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Thursday 17 June 2021
Superseding Indictment Unsealed Charging Former Head of the Universal Aryan Brotherhood and His Mother with Drug Trafficking and Money Laundering ChargesRead the Press Release
OKLAHOMA CITY – Yesterday, a Superseding Indictment was unsealed charging CHANCE ALAN WILSON, 36, of McAlester, and DEANNA DANNETT WILSON, 55, of Wayne, Oklahoma, with conspiracy to possess methamphetamine with intent to distribute and conspiracy to launder drug proceeds, announced Acting U.S. Attorney Robert J. Troester.
On June 1, 2021, a federal grand jury returned a twelve-count Superseding Indictment against Change Alan Wilson and Deanna Dannett Wilson. According to the Superseding Indictment, Chance Alan Wilson was the head of the Universal Aryan Brotherhood, a prison gang that operates largely within prison facilities throughout Oklahoma. It is alleged that Chance Alan Wilson, using contraband cell phones from his prison cell, organized and led a conspiracy to distribute methamphetamine throughout Oklahoma and surrounding states. He allegedly relied on a network of individuals outside of prison to distribute methamphetamine, collect proceeds from that distribution and launder those proceeds.
The Superseding Indictment alleges that one of those individuals assisting Chance Alan Wilson’s activity was his mother, Deanna Wilson. It is alleged that she accepted large sums of drug proceeds from Chance Alan Wilson and used those funds to purchase various assets, including a $138,000 manufactured home, purchased with cashier’s checks and cash.
Yesterday, the Superseding Indictment was unsealed following the defendants’ arraignment.
If convicted on the drug trafficking charges, Chance Alan Wilson faces a potential penalty of at least 10 years and up to life in prison and a fine up to $10,000,000. If convicted on the money laundering conspiracy charge, Chance Alan Wilson and Deanna Wilson each face a period of imprisonment of up to 20 years’ imprisonment and a fine of up to $500,000. If convicted of engaging in a monetary transaction using drug proceeds, Deanna Wilson faces a period of imprisonment of up to 10 years, a fine of not more than $250,000 (or a fine of twice the value of the property involved in the transaction whichever is greater)
The case is a result of an investigation conducted by Homeland Security Investigations, the Internal Revenue System – Criminal Investigations, and the Oklahoma City Police Department. Assistant U.S. Attorney Tom Snyder is prosecuting the case.
The public is reminded that the Indictment is merely accusation and that the defendants are presumed innocent unless and until proven guilty. Reference is made to public filings for further information.
St. Thomas Resident Pleads Guilty to Possessing MarijuanaRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert announced today that Tashawn T.A. Warner, 24, resident of St. Thomas, V.I., pleaded guilty in federal court to possession of marijuana.
According to court documents, on December 11, 2020, Tashawn T.A. Warner was arrested on St. Thomas pursuant to a federal arrest warrant. Immediately prior to his arrest, Warner was observed loading bags into the trunk of a 2020 Gray Toyota Corolla registered to Warner in Florida with Florida license plates. After Warner closed the trunk and got into the Corolla, a Black Infinity G37x, drove up the hill towards Warner at a high rate of speed and stopped next to Warner’s vehicle. Warner exited the Corolla, removed the bags from the trunk of the Corolla, and placed something into the trunk of the G37x. Warner then briefly opened and closed one of the passenger side doors of the G37x, which then drove off. As Warner got back into the Corolla, he was arrested. At the time of his arrest Warner had $5,520 in the pocket of his pants.
Later, on December 11, 2020 federal agents obtained federal search warrants for both the Corolla and Infinity G37x. The Corolla contained the backpack that agents had previously seen Warner place into the vehicle, prior to his arrest. The backpack contained a glass jar containing two sandwich bags of approximately 90 grams of marijuana. The center console of the Corolla contained approximately $500 cash, a small scale, small baggies, and rolling papers.
Warner faces up to one-year imprisonment and a fine of up to $100,000.00. He also agreed to forfeit his vehicle as part of the plea agreement. A sentencing date will be set by the Court.
This case is being investigated by the Federal Bureau of Investigation (FBI) and prosecuted by Assistant U.S. Attorney Juan Albino.St. Thomas Man Sentenced to Federal Prison for Conspiracy to Distribute CocaineRead the Press Release
St. Thomas, USVI – King Bob Leonard, 28, of St. Thomas, was sentenced to 37 months in prison for Conspiracy to Distribute Cocaine, United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today.
According to Leonard’s plea agreement and other court documents, in January and February of 2018 Leonard conspired with others to distribute cocaine. He operated through a number of text messages that were seized as part of the investigation. Further, the investigation revealed that the defendant and others coordinated the delivery of between 400 and 500 grams of cocaine in St. Thomas, USVI.
This case was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service. It was prosecuted by the United States Attorney’s Office for the District of the Virgin Islands.St. Francis Man Sentenced for Methamphetamine DistributionRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, was sentenced on June 14, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Antoine Joseph Metcalf, a/k/a Tony Metcalf, age 49, was sentenced to 30 months in federal prison, followed by two years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Metcalf was indicted by a federal grand jury on August 14, 2019. He pled guilty on March 29, 2021.
The conviction stemmed from a conspiracy that occurred between January 2015 and December 2019. During this time, Metcalf conspired with several others to distribute between 200 and 350 grams of methamphetamine on the Rosebud Sioux Indian Reservation in central South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Metcalf was immediately remanded to the custody of the U.S. Marshals Service.
Seven charged for roles in a $110 million compound drug schemeRead the Press Release
McALLEN, Texas – A compound pharmacy owner, three marketers, a referring physician and two clinic office staff have been taken into custody in connection with a multi-million dollar health care fraud and kickback scheme, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal grand jury sitting in McAllen returned a 15-count indictment charging John Ageudo Rodriguez, 51, Mohammad Imtiaz Chowdhury, 40, his father Dr. Tajul Shams Chowdhury, 71, and Alex Flores Jr., 51, all of McAllen; Hector DeLaCruz, Jr., 50, Edinburg; Araceli Gaona, 35, Mission; and Erika Hernandez Salinas, 38, Donna.
All are expected to have their initial appearances tomorrow before U.S. Magistrate Judge J. Scott Hacker.
The indictment includes charges of conspiracy to commit health care fraud, health care fraud, conspiracy to pay and receive illegal kickbacks and conspiracy to commit money laundering.
Rodriguez was the owner of Pharr Family Pharmacy (PFP), according to the indictment. From May 2014 to September 2016, PFP allegedly billed various federal health care programs more than $110 million, including claims that were false, fraudulent and the result of illegal kickbacks.
According to the indictment, Mohammad Chowdhury, Flores and DeLaCruz were purported marketers for PFP who were the conduits for several million dollars in kickbacks relating to the referral of prescriptions for high-reimbursing compound drugs to the pharmacy. In numerous instances, the marketers allegedly received kickbacks from Rodriguez, which they shared with referring physicians.
Dr. Chowdhury is a physician with a medical practice in Edinburg known as Center for Pain Management, according to the charges, while Gaona and Salinas were employees at the clinic. The indictment alleges Mohammad Chowdhury paid kickbacks to his father for referring prescriptions to PFP, including prescriptions for high-reimbursing compound drugs that were not medically necessary nor what the patients wanted. Gaona and Salinas are charged with conspiring to pay and receive kickbacks and conspiracy to commit money laundering in connection with their alleged receipt of kickbacks to help coordinate the flow of prescriptions from the medical clinic to the pharmacy.
The indictment alleges Rodriguez and his co-conspirators targeted specific health care benefit programs known to pay high reimbursements for compound drugs, such as Federal Employee’s Compensation Program, TRICARE, Medicare and various private insurance plans.
As part of the scheme, Rodriguez allegedly provided PFP marketers with pre-filled prescription pads intended to be given to physicians. The charges allege these included compound drugs and other prescription items that would yield the highest possible reimbursement to PFP, without regard to medical necessity.
If convicted of health care fraud and conspiracy to commit health care fraud, they face up to 10 years in prison and a maximum $250,000 possible five. The penalty for conspiracy to pay and receive illegal kickbacks is five years with a $25,000 maximum fine. Those charged and convicted of conspiracy to commit money laundering face up to 20 years in prison and fine of up to $500,000.
The U.S. Postal Service-Office of Inspector General (OIG), FBI, Defense Criminal Investigative Service, Department of Labor-OIG, Veterans Affairs-OIG, Texas Health and Human Services—OIG, Department of Health and Human Services-OIG, and Texas Attorney General, Medicaid Fraud Control Unit conducted the investigation.
Assistant U.S. Attorneys Andrew Swartz and Asha Natarajan are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Pittsford Man Going to Prison for 18 Years for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Luke Vuittonet, 21, of Pittsford, NY, who was convicted of production of child pornography, was sentenced to serve 18 years in prison and 25 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between August 6 and August 12, 2019, the defendant produced digital photographs depicting a minor victim engaged in prohibited sexual conduct. The images were produced on Vuittonet’s cellular telephone.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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Pittsburgh Woman Sentenced on Bank Robbery ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 18 months imprisonment, followed by three (3) years supervised release, on her conviction related to a charge of bank robbery, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Gloria Anderson, 37, formerly of Pittsburgh, PA.
According to information presented to the Court, on June 26, 2020, Anderson robbed the Dollar Bank, located in the Oakland neighborhood of Pittsburgh. Anderson entered the bank and handed bank personnel a note that read “Gimme $10,000 or I will shoot.” Anderson took $10,000 from the bank but was arrested by City of Pittsburgh Police shortly after she exited the bank and walked across the street.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
The City of Pittsburgh Bureau of Police made the initial arrest of Anderson and the Federal Bureau of Investigation conducted the federal investigation leading to the successful prosecution of Anderson.
Pittsburgh Woman Facing at Least a Decade in Prison after Pleading Guilty in Heroin/Fentanyl Trafficking ConspiracyRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, Acting United States Attorney Stephen R. Kaufman announced today.
Raelynn Stevenson, age 31, pleaded guilty to one count of conspiracy to distribute 40 grams or more of a mixture and substance containing detectable amounts of fentanyl and heroin before United States District Judge William S. Stickman IV. Ms. Stevenson is one of 40 defendants charged in the Indictment and Superseding Indictment returned in this case.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Intercepted communications revealed that the defendant both collaborated with lead defendant Christopher Highsmith and supplied her own drug customers. On several occasions during the conspiracy, the defendant and Highsmith discussed the weight, packaging, and distribution of narcotics.
Judge Stickman scheduled sentencing for October 22, 2021 at 10:30 a.m. The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded the defendant to the custody of the U.S. Marshals Service.
Assistant United States Attorneys Carolyn Bloch Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Passaic County Man Charged in Tax Evasion and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today for his role in a kickback tax evasion scheme related to his role as plan administrator of two union-related employee benefit plans, Acting U.S. Attorney Rachael A. Honig announced.
Jose Santa Maria, aka “Joe,” of North Haledon, New Jersey, is charged by complaint with five counts of tax evasion, one count of paying kickbacks related to an employee benefit plan, and one count of making false statements in relation to an employee benefit plan. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge James B. Clark III.
According to documents filed in this case and statements made in court:
From at least 2013, Santa Maria served as the plan administrator, through Company-1, for a health fund and a training fund related to a labor union. At the same time, Santa Maria was employed by Individual-1, who served as counsel for the two union funds. The president of Company-1 was related to Individual-1. From 2013 through 2019, Santa Maria derived approximately $750,000 in income from Company-1, which was paid by the two union funds. He did not report any of the income to the IRS or pay the associated income taxes. Santa Maria also unlawfully paid at least $50,000 to Individual-1, through payments from Company-1 to Company-2, which was owned by Individual-1. These unlawful payments were designed to maintain Santa Maria’s position as the plan administrator to the funds and vice president of Company -1. Company-1 also received insurance commissions, which Santa Maria caused to not be reported, as required, on filings with the IRS and Department of Labor, for the union health fund.
The counts of tax evasion each carry a maximum penalty of five years in prison and a $250,000 fine. The count of paying kickbacks related to an employee benefit plan carries a maximum penalty of three years in prison and a $250,000 fine. The count of making false statements related to an employee benefit plan carries a maximum penalty of five years imprisonment and a $250,000 fine.
Acting U.S. Attorney Honig credited investigators of the Department of Labor, Employee Benefits Security Administration, under the direction of Regional Director of the New York Regional Office Thomas Licetti; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and police investigators of the Port Authority of New York and New Jersey, under the direction of Acting Inspector General Michael Farbiarz, with the investigation with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Oregon Man Pleads Guilty After Pocketing Millions in Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today after fraudulently converting to personal use loans intended to help small businesses during the COVID-19 pandemic.
Andrew Aaron Lloyd, 51, of Lebanon, Oregon, pleaded guilty to bank fraud, money laundering, and aggravated identity theft.
Lloyd took advantage of economic relief programs administered by the Small Business Administration (SBA), including Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). These programs were authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. The CARES Act provided emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.
“CARES Act relief programs were designed to help American small businesses weather a historically difficult time in our nation’s economic history. Andrew Lloyd saw an opportunity to profit off the COVID-19 pandemic and did so at the expense of hardworking Americans. Our office will continue to investigate and prosecute anyone who seeks to unfairly enrich themselves from public funds set aside to help those in need,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon.
“While Americans suffered with the economic collapse that COVID-19 brought to our communities, Lloyd decided to cash in on the catastrophe. As hard working, honest people were forced onto unemployment and into food lines, Lloyd was pouring millions of stolen dollars into brokerage accounts and real estate deals. Thanks to our investigative partnerships, he will now face years in prison,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
“As our country continues to recover from the destructive effects of the COVID-19 pandemic, there are individuals like Andrew Lloyd who opt to do further harm to our country by exploiting the suffering of fellow Americans,” said Corinne Kalve, Acting Special Agent in Charge of IRS Criminal Investigation (IRS:CI). “IRS:CI will continue to pursue those who choose to abuse our financial system and who choose to steal pandemic recovery funds for their own illicit gain.”
“Lying to gain access to economic stimulus funds will be met with justice,” said Weston King, SBA Office of Inspector General Western Region Special Agent in Charge. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to court documents, in October 2020, federal agents initiated an investigation into Lloyd based on information suggesting he had fraudulently applied for PPP loans and EIDL at multiple financial institutions. Beginning in April 2020, Lloyd began submitting loan applications using numerous business names and personally identifiable information of relatives and business associates without their consent.
Lloyd submitted false documentation to justify the loan amounts requested, including an IRS Form 944 listing the 2019 wages purportedly paid by entities controlled by Lloyd. Total wages allegedly paid by these entities ranged from $3 million to more than $4.7 million. Lloyd’s loan applications also included lists of between 56 and 64 employees and the total wages paid to each. The loan application packages included some of the same information across the different business entities, including the businesses’ physical locations and the names of several dozen employees.
In total, Lloyd submitted nine PPP loan applications, six of which were accepted, resulting in a payout of more than $3.4 million. Lloyd also applied for numerous EIDLs, of which one was accepted, resulting in an additional $160,000 in payments to Lloyd. Upon receipt of the funds, Lloyd purchased real estate and invested in securities. Lloyd transferred more than $1.8 million of the above-described PPP loan funds to his E*TRADE Securities brokerage account. Securities Lloyd purchased using the fraudulently acquired funds substantially increased in value.
In January 2021, agents seized Lloyd’s brokerage account, which included 15,740 shares of Tesla, Inc. purchased with proceeds of his fraud. In March 2021, agents seized another account containing more than $660,000 in securities and cash. The securities and cash seized from Lloyd’s accounts are presently valued at more than $11 million.
On January 5, 2021, Lloyd was charged by criminal complaint with wire fraud, bank fraud, and money laundering. He was arrested and made his first appearance in federal court on January 7, 2021. On June 6, 2021, he was charged by superseding criminal information with bank fraud, money laundering, and aggravated identity theft.
With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Lloyd in jointly recommending a sentence of 61 months in federal prison. He will be sentenced on September 9, 2021 before U.S. District Court Judge Michael J. McShane.
As part of his plea agreement, Lloyd has agreed to pay more than $3.6 million in restitution to the U.S. Treasury. Lloyd also agreed to forfeit more than $11 million in cash and securities and 23 properties that were purchased with PPP funds.
An accomplice of Lloyd’s, Russell Anthony Schort, 39, of Myrtle Creek, Oregon, was charged alongside Lloyd for similar conduct. Schort is scheduled to plead guilty on July 1, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
One sentenced, other defendants admit guilt on separate federal chargesRead the Press Release
SAVANNAH, GA: One man has been sentenced in the Southern District of Georgia to federal prison and others have admitted guilt in U.S. District Court on separate charges involving drugs and firearms.
Joseph Brandon Melton, 30, of Waycross, was sentenced to 71 months in 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 Lisa Godbey Wood also ordered Melton to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“Joseph Melton’s extensive criminal record and participation in a violent gang makes it abundantly clear that he is a danger to the community,” said Acting U.S. Attorney Estes. “In coordination with our law enforcement partners, we will continue to bring to justice those who threaten the safety of our citizens.”
Melton, a member of the Ghost Face Gangsters criminal street gang, admitted to illegally possessing a semi-automatic pistol when he was charged Jan. 23, 2020, by deputies from the Ware County Sheriff’s Office. Melton was on probation for a prior state felony conviction at the time of his arrest.
Other defendants await sentencing after pleading guilty to felony charges in U.S. District Court:
- Gary Hamiter Joye Jr., 36, of Augusta, pled guilty to Possession of Methamphetamine with Intent to Distribute. A Fort Gordon Military Police officer found Joye Sept. 9, 2020, asleep in his car, which was illegally parked on the lawn of the post laundry service. In a subsequent search of Joye’s vehicle, investigators found a quantity of methamphetamine, along with drug sales paraphernalia and $3,000 in cash.
- Jonah Robert Schafner, 33, of Grovetown – sentenced March 9 to 108 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon – faces an additional five years in prison after pleading guilty to Escape from Custody. After his sentencing hearing in U.S. District Court in Augusta, Schafner escaped from the Jefferson County Jail while he was awaiting transfer to federal prison. He was taken into custody four days later in Columbia County.
- Letrail Jerome West, 42, of Augusta, pled guilty to Possession with Intent to Distribute Cocaine, and Possession of a Firearm by a Convicted Felon. West admitted illegally possessing drugs and an SKS-style rifle when arrested Oct. 30, 2019, by Richmond County Sheriff’s deputies
- Newman Everette Tryon, 38, of Savannah, pled guilty to Possession of a Firearm by a Convicted Felon. Tryon admitted illegally possessing a revolver when he was arrested Oct. 30, 2019, by Chatham County Police.
- Jamerson Brandon Turner, 28, of Augusta, pled guilty to Possession of a Firearm by a Convicted Felon. Turner admitted illegally possessing a pistol when questioned May 15, 2020, by Richmond County Sheriff’s deputies.
- Tron Smith, 34, of Savannah, pled guilty to Possession of a Firearm by a Convicted Felon. Smith admitted to illegally possessing a pistol when arrested by Savannah Police officers June 17, 2019.
- Chance Derrell Christian, 32, of Kingstree, S.C., pled guilty to Possession of a Firearm by a Convicted Felon. Christian admitted illegally possessing a loaded revolver when arrested May 11, 2020 on Interstate 20 in Columbia County after a traffic stop and subsequent search of his vehicle by the Georgia State Patrol.
- Delvon Brown, 35, of Savannah, pled guilty to Possession of a Firearm by a Convicted Felon. Brown – who has previous convictions on state felonies, including illegal firearms possession – admitted to illegal possession of a semi-automatic pistol during a traffic stop Sept. 5, 2019, by Savannah Police officers.
- Zachary Brent Sadler, 27, of Augusta, pled guilty to Possession of a Firearm by a Convicted Felon. Sadler admitted pawning a handgun in October 2019, and he later was charged by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives when attempted to repurchase the gun and was denied during a background check.
- Kijordan Markel Ceaser, 22, of Thomson, Ga., pled guilty to Illegal Receipt of a Firearm by a Person Under Indictment. Ceaser, who was on parole after a conviction on state charges, admitted illegally possessing a pistol when agents from the Georgia Bureau of Investigation and the Georgia Department of Community Supervision searched his residence Sept. 17, 2020.
“These cases are the product of a concerted collaborative effort on the part of ATF and its local partners to target, investigate, and eliminate the perpetrators of violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “These prosecutions will ensure the incarceration of dangerous criminals and contribute to the restoration of order and peace.”
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Army Criminal Investigation Command, and the U.S. Marshals Service, along with state and local agencies including the Georgia Bureau of Investigation, the Georgia Department of Community Supervision, the Georgia State Patrol, the Richmond County Sheriff’s Office, the Ware County Sheriff’s Office, the Savannah Police Department, and the Chatham County Police Department. The cases are being prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland, Henry W. Syms Jr., Noah J. Abrams, Alejandro V. Pascual IV, Steven H. Lee and John P. Harper III, and Special Assistant U.S. Attorney Edwin Caban Jr.
Ohio man sentenced for soliciting minor for child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Dorst, of Shade, Ohio, was sentenced today to 60 months of incarceration for a child pornography charge, Acting U.S. Attorney Randolph J. Bernard announced.
Dorst, age 59, pled guilty in December 2020 to one count of “Solicitation of Child Pornography.” Dorst admitted to asking a minor in Harrison County to send material of the minor engaging in sexually explicit conduct. The crime occurred in February 2020.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
New Orleans Personal Injury Attorney Pleads Guilty in Connection with Staged Accident ProbeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DANNY PATRICK KEATING, JR., age 52, of New Orleans, Louisiana, entered a plea of guilty today to Conspiracy to Commit Mail and Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans before Chief United States District Court Judge Nannette Jolivette Brown.
KEATING was the thirty-third (33rd) defendant charged in the Government’s federal probe into the intentional staging of motor vehicle accidents with tractor-trailers and commercial vehicles in the metropolitan New Orleans area. Thus far, twenty-three (23) of the thirty-three (33) indicted defendants have tendered guilty pleas in federal court.
According to today’s guilty plea, KEATING was a personal injury attorney licensed to practice law in the State of Louisiana. KEATING admitted to conspiring with Damian Labeaud and others to defraud insurance companies, commercial carriers, and trucking companies in a scheme involving intentionally staging automobile accidents.
Labeaud referred staged accidents to KEATING and other New Orleans personal injury attorneys for $1,000.00 per passenger for accidents involving tractor-trailers and $500.00 per passenger for accidents not involving tractor-trailers. KEATING advanced Labeaud thousands of dollars for these accidents and instructed Labeaud that he owed KEATING a certain number of accidents based on the amount of money advanced. For instance, on July 17, 2017, KEATING gave Labeaud $15,000.00 so Labeaud could purchase a $15,000.00 Chase Bank cashier’s check to buy Mario Solomon’s truck.[1]Additionally, on September 25, 2017, KEATING wrote a $17,000.00 check to himself for “advertising” and used the proceeds to purchase a $17,000.00 cashier’s check payable to Labeaud. The Indictment alleges KEATING paid Labeaud another $12,500.00 in checks during the month of June 2017.
KEATING admitted he knowingly paid Labeaud for thirty-one (31) illegally staged tractor-trailer accidents. KEATING represented seventy-seven (77) plaintiffs involved in the thirty-one (31) accidents staged by Labeaud. KEATING settled seventeen (17) of the thirty-one (31) staged accidents. The Indictment charged that KEATING and his clients received approximately $1,500,000.00 in settlement resulting from his representation of his clients involved in the staged accidents and that KEATING kept approximately $358,000.00 in attorney’s fees.
KEATING admitted he filed lawsuits in state and federal court in Louisiana on behalf of his clients who were involved in the staged accidents. The lawsuits filed on behalf of the seventy-seven (77) plaintiffs fraudulently alleged who was driving the vehicles, misrepresented who was at fault in the staged accidents, and falsely claimed injuries. KEATING used the U.S Postal Service to mail settlement demands on behalf of his clients who were involved in staged accidents from the Eastern District of Louisiana to various out-of-state locations. In many cases, clients of KEATING provided false testimony in depositions taken in conjunction with lawsuits filed by KEATING.
KEATING faces a maximum term of five (5) years imprisonment, a fine of $250,000.00 or twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, KEATING faces a term of supervised release up to three (3) years after his release from prison. Sentencing in this matter is scheduled for January 20, 2021, before Chief United States District Judge Nannette Jolivette Brown.
“Fraud, regardless of its scope and means of orchestration, is a serious crime. Especially egregious is fraud committed against the hardworking taxpayer by a member of our legal community, said U.S. Attorney of the Eastern District of Louisiana Duane A. Evans.” This guilty plea sends a clear message that our office, along with our local, state, and federal partners, will continue to vigorously investigate and prosecute all such corruption cases regardless of status.
“Today’s guilty plea sends a clear message to individuals who choose to engage in fraudulent schemes that grossly impact automobile and health insurance industries. They will be held accountable. Mr. Patrick Keating, a local attorney, took an oath to uphold the United States Constitution and the laws of the State of Louisiana, but instead, violated those laws and his oath in order to unjustly enrich himself by engaging in a scheme which resulted in the filing of fraudulent auto and medical insurance claims,” stated Special Agent in Charge Douglas Williams, Jr. ”I would like to thank the U.S. Attorney’s Office of Eastern District of Louisiana, Louisiana State Police, and the Metropolitan Crime Commission for their partnership and outstanding work accomplished during this investigation.”
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; and Assistant U.S. Attorney Maria Carboni.
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[1]Solomon was a spotter who worked with Labeaud in staging automobile accidents. Solomon pled guilty on May 28, 2020, and was sentenced on January 22, 2021.
New Bedford Man Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
BOSTON – A New Bedford man pleaded guilty yesterday to conspiring to distribute large quantities of cocaine.
Jaime Torres, 48, pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of possession with intent to distribute 500 grams or more of cocaine, 100 grams or more of heroin, 40 grams or more of fentanyl, and five grams or more of methamphetamine. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Oct. 19, 2021. Torres was charged in December 2019, along with 12 co-defendants.
From at least February 2019 through December 2019, Torres conspired with others to distribute large quantities of cocaine. Investigators intercepted a number of communications between Torres and co-conspirators, including communications on or about June 17, 2019, in which Torres and various co-conspirators agreed to distribute two kilograms of cocaine or more. Later that same day, investigators seized approximately two kilograms of cocaine from Torres’s storage unit, along with 117 grams of a mixture and substance containing heroin, 55 grams of a mixture and substance containing fentanyl and over 43 grams of methamphetamine.
The charging statute for each count provides for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joshua McCallister, Acting Inspector in Charge of the United States Postal Inspector Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nashua Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Seth G. Shackford, 41, of Nashua, pleaded guilty in federal court on Wednesday to possession of controlled substances with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on or about September 10, 2020, Nashua police detectives arrested Shackford on an outstanding federal warrant during a motor vehicle stop. A standard inventory search was conducted prior to towing the vehicle. Officers located a bag on the passenger seat containing unused hypodermic needles. A backpack located in the rear passenger seat revealed a safe. After obtaining a search warrant, officers opened the safe and found over 80 grams of methamphetamine, over 10 grams of fentanyl and a ledger with references to drugs, cash, and customers.
Shackford is scheduled to be sentenced on September 4, 2021.
“Drug traffickers continue to pose a significant danger to the community,” said Acting U.S. Attorney Farley. “To protect the public, we will work closely with our law enforcement partners to identify and prosecute those who choose to sell these deadly substances.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Montz Woman Charged with Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that IGEL CASANOVA GIBBINS (“GIBBINS”), age 43, of Montz, Louisiana, was charged on June 15, 2021 by a Bill of Information for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the Bill of Information, the case against IGEL CASANOVA GIBBINS (“GIBBINS”) began after the State of Louisiana complied with a request from the Social Security Administration (SSA) to provide the SSA with death data of approximately 1.6 million Social Security number holders who had died in Louisiana from January 1, 1979, through December 31, 2019. As part of that data, the State of Louisiana disclosed that D.C., a participant in the SSA’s Retirement Survivor Insurance program (“RSI Program”), died on or about August 16, 2012.
Unaware of D.C.’s death, the SSA erroneously released approximately $202,417.00 in RSI Program funds from August 2012 through December 2020, via automatic wire transfers (i.e., direct deposit) to D.C.’s jointly held Capital One Bank (“Capital One”) account. GIBBINS, D.C.’s daughter, was a joint account holder of the Capital One account. D.C.’s RSI Program benefits were not transferrable to GIBBINS. Following the automatic deposit of RSI Program benefits, GIBBINS accessed the funds and wrongfully converted the funds to her own personal use, depleting nearly all account funds. The funds were used on purchase transactions or transfers out of the account to pay bills, for example, such as for mortgage payments and vehicle loan payments. GIBBINS never advised the SSA of D.C.’s death.
The SSA determined that GIBBINS fraudulently obtained $200,396 in (SSA) disability benefits from her father’s Capital One Bank account.
U.S. Attorney Duane A. Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, GIBBINS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit and Assistant U.S. Attorney Paige O’Hale.
Minnesota Man Sentenced for Travel with Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Cloud, Minnesota, man convicted of Travel with Intent to Engage in Illicit Sexual Conduct with a Minor was sentenced on June 14, 2021, by U.S. District Judge Karen E. Schreier.
Nathan Paul Grondahl, age 25, was sentenced to 135 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $5,100.
Grondahl was indicted by a federal grand jury on December 10, 2019. He pled guilty on March 22, 2021.
The conviction stemmed from an incident on November 22, 2019, when Grondahl left his home in Minnesota to travel to Hartford, South Dakota, for the purpose of engaging in illegal sexual conduct with a 13-year old female. Grondahl had met the minor on social media and had been communicating with her for a few days. Grondahl also requested that the minor female send him nude pictures of herself.
This case was investigated by the Minnehaha County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Grondahl has been allowed to self-surrender by June 28, 2021.
Miami, Florida Man Charged with Gary Bank Robbery and MurderRead the Press Release
HAMMOND- James Anthony King, Jr., age 24, of Miami, Florida, has been indicted for armed bank robbery and murder resulting from the use and carrying of a firearm during that robbery, announced Acting U.S. Attorney Tina L. Nommay.
According to the indictment, on June 11, 2021, King participated in an armed robbery of First Midwest Bank on Ridge Road in Gary, Indiana, where the use of a firearm resulted in the death of Richard Castellana.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
This case is a result of an investigation by the Federal Bureau of Investigation with the assistance of the Lake County Sheriff’s Department; the Lake County Prosecutor’s Office; the Indiana State Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gary Police Department. This case is being prosecuted by Assistant United States Attorneys Caitlin Padula, David Nozick, and Kevin Wolff.
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Members of Albuquerque drug trafficking organization charged with possessing, trafficking methamphetamine and fentanylRead the Press Release
ALBUQUERQUE, N.M. – John Seibel, 25, Robert Pettit, 51, and Barbara Dockery, 64, all of Albuquerque, appeared in federal court today for their parts in a drug trafficking organization run by Seibel (the Seibel DTO). Detention hearings for each defendant are scheduled for June 21.
On June 9, a federal grand jury indicted Seibel and Pettit on one count of conspiracy to distribute controlled substances, two counts of distribution of 50 grams and more of a mixture and substance containing methamphetamine, two counts of distribution of 500 grams and more of a mixture and substance containing methamphetamine, and four counts of distribution of 40 grams and more of fentanyl.
Dockery is charged in a criminal complaint with possession with intent to distribute 400 grams and more of a mixture and substance containing fentanyl and possession with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine.
The defendants were arrested on June 15 in a joint law enforcement operation led by the Drug Enforcement Administration (DEA). A DEA Task Force executed warrants at five locations in Albuquerque, including the residences of Seibel, Pettit, and Dockery. In Dockery’s residence, law enforcement located approximately 3,838.3 gross grams of fentanyl and 924.2 gross grams of methamphetamine allegedly belonging to the Seibel DTO.
The indictment alleges that from March 26 to June 9, Seibel, Pettit and others conspired to traffic large quantities of methamphetamine and fentanyl. According to court records, Seibel, assisted by his co-conspirators included Pettit and Dockery, allegedly sold “blues,” which are counterfeit oxycodone pills containing fentanyl, as well as fentanyl pills manufactured in Albuquerque using a pill press machine.
“For some time we’ve known the damage methamphetamine trafficking has caused to our communities, and we are now seeing the devastation caused by counterfeit fentanyl pills, which sadly includes overdose deaths,” said Acting U.S. Attorney Fred J. Federici. “Prosecution of those who manufacture and distribute these illicit and dangerous narcotics is and must remain a top priority for the District of New Mexico.”
“The drug trafficking organizations that produce and distribute these potentially-lethal counterfeit pills containing fentanyl care only about one thing: maximizing profits,” said Kyle W. Williamson, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “DEA will continue to disrupt and dismantle these DTOs to break the wave of fentanyl flooding and endangering our communities.”
Indictments and complaints are only allegations. A defendant is presumed innocent unless and until proven guilty. If convicted, Seibel, Pettit and Dockery face a minimum of 10 years and up to life in prison.
Among the agencies that participated in the investigation were the DEA Albuquerque District Office, DEA El Paso Division, DEA El Paso Division SRT, DEA Las Cruces District Office, DEA St. Louis Division, DEA South Central Laboratory, DEA Aviation, FBI Albuquerque Field Office, United States Postal Inspection Service, Homeland Security Investigations, Bernalillo County Sheriff’s Office, Albuquerque Police Department, Pueblo of Laguna Police Department, Pueblo of Pojoaque Police Department, Valencia County Sheriff’s Office, Rio Rancho Police Department, Torrance County Sheriff’s Office, Belen Police Department and Albuquerque Fire & Rescue.
The U.S. Attorney’s Office for the District of New Mexico is prosecuting this case.
Man from La Union charged with being a felon in possession of ammunitionRead the Press Release
ALBUQUERQUE, N.M. – Jose Alfredo Morales, 30, of La Union, New Mexico, was charged today in federal court with being a felon in possession of ammunition. Morales will remain in custody pending trial.
According to a criminal complaint, on May 15 officers from the Doña Ana County Sheriff’s Office responded to a reported assault involving strangulation at a residence in La Union. The officers obtained a warrant to search the residence in which they allegedly found multiple rounds of ammunition.
On May 19, an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives obtained a federal search warrant for the home, of which Morales is the sole resident, and allegedly located multiple rounds of ammunition.
Morales has prior felony convictions, including for shooting at or from a motor vehicle, aggravated battery with a deadly weapon, aggravated assault with a deadly weapon and battery upon a peace officer. As a convicted felon, Morales cannot legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Morales faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Doña Ana County Sheriff’s Office. Assistant U.S. Marisa A. Ong is prosecuting the case.
Man Pleads Guilty to Child Pornography ChargeRead the Press Release
A Tulsa man pleaded guilty today to receipt of child pornography after his state conviction was vacated due to lack of jurisdiction, announced Acting U.S. Attorney Clint Johnson.
Matthew Steven Janson, 37, knowingly used the internet to receive child pornography from April 18, 2016 to May 25, 2016.
According to the plea agreement, Janson admitted to possessing at least 600 images of child sexual abuse including the abuse of prepubescent minors who had not attained 12 years of age. The materials were possessed and knowingly accessed via Janson’s computer and within the Muscogee Nation Reservation. U.S. District Judge Gregory K. Frizzell set sentencing for Oct. 15, 2021.
Janson is an enrolled citizen of the Cherokee Nation. Janson’s state conviction was vacated due to the Supreme Court’s ruling in McGirt v. Oklahoma. He previously pleaded guilty in state court and was sentenced to 10 years with 5 years suspended.
The Tulsa Police Department, Oklahoma State Bureau of Investigation and U.S. Immigration and Customs Enforcements’ Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Cymetra M. Williams is prosecuting the case. Ms. Williams is a prosecutor from the U.S. Attorney’s Office in the District of New Jersey. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee Nation and Cherokee Nation Reservations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Madison Felon Sentenced to 63 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 Jaime Williams, 34, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 63 months in federal prison for unlawfully possessing a loaded firearm as a convicted felon. Williams pleaded guilty to this charge on March 17, 2021.
The charge in this case stemmed from a traffic stop of Williams’s vehicle on September 26, 2020. After stopping Williams, police searched his vehicle and located a loaded 9-millimeter Ruger handgun on the driver’s side floorboard. This handgun had previously been reported stolen. Additionally, officers located crack cocaine in the vehicle and MDMA in Williams’s pocket.
This is Williams’s third conviction for illegally possessing a firearm as a felon. At time of the offense in this case, he was serving a term of extended supervision in connection with his two state convictions for this crime.
The charges against Williams were the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Taylor L. Kraus.
Lawrence Man Sentenced for Fentanyl OffensesRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for distributing and possessing fentanyl.
Yunior Darismir Prandys Torres, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to five years in prison and five years of supervised release. In October 2020, Torres pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl, one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of and possession with intent to distribute fentanyl, aiding and abetting.
Torres was arrested on July 17, 2019 after he participated in the sale of over 20 grams of a substance containing fentanyl to an undercover agent on two occasions in July 2019 in Lawrence.
Torres was indicted as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
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. Valuable assistance was provided by the Drug Enforcement Administration, the Massachusetts State Police, the Lawrence Police Department and the North Andover Police Department. Assistant U.S. Attorney Thomas Kanwit of Mendell’s office prosecuted the case.
Las Vegas Man Pleads Guilty to Opioids Overdose DeathRead the Press Release
LAS VEGAS, Nev. — A Las Vegas man today pleaded guilty to distributing opioids that resulted in the overdose death of another person.
According to court documents and admissions made in court, Daniel Anguiano, 42, distributed counterfeit oxycodone pills — containing fentanyl and acetyl fentanyl — to a man who died after consuming the counterfeit pills.
Fentanyl is classified as Schedule II controlled substances, and acetyl fentanyl is classified as a Schedule I controlled substance. Fentanyl is a synthetic opioid drug that is approximately 80-100 times more potent than morphine and 50 times more potent than heroin. A few milligrams of fentanyl, which is equivalent to a few grains of table salt, may be deadly. Acetyl fentanyl is an analog of fentanyl that is 10-15 times more potent than morphine. Oxycodone is a semi-synthetic opioid that is a common drug of abuse.
Anguiano pleaded guilty to one count of distribution of a controlled substance, specifically fentanyl and acetyl fentanyl. U.S. District Judge Andrew Gordon scheduled sentencing for September 13, 2021.
For the distribution of fentanyl and acetyl fentanyl, Anguiano faces: (a) a statutory mandatory minimum sentence of 20 years imprisonment; and (b) a statutory maximum sentence of life imprisonment and a $10,000,000 fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Assistant Special Agent in Charge Daniel Neill for the DEA made the announcement.
This case is the product of an investigation by the DEA. Assistant U.S. Attorney Kimberly Sokolich is prosecuting the case.
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Kailua man receives over 24 years in prison for drug trafficking and money launderingRead the Press Release
HONOLULU – United States District Judge Derrick K. Watson sentenced Justin K. Wilcox, aka Justin Kaanoi, aka Ali’i, 39, of Kailua, Hawaii, today to concurrent imprisonment terms of 295 months and 240 months for his roles in conspiracies to distribute methamphetamine and cocaine and commit money laundering, respectively. Wilcox previously pled guilty on August 5, 2019, to conspiracy to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine and 500 grams or more of cocaine and conspiracy to commit money laundering. Wilcox also received with five- and three-year concurrent terms of supervised release to follow imprisonment.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, stated that according to court documents and information presented in court, Wilcox was the Oahu leader and organizer of the drug conspiracy which operated in Hawaii and involved more than five members with drugs supplied by a Las Vegas, Nevada source. The sentencing court found Wilcox responsible for the possession and distribution of 3,880 grams of pure methamphetamine, or “ice,” and 1,393 grams of cocaine.
At the sentencing hearing, the court found that Wilcox utilized his Kailua clothing company, “Armed and Dangerous,” as a front business to launder cash drug proceeds. As a result, the court ordered Wilcox to pay a forfeiture money judgment of $127,000 for proceeds that Wilcox obtained as a result of his drug trafficking activities.
In addition to the seizure of 8.4 kilograms of methamphetamine and 1.39 kilograms of cocaine, federal law enforcement agents also seized over $160,000 in cash, two firearms, and ammunition over the course of the investigation.
A total of eight individuals were convicted for their participation in the drug conspiracy along with a ninth man who was convicted of related drug charges. All nine received sentences of 41 months imprisonment or greater, with five, including Wilcox, receiving sentences of over ten years, two of which exceeded 20 years.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service – Criminal Investigations Division. Assistant U.S. Attorneys Mark A. Inciong and Michael Albanese handled the prosecution.
Kadoka Man Sentenced for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Kadoka, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 14, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Timothy Kills In Water, age 34, was sentenced to 75 months in federal prison, followed by four years of supervised release, and a special assessment to the Federal Crime Victims fund in the amount of $100.
Kills In Water was indicted by a federal grand jury on March 9, 2020. He pled guilty on March 31, 2021.
Between October 2017 and May 2018, Kills In Water knowingly and intentionally conspired with others to distribute methamphetamine in South Dakota. In total, Kills In Water distributed between 500 grams and 1,500 grams of methamphetamine to other people, who sold it on the Rosebud Sioux Indian Reservation.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs, Office of Justice Services, and the Rapid City Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Kills In Water was immediately remanded to the custody of the U.S. Marshals Service.
Justice Department Settles with North Carolina School District to Provide Equal Opportunities to English Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Rowan-Salisbury Board of Education to resolve the department’s investigation into the Rowan-Salisbury School System’s (District) programs for its English learner students. The department’s investigation found system-wide failures to provide these students with the instruction and support they need to learn English and fully participate in school. The department conducted its investigation under the Equal Educational Opportunities Act of 1974.
“Students and parents who are not fluent in English have a right to access all of their school’s education programs and activities — and access starts with meaningful communication and appropriate instruction by school districts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department recognizes that today’s English learner students are tomorrow’s bilingual graduates. These students will bring essential and diverse language skills into our workforce and communities. We are encouraged that the Rowan-Salisbury School System has committed to the goals of equity and fairness at the heart of this agreement and we will continue to fight to ensure that all students enjoy access to educational opportunity regardless of background.”
Under the settlement agreement, the District will increase language instruction for all English learner students, including those with disabilities, so they can become fluent in English. The District will also train its teachers and administrators on how to support English learner students in academic subjects such as math, science and social studies. The District will continue to improve its translation and interpretation services for Limited English Proficient parents so all parents can fully participate in their children’s education. The Justice Department will monitor the district’s implementation of the settlement agreement over the course of the next three full school years.
The Spanish version of the press release is available here: El Departamento de Justicia llega a un acuerdo con un distrito escolar de Carolina del Norte para la provisión de la igualdad de oportunidades a estudiantes que están aprendiendo inglés | ESPANOL | Department of Justice. The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Department of Justice’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Settles with North Carolina Dental Offices over HIV DiscriminationRead the Press Release
The Justice Department announced today that it has reached a settlement to resolve a claim that Night and Day Dental Inc. discriminated against a woman with HIV in violation of the Americans with Disabilities Act (ADA).
Night and Day Dental operates nine dental offices throughout North Carolina. This settlement is part of the department’s Barrier-Free Health Care Initiative (initiative), a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation to ensure that people with disabilities, including those who are deaf or hard of hearing, who have HIV and who have mobility disabilities, have equal access to medical services.
Title III of the ADA prohibits dentists and other health care providers from discriminating against people with disabilities, including HIV. Following an investigation, the department found that Night and Day Dental discriminated against a woman with HIV when it refused to accept her as a new patient because of her HIV status. The patient was seeking routine dental care, including a cleaning and check-up. In addition, Night and Day Dental has a policy of requiring certain bloodwork results from patients with HIV before deciding whether to provide dental care, when in fact requiring such results is not medically necessary or recommended.
“Turning away patients with HIV or requiring them to provide information that is not medically recommended, creates unfair barriers to health care for people with HIV,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The ADA requires health care providers to treat patients based on current medical knowledge about their particular health conditions, and not based on stereotypes or misconceptions about a disability. The Justice Department is committed to ensuring that people with HIV do not face discrimination in health care settings or other areas of life.”
Under the settlement, Night and Day Dental must pay $30,000 to the victim of the discrimination. In addition, Night and Day Dental must train its staff on the ADA, develop and use a non-discrimination policy, and report and explain to the department every time it either refuses to treat a person with HIV or stops providing treatment after learning of a patient’s HIV.
This matter was handled by the Disability Rights Section of the department’s Civil Rights Division. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. For more information about this agreement or the ADA, please visit www.ada.gov or call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383). For more information on the Civil Rights Division, please visit www.justice.gov/crt. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
Jury finds one former St. Louis officer guilty on civil rights violation chargeRead the Press Release
ST. LOUIS – A jury found Dustin Boone, 37, of St. Louis, Missouri guilty on one count of aiding and abetting the deprivation of civil rights under color of law of undercover police officer Luther Hall. The jury was undecided on Christopher Myers, 30, of St. Louis, Missouri regarding his one count of destruction of evidence in a federal investigation as a result of destroying Hall’s cell phone.
Both former St. Louis Metropolitan Police officers committed the crimes during the 2017 Jason Stockley protests. The re-trial of both officers lasted nine days.
The evidence during the trial, which wrapped Thursday, proved that Dustin Boone assisted former police officer Randy Hays in the assault of undercover police officer Luther Hall. Det. Hall was undercover during the protests following the acquittal of former police officer Jason Stockley.
United States District Judge E. Richard Webber presided over the trial.
“As a police officer for the City of St. Louis, Dustin Boone violated the sacred trust placed in him to serve and protect members of the community,” said U.S. Attorney Sayler A. Fleming. “Our hope is this conviction serves as a deterrent to those who consider abusing their authority and a step toward restoring the community’s faith in the justice system and law enforcement.”
“Law enforcement officers must obey the law as well as enforce it,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Those who violate their oaths do a disservice to the communities they are sworn to protect and serve.”
The case was investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin and Assistant United States Attorney Rob Livergood handled the case.
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Jury Convicts Portland Man for Role in Drug Robbery and ShootingRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a local man guilty today for shooting and robbing two marijuana sellers in August 2017.
Ernest Franklin Evans, 39, a Portland resident, was found guilty of Hobbs Act robbery and using, carrying, and discharging a firearm in furtherance of a crime of violence and drug trafficking crime.
According to court documents and trial testimony, on August 3, 2017, an associate of Evans set up a ruse to purchase of 10 pounds of marijuana from two local marijuana sellers. After arriving at an agreed upon location, the two marijuana sellers wheeled out a large black tote full of marijuana. Shortly thereafter, two masked men—Evans and a second associate—came out from behind the corner of a building with guns drawn. Evans had a sawed-off shotgun and his associate had a pistol. Evans shot both marijuana sellers with a sawed-off shotgun and took their marijuana.
Evans was arrested on November 19, 2018, following the execution of a federal search warrant on his Portland residence.
On May 11, 2021, a federal grand jury in Portland returned a two-count superseding indictment charging Evans with robbery and using, carrying, and discharging a firearm during a crime of violence and drug trafficking crime.
Evans faces a maximum sentence of life in prison, a $250,000 fine, and five years’ supervised release.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations with assistance from the Portland Police Bureau; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the FBI. It was prosecuted by Assistant U.S. Attorneys Peter D. Sax and Jeffrey S. Sweet.
Jury Convicts Carson Indian Colony Resident of Voluntary Manslaughter in Indian CountryRead the Press Release
RENO, Nev. – A federal jury convicted a Reno man on June 16, 2021 for committing voluntary manslaughter on tribal land.
According to court documents and evidence presented at trial, Steven Bryan, 51, shot and killed his son with an AR-15 style rifle on or about December 13, 2019, on the Carson Indian Colony.
Bryan was found guilty of one count of voluntary manslaughter. He faces a statutory maximum sentence of 15 years imprisonment. Chief U.S. District Judge Miranda M. Du presided over the trial and scheduled sentencing for September 21, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorneys Penelope Brady and Andolyn Johnson are prosecuting the case.
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Judge sentences unregistered St. Louis taxpayer for tax fraudRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Lakisha Smith to 32 months in prison and ordered her to pay $10, 416 in restitution to the to the Internal Revenue Service today. The 39-year-old St. Louis, Missouri resident pleaded guilty, in March, to two counts of tax fraud.
Smith, from 2013 to 2016, prepared approximately 28 fraudulent tax returns for her clients using the TaxAct commercial website. She prepared client returns reporting false income and withholdings in order to generate larger tax refunds. Smith typically received cash payments of up to $2,500.00 from the false refunds paid to her customers.
Smith was not registered with the Internal Revenue Service as a return preparer.
The Internal Revenue Service investigated the case. Assistant United States Attorney Jennifer Roy is handling the case.
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Jefferson County Engineer Sentenced for $13 Million COVID-Relief FraudRead the Press Release
BEAUMONT, Texas – A Beaumont engineer has been sentenced for his participation in a scheme to file two fraudulent loan applications seeking more than $13 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Eastern District of Texas Acting U.S. Attorney Nicholas J. Ganjei today
Shashank Rai, 31, pleaded guilty on Feb. 9, 2021, to making false statements to a bank and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia A. Crone. Rai admitted that he sought millions of dollars in forgivable loans guaranteed by the SBA by claiming to have 250 employees earning wages when, in fact, no employees worked for his purported business. In the application submitted to the first lender, Rai sought $10 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of $4 million. In the second application, Rai sought approximately $3 million in PPP loan proceeds by fraudulently claiming to have 250 employees with an average monthly payroll of approximately $1.2 million.
“The Payroll Protection Program was designed to provide financial support during the COVID-19 pandemic to real American businesses with real employees,” said Acting U.S. Attorney Nicholas J. Ganjei. “It was not designed to provide loans to individuals for personal investment purposes. Today’s sentence demonstrates our shared commitment to protecting this important, taxpayer-funded program.”
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FHFA-OIG, FDIC-OIG, SBA-OIG, and USPIS. Assistant Chief L. Rush Atkinson and Trial Attorney Lou Manzo of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Nathaniel Kummerfeld and Frank Coan prosecuted the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Jackson Man Sentenced to 15 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. - A Jackson man was sentenced today to 15 years in prison for possessing a firearm after having been previously convicted of multiple felony offenses, announced Acting U.S. Attorney Darren J. LaMarca and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, on January 21, 2019, Jackson Police officers responded to a call concerning a suspected house burglary in the city of Jackson. When officers arrived, Albert Thompson, 24, of Jackson, was found at the scene along with two other individuals. All three individuals ran from the officers. Thompson was taken into custody and had a 9mm pistol in his hand. The arresting officer reported that Thompson raised the pistol toward her.
Thompson had four prior felony convictions for burglary of a dwelling in Rankin and Madison counties, and a felony conviction for motor vehicle theft in Rankin County. As a convicted felon, it is contrary to federal law for Thompson to possess any firearm.
Thompson was indicted and pled guilty to possessing a firearm as a convicted felon. Due to the number and nature of Thompson’s prior felony convictions, he faced an enhanced penalty at sentencing.
The Federal Bureau of Investigation and the Jackson Police Department investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
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.
Inland Empire Attorney Faces Federal Charge of Producing Child Pornography for Enticing Minor to Send Sexually Explicit ImagesRead the Press Release
RIVERSIDE, California – An attorney with a law practice in Ontario was taken into federal custody today on a charge of producing child pornography that alleges he paid a teenaged girl to send him sexually explicit images.
Sagi Schwartzberg, 38, of Fontana, was taken into custody by special agents with the FBI after the San Bernardino County District Attorney on Wednesday dismissed its child exploitation charges against him. Schwartzberg – who used the aliases “Jason D,” “drunkesq_o64” and “xocdrunkx” on social media platforms – is expected to be arraigned on the federal charge this afternoon in United States District Court in Riverside.
Schwartzberg is named in a federal criminal complaint, filed on April 27 and unsealed today, that charges him with production of child pornography, an offense that carries a mandatory minimum sentence of 15 years in federal prison.
Schwartzberg was arrested February 17 in the state case, approximately three months after the National Center for Missing and Exploited Children forwarded a tip from Kik, a mobile messaging application, to the Fontana Police Department. The tip indicated that a person later identified as Schwartzberg had uploaded suspected child pornography to Kik from two locations – later determined to be his residence and his law office – in October and November. The FBI later reviewed the videos, one of which depicts a girl who appears to be under the age of 10 being sexually assaulted, according to the affidavit in support of the complaint.
During a search on February 17, Fontana Police officers seized Schwartzberg’s mobile phone, which had a hidden vault containing file folders, labeled with girls’ names, one of which contained sexually explicit images and videos of a girl who is now 15 years old, the affidavit alleges.
During a subsequent interview with police officers outlined in the affidavit, the girl said she had been solicited by Schwartzberg to send sexually explicit images via SnapChat starting 2019 and that she had received electronic gift cards in exchange. The victim “reported that ‘Jason’ asked her to meet up with him for sex but she never agreed to it,” the affidavit states. “‘Jason’ also asked her to introduce him to her other friends but [the victim] claimed that she did not introduce him to any of her friends.”
Fontana Police also identified another victim, currently 17 years old, who had sent images to Schwartzberg via SnapChat when she was 16, sometimes in response to specific instructions, according to the affidavit, which notes authorities have identified at least two other minor victims who also sent images to Schwartzberg.
The FBI continues to work to identify other victims in this case. Anyone who may have information in this matter is encouraged to contact the FBI’s Los Angeles Field Office at 310-477-6565.
This matter is being investigating by the FBI in conjunction with Fontana Police Department, as part of Inland Regional Child Exploitation and Human Trafficking Task Force. The Task Force also includes the Upland Police Department, the Rialto Police Department, the San Bernardino County Sheriff's Department, the Riverside County District Attorney’s Office, the Riverside County Sheriff’s Department and the Riverside Police Department.
Assistant United States Attorney Sonah Lee of the Riverside Branch Office is prosecuting this case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 15 was:
Jesse Jon Strack, 40, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Strack faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Strack was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-29.
Douglas Lynn Vanderslice, 35, of Butte, on charges of unlawful drug user in possession of a firearm. If convicted of the most serious crime, Vanderslice faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Vanderslice was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-36.
Donald Ray Gardner, 58, of Lodge Grass, on charges of aggravated sexual abuse of a child and abusive sexual contact. If convicted of the most serious crime, Gardner faces a maximum of life in prison, a $250,000 fine and five years of supervised release. Gardner was released pending further proceedings. The FBI investigated the case. PACER case reference. 20-70.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Charged with Kidnapping Woman from Laboratorio Clínico Millennium in HumacaoRead the Press Release
SAN JUAN, Puerto Rico – On June 16, 2021, a federal grand jury returned a three-count indictment charging José Reyes-Serrano with kidnapping, carjacking, and robbery, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
As stated in the Affidavit submitted in support of the Complaint, On June 9, 2021, after 7:00 a.m., Reyes-Serrano entered the Laboratorio Clínico Millennium in Humacao and demanded money from the staff while indicating that he had a weapon. After he was given approximately $80, Reyes-Serrano asked who owned the Honda Passport parked outside. When no one responded, he threatened to kill people in the laboratory if the owner did not give him the key. The owner came forward. Reyes-Serrano told her to accompany him to the vehicle and ordered her to sit in the front passenger seat. Reyes-Serrano then took the woman to San Juan. She was later found unharmed near Residencial Luis Llorens Torres.
Using tracking technology, the Federal Bureau of Investigation was able to locate the carjacked vehicle. Agents from the Puerto Rico Police Bureau then intercepted the car, which Reyes-Serrano crashed. He was arrested nearby.
“Tracking technology on vehicles has the potential to make carjacking cases easier to solve and much less profitable for criminals,” said U. S. Attorney Muldrow. “Thanks to the Puerto Rico Police Bureau and the FBI who worked as one team to solve this case immediately.”
Assistant U.S. Attorney Jeanette Collazo of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. If convicted, the defendant faces up to life in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Henderson County Man Sentenced to 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
TYLER, Texas – An Athens, Texas man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Matthew Don Herrington, 49, pleaded guilty on Dec. 12, 2020, to possession with intent to distribute methamphetamine and was sentenced to 120 months in federal prison on June 16, 2021, by U.S. District Judge Jeremy D. Kernodle.
“Drug dealers who pump poison into our communities will face certain and severe consequences,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will continue to partner with federal, state, and local agencies to ensure our communities are safe and to bring to justice those who spread the misery of methamphetamine.”
According to documents and information presented in court, Herrington was arrested on Oct. 22, 2019 by Rusk County Sheriff’s Deputies with a quantity of methamphetamine that he intended to distribute to others, along with a firearm. In March 2020, Rusk County Deputies learned that Herrington was still engaged in methamphetamine trafficking. On March 25, 2020, Deputies executed a search warrant of Herrington’s home and recovered a distributable quantity of methamphetamine and another firearm. Herrington is prohibited from possessing firearms because of multiple prior felony convictions, including a 2009 federal conviction for distribution of methamphetamine, for which he received 70 months in federal prison.
This case was investigated by the U.S. Drug Enforcement Administration and the Rusk County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ryan Locker.
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Great Falls man sentenced to prison for illegal firearm possessionRead the Press Release
GREAT FALLS – A Great Falls man was sentenced today to one year and one day in prison followed by three years of supervised release on a firearms conviction after law enforcement officers found him slumped over in a running vehicle, under the influence of drugs and with a firearm, Acting U.S. Attorney Leif M. Johnson said.
Leonard James Hilton, 35, pleaded guilty on March 16 to possession of a firearm by an unlawful user of a controlled substance.
Chief U.S. District Judge Brian M. Morris presided. Hilton was detained.
In court documents filed in the case, the government alleged that through out 2019 and 2020, Hilton had numerous interactions with Great Falls law enforcement and had repeatedly acknowledged to police that he was addicted to methamphetamine and heroin. The government further alleged that on April 9, 2020, police responded to a call and found Hilton slumped over the steering wheel of a running car in a motel parking lot. Officers knocked on the window. Hilton was sluggish to respond, but then reached toward the center console where officers saw a pistol in plain view. Officers ordered Hilton out of the vehicle, and as he exited, numerous hypodermic needles fell out of his coat pocket. Hilton told officers he had received the pistol from a friend.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Great Falls Police Department and the Cascade County Sheriff’s Office.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Fort Pierre Woman Indicted on Methamphetamine ChargesRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Fort Pierre, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Lisa Herren, a/k/a Lisa Miller, age 42, was indicted on June 8, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 11, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in prison, including a mandatory minimum of five years in prison, a $5,000,000 fine, and at least four years, up to life of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that between September 2018 and June 2021, Herren was involved in a conspiracy with several others to distribute over 50 grams of methamphetamine in and around the Pierre and Fort Pierre, South Dakota, area.
The charge is merely an accusation and Herren is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Herren was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Western New Yorker Pleads Guilty to Bank Fraud and Tax EvasionRead 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 Ronald Rechan, 58, of Douglasville GA, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to making a false statement on a bank loan application and to tax evasion. The charges carry a maximum penalty of 30 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that in November 2017, the defendant submitted a $150,000 home loan application to First National Bank of America. In order to influence the bank into issuing the loan, Rechan fraudulently overstated his income. In addition to providing false information to the bank, between April 2013 and January 2018, the defendant committed tax evasion. During that period, while serving as a chief financial officer, the defendant paid himself $1,962,167.21 which constituted income for federal tax purposes. In order to avoid paying tax on this income, Rechan paid personal expenses directly from a company account and deposited $332,746.19 into a nominee bank account. His actions resulted in a tax loss to the IRS of $628,144.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for October 12, 2021, before Judge Sinatra.
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Former Florence County Sheriff’s Lieutenant Sentenced to Just over a Year in Federal Prison after Joint Investigation into Public Corruption and Illegal GamblingRead the Press Release
FLORENCE, SC --- Acting U.S. Attorney M. Rhett DeHart announced today that former Florence County Sheriff’s Lieutenant Mark Edward Fuleihan, 49, of Florence, was sentenced to just over a year in federal prison as the result of an extensive joint federal and state investigation into public corruption and illegal gambling operations in the Pee Dee region. Fuleihan, who previously pleaded guilty for operating an illegal gambling business, is one of nine defendants to be charged in the case and is among eight defendants who have pleaded guilty for their role in the illegal operation.
Homeland Security Investigations (HSI) and the South Carolina Law Enforcement Division (SLED) began the operation years ago after a request from the Florence County Sheriff’s Office. The investigation specifically focused on allegations that a senior law enforcement official was obstructing the ability of SLED and others to monitor illegal gambling operations by, among other things, informing those gambling operators about planned law enforcement activity. The case led to SLED’s arrest of Fuleihan on April 2, 2020, on a South Carolina State Grand Jury arrest warrant for a state Ethics Act bribery charge, followed by South Carolina State Grand Jury indictments for misconduct in office and Ethics Act bribery charges on May 14, 2020. Federal charges for obstruction of justice were filed on June 30, 2020, and a federal grand jury indicted Fuleihan on October 20, 2020, for operating an illegal gambling business, conspiracy to obstruct enforcement of state criminal law, and obstruction of an official proceeding. Then-Florence County Interim Sheriff William Barnes dismissed Fuleihan, who had served as a Florence County Sheriff’s Deputy since 1995, from his position just before his arrest by SLED.
“We trust our law enforcement officers to protect society and stand against wrongdoing,” said Acting U.S. Attorney DeHart. “When an officer violates that trust, it is imperative that we hold them accountable. I commend our state and federal partners for doing just that in this case. This team was able to dismantle a criminal organization that was bolstered by a crooked cop and to send that officer to prison.”
“We greatly appreciate the work of our federal, state, and local partners in this joint investigation, which involved the US Attorney’s Office, HSI, SLED, the Florence County Sheriff’s Office, and the Attorney General’s State Grand Jury Division,” South Carolina Attorney General Alan Wilson said. “It is our goal to successfully synch and pool the resources of all the various jurisdictions to best achieve justice for South Carolinians,” he added.
“A law enforcement officer’s badge and gun are not only symbols of trust and professionalism, but they are also tools that should be used for protecting the public, not enabling criminal activity,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North and South Carolina. “Corruption in law enforcement undermines the public’s trust and makes all of our jobs harder.”
“When a law enforcement officer breaks the law, it tarnishes the entire profession, and we lose the respect of the communities we serve” said SLED Chief Mark Keel. “SLED is committed to continuing our work with our federal, state, and local partners to ensure that we have professional accountable law enforcement in South Carolina.”
Evidence presented to the court showed that since at least July 2014, the defendants operated illegal gambling houses throughout Florence and Williamsburg. The gambling organization allowed individuals to play illegal gambling machines, collected monies from those individuals playing, and payed out winnings to those individuals. Approximately $1,000,000 in cash was deposited into the accounts of at least two members of the gambling organization.
The evidence showed that Fuleihan was essential to the ability of the gambling operation to operate. Fuleihan used his former position as a senior officer with the Florence County Sheriff’s Office to uncover details about the joint federal and state investigation into the illegal gambling operation, which included calling SLED officials and requesting to be informed about any upcoming operations related to gambling enforcement. Fuleihan would share this information with members of the illegal gambling operation, and the members would use it to evade law enforcement operations and to destroy potentially relevant evidence. Fuleihan was recorded on several calls with at least one member of the gambling operation discussing pending federal search warrants, potential wiretaps, and law enforcement raids. At least one member of the illegal gambling operation explained how Fuleihan would sell previously seized gambling machines back to members of the illegal gambling operation.
Chief U.S. District Judge R. Bryan Harwell sentenced Fuleihan to twelve months and one day in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. The South Carolina State Grand Jury charges remain pending at this time.
The following co-defendants in the case have pled guilty and been sentenced to terms of probation or house arrest: Timothy Dane Keefe, 39, of Lake City; Thyrone Eaddy, 54, of Lake City; Cliff Cantey, 62, of Lake City; Kenneth Moore, 64, of Salters; George Dollard, 70, of Lake City; and Leroy Barbour 51, of Florence. Co-defendant Sheryl Kirby, 52, of Lake City, has pleaded guilty and is awaiting sentencing. Co-defendant Dale Smith, 64, of Lake City, has been charged but has not entered a plea in the case or otherwise been convicted.
The case was investigated by HSI, SLED, the Florence County Sheriff’s Office, and the South Carolina State Grand Jury. Assistant United States Attorney Derek A. Shoemake prosecuted the federal case. State Grand Jury Division Chief Attorney S. Creighton Waters and Assistant Attorney General Johnny Ellis James, Jr. are prosecuting the case for the South Carolina State Grand Jury.
Former Enforcer of New Bedford Latin Kings Chapter Sentenced for Drug Trafficking and ManufacturingRead the Press Release
BOSTON – A former Enforcer for the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on drug charges.
Jeremia Medina, a/k/a “King Sweepy,” 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to eight years in prison and three years of supervised release. On March 10, 2021, Medina pleaded guilty to conspiracy to distribute, manufacture and possess with intent to distribute cocaine base.
Medina was a former Enforcer of the New Bedford Chapter of the Latin Kings and conspired with other gang members to distribute, manufacture and possess with intent to distribute cocaine and cocaine base. As Enforcer, Medina was a leader of the New Bedford Chapter charged with organizing violent acts by the gang and administering violations and other violence. Medina also conspired with other Latin Kings members and leaders to operate a vast drug trafficking network throughout New Bedford, using a number of multi-unit apartment buildings controlled by the Latin Kings, known as trap houses. Medina was also recorded on video participating in multiple beatings of individuals targeted by the gang.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Medina is the 32nd defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Boston Police Sergeant Pleads Guilty to Overtime FraudRead the Press Release
BOSTON – A former Boston Police Sergeant pleaded guilty today in connection with committing over $25,000 in overtime fraud while assigned to the Boston Police Department’s (BPD) evidence warehouse.
Gerard O’Brien, 62, of Braintree, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 28, 2021.
In September 2020, O’Brien and eight other Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, four additional officers have been charged: former officer Joseph Nee, former Captain Richard Evans and former Sergeants George Finch and William Baxter. Finch pleaded guilty on June 1, 2021. Nee and Baxter are each scheduled to plead guilty on June 22, 2021 and June 25, 2021, respectively. On April 8, 2021, Evans pleaded not guilty.
From December 2016 through February 2019, O’Brien submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, O’Brien claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., and sometimes earlier. Additionally, O’Brien knowingly endorsed the fraudulent overtime slips of his subordinates who, allegedly, also left early from this shift. For the “kiosk” shift, O’Brien and, allegedly, others submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit, only worked three-to-four hours of those shifts.
From December 2016 to February 2019, O’Brien personally collected approximately $25,930 for overtime hours he did not work.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Boston Police Officer Charged in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Craig Smalls, 55, of Roxbury, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.
Smalls admitted that from at least March 2015 through September 2016, he submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Smalls claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Smalls submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts. As a result, between March 2015 and September 2016, Smalls personally collected approximately $16,252 for overtime hours he did not work.
In September 2020, nine Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, four additional officers have been charged: former officer Joseph Nee, former Captain Richard Evans and former Sergeants George Finch and William Baxter. Finch pleaded guilty on June 1, 2021. Nee and Baxter are each scheduled to plead guilty on June 22, 2021 and June 25, 2021, respectively.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Five Employees of Utility Company Charged in Bribery and Kickback SchemeRead the Press Release
Defendant Complained to Contractor in Code That Bribe Payment was Insufficient: “Sandwich was Light on the Meat”
A criminal complaint was unsealed today in Brooklyn charging Devraj Balbir, Ricardo Garcia, Patrick McCrann, Jevan Seepaul and Richard Zavada, managers employed in the facilitiesdepartment of a New York utility company (the “Company”), with conspiring to violate the Travel Act by accepting hundreds of thousands of dollars in bribes and kickbacks in exchange for steering contracts to certain Long Island-based contractors with whom the Company did business. One contractor (the “Contractor”) secured more than $50 million in facility maintenance contracts from the Company during the time that the Contractor was paying bribes to the defendants. The defendants were arrested today and will make their initial appearances this afternoon before United States Magistrate Judge James R. Cho.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and charges.
“As alleged, the defendants made corrupt demands for bribes and kickbacks to line their own pockets and upgrade their lifestyles, while putting the contractors at risk of losing business if they did not comply,” stated Acting U.S. Attorney Lesko. “This Office is committed to protecting the integrity of the bidding process and ensuring that businesses compete on a level, honest playing field.”
"Crimes of this nature weaken the integrity of the bidding process and deny consumers the benefit of free and open competition in the marketplace. The FBI will continue to work with the Antitrust Division to ensure fair bidding practices are employed across all sectors of our economy," stated FBI Assistant Director-in-Charge Sweeney.
As alleged in the complaint, between 2013 and 2020, the defendants solicited and accepted bribes and kickbacks from the owners of the Contractor and other contractors in connection with the awarding of maintenance work contracts for the Company. As managers in the facilities department of the Company, McCrann, Garcia (after May 1, 2019) and Balbir (after May 1, 2020) had the authority to approve “no-bid” contracts valued at less than $50,000. The Contractor understood that if it did not pay bribes, these defendants would award the Company’s work to the Contractor’s competitors. In exchange for the bribe payments, the defendants, including Seepaul and Zavada, also took various steps to assist the Contractor in obtaining contracts from the Company for which there was a bidding process, including providing it with non-public bidding information, circumventing the Company’s competitive bidding process and offering favorable reviews of the Contractor’s work. The Contractor paid bribes to ensure that the defendants did not slow or stop disbursement of project funds to the Contractor, provide negative performance reviews regarding the Contractor’s work, or otherwise claim that the Contractor’s work did not meet contractual specifications. The defendants communicated with the contractors about bribe payments by text messages, among other forms of communication. For example, on September 2, 2016, McCrann texted a contractor, “Sandwich was light on the meat” and that McCrann was “a little concerned,” indicating that a bribe payment had been insufficient. The contractor replied, “I’ll ask for a nice one next time,” indicating that the next bribe payment would be larger.
The illicit payments to the defendants took multiple forms, including cash, purchase of a recreational vehicle, home improvements, landscaping and an overseas vacation. For example, during 2017 and 2018, the Contractor paid tens of thousands of dollars in bribes to Balbir in the form of renovations performed at his residence. Between August 2015 and April 2019, the Contractor also made college tuition payments totaling more than $30,000 for a family member of Garcia. On February 25, 2018, Garcia sent a text message to a contractor containing images of airlines reservations for two individuals in April 2018 from Newark to Dubai and hotel reservation information for a 10-night hotel stay in Dubai for two individuals so that the contractor could pay for the expenses. Financial records obtained during the investigation also revealed that the Contractor paid approximately $100,000 for work performed at Seepaul’s home during 2017.
As part of the investigation, agents recovered approximately $300,000 in cash from a safe deposit box held by Zavada. On November 18, 2020, FBI special agents executed a search warrant at Zavada’s residence in Hicksville, New York, and seized electronic spreadsheets he maintained that contained dates, the amounts of bribe payments, and the names of various entities that provided facilities services to the Company.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford, Artie McConnell and Nathan Reilly are in charge of the prosecution.
The Defendants:
DEVRAJ BALBIR
Age: 33
North Bellmore, New YorkRICARDO GARCIA
Age: 48
Stroudsburg, PennsylvaniaPATRICK MCCRANN
Age: 57
Selden, New YorkJEEVAN SEEPAUL
Age: 36
Rockville Centre, New YorkRICHARD ZAVADA
Age: 65
Hicksville, New YorkE.D.N.Y. Docket No. 21-MJ-696
Final Defendant Sentenced in Anderson County Drug Trafficking ConspiracyRead the Press Release
TYLER, Texas – The final defendant has been sentenced to federal prison in a drug trafficking conspiracy in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Amber Nicole Priehs, 30, pleaded guilty on Dec. 12, 2019, to conspiracy to distribute cocaine, methamphetamine, and heroin, and was sentenced to 80 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Priehs was the sixth and final Palestine, Texas resident to be sentenced in the drug trafficking conspiracy.
“The imprisonment of this drug trafficking organization is a significant victory for the citizens of Palestine and the rest of East Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office will continue to pursue those who pump poison and misery into our communities. These defendants showed an utter lack of regard for their fellow citizens by lining their own pockets off of addiction and the decay of their own community.”
According to information presented in court, Byron Bernard Billups, Brandon Williams, and Priehs distributed large amounts of methamphetamine, cocaine, and heroin in Palestine and surrounding areas. Billups served as the leader and primary source of supply and worked with Priehs and others to acquire kilos of methamphetamine and other drugs from sources of supply across Texas and brought them back to East Texas for distribution. Brandon Williams distributed bulk methamphetamine, cocaine, and ecstasy to wholesale and retail customers from his home in Palestine, which he shared with his uncle, Larry Williams, who also assisted with handling customers in the drug deals. Priehs distributed bulk methamphetamine, cocaine, and heroin directly to customers and through Marcos Navarro, who reported to Priehs. Priehs also recruited Steve Foster to store bulk drugs at his house, which he also permitted Priehs to use to meet customers. A federal grand jury returned an indictment charging the defendants with federal drug trafficking violations on Feb. 20, 2019.
Brandon Kione Williams, 37, pleaded guilty on Sep. 21, 2020, to conspiracy to distribute drugs and was sentenced to 216 months in federal prison on March 25, 2021. Larry Joe Williams, 65, pleaded guilty on March 9, 2020, to misprision of a felony and was sentenced to 36 months in federal prison on Oct. 13, 2020. Byron Bernard Billups, 36, pleaded guilty on July 14, 2020, to conspiracy to distribute drugs and was sentenced to 120 months in federal prison on Dec. 17, 2020.
Marcos Antonio Navarro, 35, pleaded guilty on March 12, 2020, to conspiracy to distribute drugs and was sentenced to 60 months in federal prison on August 11, 2020. Steve Allen Foster, 33, pleaded guilty on March 16, 2020, to conspiracy to distribute drugs and was sentenced to 78 months in federal prison on Sep. 15, 2020.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration, Texas Department of Public Safety-CID, and the Palestine Police Department. These defendants were prosecuted by Assistant U.S. Attorneys Ryan Locker, Colleen Bloss, and Heather H. Rattan.
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El Departamento de Justicia llega a un acuerdo con un distrito escolar de Carolina del Norte para la provisión de la igualdad de oportunidades a estudiantes que están aprendiendo inglésRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo de conciliación con la Junta Educativa de Rowan-Salisbury, el cual resuelve la investigación del Departamento de los programas del sistema escolar de Rowan-Salisbury (el Distrito) para sus estudiantes que están aprendiendo inglés. La investigación del Departamento halló que incumplió, de manera generalizada, con su deber de proporcionar a estos estudiantes con la enseñanza y el apoyo que necesitan para aprender inglés y participar plenamente en la vida escolar. El Departamento llevó a cabo su investigación en virtud de la Ley de Igualdad de Oportunidades Educativas de 1974.
«Los estudiantes y padres que no dominan el inglés tienen el derecho a acceder a todos los programas y actividades educativas de su escuela, y ese acceso comienza con la comunicación significativa y la enseñanza apropiada por parte de los distritos escolares», declaró la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles. «El Departamento de Justicia reconoce que los estudiantes que están aprendiendo inglés hoy serán los graduados bilingües de mañana. Estos estudiantes aportan destrezas lingüísticas esenciales y diversas a nuestras comunidades y mano de obra. Nos anima ver cómo el sistema escolar de Rowan-Salisbury se ha comprometido con los objetivos de equidad y justicia que forman parte del corazón de este acuerdo y seguiremos luchando por asegurar que todos los estudiantes puedan disfrutar del acceso a las oportunidades educativas, independientemente de sus antecedentes.
Conforme al acuerdo de conciliación, el Distrito expandirá la enseñanza lingüística para estudiantes que están aprendiendo inglés, incluyendo aquellos que tienen discapacidades, para que puedan dominar el inglés. Asimismo, el Distrito capacitará a sus maestros y administradores en cuanto a la forma correcta de apoyar a estudiantes que están aprendiendo inglés en asignaturas académicas como matemáticas, ciencias o estudios sociales. El Distrito seguirá mejorando sus servicios de traducción e interpretación para padres cuyo dominio del inglés es limitado para que todos los padres puedan participar plenamente en la educación de sus hijos. Por otra parte, el Departamento de Justicia supervisará la implementación del acuerdo por parte del Distrito durante los próximos tres años escolares completos.
La ejecución de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles del Departamento de Justicia, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
Durham Woman Pleads Guilty to Social Security FraudRead the Press Release
PORTLAND, Maine: A Durham woman pleaded guilty today in federal court to Social Security fraud, Acting U.S. Attorney Donald E. Clark announced.
According to court records, from about July 2009 through November 2018, Carol Bourgoin, 65, a recipient of Supplemental Security Income (“SSI”), concealed the presence of her husband in her household to maintain her eligibility to receive benefit payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Bourgoin’s husband had sufficient income to render her ineligible for the benefits she received during that period. In multiple reviews of her eligibility for benefits, Bourgoin falsely represented to the Social Security Administration (“SSA”) that she was living alone and not receiving help or money from any other person during this time. At an interview with law enforcement agents, Bourgoin admitted to concealing her living situation from SSA because she knew it would make her ineligible to receive SSI.
Bourgoin faces up to five years in prison and a fine of up to $250,000, and up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
SSA’s Office of the Inspector General investigated the case.
Denver Man Charged with COVID Relief Loan FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced that Anthony Zaghab, 52, of Denver was arraigned today on charges relating to over $700,000 in fraudulently obtained COVID-relief loans and unemployment insurance. He has been charged with wire fraud.
According to the allegations contained in an Information filed in federal court, starting in April 2020, Zaghab submitted false and fraudulent Economic Injury Disaster Loan (“EIDL”) applications and Paycheck Protection Program (“PPP”) applications to the Small Business Administration and to an approved lender. By February 2021, he had submitted fraudulent applications that netted him $660,000 worth of payments. Zaghab also claimed and received over $40,000 in unemployment insurance benefits on behalf of ineligible family members without their knowledge or agreement.
Zaghab owned or controlled several corporate entities. He also claimed to own or control several more entities bearing his name and the names of family members. In loan applications for these entities, Zaghab falsely stated the number of employees, the purported gross revenues, and the purported cost of goods sold. Zaghab also applied for and obtained an EIDL for a fictitious business entity bearing the name of his deceased father. In addition, Zaghab applied for and attempted to obtain economic injury disaster loans on behalf of fictitious or purported business entities in the names of family members, without the knowledge or consent of those family members.
Zaghab submitted a PPP application in June 2020 for a business called “Anthony Zaghab.” He falsely represented the date the business was established and its monthly payroll. He received a PPP loan in the amount of $20,833. Zaghab applied for and received a second PPP loan of $20,832 for “Anthony Zaghab” in February 2021. He received two more PPP loans of over $20,830 each for a fictitious business in the name of a family member.
Zaghab also applied for and obtained approximately $41,500 in Colorado Pandemic Unemployment Assistance (“PUA”) for ineligible family members without their knowledge and consent. These family members included his mother and sister, both of whom resided outside of the United States, and his deceased father.
The charges in the Information are allegations. The Defendant is presumed innocent until proven guilty.
The United States Secret Service investigated this case. Assistant U.S. Attorneys Martha Paluch and Rebecca Weber are handling the prosecution.
Case Number: 21-cr-00188-RBJ
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