perform 500 hours of community service. A plea hearing is scheduled for Monday, Aug. 16, 2021.
As set forth in the charging document, Kimmel agreed with William “Rick” Singer and others to pay $275,000 to facilitate her daughter’s admission to Georgetown University by having Georgetown tennis coach Gordon Ernst allegedly allocate a tennis admission slot to her daughter, even though she was not a competitive tennis player and was not actually being recruited to play on the Georgetown tennis team. Kimmel further agreed with Singer and others to pay $250,000 to facilitate her son’s admission to the University of Southern California as a pole vault recruit, even though he was not a pole vaulter.
Kimmel will be the 32nd parent to plead guilty in the case. Ernst has pleaded not guilty and is scheduled to stand trial in November 2021.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Case information, including the status of each defendant, are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns, and Stephen E. Frank of Mendell’s Securities, Financial and Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Paducah Felon Convicted by Federal Jury of Illegally Possessing HandgunRead the Press Release
Paducah, Kentucky – A federal jury returned a guilty verdict in the trial of a Paducah man on August 10, 2021, for being a convicted felon in possession of a handgun.
According to court documents and evidence presented at trial, Jermaine Tyrone Jones, 41, of Paducah, possessed a handgun on August 30, 2017, after being previously convicted of a felony offense. Paducah Police Department Officer Andrew Parrish located the handgun in Jones’s clothing after Jones’s arrest for Fourth-Degree Assault, Domestic Violence.
“Identifying and prosecuting individuals who illegally possess firearms is an important component of our overall effort to reduce violent crime in the Western District of Kentucky,” stated Acting United States Attorney Michael A. Bennett. “I commend the trial team, the Paducah Police Department, and the ATF for their work in this case and for their ongoing commitment to make our communities safe for all citizens.”
“Cases like this show our continued efforts to reduce the amount of gun violence in Paducah,” said Paducah Police Chief Brian G. Laird. “This is another good example of inter-agency cooperation to arrest, prosecute and convict violent offenders to help keep our community safe.”
“Repeat violent offenders are a threat to the safety and security of our communities,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Division. “ATF partnerships with our local law enforcement agencies in Western Kentucky are getting results. Together, we’re making arrests and successfully prosecuting felons who illegally possess firearms.”
Sentencing is scheduled for December 9, 2021. Under federal law, Jones is facing a maximum of 10 years in prison.
The Paducah Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case.
Assistant U.S. Attorney Seth A. Hancock is prosecuting the case with the assistance of Cristy Crockett, paralegal.
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This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.