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Wednesday 23 June 2021
Raleigh Real Estate Developer Pleads Guilty to Wire Fraud and Firearm Possession ChargesRead the Press Release
RALEIGH, N.C. – A Raleigh man pleaded guilty today to Wire Fraud, in violation of Title 18, United States Code, Section 1343, and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g).
Acting United States Attorney G. Norman Acker, III stated, “With this plea, this office brings to justice a dangerous man who defrauded numerous real estate investors in North Carolina and elsewhere. We are grateful for the work of our federal, state and local counterparts for their combined efforts to ensure that the defendant pays a serious price for his crimes.”
According to court documents, Joshua Matthew Houchins, 36, owner of various Raleigh real estate development companies, admitted to carrying out a fraud upon real estate investors. Houchins also admitted to illegally possessing a firearm after having been convicted of a felony.
According to the Superseding Indictment, between 2014 and 2018, Houchins owned and operated Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC, and used these entities to carry out a fraud upon his real estate development investors. Specifically, Houchins solicited investment monies by telling victims that their money would be “put to work” on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds. In fact, Houchins did not put all of the investor funds to work on the property on which the investor was solicited to invest, and instead, regularly used investor funds on other properties, or on personal expenses. Likewise, the investor promissory notes were not secured by a deed of trust as promised. In some instances, Houchins did not even own the property that was the subject of the investment, and as such, could not truthfully grant a deed of trust to the investor.
The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, Houchins failed to develop and sell the properties, as he represented, he would. Houchins then defaulted on the notes by failing to pay investors their promised returns. The investors were unable to foreclose upon the investment properties because Houchins had not secured the promissory notes with a deed of trust filed, thereby resulting in losses to the investors. Houchins specifically pled guilty to Count Nine, which alleged one instance of the above-described fraud on January 6, 2017. As a part of the plea, Houchins agreed to make restitution to all victims for losses arising from the scheme, and related schemes.
According to the second part of the superseding indictment, the grand jury began to investigate Houchins in 2018 concerning the aforementioned offenses. Following the issuance of subpoenas to his attorney and to his various real estate companies, Houchins only produced a small number of documents to the grand jury. Instead, the indictment alleges that Houchins admitted in a February 2020 letter that he had “destroyed all of the evidence.”
The superseding indictment also alleges that Houchins, who had recently separated from his wife, began to send her harassing messages. The indictment alleges that Houchins’ wife obtained a Domestic Violence Order of Protection (DVPO) barring Houchins from contacting, threatening, or harassing his wife. While Houchins was already prohibited from possessing a firearm due to his status as a convicted felon, the DVPO further prohibited Houchins from possessing a firearm.
The superseding indictment then alleges that in March of 2020, Houchins communicated to friends of his wife that she had, “run to the police” and that Houchins has “no mercy on a lying rat.” Around one month later, the superseding indictment alleges that Houchins sent threatening communications to friends and family of his wife, including photographs of Houchins wearing a mask and tactical vest.
The superseding indictment then charges that, following his internet searches for “killing your wife over love,” Houchins was arrested. At the time of his arrest, Houchins was in possession of a Ruger AR-15, 4 magazines, a double canister magazine containing 100 rounds of ammunition, two boxes of .223 caliber ammunition, and a tactical vest. Houchins pled guilty to Count Fourteen, which alleged that he possessed the Ruger AR-15 despite being a convicted felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and the North Carolina Secretary of State are investigating the case. The Wake County Sheriff’s Office, Apex Police Department, and Sanford Police Department, also provided assistance. Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Pike County Man Sentenced to Prison for Possession of A Sawed-Off ShotgunRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Walter Valdivia, Jr., age 38, of Matamoras, Pennsylvania, was sentenced on June 21, 2021, to 33 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for possession of a shotgun with a barrel length of less than 18 inches.
According to Acting United States Attorney Bruce D. Brandler, Valdivia was encountered by law enforcement officers when they served a search warrant in Matamoras, Pennsylvania on April 29, 2020, in an unrelated investigation. Valdivia was sitting on a couch in the living room of the residence and reached behind the couch. Agents located a sawed-off shotgun and a bag that contained shotgun shells behind the couch.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and Explosives (ATF) in cooperation with the Pike County (Pennsylvania) Drug Task Force. Assistant U.S. Attorney Todd K. Hinkley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Physician admits to assault chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dr. Kenneth C. Ramdat, a physician formerly employed at the Louis A. Johnson VA Hospital in Clarksburg, West Virginia, has admitted to assaulting two hospital employees, Acting U.S. Attorney Randolph J. Bernard announced.
Ramdat, 66, of Silver Springs, Maryland, pleaded guilty to two counts of “Simple Assault.” As a part of his plea agreement, Ramdat admitted to touching two staff women’s breasts without permission while in isolated rooms of incapacitated patients in two separate incidents in August 2019 and October 2019 at the hospital in Harrison County.
Ramdat was sentenced to one year of probation.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Veterans Affairs Office of Inspector General, the FBI, the Veterans Affairs Police, and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Perry County Man Convicted on Federal Charges of Kidnapping and Cocaine TraffickingRead the Press Release
LONDON, Ky. - A Perry County man was convicted on Monday, by a federal jury sitting in London, of conspiracy to distribute 500 grams or more of cocaine, possession of a firearm in furtherance of that conspiracy, possession of a firearm as a convicted felon, kidnapping, and conspiracy to commit a kidnapping.
The jury convicted 65-year-old Thomas Hamblin following a five-day trial, and approximately four hours of deliberations.
According to evidence at trial, Hamblin was working with others, including Bobby Sizemore, Robert Keith Caudill, and Doyle Back, to obtain kilogram quantities of cocaine, and to sell that cocaine to others in the Perry County area. Evidence further revealed that, after an attempted drug deal, Hamblin coordinated with others, including Luke Holbrook and Michael Rayburn, to kidnap and assault two victims in Tazewell, Tennessee. Specifically, Hamblin recruited Luke Holbrook into the plot and provided him with a firearm and ammunition. Holbrook, assisted by Rayburn and another individual, then held two victims at gun point, tied them up with duct tape, assaulted them with a baseball bat, and interrogated them, in an attempt to retaliate against them and recover Hamblin’s money or drugs. Portions of this kidnapping and assault were recorded on a cell phone that was recovered from the scene. That same cell phone revealed that Hamblin was contacted in the middle of the assault and kidnapping.
Thomas Hamblin was indicted in July of 2020, following an investigation by the DEA, the Hazard Police Department, Operation UNITE, the Tazwell Tennessee Police Department, the Claiborne County Sheriff’s Department, and the Kentucky State Police.
All of Hamblin’s co-defendants have pled guilty. Holbrook and Rayburn pled guilty to kidnapping. Rayburn was sentenced to 135 months in prison and Holbrook awaits sentencing. Sizemore, Back, and Caudill have all pled guilty to drug charges and are awaiting sentencing.
Hamblin will appear for sentencing on October 26, 2021, and he faces from 10 years to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; Vic Brown Executive Director of AHIDTA; Minor Allen, Chief of the Hazard Police Department; Nancy Hale, President/CEO of Operation UNITE; Jeremy Meyers, Chief of the Tazewell Police Department; Bob Brooks, Sheriff of the Claiborne County Tennessee Sherriff’s Department, and Commissioner Phillip “PJ” Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the convictions. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement
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Pasco Drug Dealer Who Ordered Dumping of Body of Fentanyl Overdose Victim Sentenced to Life ImprisonmentRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Justin Case Lebarron (28, Pasco County) to life imprisonment for conspiracy to distribute fentanyl and methamphetamine resulting in death, distribution of fentanyl and methamphetamine resulting in death, possession with the intent to distribute fentanyl, and maintaining a drug-involved premises.
A federal jury had found Lebarron guilty on April 22, 2021.
According to testimony and evidence presented at trial, Lebarron and his girlfriend, co-defendant Brittney Smith, operated a drug house in New Port Richey where they sold fentanyl and methamphetamine. They also allowed addicts to use narcotics and sleep there. On the night of January 7, 2020, a fatal overdose occurred in the house. Lebarron ordered three people to carry the victim’s body outside and dump it in an empty lot as he fled the area. A few hours later, Lebarron resumed distributing fentanyl and methamphetamine and continued to do so until his arrest on March 5, 2020.
On June 16, 2021, Smith pleaded guilty to conspiracy to distribute and possession with the intent to distribute fentanyl and methamphetamine resulting in death, possession with the intent to distribute and distribution of fentanyl and methamphetamine resulting in death, and maintaining a drug-involved premises. She faces a minimum mandatory penalty of 20 years, and up to life, in federal prison for each conspiracy and possession count, and up to 20 years in federal prison for maintaining a drug-involved premises. Her sentencing hearing is scheduled for September 9, 2021.
“As a result of the hard work and efforts made together with the Pasco Sheriff’s Office, a dangerous drug dealer has been removed from the Tampa area and a life sentence ensures he can no longer endanger people’s lives.” said DEA Miami Field Division Acting Special Agent in Charge Donald P. Garrett. “We will continue to work hard with our law enforcement partners to rid communities of drug traffickers who threaten the safety and well-being of Floridians.”
“The Pasco Sheriff's Office is thankful for our strong partnership with the Department of Justice which resulted in taking these predators off of Pasco County’s streets,” said Pasco Sheriff Chris Nocco. “We know there is a delineation between those who suffer from substance abuse and addiction and those who prey on those individuals for their own monetary gain. We are committed to holding these predators responsible for the harm and destruction they cause on those suffering from substance abuse and addiction, their families and our community while connecting those suffering from substance abuse and addiction with resources available in our community.”
This case was investigated by Drug Enforcement Administration Tampa District Office and the Pasco Sheriff’s Office as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. It was prosecuted by Assistant United States Attorney Dan Baeza.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Pasadena Man Pleads Guilty to Shooting and Killing Victim During a Carjacking in BaltimoreRead the Press Release
Baltimore, Maryland – Collin Davis, age 34, of Pasadena, Maryland, pleaded guilty on June 22, 2021 to carjacking resulting in death, related to Davis’ murder in Baltimore of an individual who he knew and had attempted to carjack.
The guilty plea 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; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Collin Davis brutally murdered another human being with a firearm in the process of trying to carjack him,” said Acting U.S. Attorney Jonathan Lenzner. “This is the kind of senseless violence that is plaguing our communities, and it is also the kind of case that we will always pursue to hold murderers like Davis accountable.”
According to his guilty plea, on September 15, 2018, the victim drove to Curtis Bay, Maryland to pick up Davis. After Davis entered the victim’s vehicle, Davis and the victim traveled to Severn, Maryland, where the victim lived. Approximately one hour later, the two drove back to Curtis Bay. At some point during the drive, the victim’s vehicle was stopped, and Davis took control of the victim’s vehicle by force. Davis handcuffed the victim by tying a shirt around victim’s hands behind the victim’s back. Davis’s DNA was left behind on the car’s steering wheel and inside the knot of the shirt used to tie the victim’s hands.
As detailed in the plea agreement, while Davis drove the victim’s car back to Curtis Bay, the victim attempted to break free from the makeshift handcuffs. The vehicle was stopped near the 5100 block of Curtis Avenue and Davis shot the victim five times with lethal intent. The victim died as a result of the gunshot wounds.
A witness observed the victim’s body being dragged from the vehicle onto the street and called law enforcement. Police officers responding to the call discovered the victim’s body in the street.
After abandoning the victim’s body, Davis parked the victim’s vehicle in an alley almost directly behind an apartment where Davis had lived only weeks before the murder. Davis then fled the Curtis Bay area. The following day, law enforcement discovered the victim’s vehicle, which contained bullet holes from the shooting the night before.
Davis was arrested in November 2018 and a revolver and shotgun were found in the apartment where Davis was staying. Davis admitted that the victim died as a result of Davis’s carjacking of the victim’s car.
Davis and the government have agreed that, if the Court accepts the plea agreement, Davis will be sentenced to 25 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 2, 2021 at 11:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the FBI, and the Baltimore Police Department for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Patricia McLane and Lindsey McCulley, who are prosecuting the case.
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Owner of Payday Loan Company Sentenced for Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – A Mission Hills, Kansas, man was sentenced in federal court today for a bankruptcy fraud scheme related to his online payday loan company.
“It’s ironic that someone who made a fortune loaning money to others, would try to cheat his own creditors,” said Acting U.S. Attorney Teresa Moore. “This business owner engaged in a two-year scheme of lies and deception during his bankruptcy proceedings by secretly holding onto assets instead of paying what he owed. The bankruptcy system relies on the honesty, openness, and accuracy of debtors, and in return grants those debtors a fresh start free of debt. This defendant made a mockery of the system in the hope that he could discharge over $7.5 million in debt while maintaining a luxurious lifestyle for himself.”
Del Hodges Kimball, 54, was sentenced by U.S. District Judge Steven R. Bough to one year and a day in federal prison without parole. The court also ordered Kimball to pay $909,323 in restitution.
“This sentence should convince others that such behavior and actions will not be tolerated in the bankruptcy system,” said Acting United States Trustee Daniel J. Casamatta.
On Jan. 19, 2021, Kimball pleaded guilty to one count of bankruptcy fraud. Kimball admitted that he engaged in a scheme to defraud the Bankruptcy Court by concealing assets, bank accounts, and claims against third parties, and by making false statements and material omissions regarding his assets and financial transfers to and from third parties.
Three of Kimball’s creditors filed an involuntary bankruptcy petition against Kimball, his partner, and their company, LTS, an online payday loan company based in Kansas City, on Aug. 5, 2015. The claims of the three creditors totaled more than $15 million.
The U.S. Bankruptcy Trustee filed a complaint to deny Kimball’s discharge on March 10, 2017, and the Bankruptcy Court conducted a trial on Jan. 11, 2018. After the trial, U.S. Bankruptcy Judge Cynthia Norton ruled that Kimball had transferred property with the intent to hinder, delay, or defraud creditors, made numerous false oaths in connection with this bankruptcy case, and concealed property from the bankruptcy estate. He did not disclose assets until he was caught and had no choice. The court found that the evidence was “overwhelming” that Kimball made false statements under oath. The court denied Kimball’s discharge due to his fraudulent concealment.
For example, Kimball failed to disclose $86,200 in transfers to friends and relatives. He undervalued collectibles by $24,000. He omitted transfers to Claw Consulting, LLC, another company he owned (with no employees). Kimball established a bank account for Claw Consulting, and caused the bank statements to be mailed to an attorney at the attorney’s business address in order to stash income and proceeds of sales he wanted to conceal from creditors.
According to court documents, Kimball claimed that he lost millions of dollars in 2013 and 2014, although he actually had gross income of $213,231 in 2014 and $158,679 in 2013.
From 2015 to 2018, Kimball arranged that $479,585 in payday company income and/or profits from Red Stag Holdings be paid into his wife’s personal bank account to conceal the payments from creditors and the U.S. Bankruptcy Trustee. Kimball arranged that $45,300 in payday company income and/or profits from S. Bean Finance and $16,300 from Agile Fish be paid into his wife’s personal bank account to conceal money from creditors and the U.S. Bankruptcy Trustee.
Kimball initially or totally omitted to schedule the transfer and sale of his interest in Red River Exploration for $116,280, as well as his ownership or interest in a number of companies.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and the U.S. Bankruptcy Trustee.
Owner of Monmouth County Business Admits Tax EvasionRead the Press Release
TRENTON, N.J. – The owner of a Monmouth County, New Jersey, construction and demolition business today admitted evading employment and personal income taxes, Acting U.S. Attorney Rachael A. Honig announced.
Peter Alvarez, 54, of Atlantic Highlands, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count each of employment tax evasion and personal income tax evasion.
According to documents filed in this case and statements made in court:
From 2011 to 2016, Alvarez owned and operated Mr. Demo, a construction and demolition business in Leonardo, New Jersey. Alvarez was required to report to the IRS federal withholding taxes and FICA taxes for all of Mr. Demo’s employees and to pay those taxes on a quarterly basis. Alvarez cashed numerous checks issued by Mr. Demo’s clients and used the resulting cash, in part, to pay Mr. Demo’s employees’ wages. By using cash to pay Mr. Demo’s employees, Alvarez concealed from the IRS his payment of employees’ wages and his failure to report, account for, and pay employment taxes of a total of $177,649. Count 1 of the information to which Alvarez pleaded guilty referred to Alvarez’s evasion of employment taxes of $23,618 for the first quarter of 2016.
From Aug. 1, 2012, to Oct. 23, 2017, Alvarez filed individual federal tax returns for the calendar years 2011 to 2016 in which he falsely and substantially understated Mr. Demo’s total gross receipts by not reporting the numerous checks issued by Mr. Demo’s clients that he cashed. For those calendar years, Alvarez owed additional income tax of $432,019 on Mr. Demo’s unreported gross receipts less allowable payroll expenses. Count 2 of the information to which Alvarez pleaded guilty referred to Alvarez’s evasion of personal income tax of $89,190 for calendar year 2013.
As part of the plea agreement, Alvarez agreed to make full restitution to the IRS of $609,668.
Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing of the defendant is scheduled for Oct. 28, 2021.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Sara F. Merin of the Special Prosecutions Division in Newark.
One sentenced, others enter guilty pleas on federal firearms chargesRead the Press Release
AUGUSTA, GA: One man has been sentenced to federal prison and four others await sentencing after admitting to firearms felonies in U.S. District Court.
Joseph M. Powell, 21, of Waynesboro, was sentenced to 41 months in federal prison after pleading guilty to Possession of a Firearm by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Powell to serve three years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Getting guns out of the hands of criminals is an essential part of keeping our communities safe,” said Acting U.S. Attorney Estes. “We will continue to work in collaboration with our federal, state, and local law enforcement partners to hold accountable those who would illegally possess firearms.”
Powell was on felony probation for a state firearm conviction in June 2019 when he admitted selling a sawed-off 12-guage shotgun to an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Other defendants have entered guilty pleas on federal firearms charges, including:
- Joe Lewis Hills, a/k/a “Polo,” a/k/a “David Owens,” 33, of Augusta, is awaiting sentencing after pleading guilty to Possession with Intent to Distribute Heroin and Marijuana, and Possession of a Firearm by a Convicted Felon. Hills and a co-defendant, Edward Albert Brown, 28, of Augusta, who previously pled guilty to an Information charging him with Possession of a Firearm by a Person Under Indictment, were arrested July 29, 2019, after Richmond County Sheriff’s investigators searched a hotel room rented to Hills and found drugs and an AR-15-style rifle with two loaded, high-capacity magazines. Hills served a previous federal prison sentence for armed robbery.
- Kenneth Wayne Jones, 27, of Augusta, is awaiting sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Jones, who has a prior state felony conviction involving gun violence, admitted possessing a semi-automatic pistol when he was arrested June 9, 2020, after a car and foot chase involving Richmond County Sheriff’s deputies.
- Clifford Lee Stone Jr., 29, of Wrens, Ga., pled guilty to Possession of a Firearm by a Convicted Felon. Stone admitted illegally possessing an assault-style rifle on April 28, 2018, when he fled from a Jefferson County Sheriff’s deputy, first in a car and then on foot.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richmond County Sheriff’s Office, and the Jefferson County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes, Jennifer A. Stanley, and Alejandro V. Pascual IV.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Omaha Man Sentenced to 14 Years for Possession of Child PornographyRead the Press Release
Acting United States Attorney Jan W. Sharp announced that Drake C. Chrastil, Sr., 51, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Possession of Child Pornography. United States District Judge Brian C. Buescher sentenced Chrastil to 168 months’ imprisonment to be followed by a five-year term of supervised release. There is no parole in the federal system. Judge Buescher ordered Chrastil to pay $3,000 in restitution and also ordered the sentence to run consecutive to a 40- to 50-year state sentence which he is currently serving. Chrastil will be required to register as a sex offender.
In May 8, 2019, while investigating Chrastil for sexual assault, the Omaha Police Department obtained search warrants of Chrastil’s residence. Omaha Police ultimately recovered electronic devices from Chrastil’s residence and Chrastil himself. Omaha Police conducted a forensic review of the recovered digital devices and found 344 images and 16 videos of minors ranging in age from 5 years old to 12 years old engaged in sexually explicit conduct. Omaha Police determined that at least 300 of the images and 16 of the videos that were produced by Chrastil were of a victim in Nebraska.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha Police Department.
Ohio County man sentenced for child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Nicholas Wolf, of Wheeling, West Virginia, was sentenced today to 46 months of incarceration for child pornography possession, Acting U.S. Attorney Randolph J. Bernard announced.
Wolf, 35, pled guilty in February 2021 to one count of “Possession of Child Pornography.” Wolf admitted to having devices containing images and videos of child pornography in January 2021 in Ohio County.
Wolf’s Wheeling Island home was searched in January 2021. The search found a thumb drive containing over a thousand images of what appeared to be juveniles. It does not appear as though any of the child pornographic material found in Wolf’s possession was locally produced and/or depicted children that he personally knew.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Department of Homeland Security and Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Nicholas County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Michael Walker, 41, of Craigsville, West Virginia, pleaded guilty today to a federal gun crime. A federal grand jury indicted Walker in February 2021.
According to statements made in court, in August 2019, an officer with the Nicholas County Sheriff’s Department arrived at Walker’s residence in response to a domestic battery in progress call. Two witnesses informed the officer that Walker had gotten into an altercation and threw an object at his girlfriend that missed her and struck a juvenile. Walker then assaulted the juvenile by choking him with both hands and later striking the juvenile in the face. Walker, who had a prior conviction for domestic battery of a household member, was arrested at the scene for domestic battery of the juvenile. A search warrant was executed and a loaded firearm was located inside the residence where the altercation occurred.
Walker pleaded guilty to possession of a firearm by a person previously convicted of a misdemeanor crime of domestic violence and faces up to ten years in prison when sentenced on October 7, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Nicholas County Sheriff’s Department conducted the investigation and received assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00018.
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Niagara Falls Man Pleads Guilty for His Role in Marijuana ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Marquies McTyere, 30, of Niagara Falls, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiring to possess with intent to distribute, and distributing, 100 kilograms or more of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that sometime in August 2020, the defendant and co-conspirators Samuel Zito and Alexander Schieppati, arranged for a shipment to be delivered to Freightboy Logistics in Niagara Falls, NY, from Canada. Unbeknownst to McTyere and his co-conspirators, on August 6, 2020, the shipment, which contained approximately 600 pounds of marijuana packaged in vacuum sealed bags, had been intercepted by United States Customs and Border Protection (CBP) and was searched. The marijuana had been purchased by Zito and Schieppati from a source of supply in Canada, the two intended to distribute the marijuana in the Niagara Falls and Buffalo areas. The shipment was tracked by investigators and a controlled delivery was conducted on August 7, 2020. Co-defendant Schieppati picked up the shipment and brought it to a motel in Niagara Falls. McTyere, Zito and Schieppati were arrested, and investigators recovered $239,850 from a storage facility utilized by McTyere. The money was found in the vicinity of drug packaging materials and was packaged in vacuum sealed bags.
Defendant Schieppati was previously convicted and is awaiting sentencing. Charges remain pending against defendant Zito. The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for November 1, 2021, before Judge Vilardo.
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New Orleans Man Sentenced for Distributing Heroin Which Resulted in the Death of BuyerRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JARON BIAS, age 29, of New Orleans, was sentenced on June 16, 2021 after pleading guilty to Count 1 of a Superseding Bill of Information charging him in a heroin conspiracy. Members of the Federal Bureau of Investigation began investigating BIAS in August 2017, when they learned from a confidential source that BIAS was distributing heroin in the Black Pearl neighborhood in Orleans Parish as well as in Jefferson Parish.
Following BIAS’s August 23, 2017 arrest for distribution of heroin, FBI agents recovered multiple cellular telephones belonging to BIAS. Agents applied for search warrants on the cellular devices and located numerous text communications dating back to November 2015 proving that BIAS was selling heroin in the Greater New Orleans area.
The FBI conducted interviews with many of BIAS’s customers who were listed in his cellular telephones. During the interview process, agents learned that on June 29, 2015, BIAS distributed heroin to an individual who overdosed as a result of the heroin he purchased from BIAS. According to witnesses who were with the deceased prior to his death, the deceased contacted BIAS and negotiated the sale of $100.00 worth of heroin. After meeting and purchasing heroin from BIAS at Carver Park in New Orleans, the deceased and the witness injected the heroin. The deceased became unresponsive and died at the scene. The Jefferson Parish Coroner’s Office declared that the deceased died as a result of a heroin overdose.
United States District Court Judge Martin L.C. Feldman sentenced BIAS to a term of imprisonment of 78 months in the Bureau of Prisons, a period of supervised release of 3 years, and a mandatory special assessment of $100.00.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
New Orleans Man Sentenced After Being Convicted by A Federal Trial Jury for Being A Felon in Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that on June 22, 2021, the Honorable Greg A. Guidry sentenced DAMIEN JUSTIN, age 43, to 97 months imprisonment for being a prohibited person in possession of two (2) firearms. Additionally, the Court ordered that JUSTIN to serve 3 years of supervised release and pay a $100 mandatory special assessment cost. No fines were imposed in this matter.
According to the evidence presented at trial, on January 10, 2019, the Violent Crime Task Force for the Federal Bureau of Investigation executed a search warrant at 11416 North Easterlyn Circle, New Orleans, Louisiana. Inside this residence, members of the Task Force located a loaded Glock Model 27, .40 caliber semi-automatic pistol and a loaded Smith & Wesson Model Lady Smith, .38 caliber revolver in a nightstand next to JUSTIN’s bed. JUSTIN later admitted that he used the Glock and the Smith & Wesson revolver in the nightstand for his protection. At the conclusion of a two-day trial, the jury found JUSTIN guilty of the sole count of the Superseding Indictment.
NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that, the Honorable Greg A. Guidry sentenced DAMIEN JUSTIN, age 43, to 97 months imprisonment for being a prohibited person in possession of two (2) firearms. Additionally, the Court ordered that JUSTIN to serve 3 years of supervised release and pay a $100 mandatory special assessment cost. No fines were imposed in this matter.
According to the evidence presented at trial, on January 10, 2019, the Violent Crime Task Force for the Federal Bureau of Investigation executed a search warrant at 11416 North Easterlyn Circle, New Orleans, Louisiana. Inside this residence, members of the Task Force located a loaded Glock Model 27, .40 caliber semi-automatic pistol and a loaded Smith & Wesson Model Lady Smith, .38 caliber revolver in a nightstand next to JUSTIN’s bed. JUSTIN later admitted that he used the Glock and the Smith & Wesson revolver in the nightstand for his protection. At the conclusion of a two-day trial, the jury found JUSTIN guilty of the sole count of the Superseding Indictment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
The United States Attorney’s Office praised the work of the Federal Bureau of Investigation New Orleans Violent Crime Task Force which led this investigation.
The prosecution of the case was conducted by U.S. Attorney Duane A. Evans and Assistant United States Attorney André Jones.
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New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on June 16, 2021, ALONZO PITTMAN, 34, from Orleans Parish, pled guilty as charged to a one-count indictment for being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
On July 2, 2019, PITTMAN sold a Hi-Point Model JHP, .45 caliber pistol to a confidential informant in the Hollygrove neighborhood of New Orleans. His previous felony conviction stemming from an incident in Jefferson Parish prevented him from possessing a firearm.
PITTMAN will be sentenced on September 29, 2021. He faces up to ten (10) years imprisonment, a maximum fine of up to $250,000, up to 3 years of supervised release following any term of imprisonment, and a mandatory $100 special assessment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Melissa Bücher is in charge of the prosecution.
New Jersey Man Sentenced to 240 Months’ Imprisonment for Conspiracy to Distribute Controlled Substances Resulting in DeathRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that James R. Bell, age 30, of Newark, New Jersey was sentenced on June 21, 2021, to 240 months’ imprisonment to be followed by four years on supervised release by U.S. District Court Judge Malachy E. Mannion for conspiring to distribute controlled substances resulting in death.
According to Acting United States Attorney Bruce D. Brandler, Bell previously pleaded guilty to conspiring to distribute fentanyl and heroin within the Middle District of Pennsylvania, which resulted in the death of a 22-year old Monroe County man in April of 2018.
The matter was investigated jointly by the Federal Bureau of Investigation in Scranton, the Pennsylvania State Police, and the Monroe County District Attorney’s Office. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Nambe Pueblo man sentenced to seven years in prison for aggravated sexual abuse in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Rain Concha, 23, of Santa Fe, New Mexico, and an enrolled member of Nambe Pueblo, was sentenced on June 14 in federal court to seven years in prison for aggravated sexual abuse in Indian Country. Concha pleaded guilty on June 15, 2020.
According to the plea agreement, on Aug. 23, 2015, Concha picked up the victim, who was 14 years old at the time, for a ride. Concha took the victim to the parking lot of the Pojoaque Pueblo Poeh Museum where he sexually abused her. An exam revealed injuries to the victim that were consistent with sexual abuse. The crime occurred on the Pueblo of Pojoaque in Santa Fe County, New Mexico.
Upon his release from prison, Concha will be subject to five years of supervised release and must register as a sex offender.
The Bureau of Indian Affairs investigated this case with assistance from the Pojoaque Police Department and the FBI. Assistant U.S. Allison Jaros prosecuted the case.
Monroe County Man Sentenced for Firearms ViolationRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joshua Tanner, age 36, of East Stroudsburg, Pennsylvania, was sentenced on June 21, 2021, by United States District Court Judge Malachy E. Mannion to 36 months’ imprisonment for possession of a firearm by a convicted felon.
According to Acting United States Attorney Bruce D. Brandler, Tanner facilitated the trade of a firearm to a drug trafficker, Ronald McKenna, in exchange for heroin, during which he possessed the firearm. Tanner had previously been convicted of a felony offense, which made it a felony for him to possess a firearm. McKenna previously pleaded guilty to drug trafficking and firearms charges and is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, Stroud Area Regional Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Manchester Man Pleads Guilty to Firearm ChargeRead the Press Release
CONCORD - Juan Diaz, 40, of Manchester, pleaded guilty in federal court to being a felon in possession of a firearm, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in July of 2020, while conducting another investigation, Ashland police learned that Diaz had been in recent possession of several firearms. Officers learned that while spending time with an Ashland family, Diaz had handled and shot two firearms on the family’s property on June 27, 2020. Law enforcement officers also obtained photographs of Diaz shooting the firearms.
Diaz has numerous prior felony convictions that prohibit him from possessing firearms. Most recently, he had served a 10-year sentence in federal prison. He began his term of federal supervised release in May of 2020.
Diaz is scheduled to be sentenced on September 29, 2021.
“Preventing violent crime is a high priority of the U.S. Attorney’s Office,” said Acting U.S. Attorney Farley. “One important way we can protect our community from violence is by keeping guns out of the hands of criminals. As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute criminals who possess guns unlawfully.”
“ATF works diligently to prevent and reduce gun violence,” said Special Agent in Charge Kelly D. Brady. “These collective efforts from the Ashland Police, ATF and the U.S. Attorney’s Office are aimed at investigating crimes that significantly impact and harm members of our community. ATF will continue to work alongside our law enforcement partners to ensure those who illegally possess firearms are held accountable.”
This matter was investigated by the Ashland Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Man Charged with Attempting to Rob the Vermont Federal Credit Union in BurlingtonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Donald McCandless, 42, of Norfolk, Virginia, was arrested yesterday after he attempted to rob the Vermont Federal Credit Union in Burlington, Vermont. McCandless was charged today by criminal complaint and will be appearing tomorrow before United States Magistrate Judge Kevin J. Doyle for his Initial Appearance. McCandless is currently detained pending his appearance.
According to court records, McCandless is alleged to have entered VFCU with an object in his pocket, stated he had a bomb, and demanded money. McCandless then approached a teller window and began punching the plexiglass barrier, knocking items off the counter. A customer conducting business at the bank grabbed McCandless and began pulling McCandless toward the exit of the bank. McCandless was given $10 in cash by a patron, and McCandless left the bank. Burlington Police Officers who responded to a 911 call and alarm at VFCU encountered McCandless on College Street wearing clothing consistent with that described by witnesses of the attempted robbery. McCandless was found with two $5 bills in his hand, and McCandless reported having been “doing meth” earlier in the day. At the time of his arrest, McCandless had a nonextraditable arrest warrant issued in Norfolk, Virginia for violating a term of probation imposed as part of his sentence for a 2020 conviction for Felony Strangulation. In the week prior to the attempted robbery, McCandless had multiple encounters with Burlington and South Burlington Police and was cited by South Burlington Police earlier on the day of the robbery for trespassing onto the Vermont Air National Guard Base with a knife.
The United States Attorney’s Office emphasizes that the charge against McCandless is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, McCandless could face up to twenty years in prison, up to a $250,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of McCandless’s personal history and characteristics.
Acting United States Attorney Jonathan A. Ophardt commended the quick response and investigation of the Burlington Police Department and thanked the Federal Bureau of Investigation for its assistance.
Assistant United States Attorney Kimberly Ang is prosecuting the case for the government. McCandless has not yet retained or been appointed counsel.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Rhiannon Lee Rojas, 43, of Lincoln, Nebraska, was sentenced today by Senior United States District Richard G. Kopf to nine years in federal prison for conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine actual (pure) and 500 grams or more of methamphetamine mixture. Following her prison term, Rojas will serve five years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated that Rojas was involved in the distribution of at least five kilograms (approximately 11 pounds) of methamphetamine mixture in the Lincoln area between July of 2019 and April of 2020. During that time, Rojas was found in possession of at least 39 grams of methamphetamine actual on one occasion in January of 2020. She also acted as an interpreter during two purchases of methamphetamine, totaling more than six ounces, made by a confidential informant working with the Lincoln/Lancaster County Narcotics Task Force from Rojas’s co-conspirator on two occasions in February of 2020.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force
Lawrence County Residents Indicted on Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH, PA – Two Lawrence County residents have been indicted by a federal grand jury in Pittsburgh on charges of attempted production, production, receipt, and distribution of material depicting the sexual exploitation of a child, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named David Bates, 61, of Ellwood City, PA 16117, and Tamara Kreitzer, 33, of New Castle, PA 16101, as defendants.
According to the Indictment, in or between July 2020 and October 2020, Bates and Kreitzer attempted to and did use, persuade, induce entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the minor. After the production of images, Kreitzer distributed the images of the minor to Bates.
The law provides for a maximum total sentence of 70 years in prison, a fine of $750,000, 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 defendants. The government has requested detention for both defendants.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Reaches Settlement Agreement with Physicians Group in El Paso over Allegations of Violating the False Claims ActRead the Press Release
EL PASO –El Paso Ear, Nose & Throat Associates (EPENT) has agreed to pay $750,000 to settle allegations that they violated the False Claims Act by billing Medicaid, Medicare and other federal healthcare programs by upcoding evaluation and management codes.
The government alleged that EPENT knowingly caused false claims to be submitted to federal healthcare programs by billing for services at a higher rate of reimbursement than they would be entitled to for the service actually provided. This scheme is commonly referred to as “upcoding.”
“Providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Ashley C. Hoff. “We will continue to hold accountable medical professionals who undermine our healthcare system by over-billing for care.”
The Defense Health Agency (DHA) supports the delivery of TRICARE, the program that provides integrated, affordable, high-quality healthcare services to more than 9.6 million uniformed service members, retirees and their families. TRICARE was one of the government health programs that was defrauded in this case.
“Any time the government is defrauded, it is unacceptable to the American taxpayer. The victims in this case have served or continue to serve our Nation, and also includes their family members. We owe it to our beneficiaries that our commitment and care to them is unwavering, and we are grateful to the Department of Justice for their enduring commitment to root out waste, fraud and abuse and hold those who break the law accountable,” said DHA Director Lt. Gen. Ronald J. Place, M.D.
“Unethical medical providers who line their pockets by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said Acting Special Agent in Charge Jeffrey Coburn. “The FBI will continue to hold accountable medical professionals who undermine our healthcare system through fraudulent over-billing for care.”
The matter was investigated by the FBI, U.S. Department of Health and Human Services Office of Inspector General, Defense Criminal Investigative Service and the Texas Attorney General’s Office Civil Medicaid Fraud Division.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
Assistant U.S. Attorney Eduardo R. Castillo handled this matter.
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Jury Finds Broken Arrow Man Guilty of Sexually Abusing Two ChildrenRead the Press Release
A federal jury today convicted a Broken Arrow man of sexually abusing two children under the age of 12, announced Acting U.S. Attorney Clint Johnson.
Jeffrey Arch Jones, 31, was found guilty of two counts of aggravated sexual abuse of a child in Indian Country and one count of abusive sexual contact of a child in Indian Country. U.S. District Judge Gregory K. Frizzell presided over the trial and set sentencing for Oct. 15, 2021.
“Make no mistake, Jeffrey Jones is a child sexual predator,” said Acting U.S. Attorney Clint Johnson. “Today’s conviction ensures Jones will no longer be able to harm another child while he is in federal prison. I want to thank the two young victims who bravely testified at trial and confronted Jeffery Jones with his actions.”
Jones, a Cherokee citizen, was previously convicted of sexually abusing the two victims in Tulsa County District Court but appealed his conviction, arguing the state did not have jurisdiction to prosecute the case because the crime occurred within the Muscogee Nation Reservation and he was a tribal citizen. The case was then prosecuted in federal court.
From Sept. 29, 2015 to Sept 28, 2016, Jones sexually abused a young child. He also sexually abused a second child from Oct. 9, 2014 to Sept. 30, 2016.
On Feb. 2, 2017, one of the victims disclosed to a teacher that the defendant had been touching her in a sexual manner. School officials contacted the Broken Arrow Police Department. During the ensuing investigation, it was determined the second child was also sexually abused by Jones.
Today, in closing arguments, Assistant U.S. Attorney Reagan Reininger reminded the jury of the testimony of expert witnesses, law enforcement, and the victims. She assured the jury the children had no incentive to lie and that the medical evidence corroborated the type of sexual abuse reported by the victims. She described how their behavior and disclosures were similar to that seen in other child sexual abuse victims. She explained how some victims disclose abuse on their own when they are ready, but others may be asked about abuse before they are fully ready to disclose what happened to them, as in the case of the second victim. She explained how difficult it had been for the two victims to describe the abuse to others repeatedly since 2017, including this week in court. Finally, Reininger reminded the jury that child sexual abuse is perpetrated in secrecy, behind closed doors, in moments when the abuser is alone with a child. She asked the jury to evaluate the evidence, including the children’s accounts, and to find Jeffrey Jones guilty.
The jury deliberated nearly two hours before returning guilty verdicts on all three counts.
“Today’s conviction was a result of the diligent work performed by agents and officers of the FBI and Broken Arrow Police Department as well as Assistant U.S. Attorneys Reagan Reininger and Leah Paisner. I appreciate their dedication to protecting children,” Johnson said.
Jones County Felon Sentenced to 4 Years in Prison for Possessing Multiple FirearmsRead the Press Release
Hattiesburg, Miss. – A Laurel man was sentenced today to 48 months in prison for being a felon in possession of multiple firearms, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, on October 19, 2019, Jacob Daniel Williams, 26, of Laurel, was found in possession of four firearms while passing through a checkpoint being operated by the Jones County Sheriff’s Office. The firearms included three shotguns and a pistol. Williams had been convicted of drug possession felonies in Jones County in 2016.
Williams was indicted for this offense on June 23, 2020, and pled guilty on March 23, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jones County Sheriff’s Office investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case was 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.
Individual Sentenced to 72 Months for Conspiracy to Possess with Intent to Distribute Fentanyl, Cocaine, and HeroinRead the Press Release
SAN JUAN, Puerto Rico – Defendant Bryan Gilbert Díaz-De Jesús, a.k.a. “Bryan Gilbert De Jesús,” was sentenced today to 72 months (6 years) in prison for conspiracy to distribute controlled substances, possession with intent to distribute controlled substances, introduction of misbranded drugs into interstate commerce, and use of a communication facility, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. Díaz-De Jesús pleaded guilty on November 20, 2019.
From May 2019 through August 2019, Díaz-De Jesús, conspired with others to knowingly possess with intent to distribute and to distribute fentanyl, cocaine, and heroin in Puerto Rico. The defendant introduced and caused the introduction into interstate commerce, and with the intent to defraud and mislead, a “drug” as defined under Title 21, United States Code, Section 321(g)(1) – specifically, N-phenyl-N-[1(2-phenylethyl)-4-piperindinyl] propenamide, commonly known as fentanyl, that was misbranded, in that the drug’s labeling failed to bear adequate directions for use.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine. Pharmaceutical fentanyl was developed for pain management treatment of cancer patients, applied in a patch on the skin. Because of its powerful opioid properties, fentanyl is also diverted for abuse by drug users. Fentanyl is often added to heroin by criminal drug distributors to increase the heroin’s potency to produce a stronger effect on the structure/function of the bodies of drug users. Many users believe that they are purchasing heroin and are unaware that they are, in fact, purchasing fentanyl. According to the U.S. Drug Enforcement Administration, just two (2) milligrams of fentanyl is a lethal dose for most people.
“Fentanyl is an extremely dangerous drug, far more potent than heroin, and its use very often results in death. Fentanyl is the number one threat in the opioid epidemic in the United States, and we are seeing an increase in the presence of fentanyl laced with other drugs in Puerto Rico, said U.S. Attorney Muldrow. “Federal law provides for particularly severe consequences when illegal drug trafficking results in death. We intend to use every available tool to combat this terrible problem, including these enhanced penalties.”
“The opioid epidemic that has resulted in overdoses and deaths is a national public health crisis. Those who contribute to that crisis and threaten the health and safety of Americans by illicitly distributing opioids will be brought to justice,” said Special Agent in Charge Justin Fielder, FDA Office of Criminal Investigations, Miami Field Office. “The FDA is fully committed to disrupting and dismantling networks engaged in the manufacturing and sale of illicit opioids and misbranded prescription drugs.”
The Homeland Security Investigations (HSI), the Food and Drug Administration (FDA), and US Postal Inspection Service (USPIS) are in charge of the investigation in collaboration with Customs and Border Protection (CBP) and the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney María L. Montañez-Concepción prosecuted the case.
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Houston men sentenced for smuggling meth in truck tiresRead the Press Release
LAREDO, Texas – Two Houston men have been ordered to federal prison for their involvement in a conspiracy to import meth into the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Denzel Holloway, 29, and Joshua Guerra, 27, pleaded guilty June 9, 2020.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Holloway to serve a 78-month sentence to be immediately followed by three years of supervised release.
Guerra was sentenced previously to a 96-month term of imprisonment.
On Nov. 28, 2019, Holloway attempted to enter the United States at the Juarez–Lincoln Port of Entry in Laredo. Authorities conducted an X-ray inspection and noticed anomalies in the tires of his pickup truck.
They ultimately found 24 bundles containing a total of 53.4 kilograms of meth in hidden compartments within the truck’s tires. During their investigation, law enforcement discovered Guerra had helped coordinate the smuggling attempt.
The drugs had an estimated street value of about $300,000.
Holloway was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett prosecuted the case.
Hingham Man Indicted for Role in Business Email Compromise SchemeRead the Press Release
BOSTON – A Hingham man was arrested today in connection with a business email compromise (BEC) scheme.
Gustaf Njei, 26, was indicted on two counts of wire fraud, one count of structuring to avoid reporting requirements, one count of unlawful monetary transactions, and one count of money laundering conspiracy. Njei was released on conditions following an initial appearance before U.S. District Court Magistrate Judge Judith G. Dein.
As alleged in the indictment, Njei conspired with others to open bank accounts in Massachusetts in the name of a sham company, as part of the apparent BEC scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
It is alleged that, through the use of fraudulent invoices and spoofed email accounts, Njei conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to a bank account under his control. Njei then allegedly transferred part of the funds to a bank account located overseas, while splitting the remaining funds with a co-conspirator in the United States.
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, or twice the gross gain or loss, whichever is greater. The charge of structuring to avoid reporting requirements provides for a sentence of up to five years in prison, three years of supervised release and a fine up to $250,000, or twice the gross gain or loss, whichever is greater. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine up to $250,000, or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy 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 gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney William B. Brady of Mendell’s Criminal Division, and Jordi de Llano, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hattiesburg Man Sentenced to over 4 Years in Federal Prison for Possession of Methamphetamine with the Intent to DistributeRead the Press Release
Hattiesburg, Miss. – A Hattiesburg man was sentenced today to 51 months in federal prison for possession of methamphetamine with intent to distribute, announced Acting U.S. Attorney Darren LaMarca, Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration.
According to court documents, on January 16, 2019, Raymarcus Hollimon, a/k/a “Smoke Loc,” 30, of Hattiesburg, was encountered by members of the Drug Enforcement Administration and the Hattiesburg Metro Narcotics Task Force during a narcotics detail. Hollimon was found in possession of over 190 tablets containing methamphetamine with other drug distribution paraphernalia.
Hollimon was indicted for this offense on June 10, 2020. He pled guilty on March 23, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and Hattiesburg Police Department investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
This case was 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.
Harrison County man guilty of child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrell Anderson, of Bridgeport, West Virginia, was found guilty today of a child pornography charge, Acting U.S. Attorney Randolph J. Bernard announced.
After a two-day trial, the federal jury found Anderson, 25, guilty of one count of “Possession of Child Pornography.” Anderson had child pornography on his phone in January 2020 in Harrison County.
Anderson faces up to 10 years of incarceration and a fine of up to $250,000. 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. Attorneys David J. Perri and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harrison County man admits to firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Carl David Davis, of Hepzibah, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Davis, 32, pleaded guilty today to one count of “Possession of an Explosive by a Prohibited Person” and one count of “Unlawful Possession of a Firearm.” Davis, who is prohibited from having firearms because of a prior conviction, is accused of having two electric explosive detonators (blasting caps) in November 2018 and a .22 caliber rifle in October 2020 in Harrison County.
Davis faces up 10 years of incarceration and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Davis also agreed to the forfeiture of a 9mm pistol, 11 rounds of 9mm ammunition, a .22 caliber rifle, seven rounds of .22 caliber ammunition, one 12-gauge shotgun shell, and four rounds of .32 caliber ammunition.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan man who was extradited to Ohio pleads guilty in Colombia-to-America cocaine conspiracyRead the Press Release
COLUMBUS, Ohio – A Guatemalan man pleaded guilty today in U.S. District Court to charges related to a Colombia-to-America cocaine conspiracy.
In March 2020, Jose Luis DeLeon-Baltazar, 40, was extradited to Columbus from Bogota, Colombia. He is the second defendant to be extradited to the United States in this case.
As part of his plea, DeLeon-Baltazar admitted he conspired with others to ship hundreds of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico to the United States.
DeLeon-Baltazar, also known as “Enano,” was indicted in September 2018. Specifically, DeLeon-Baltazar pleaded guilty to conspiring to distribute at least five kilograms or more of cocaine on the high seas, which is a federal crime punishable by at least 10 years in prison.
According to court documents, as part of the conspiracy individuals would use “load” coordinators to assist with logistics of cocaine shipments, locate drivers and boat operators for narcotic-laden vehicles and vessels, and secure shared investments from multiple co-conspirators in specific cocaine shipments. Fishermen and other commercial maritime laborers were allegedly recruited by conspirators to transport cocaine and refueling vessels.
Conspirators allegedly paid a “tax” or “fee” to send cocaine through areas controlled by a different drug trafficking organization or cartel.
Members of the conspiracy allegedly shared information on the activities and locations of law enforcement and military personnel assigned to interdict narcotics shipments. It is alleged co-conspirators also sheltered individuals who were at risk of extradition to other countries.
Low-level co-conspirators would allegedly take responsibility for an entire load of seized cocaine to free higher-level members.
Specifically, DeLeon-Baltazar received multi-kilogram quantities of cocaine transported on go-fast speed boats from Colombia into Guatemala. Once the cocaine arrived in Guatemala, DeLeon-Baltazar hid the cocaine in buildings in Tecun Uman, Guatemala until the cocaine was transported across Guatemala’s northern border into Mexico. On May 19, 2016, the U.S. Coast Guard intercepted a go-fast boat that contained 880 kilograms of cocaine approximately 400 miles south of the Guatemal/Mexico. That shipment was to be received by DeLeon-Baltazar in Guatemala where he would store it until it was to be transported to Mexico.
Additional cocaine shipments seized in this case thus far include:
- 720 kilograms of cocaine seized by the United States Coast Guard northwest of the Galapagos Islands on Aug. 18, 2017; and
- 34 kilograms of cocaine seized by the Guatemalan Policia National Civil in San Marcos, Guatemala on or about Nov. 26, 2017.
Four defendants were transported to Ohio for prosecution in September 2017, following the 720 kilogram seizure near the Galapagos Islands. That seizure alone included more than 1,584 pounds of cocaine, equaling an approximate street value of $25 million.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the plea offered today before U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jonathan J.C. Grey, Elizabeth R. Rabe, and Kelly A. Norris are representing the United States in this case.
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Grant County woman admits to child pornography chargesRead the Press Release
ELKINS, WEST VIRGINIA – Christine Shook, of Petersburg, West Virginia, has admitted to child pornography charges, Acting U.S. Attorney Randolph J. Bernard announced.
Shook, age 32, pleaded guilty on Monday to one count of “Conspiracy to Commit Production Child Pornography,” one count of “Aiding and Abetting Possession of Child Pornography (Depicting a child under the age of 12),” and one count of “Aiding and Abetting Production of Child Pornography.” Shook admitted to working with Jasper E. Shook to possess and produce images of child pornography that included images of a female under the age of 12 from 2015 to May 2019 in the Northern District of West Virginia and elsewhere. Jasper pleaded guilty in February 2020.
Shook faces up to five years of incarceration and a fine of up to $250,000 for the conspiracy count and faces up to 20 years of incarceration and a fine of up to $250,000 for the possession count. She also faces not less than 15 years and up to 30 years of incarceration and a fine of up to $250,000 for the production count. 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.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Georgia Man Sentenced for Stealing Medical Treatment Using Veteran’s IdentityRead the Press Release
GREENEVILLE, Tenn. – On June 23, 2021, Kristopher M. Voyles, 31, of Georgia, was sentenced to 27 months in prison, followed by three years’ supervised release, by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of a negotiated plea agreement, Voyles pled guilty to theft of more than $1,000 of government property. Voyles will be required to make restitution of $20,502 to the Department of Veteran’s Affairs.
According to court records, Voyles is not a veteran and has never served in the United States military. On October 9, 2019, Voyles used the name, date of birth, and social security number of a United States veteran when receiving medical services at a hospital in Knoxville, Tennessee. The next day, while still impersonating the veteran, Voyles obtained a transfer to the VA Medical Center in Johnson City, Tennessee. Voyles used fraudulently obtained identification documents, and a fraudulently obtained Form DD214. For approximately a week, Voyles accepted medical goods, items, and services from the VA Medical Center. The value of the goods, items, and services Voyles stole was $20,502. When apprehended, Voyles still had the veteran’s identification documents with him, including the fraudulently obtained Form DD214.
Subsequent investigation revealed that Voyles had previously been prosecuted by Atlanta, Georgia authorities for using the same veteran’s identity to obtain prescription drugs from the VA Medical Center in Atlanta.
The criminal indictment was the result of an investigation by the Department of Veterans Affairs Police and the Department of Veterans Affairs Office of Inspector General ("VAOIG"). The federal investigation was led by Special Agent Charles Pack, VAOIG.
Assistant U.S. Attorney Mac Heavener represented the United States.
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Fulton Missouri Man Arrested on Child Pornography ChargesRead the Press Release
Davenport, Iowa – A Missouri man was arrested June 16, 2021, in Missouri on criminal charges related to his alleged production of child pornography and sextortion of minor females in Muscatine, Iowa.
According to court documents, Chad Alan Craghead, age 44, of Fulton, Missouri, who is a teacher and coach, posed as a teenage boy online and obtained nude images of Minor Victim 1, a sixteen- year-old from Muscatine. After obtaining those images, he created a second false identity and demanded additional nude images of Minor Victim 1, threatening to disseminate the nude images he already had to her friends and family if she did not comply. Craghead extorted Minor Victim 1 over the course of several months.
Minor Victim 1’s sixteen-year-old cousin, Minor Victim 2, tried to help her. As a result, Craghead extorted Minor Victim 2, threatening to disseminate Minor Victim 1’s nude images if Minor Victim 2 did not comply with his demands for nude images and videos. Minor Victim 2 complied, sending Craghead sexually explicit videos of herself.
The FBI assisted the Muscatine Police Department in the investigation and, through several Snapchat accounts associated with Craghead, located a number of other minor females across the country, some as young as 13 years old, who either sent him nude images or from whom Craghead extorted or attempted to extort nude images.
Craghead is charged with two counts of Production of Child Pornography, two counts of Interstate Communications with Intent to Extort, and one count of Cyberstalking. If convicted, Craghead faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Federal Bureau of Investigation is investigating the case.
Fort Madison Man Sentenced to Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa — On Tuesday, June 22, 2021, United States District Chief Judge John A. Jarvey sentenced George Freeman Cary, age 57, of Fort Madison, to 360 months in prison for Receiving and Distributing Child Pornography and Possessing Child Pornography, announced Acting United States Attorney Richard D. Westphal. Following his prison term, Cary was ordered to serve twenty years of supervised release, as well as pay $100 to the Crime Victims’ Fund.
Cary was caught distributing child pornography on the Kik messaging application. Cary has previous convictions for Indecent Contact with a Child, Lascivious Acts with a Child, and Sexual Abuse in the Third Degree. Cary also had two prior convictions for failing to comply with the sex offender registry.
This investigation was conducted by Homeland Security Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the
U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Former Richmond City Employee Pleads Guilty to Fraudulently Diverting Social Services BenefitsRead the Press Release
RICHMOND, Va. – A Richmond woman pleaded guilty yesterday to mail fraud for abusing her authority as a case worker at the Richmond Department of Social Services to divert income and food-related benefits to herself.
According to court documents, De’Nisha Juanita Wilson, 47, was a case worker for the Richmond Department of Social Services, where she assisted with and oversaw needy individuals’ receipt of financial benefits and had access to state and city systems containing beneficiaries’ personal information. In May 2019, one of Wilson’s clients, a young woman who was receiving benefits on behalf of five children, tragically died in a car accident. Following the woman’s death, Wilson accessed the deceased woman’s personal identifying information, caused the issuance of new prepaid benefits cards, and directed those cards to herself. Wilson then used the prepaid benefits cards issued under the deceased woman’s name for her own purposes. In total, Wilson diverted more than $13,000, spending approximately $8,000 on food, entertainment, and other personal expenses. The scheme was halted in January 2020.
Wilson is scheduled to be sentenced on October 18. She faces a maximum penalty of 20 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; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and James Osuna, Inspector General, City of Richmond Office of the Inspector General, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorney Kevin Elliker is 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. 3:21-cr-69.
Former Philadelphia Water Department Employee Indicted for TheftRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Thomas Staszak, 46, of Philadelphia, PA, a former employee of the City of Philadelphia Water Department (“PWD”), was Indicted by a federal grand jury on multiple charges of theft from a federally funded program and computer fraud.
The Indictment charges that, on multiple occasions from approximately April 2017 through at least November 2018, the defendant accessed PWD’s computerized inventory control system without authorization, using log-in credentials associated with PWD employees under his supervision at a PWD storeroom. Staszak is then charged with creating false entries in PWD’s electronic records to provide justifications for removing maintenance materials, for example bulk wire, from the storeroom. The Indictment further alleges that the defendant physically took the materials from PWD’s inventory, transported them to local scrap yards, sold the materials, and kept the proceeds. In this fashion, Staszak is alleged to have stolen items valued in excess of approximately $164,000 before he was caught. And according to the Indictment, PWD receives federal funds and assistance in excess of $10,000 annually.
“As alleged, Thomas Staszak used his public position to enrich himself to the detriment of all Philadelphians who expect and deserve honest services from City employees,” said Acting U.S. Attorney Williams. “The Philadelphia Water Department is charged with providing clean, safe water for millions of residents and businesses, and protecting the region’s water resources, all on a limited budget. The defendant’s alleged actions took money and resources directly out of the hands of taxpayers and into his own pocket.”
If convicted, the defendant faces a maximum possible sentence of 65 years imprisonment and $2,750,000 in fines.
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Mexican governor sent to US prison for money launderingRead the Press Release
CORPUS CHRISTI, Texas – A former Coahuila, Mexico, governor has been ordered to federal prison for his role in a money laundering scheme that includes offenses against a foreign nation involving bribery of a public official, announced Acting U.S. Attorney Jennifer B. Lowery.
Jorge Juan Torres-Lopez, 67, pleaded guilty June 16, 2020.
Today, U.S. District Judge Nelva Gonzalez Ramos handed Torres-Lopez a 36-month sentence. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At a previous hearing, the court heard additional evidence from two witnesses who described their relationship with Torres-Lopez and detailed some of the financial transactions and illegal payments.
Torres-Lopez worked for the Mexican government from 1994 to 2011. His roles included general director of Promotion and Development while secretary of Finance for the state of Coahuila, municipal president of Saltillo as well as interim governor of Coahuila. In approximately December 2005, Hector Javier Villarreal-Hernandez was appointed as undersecretary of Program and Budget for the state of Coahuila. At the time, Torres-Lopez was his supervisor. In July 2008, Villarreal-Hernandez was appointed as secretary of Finance for Coahuila, where he remained until his resignation in August 2011.
Torres-Lopez admitted that during some of his time in office, he conducted financial transactions in the United States to conceal the bribes he received in return for road-building contracts for the State of Coahuila. As part of his plea, he agreed to forfeit a piece of property in the United States associated with the payments.
Law enforcement took Torres-Lopez into custody in Mexico Feb. 5, 2019, where he remained until his extradition to the United States Oct. 29, 2019. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Villarreal-Hernandez, 50, of Saltillo, Coahuilla, Mexico, has also been convicted in the Southern and Western Districts of Texas for money laundering offenses and currently pending sentencing.
The multi-agency investigation dubbed Operation Politico Junction included Drug Enforcement Administration, IRS - Criminal Investigation, Homeland Security Investigations, FBI and U.S. Marshals Service. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The Prosecutor General of the Republic of Mexico provided significant assistance. The Department of Justice’s Office of International Affairs of the Department’s Criminal Division also assisted.
Assistant U.S. Attorneys Jon Muschenheim and Lance A. Watt prosecuted the case.
Former KUMC Employee Sentenced to Prison for Embezzling $556,000Read the Press Release
KANSAS CITY, KAN. – Michael Tae Kim Ahlers, 50, of Lenexa, Kansas, was sentenced to two years in prison after stealing more than $556,000 from his former employer, the University of Kansas Medical Center (KUMC), as well as from KUMC Research Institute and from KU Endowment. In February, Ahlers pleaded guilty to charges of bank fraud and filing a false tax return. The prison sentence will be followed by three years of supervised released, and Ahlers is ordered to pay more than $680,000 in restitution.
According to court documents, from 2009 to August 2015, Ahlers abused his position as the administrative officer of the KUMC Occupational Therapy Education Department. While embezzling $526,000 from KUMC, he spent hundreds of thousands of dollars on personal expenditures. Some of those expenditures include:
- approximately $87,000 on gambling;
- approximately $81,000 on travel to locations such as Las Vegas, New Orleans, New York, Myrtle Beach and Caribbean cruises;
- approximately $81,000 in cash withdrawals;
- approximately $36,000 on golf memberships and fees; and
- approximately $36,000 on sports tickets and on license or donor fees.
To conceal the fraud, Ahlers used a KUMC Credit Union bank account over which he had exclusive control. He created fraudulent invoices to prevent the discovery that he was using the account for his personal gain. Ahlers stole approximately $30,000 from KUMC Research Institute and KU Endowment by submitting falsified invoices for which he was paid. He then willfully failed to include the stolen funds on his federal tax returns which resulted in a tax loss of more than $104,000 from 2009 to 2015.
“It’s disappointing anytime someone in a position of trust misuses that authority for personal financial gain. As federal prosecutors, we work tirelessly to see perpetrators of fraud brought to justice and convicted,” said Acting U.S. Attorney Duston Slinkard. “It’s also our responsibility to advocate before the courts on behalf of victims so that they might recover as much of their losses as possible as restitution.”
The Kansas Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the U.S. Secret Service investigated the case.
“After multiple years of embezzling from the University of Kansas Medical Center and spending hundreds of thousands of dollars on himself, Mr. Ahlers is now going to federal prison,” said Amanda Prestegard, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Mr. Ahlers’ sentence further exhibits that IRS CI, along with our law enforcement partners and the U.S. Attorney’s Office, will continue to identify, investigate and prosecute individuals that participate in abusive criminal activity, and are duty bound to protect the integrity of the U.S. tax administration.”
Assistant U.S. Attorney Ryan J. Huschka and former Assistant U.S. Attorney Leon Patton prosecuted the case.
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Former Colorado Man Sentenced to 51 Months for Failure to Register as a Sex Offender and Possession of an Unregistered FirearmRead the Press Release
LEXINGTON, Ky. – A former Colorado resident, Brendan Camous, 27, was sentenced Tuesday, to 51 months in federal prison, by U.S. District Court Judge Karen Caldwell, for failure to register as a sex offender and possession of an unregistered firearm.
According to Camous’s plea agreement, a 2014 conviction in Colorado required Camous to register as a sex offender. Camous last registered as a sex offender in January 2015 and never again updated his address in Colorado – or any other state, including Kentucky. In April 2017, the U.S. Marshals Service began investigating Camous for violations of Sex Offender Registration and Notification Act (SORNA). Evidence obtained from a rural property in Nicholas County, Kentucky indicated that Camous resided in a shack on the property with another sex offender, Clinton Peterson. Following an August 2019 criminal complaint against both Camous and Peterson, for violations of SORNA, a U.S. Marshals-led task force apprehended the two in Bath County, Kentucky, on September 17, 2020. At the time of the arrest, law enforcement located an unregistered sawed-off shotgun under Camous’s bed in the home that he shared with Peterson.
Camous pleaded guilty in April of 2021 to the SORNA violation and possession of an unregistered firearm.
Under federal law, Camous must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years, following his release.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Norman Euell Arflack, U.S. Marshal for the Eastern District of Kentucky; Commissioner Phillip Burnett, Jr., Kentucky State Police (KSP); Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF); and Jeff Sidles, Nicholas County Sheriff, announced the sentencing.
The investigation was conducted by the U.S. Marshals Service, ATF, KSP, and the Nicholas County Sheriff’s Office. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys David Marye and Mary Melton.
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Former City Honors Teacher Pleads Guilty to Two Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Peter Hingston, 62, of Amherst, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to two counts of possessing child pornography. Each count carries a maximum penalty of 10 years in prison and a $250,000.
“The defendant’s behavior in this case is the stuff of which parents’ nightmares are made,” noted U.S. Attorney Kennedy. “Our schools are supposed to be safe havens where our children’s minds are nurtured. The defendant’s effort to exploit his student’s for his own gratification warrants federal prosecution and the significant sentencing exposure occasioned by today’s guilty pleas.”
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that on June 17, 2019, Buffalo Police Officers were called to City Honors School, where the defendant worked as a middle school technology teacher, based on allegations that Hingston was taking inappropriate photographs of female students with a GoPro camera. Officers secured the GoPro digital camera from Hingston. A subsequent search of the camera resulted in the recovery of child pornography videos produced by the defendant, involving minor victims who were under his custody, care, and supervisory control when the sexually explicit images were produced. Investigators also searched an external hard drive possessed by Hingston, which contained additional videos of child pornography produced by Hingston, involving different minor victims, who were also was under his custody, care, and supervisory control.
The plea is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Stephen Belongia, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Sentencing is scheduled for October 21, 2021, before Judge Arcara.
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Former Chief Operating Officer of Philadelphia Technology Start-Up Charged with Securities Fraud and EmbezzlementRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man has been charged with orchestrating a long-running securities offering fraud while simultaneously embezzling hundreds of thousands of dollars from his employer’s bank account, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Geromini, 54, of Linwood, New Jersey, is charged in an indictment unsealed today with 10 counts of wire fraud and two counts of securities fraud. He will have his initial appearance and arraignment by videoconference this afternoon before U.S. Magistrate Judge Sharon A. King.
According to the documents filed in this case:
Geromini was the chief operating officer (COO) for a technology startup headquartered in Philadelphia, Pennsylvania, which specialized in the development of point-of-care diagnostic testing of various diseases. Geromini controlled the company’s bank and debit card accounts, and was responsible for soliciting investments in the company through debt and equity fundraising.
From July 2018 through October 2018, the company raised approximately $2.25 million of investor funds. Geromini misrepresented to investors that he would invest their funds to pursue the company’s business plan, for example, by using the funds to further develop and commercialize its products and services, for lab expenses, and to pay employee salaries. Instead, Geromini diverted significant portions of their funds out of the company’s bank account for purposes inconsistent with its business operations, including to pay himself hundreds of thousands of dollars through unauthorized wire transfers, ATM cash withdrawals, and debit card transactions.
Geromini frequently misrepresented to the company that the unauthorized wire transfers were intended to compensate him for his employment. Geromini told the company’s chief executive officer that Geromini had twice secured contracts on behalf of the company with third parties and was, pursuant to his employment agreement, entitled to separate bonus payments.
The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine.
The U.S. Securities and Exchange Commission has filed a civil complaint against Geromini based on the allegations underlying the securities fraud charges.
Acting U.S. Attorney Honig credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Trenton Office.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Asbestos Contractor Sentenced for Theft of Federal Program FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MARC A. VICTORIANO “VICTORIANO”, age 46, of Covington, Louisiana, was sentenced today before United States District Court Judge Lance M. Africk to five years probation with 8 months of home confinement for theft from a program receiving federal funds. He was also ordered to pay a mandatory $100 special assessment fee and $212,618.00 in restitution to the victim, Terrebonne Parish School Board.
According to court records, from 2015 to 2017, VICTORIANO and his company, Professional Safety Consultants, LLC, ("PSC") provided asbestos inspections for the Terrebonne Parish School Board ("TPSB") as mandated by the Asbestos Hazard Emergency Response Act ("AHERA"). VICTORIANO submitted 56 invoices to TPSB with fraudulent asbestos laboratory reports including false air monitoring and false asbestos testing reports. VICTORIANO also submitted nine invoices to TPSB for AHERA reports with forged signatures and accreditation information. As a result, TPSB paid VICTORIANO approximately $212,618.26 to which he was not entitled, in violation of Title 18, United States Code, Section 666(a)(1)(A).
“Financial Crime is a despicable felony that impacts many citizens, said U.S. Attorney Duane A. Evans. “However, this scheme to defraud Terrebonne Parish Schools, that placed students and staff in a potentially dangerous situation and financially victimized taxpayers, exponentially aggravated this crime. Our office commits to continue our local, state and federal partnerships to seek justice for our community, especially our most vulnerable populations.”
“The defendant was responsible for the safe and legal removal of material containing asbestos,” said Special Agent in Charge Christopher Brooks of EPA’s criminal enforcement program in Louisiana. “The defendant knowingly ignored regulations on the safe management of asbestos, putting workers, the general public, and most alarmingly school children, at risk. This resulted in the Terrebonne Parish (Louisiana) School Board being defrauded out of $212,618.”
U.S. Attorney Evans praised the work of the United States Environmental Protection Agency, Criminal Investigation Division; the Louisiana State Police; Louisiana Department of Environmental Quality, Criminal Investigation Section and the Louisiana Environmental Crimes Task Force, for their investigation of matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Florida Man Sentenced to Federal Prison for Trafficking in Endangered Species and Illegally Possessing FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Steven Phillip Griffin, II (36, Palm Harbor) to 12 months and 1 day in federal prison, to be followed by 2 years of supervised release, for receiving and transporting endangered species in violation of the Endangered Species Act and for possessing firearms and ammunition as a convicted felon. The court also ordered Griffin to forfeit two pairs of southern white rhino horns, four African elephant ivory tusks, one African lion skull, three leopard skulls, ten firearms, and ammunition.
Griffin had pleaded guilty on November 10, 2020.
According to the plea agreement, Griffin communicated with a United States Fish & Wildlife Service - Office of Law Enforcement undercover special agent for more than two years to negotiate the sale and purchase of endangered and threatened wildlife. Throughout Griffin’s communications with the undercover agent, Griffin repeatedly stated that he collects skulls, full skeletons, and other parts of a variety of endangered and/or threatened wildlife such as lions, tigers, leopards, jaguars, rhinos, and elephants. Griffin also sent numerous photographs of his personal collection, as well as items on his wish list, to the undercover agent via text message. In May 2019, Griffin drove to Texas, met with undercover agents, purchased, and illegally transported two Southern White rhino horns, four elephant ivory tusks, one African lion skull, and three leopard skulls to Palm Harbor, Florida. Griffin paid the undercover agent $9,750 in cash for the endangered and/or threatened animal parts.
Subsequently, agents executed a federal search warrant at Griffin’s residence and seized a variety of endangered and/or threatened animal parts, firearms, and ammunition. Griffin has been previously convicted of a felony and knew he was not allowed to possess a firearm or ammunition due to his prior conviction.
“This sentence sends a clear message to wildlife traffickers that we and our law enforcement partners are in the business of identifying and apprehending those who exploit protected species for commercial gain,” said Special Agent in Charge Phillip Land of the Fish and Wildlife Service (FWS-OLE).
This case was investigated by the United States Fish and Wildlife Service – Office of Law Enforcement. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Federal Jury Convicts San Jose Man of Methamphetamine Trafficking and Gun ChargesRead the Press Release
Updated as of June 24, 2021.
SAN FRANCISCO – A federal jury today convicted Armando Daniel Calderon of four charges related to methamphetamine trafficking, announced Acting United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon. The verdict follows a one and a half week jury trial before the Honorable William Alsup, Senior United States District Judge.
Calderon, 35 and most recently known to live in San Jose, was indicted with six co-defendants on October 11, 2018. The superseding indictment charged Calderon with the following four counts:
• possession with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A), alleged to have occurred on August 20, 2018;
• carrying a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c), alleged to have occurred on August 20, 2018;
• conspiracy to distribute and to possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine, in violation of 21 U.S.C. § 846, alleged to have occurred during the month of September 2018; and
• possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(A), alleged to have occurred on September 25, 2018.
According to the evidence presented to the federal jury at trial, on August 20, 2018, San Jose State University Police Department officers pulled over Calderon’s pickup truck in the vicinity of Keyes Street and South 3rd Street in San Jose. Calderon, who was the driver and sole occupant, had multiple outstanding arrest warrants and was placed under arrest. Officers found $5,363 in cash and six .40 caliber bullets in Calderon’s pants pockets and three bags inside his truck. One bag contained methamphetamine and .40 caliber ammunition, the second contained more methamphetamine, and the third contained a high-capacity pistol magazine loaded with 18 rounds of .40 caliber ammunition. Next to the driver’s seat, officers discovered a .40 caliber pistol loaded with nine rounds of .40 caliber ammunition. Calderon’s truck also contained a drug scale and multiple cell phones. The methamphetamine discovered in Calderon’s truck weighed approximately 1.83 pounds.
Further evidence at trial showed that in September 2018 Calderon conspired with at least one other person to distribute methamphetamine. During that month, Calderon repeatedly spoke on the phone and met in the San Mateo area with a buyer to negotiate the sale of 15 kilograms (33 pounds) of methamphetamine. The negotiations eventually resulted in an agreed-upon price of $4,700 per kilogram of methamphetamine, with a total price of $70,500 for 15 kilograms. Calderon guaranteed the quality of the methamphetamine and agreed to exchange it for additional methamphetamine if the buyer was dissatisfied with the product. On September 25, 2018, Calderon met with the buyer early in the day, ultimately agreeing to deliver the methamphetamine in the parking lot of a Menlo Park shopping center. Later that day, Calderon and two co-defendants were arrested near the shopping center following a short pursuit. Over 989 grams (more than two pounds) of pure methamphetamine was seized by law enforcement at the scene, and another 6,492 grams (over 14 pounds) of pure methamphetamine was seized from a nearby stash house. Agents also located documents bearing Calderon’s name inside the stash house.
Additional evidence at trial showed that on September 25, 2018, prior to his arrest, Calderon secreted methamphetamine inside a red Mustang parked outside the stash house. Law enforcement agents seized the methamphetamine and determined it weighed over 317 grams (over two thirds of a pound).
Senior United States District Judge William Alsup scheduled a sentencing hearing for Calderon on September 14, 2021, at 2 p.m. Calderon remains in custody pending sentencing.
Calderon faces a minimum sentence of 10 years in prison and a maximum of life for each conviction of 21 U.S.C. § 841 and 21 U.S.C. § 846, and a fine of $10,000,000 for each conviction. For his conviction of 18 U.S.C. 924(c), Calderon faces a minimum sentence of 5 years consecutive to any other sentence and a maximum of life, along with a maximum fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Erin Cornell and Sloan Heffron prosecuted the case with the assistance of Patricia Mahoney, Andy Ding, Hector Lopez, and Madeline Wachs. The prosecution is the result of an investigation by the Drug Enforcement Administration, the San Mateo County Sheriff, the San Mateo County Narcotics Task Force, and San Jose State University Police Department.
Federal Grand Jury Indicts Husband and Wife in Alleged Mortgage Fraud SchemeRead the Press Release
CHICAGO — A man and his wife have been charged in federal court in Chicago with participating in a mortgage fraud scheme that defrauded financial institutions out of at least $2.5 million.
MARCO LURIGIO, also known as “Demetrio Cardone,” and SANDY LURIGIO, also known as “Janette Chavez,” owned several Illinois-based companies, including S&G Technologies Inc., O.C. Management Group Inc., Riverview Financial Inc., and Toro Management, Inc. According to the indictment, the Lurigios recruited buyers to fraudulently obtain mortgage loans for properties on Chicago’s South Side by making and causing to be made materially false representations in documents submitted to financial institutions. The false representations included documents and statements regarding, among other things, the buyers’ employment, income, assets, source of down payment, and intention to occupy the property as a primary residence, the indictment states. In some instances, the Lurigios fraudulently claimed to lenders that the buyers were employed by one of the Lurigios’ companies, even though they knew that was untrue, the indictment states. The alleged fraud scheme lasted from 2011 to 2014, the indictment states.
The indictment was returned Tuesday in U.S. District Court in Chicago. It charges Marco Lurigio, 45, and Sandy Lurigio, 39, both of Downers Grove, Ill., with eight counts of financial institution fraud. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Michael Powell, Special Agent-in-Charge of the Chicago office of the U.S. Department of Housing and Urban Development, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Jason Yonan and Alejandro Ortega.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of financial institution fraud is punishable by up to 30 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Fairfield Man Sentenced to 75 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Fairfield man was sentenced today for being for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Mickey French.
United States District Judge Madeline H. Haikala sentenced Darrick Ansal Dunlap, 43, to 75 months in prison followed by three years’ supervised release. Dunlap pleaded guilty in February to being a felon in possession of a firearm.
“Too often, domestic violence ends in tragedy for both the family and the neighborhood. Today’s sentence sends a clear message that criminals who use firearms to commit acts of domestic violence will be held accountable,” U.S. Attorney Escalona said. “Through Operation Safe Families, my office is focused on keeping guns out of the hands of domestic abusers.”
“ATF’s priority of enforcing federal firearms laws in domestic violence situations is clearly evident with this sentencing,” said SAC French.
According to the plea agreement, on March 30, 2020, Jefferson County Sheriff’s Deputies responded to a shooting call at a residence in Fairfield, Alabama. Dunlap and one of the victims got into an argument at the residence regarding her contribution to family expenses. During the argument, Dunlap made a threat to kill the individual and then retrieved a Glock 9-millimeter pistol, which he shot toward the floor. The bullet ricocheted up, hitting both victims. Dunlap claimed that the “gun just went off.” One victim suffered from a gunshot wound to her right knee, and the other victim suffered from a gunshot wound to her left wrist. The gun was identified as stolen in Birmingham during the prior year.
ATF investigated the case. Assistant U.S. Attorney Alan Baty prosecuted the case.
Eleven-Time Felon Sentenced to 72 Months for Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Almondo Baker, 40, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 72 months in federal prison for unlawfully possessing a loaded firearm as a convicted felon. Baker pleaded guilty to this charge on May 4, 2021.
The charge in this case stemmed from an individual reporting to law enforcement that Baker drove to the individual’s residence on June 22, 2020, displayed a handgun, and verbally threatened them. Law enforcement then located and searched the vehicle Baker was driving and found a loaded .45 caliber Ruger handgun with a bullet in the chamber. This handgun had previously been reported stolen.
Baker was previously convicted of 11 different felonies including illegal possession of a firearm as a felon. Judge Conley emphasized Baker’s criminal history and his threatening behavior in this case before imposing the 72-month sentence.
The charge against Baker was the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case was handled by Assistant U.S. Attorney Zachary J. Corey.