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2 August 2021
Mexican Citizen Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced Juan Carlos Sandoval-Guerrero, age 21, a citizen of Mexico, was sentenced today, after pleading guilty to production and attempted production of child pornography, on April 1, 2021. United States District Judge Salvador Mendoza, Jr. sentenced Sandoval-Guerrero to a 15-year term of imprisonment, to be followed by a lifetime term of court supervision after he is released from federal prison. Sandoval-Guerrero was also ordered to pay $53,040.00 in restitution to his victims.
According to information disclosed during court proceedings, Homeland Security Investigations (HSI) began investigating Sandoval-Guerrero after law enforcement received a complaint from a concerned local mother. The mother expressed concern regarding interactions her nine-and eleven-year-old sons were having with a person she believed to be an adult over Xbox.
Through further investigation, HSI determined that Sandoval-Guerrero had been using Xbox to encourage the boys to engage in sexually-explicit activities, to video and photograph those activities, and send the images to him. Sandoval-Guerrero also communicated with the eleven-year-old boy via an application called TextNow.
On February 6, 2020, HSI executed a warrant to search Sandoval-Guerrero’s Grandview, Washington, residence, and seized numerous electronic devices that contained images of child pornography involving the boys. Officers transported Sandoval-Guerrero to the Grandview Police Department where he was interviewed. Sandoval-Guerrero admitted contacting the boys through the video game “Fortnite.” Sandoval-Guerrero also admitted that he requested and directed the boys to produce sexually-explicit images and videos.
At sentencing Judge Mendoza said “This is a very serious offense. The effects of the offense are not limited to those instances, those moments with the children. The brain of a 9, 11-year old is just developing. It has severe life-long impacts – what happens to them at that age. Impacts that you caused. You did it.”
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington, in collaboration with its federal, state, local and tribal law enforcement partners, uses every resource and tool available to investigate and prosecute aggressively those involved in child exploitation. This Office will continue to do all we can to protect vulnerable child victims of these horrible crimes.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by Homeland Security Investigations, the Benton County Sheriff’s Office, and the Southeast Regional ICAC. This case was prosecuted by Alison Gregoire and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Mexican Citizen Pleads Guilty to Transporting 10 Lbs. of Methamphetamine and Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARTIN ALMEDA-PINEDA, age 37, of Mexico, pled guilty as charged on July 28, 2021 to a three-count indictment. He was charged in Count 1 with possession with the intent to distribute 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)A); Count 2 with possessing a firearm in furtherance of his drug trafficking activities, in violation of Title 18, United States Code, Section 924(c); and charged in Count 3 with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A). His sentencing is set for October 27, 2021 at 9:30 am before United States District Court Judge Jane Triche Milazzo.
He will face a sentence of 10 years to life in prison and a term of not less than 5 years of supervised release for Count 1; a consecutive sentence of five years to life in prison and not more than five years of supervised release for Count 2; and up to 10 years imprisonment and not more than 3 years of supervised release for Count 3. He will also have to pay a total of $300.00 in mandatory special assessment costs.
According to the documents that were placed into the court record during his guilty plea, the defendant was arrested by St. Tammany Parish Sheriff Detectives after they conducted a lawful traffic stop of his vehicle and found 10 lbs. of methamphetamine in the back seat of his vehicle and a firearm in the center console. The detectives conducted the stop based off of information that they learned about the defendant from Special Agents with the Department of Homeland Security, who had knowledge that the defendant would be transporting a significant amount of drugs to the Eastern District of Louisiana.
U. S. Attorney Evans praised the work of the Department of Homeland Security and the St. Tammany Parish Sheriff’s Office in working together to investigate this matter. The case is being prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
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Mars Hill Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Mars Hill man pleaded guilty in federal court today to conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Josh Cook, 26, and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
Cook faces up to 20 years in prison and a fine of up to $1 million. He also faces between 3 years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Mail-Order Diabetic Testing Supplier and Parent Company Agree to Pay $160 Million to Resolve Alleged False Claims to MedicareRead the Press Release
Arriva Medical LLC (Arriva), at one point the nation’s largest Medicare mail-order diabetic testing supplier, and its parent, Alere Inc. (Alere), have agreed to pay $160 million to resolve allegations that they violated the False Claims Act.
Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida. Alere is a medical device company now based in Abbott Park, Illinois. Alere acquired Arriva in November 2011. The settlement resolves allegations that Arriva and Alere made, or caused, claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive meters, or patients were deceased.
“Paying illegal inducements to Medicare beneficiaries in the form of free items and routine copayment waivers can result in overutilization and waste taxpayer funds,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of the Medicare program by pursuing fraudulent claims arising from violations of the Anti-Kickback Statute or other applicable reimbursement requirements.”
The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them “free” or “no cost” glucometers and by routinely waiving, or not collecting, their copayments for meters and diabetic testing supplies. Specifically, the United States alleged that Arriva advertised that glucometers would be “free,” and then during intake calls offered Medicare beneficiaries a “no cost guarantee,” under which Arriva would provide the meters at “no cost” if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare. Arriva also allegedly offered and provided existing customers “free” additional meters to induce them to reorder testing supplies from Arriva.
Arriva also allegedly routinely waived, and failed to make reasonable efforts to collect, Medicare copayments. It allegedly failed to send invoices to beneficiaries, and failed to take other basic steps, like sending collection letters or making phone calls, to collect copayments. Specifically, Arriva allegedly systematically waived “small” dollar copayments without informing beneficiaries of their copayment obligations by sending them an invoice, and allegedly automatically waived other unpaid copayments after sending no more than three invoices seeking payment and making no other collection efforts. Arriva also allegedly waived copayments when customers complained that Arriva had advertised and otherwise indicated that their supplies would be free or at no cost.
“The False Claims Act and related statutes exist to protect the public fisc and to ensure companies do not benefit from unfair competition by gaining an illegal advantage over competitors,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “When companies engage in such practice, they can expect to be held accountable for their actions.”
“Engaging in activities that result in the submission of false claims to Medicare diverts funding from the necessary treatment and medical supplies beneficiaries need,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue working with our law enforcement partners to hold accountable those who seek to enrich themselves by submitting false claims to federal health care programs.”
“The TBI is diligent in pursuing false claims allegations such as these,” said Director David Rausch of the Tennessee Bureau of Investigation. “The partnership we have with our federal counterparts is key in combating healthcare fraud.”
The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere’s approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients’ eligibility for one. Medicare beneficiaries are only eligible to seek reimbursement for a new meter once every five years. Arriva also allegedly repeatedly billed Medicare for new meters for existing patients where Arriva itself had previously billed Medicare for meters for those patients within the five-year window.
Finally, the settlement resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. In November 2016, the Medicare program revoked Arriva’s Medicare supplier number for doing so.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee at an Arriva call center in Antioch, Tennessee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act also permits the United States to intervene and take over the litigation of such actions, as the United States did here. Mr. Goodman will receive $28,548,749 as his share of the recovery. The qui tam case is captioned United States ex rel. Goodman v. Arriva Medical LLC et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
Arriva’s founders, David Wallace and Timothy Stocksdale, previously paid $1 million to resolve allegations that they participated in the kickback scheme. Ted Albin and Albin’s company, Grapevine Billing and Consulting Services Inc., are not parties to the settlement and remain defendants in the ongoing litigation. The United States filed suit against Albin and Grapevine shortly after it intervened in the qui tam action against Arriva and Alere.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee, HHS-OIG, and the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Jake M. Shields of the Civil Division and Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Mail-Order Diabetic Testing Supplier and Its Parent Company Agree to Pay $160 Million to Resolve Alleged False Claims to MedicareRead the Press Release
NASHVILLE – Arriva Medical, LLC (Arriva), at one point the nation’s largest Medicare mail-order diabetic testing supplier, and its parent, Alere Inc. (Alere), have agreed to pay $160 million to resolve allegations that they violated the False Claims Act. Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida and one of the largest such mail order diabetic supply companies in the nation. Alere is a medical device company now based in Abbott Park, Illinois, which acquired Arriva in November 2011. The settlement resolves allegations that Arriva and Alere made, or caused, claims to Medicare that were false because of kickbacks to Medicare beneficiaries, because patients were ineligible to receive meters, or because patients were deceased.
“The False Claims Act and related statutes exist to protect the public fisc and to ensure companies do not benefit from unfair competition by gaining an illegal advantage over competitors,” said Acting U.S. Attorney Mary Jane Stewart. “When companies engage in such practice, they can expect to be held accountable for their actions.”
“Paying illegal inducements to Medicare beneficiaries in the form of free items and routine copayment waivers can result in overutilization and waste taxpayer funds,” said Acting Assistant Attorney General Bryan M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of the Medicare program by pursuing fraudulent claims arising from violations of the Anti-Kickback Statute or other applicable reimbursement requirements.
The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them “free” or “no cost” glucometers and by routinely waiving, or not collecting, their copayments for these meters and other diabetic testing supplies. Specifically, the United States alleged that Arriva advertised that glucometers would be “free,” and then during intake calls offered Medicare beneficiaries a “no cost guarantee,” under which Arriva would provide the meters at “no cost” if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare. Arriva also allegedly offered and provided existing customers “free” additional meters to induce them to reorder testing supplies from Arriva.
Arriva also allegedly routinely waived, and failed to make reasonable efforts to collect, Medicare copayments. It allegedly failed to send invoices to beneficiaries, and failed to take other basic steps, like sending collection letters or making phone calls, to collect copayments. Specifically, Arriva allegedly systematically waived “small” dollar copayments without informing beneficiaries of their copayment obligations by sending them an invoice, and allegedly automatically waived other unpaid copayments after sending no more than three invoices seeking payment and making no other collection efforts. Arriva also allegedly waived copayments when customers complained that Arriva had advertised and otherwise indicated that their supplies would be free or at no cost.
“Engaging in activities that result in the submission of false claims to Medicare diverts funding from the necessary treatment and medical supplies beneficiaries need,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General. “We will continue working with our law enforcement partners to hold accountable those who seek to enrich themselves by submitting false claims to federal healthcare programs.”
“The TBI is diligent in pursuing false claims allegations such as these,” said Director David Rausch of the Tennessee Bureau of Investigation. “The partnership we have with our federal counterparts is key in combating healthcare fraud.”
The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere’s approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients’ eligibility for one. Medicare beneficiaries are only eligible to seek reimbursement for a new meter once every five years. Arriva also allegedly repeatedly billed Medicare for new meters for existing patients where Arriva itself had previously billed Medicare for meters for those patients within the five-year window.
Finally, the settlement resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. In November 2016, the Medicare program revoked Arriva’s Medicare supplier number for doing so.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee at an Arriva call center in Antioch, Tennessee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act also permits the United States to intervene and take over the litigation of such actions, as the United States did here. Mr. Goodman will receive $28,548,748.98 as his share of the recovery. The qui tam case is captioned United States ex rel. Goodman v. Arriva Medical LLC et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
Arriva’s founders, David Wallace and Timothy Stocksdale, previously paid $1 million to resolve allegations that they participated in the kickback scheme. Ted Albin and Albin’s Florida-based company, Grapevine Billing and Consulting Services, Inc., are not parties to the settlement and remain defendants in the ongoing litigation. The United States filed suit against Albin and Grapevine shortly after it intervened in the qui tam action against Arriva and Alere.
The settlement of this case is the largest single False Claims Act settlement by the U.S. Attorney’s Office for the Middle District of Tennessee and one of the largest settlements for allegations of kickbacks involving durable medical equipment in the United States.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of Tennessee, the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Trial Attorney Jake M. Shields of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Leader of Drug Trafficking Organization Sentenced to 11 Years in Federal Prison for Trafficking Kilograms of Cocaine in Maryland and Bribing U.S. Postal Letter CarriersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Russell Stanley III, age 40, of Bowie, Maryland, today to 11 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery of a government official.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General; and Chief Malik Azziz of the Prince George’s County Police Department.
“Russell Stanley and his co-conspirators received kilograms of cocaine through the mail and bribed U.S. Postal Service letter carriers to help their narcotics operation,” said Acting United States Attorney Jonathan Lenzner. “This drug trafficking organization not only polluted our communities with dangerous narcotics, it also corrupted postal carriers who facilitated the organization’s illegal business. We are committed to targeting those who supply and distribute illegal narcotics in Maryland and as well as those government employees who knowingly assist drug dealers. This case reflects impressive and creative investigative work by federal and Prince George’s County law enforcement who brought the members of this conspiracy to justice.”
“Postal Inspectors stand committed to ensuring the public’s trust in the U.S. mail system,” said U.S. Postal Inspector in Charge Daniel A. Adame, Washington Division. “The mission of the U.S. Postal Inspection Service is to protect consumers by ensuring the nation's mail system is not used in furtherance of criminal activity which safeguards our customer’s trust in the United States Postal Service. Postal Inspectors, along with our federal partners, bear the burden of holding responsible those individuals who corrupt the US Postal Service to further their criminal enterprises.”
“Postal employees are paid to deliver mail, not drugs,” said Imari R. Niles, Special-Agent-in-Charge of the Capitol Metro Area of the U.S. Postal Service Office of Inspector General. Niles added that most Postal Service workers are “hard-working, trustworthy individuals.”
According to Stanley’s guilty plea, in August 2018 the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA) began a joint investigation regarding the importation of cocaine into Maryland through the United States mail. Investigators identified Stanley as the leader of the drug trafficking organization (DTO) in Maryland. As part of his plea agreement, Stanley admitted that he conspired with others to distribute and possess with the intent to distribute cocaine in Maryland. Stanley further admitted that he had others assisting him with facilitating his distribution of cocaine in Maryland. Among those who assisted Stanley was Jovan Kirk Louis Savage, age 35, of Bowie, who picked up cocaine parcels in exchange for $500 per parcel from Stanley and assisted with delivering proceeds of the drug sales to pay off Stanley’s drug debt.
The investigation revealed that two U.S. Postal Service (USPS) letter carriers, Zakiyya Holloman, age 35, of Middle River, Maryland and Maurice Vaughn, age 34, of Washington, D.C. agreed to divert U.S. Priority Mail parcels, containing cocaine, sent to addresses on their routes, to Stanley or a member of the Stanley DTO in exchange for money. Holloman serviced a route in Bowie from April 2017 to October 2019, and Vaughn serviced a route in Bowie from July 2018 to October 2019. As USPS letter carriers, Vaughn and Holloman were public officials and were expected, among other things, to deliver each package to the addressee at the proper address and to keep an accurate record of their deliveries. Holloman began diverting packages containing cocaine to Stanley in approximately April 2018, after being introduced to Stanley by a mutual acquaintance. Holloman received $500 from Stanley for each parcel diverted. Hollman diverted cocaine parcels on at least six occasions, receiving a total of at least $3,000 from Stanley. In an effort to conceal the scheme, Holloman scanned the parcels as delivered to the addressees, despite delivering those parcels to Stanley.
As detailed in the plea agreement, at least once a month from December 2018 until October 2019, Vaughn diverted a U.S. Priority Mail parcel containing two kilograms of cocaine to the Stanley DTO. Specifically, on February 15, 2019, Vaughn delivered to Stanley’s vehicle, a U.S. Priority Mail parcel containing two kilograms of cocaine with a Bowie address on Vaughn’s postal route. After Vaughn delivered the parcel to Stanley’s vehicle, Vaughn was paid $200 via Cash App. Similarly, Vaughn delivered U.S. Priority Mail parcels containing two kilograms of cocaine each on August 29, 2019, and October 2, 2019. Savage picked up each of the parcels, conducting counter-surveillance to make sure that law enforcement was not in the area. Vaughn was paid $200 in exchange for diverting each of those cocaine parcels to the Stanley DTO. In an effort to conceal the scheme, Vaughn scanned the United States Priority Mail parcels as delivered to the addressees, despite delivering those parcels to the Stanley DTO or to particular locations for pick-up by the Stanley DTO.
To help ensure that the letter carriers would not report their criminal activity to law enforcement, Stanley and a co-defendant required letter carriers to provide them with the letter carriers’ home addresses. Stanley discussed with a co-defendant that they should also tell the letter carriers that they knew the location of the daycare providers for the letter carriers’ children.
In October 2019, Postal Inspectors intercepted a United States Priority Mail parcel destined for an Upper Marlboro address that contained the same contents as previous parcels including, edible peanuts, blue-and-white drinking straws, styrofoam plates and cups, and two kilograms of cocaine inside a Tupperware container. Law enforcement executed a search and seizure warrant, seizing the two kilograms of cocaine from the package. On October 9, 2019, Stanley and Savage worked together to pick up the parcel, not knowing that the cocaine had already been seized by law enforcement. They conducted counter-surveillance to make sure that law enforcement was not in the area, but before they could pick up the package, they detected the presence of law enforcement who were conducting surveillance of the Upper Marlboro package’s delivery. Stanley fled the scene in his vehicle, but Savage was arrested.
On October 9, 2019 investigators executed a search warrant at the shared residence of Stanley, Savage, and co-defendant Delonte Andre Gomez. Among the items that investigators found and seized were approximately 15 grams of cocaine in a clear baggie and two digital scales from a kitchen cabinet as well as a money counter. Investigators searched Stanley upon his arrest, seizing $3,196 from his person. Stanley admitted that during the course of the conspiracy at least 40 kilograms of cocaine were attributable to him.
Jovan Kirk Louis Savage previously pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and faces a maximum sentence of life in federal prison.
The two corrupt postal carriers, Maurice Vaughn and Zakiyya Holloman, each pleaded guilty to conspiracy to commit an offense against the United States and to bribery. They face a maximum sentence of five years in federal prison for the conspiracy charge and a maximum of 15 years in federal prison for bribery. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Paula Xinis will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Judge Xinis has not yet scheduled sentencing dates for Savage, Vaughn, or Holloman.
Delonte Andre Gomez, a/k/a Turk, age 39, also of Bowie, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine as well as possession with the intent to distribute cocaine. Gomez and the government have agreed that, if the Court accepts the plea agreement, Gomez will be sentenced to five years in federal prison and a consecutive sentence of six months in federal prison for violations of his federal supervised release. U.S. District Judge Paula Xinis has scheduled sentencing for September 22, 2021, at 10:00 a.m.
Co-defendant Barrington Albert Edwards, Jr. age 37, of Bowie, Maryland, is charged with conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS, the DEA, the U.S. Postal Service OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Samika N. Boyd and Jason D. Medinger, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Laredo man sentenced for undocumented alien death due to car wreckRead the Press Release
LAREDO, Texas – A 28-year-old Laredoan has been ordered to federal prison for a conspiracy which resulted in the death of an undocumented alien, announced Acting U.S. Attorney Jennifer B. Lowery.
David Valadaz pleaded guilty March 11.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Valadaz to serve a 97-month sentence to be immediately followed by five years of supervised release.
On Nov. 5, 2020, law enforcement attempted to pull over Valadaz, but he fled. He then crashed into the fence of a local business before fleeing on foot. Three undocumented aliens were in the vehicle, one of whom was in the trunk.
The individual in the truck of the vehicle was deceased when authorities found him. Another had suffered serious bodily injury requiring surgery to his elbow.
Valadaz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorneys Anthony Brown and April Ayers-Perez prosecuted the case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following person was arraigned today on an indictment before U.S. Magistrate Judge Kathleen L. DeSoto in Missoula. The indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law:
Michael Blake Defrance, 28, of Missoula, pleaded not guilty to an indictment charging him with prohibited person in possession of firearms and ammunition. The indictment alleges that on about June 27, 2018 and Oct. 2, 2018 in Missoula, Defrance, knowing he had been convicted on May 6, 2013 of a misdemeanor crime of violence under the laws of the State of Montana, possessed firearms and ammunition in violation of federal law. If convicted of the most serious crime, Defrance faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Defrance was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI’s Montana Regional Violent Crime Task Force and the Missoula Police Department investigated the case.
PACER case reference. 21-29.
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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Illinois Women Charged in Yellowstone National Park Case Involving Grizzly Sow and CubsRead the Press Release
Acting United States Attorney Bob Murray announced today that SAMANTHA R DEHRING, age 25 of Carol Stream, Illinois, was charged with one count of willfully remaining, approaching, and photographing wildlife within 100 yards and one count of feeding, touching, teasing, frightening, or intentionally disturbing wildlife. Dehring is expected to appear in front of Magistrate Judge Mark L. Carman in Mammoth Hot Springs, Wyoming on August 26, 2021, for her arraignment.
According to the violation notices, Dehring was at Roaring Mountain in Yellowstone Nation Park on May 10, 2021, when visitors noticed a sow grizzly and her three cubs. While other visitors slowly backed off and got into their vehicles, Dehring remained. She continued to take pictures as the sow bluff charged her. Witnesses took pictures and video of the incident which was shared with news outlets and eventually led to her identification. Dehring faces up to a year in prison and up to $10,000 in fines. Park Rangers from Yellowstone National Park provided the results of their investigation to Rangers in Dehring’s area who served her the violation notices in person. These charges are only accusations of a violation of law and Dehring is presumed innocent until when and if proven guilty.
This case is being investigated by Yellowstone National Park Rangers and will be prosecuted by Assistant United States Attorney Stephanie Hambrick. For questions relating to Yellowstone National Park, please contact the Public Affairs Office at 307-344-2015 or [email protected].
Human smuggling recruiter sentenced for conspiracyRead the Press Release
LAREDO, Texas – A 58-year-old Chandler woman has been ordered to federal prison for conspiracy to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Rivera-Maldonado pleaded guilty Sept. 18, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo ordered her to serve a 60-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Marmolejo noted Rivera-Maldonado played an active role in recruiting the truck drivers to help carry out the scheme.
On July 3, 2020, law enforcement discovered 52 undocumented non-citizens after stopping a tractor trailer in Laredo. Authorities arrested Rivera-Maldonado as the driver of a scout vehicle for the tractor trailer.
Further investigation revealed Rivera-Maldonado recruited truck drivers to travel to Laredo to smuggle undocumented non-citizens. The investigation revealed that from March 2019 to July 2020, drivers Rivera-Maldonado recruited smuggled over 100 undocumented non-citizens in their vehicles.
Rivera-Maldonado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Anthony Garrie Brown prosecuted the case.
Hobbs Act Robber Sentenced to 408 Months in Federal PrisonRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JOHN WELDON (“WELDON”), age 26, of New Orleans, Louisiana was sentenced to imprisonment on July 28, 2021 by U.S. District Court Judge Lance Africk for charges relating to nine armed robberies of gas stations, convenience stores, and a bank.
WELDON committed armed robberies of three Shell Gas Stations on General de Gaulle Drive, multiple convenience stores in the West Bank and Seventh Ward, and a bank in Algiers. He brandished a firearm and wore blue gloves in each of the robberies.
In August of 2019, WELDON was charged with one count of conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, two counts of brandishing a firearm during and in relation to a crime of violence, one count of armed bank robbery, and one count of being a felon in possession of a firearm. WELDON was found guilty by a jury in December 2019 on all counts.
Judge Africk sentenced WELDON to 408 months in the Bureau of Prisons, 60 months of supervised release, and $600 in mandatory special assessment fees. The U.S. Attorney's Office praised the work of the Federal Bureau of Investigation. The prosecution of the case was conducted by Assistant U.S. Attorneys Kathryn McHugh and Greg Kennedy.
Georgia man sentenced in dog-fighting operationRead the Press Release
AUGUSTA, GA: A Georgia man has been sentenced in federal court in connection with a dog-fighting ring broken up in 2018 in Dodge County.
Benjaman Shinhoster III, a/k/a “Benji,” 41, of Louisville, Ga., was sentenced to 30 months in prison after pleading guilty to Sponsoring and Exhibiting a Dog in an Animal Fighting Venture, said Acting U.S. Attorney David H. Estes. U.S. District Court Judge Dudley H. Bowen Jr. also ordered Shinhoster to pay a fine of $2,500 and to serve three years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“It is appalling that anyone could find ‘entertainment’ from forcing animals into bloody and often fatal fights,” said Acting U.S. Attorney Estes. “We’re grateful to our alert law enforcement partners for shutting down this dogfighting operation, and Benji Shinhoster and his co-defendants are being held accountable.”
Shinhoster had been on pre-sentencing supervised release after pleading guilty in the case, but his bond was revoked after he was discovered to have been attempting to sell several dogs.
“The gall of this defendant to continue as a proprietor of death while on bond is unnerving,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “This prosecution should serve as notice that our agency in conjunction with our federal partners will be unrelenting in our pursuit for justice for these mild defenseless creatures bred and trained for this malicious pastime.”
The lead defendant in the investigation, James Lampkin, a/k/a “Pookie,” 46, of Eastman, Ga., awaits sentencing after pleading guilty in U.S. District Court to Conspiracy to Violate the Animal Welfare Act, while co-defendants Deveon Hood, 34, of Tennille, Ga.; Andre Archer, 23, of Sandersville, Ga.; Xavier Simmons, 34, of Sandersville, Ga.; and Joe Ford, 33, of Elgin, S.C., await sentencing in federal court after pleading guilty to related felony charges. Dwight McDuffie, 44, of Eastman, Ga., is serving two years of probation after pleading guilty to a misdemeanor charge in the case.
In March 2018, Georgia State Patrol troopers and Georgia Department of Natural Resources game wardens conducted traffic stops in Eastman after the Oconee (Georgia) Drug Task Force received reports of a dogfighting operation at Lampkin’s property. During those traffic stops, officers discovered a dog in one of the vehicles that appeared to have been injured while fighting. Investigators later seized 63 dogs at Lampkin’s residence while serving a search warrant after finding the animals chained in the back yard. Investigators also discovered a disassembled pit where fights were held, and equipment used to train dogs for fighting.
While the Asset Forfeiture Unit of the Southern District of Georgia U.S. Attorney’s Office initiated a civil forfeiture action, an animal rescue operation took custody of the dogs.
The case is being investigated by the U.S. Department of Agriculture Office of Inspector General, and prosecuted for the United States by Special Assistant U.S. Attorney Jessica Rock and Assistant U.S. Attorney Alejandro V. Pascual IV.
Georgia company and owner admit guilt in scheme to evade U.S. national security trade sanctionsRead the Press Release
SAVANNAH, GA: A Georgia company and its owner have admitted guilt in a scheme to evade United States national security laws.
Dali Bagrou pled guilty in U.S. District Court to Conspiracy, while his company, World Mining and Oil Supply (WMO) of Dacula, Ga., pled guilty to Violation of the Export Control Reform Act, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Bagrou to a statutory sentence of up to five years in prison and substantial financial penalties, followed by up to three years of supervised release, while WMO is subject to a sentence of up to five years’ probation, along with significant fines and financial restitution. As part of his plea, Bagrou also agreed to forfeit a home purchased with illicit proceeds; the Atlanta-area residence is valued at approximately $800,000.
“The conspirators in this case were attempting to enrich themselves by evading trade sanctions put in place to protect the national security of the United States,” said Acting U.S. Attorney Estes. “Thanks to outstanding effort by our law enforcement partners, these defendants are now being held accountable for their violations of the law.”
As described in court documents and testimony in USA v. World Mining and Oil Supply et. al., the conspiracy began when an unnamed Russian government-controlled business began working with with Oleg Vladislavovich Nikitin, general director of KS Engineering (KSE), a St. Petersburg, Russia-based energy company, in 2016 to purchase a power turbine from a U.S.-based manufacturer for approximately $17.3 million. The Russian company intended to use the turbine on a Russian Arctic deepwater drilling platform, expressly prohibited by the U.S. Department of Commerce unless a license is first obtained.
Nikitin admitted that he and another KSE employee, Anton Cheremukhin, conspired with Gabrielle Villone, Villone’s company GVA, and Villone’s business partner Bruno Caparini, to obtain the turbine on their behalf. Villone, Caprini and GVA then employed the services of Bagrou and WMO to procure the turbine from a U.S.-based manufacturer and to have the turbine shipped overseas. The parties conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated the turbine would be used by a U.S. company in and around Atlanta.
Nikitin, Villone, and Bagrou all were arrested in Savannah, Ga., in 2019 while attempting to complete the illegal transaction. Villone currently is serving a 28-month prison sentence after pleading guilty to Conspiracy, while the other named defendants await sentencing after pleading guilty.
“Special Agents of the Bureau of Industry and Security’s Office of Export Enforcement (OEE) will aggressively enforce Russia sectoral sanctions violations and any attempt to procure U.S origin goods in violation of U.S. export laws,” said Ariel Joshua Leinwand, Special Agent in Charge of OEE’s Atlanta Office. “The substantial penalties from this guilty plea should serve as a deterrent to those seeking to engage in illegal export activities.”
“The FBI and our partners will always make threats to our national security a top priority, and this conspiracy was a direct threat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This was a methodical plan to undercut United States sanctions to put our goods in the hands of actors who are a direct threat to our national security.”
“The illegal export of technology to other countries poses a significant threat to America’s warfighters,” said Special Agent in Charge, Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, (DCIS) Southeast Field Office. “DCIS and our investigative partners will aggressively pursue those who violate the trade sanctions that threaten the national security of the United States.”
The Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, as well as the Defense Criminal Investigative Service and the Federal Bureau of Investigation are investigating the case with assistance from U.S. Customs and Border Protection and the Georgia Department of Natural Resources. Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee are prosecuting the case, with assistance from Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Forfeiture Recovery Unit.
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Gang “enforcer” sentenced for trafficking a large amount of stolen marijuanaRead the Press Release
VICTORIA, Texas – A Rio Grande City man and ranking member of the Texas Chicano Brotherhood (TxCB) organization has been ordered to federal prison for conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana as well as being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
Hector Guerra pleaded guilty May 3.
Today, U.S. District Judge John D. Rainey ordered him to serve a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Rainey noted how Guerra changed during the prosecution in that he earnestly appeared to be accepting responsibility for his criminal actions.
The TxCB is a violent criminal organization operating primarily in Starr County and Hidalgo Counties. Members have been involved in numerous crimes to include drug, firearm and human trafficking; kidnappings; home invasions; aggravated assaults; murders and other major crimes.
In May 2016, law enforcement at federal, state and local levels launched a multi-agency investigation in an effort to disrupt the organization’s violent acts. To date, 15 members and criminal associates have been charged.
Authorities identified Guerra and at least four other TxCB members as part of a “rip crew.” At times, they used force and intimidation to steal marijuana and re-sold it to other traffickers in the Rio Grande Valley area. The investigation involved the trafficking and distribution of at least 1,000 kilograms of marijuana between February 2017 and February 2018.
Law enforcement arrested Guerra at his home in October 2018 for his role in the conspiracy. At that time, they also executed a search warrant which led to the discovery of a .45 caliber pistol in his bedroom with approximately 123 rounds of ammunition.
Guerra will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations; Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; District Attorney’s Offices in Starr and Hidalgo Counties; and the Texas Attorney General’s Office conducted the joint investigation. Assistant U.S. Attorneys Patti Hubert Booth prosecuted the case.
Former Labor Union Chief of Staff Convicted of Health Care FraudRead the Press Release
A federal jury in the U.S. District Court for the District of Columbia convicted an Arkansas man on Friday for fraudulently arranging for a labor union to provide health plan coverage to his girlfriend, who was never a union employee.
According to court documents and evidence presented at trial, Roderick Marvin Bennett, 53, of Camden, the former chief of staff for Laborers International Union of North America (LIUNA) in Washington, D.C., was convicted by a jury of one count of health care fraud. The charges stemmed from Bennett, unbeknownst to LIUNA, placing his girlfriend on the health care plan designed for employees at LIUNA’s headquarters when he knew she was not eligible to participate in the plan.
“The jury’s conviction affirms the Justice Department’s efforts to rid our health care delivery systems of corrupt influences and our pursuit of those who would exploit those systems through fraudulent means,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Department of Labor investigators worked diligently with our prosecutors to ensure that individuals, such as Bennett, who are sworn to safeguard their members’ dues and health and pension plans do not exploit those plans for personal gain.”
LIUNA is a labor organization that represents more than 500,000 laborers in the construction industry in the United States and Canada. For approximately four years, until October 2016, Bennett served as the chief of staff at LIUNA headquarters. The current conviction is in addition to Bennett’s January 2018 guilty plea to three counts of theft from a labor organization stemming from his unauthorized personal purchases – exceeding $150,000 – on his LIUNA-issued American Express card.
Bennett will be sentenced for his convictions at a later date and faces up to five years in prison. Any sentence will be determined after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Labor investigated the case.
Trial Attorneys Vincent Falvo and Jeremy Franker of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Former Chief Financial Officer of Publicly Traded Company Convicted of Securities and Accounting FraudRead the Press Release
A federal jury in the Eastern District of Wisconsin on Thursday convicted the former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded trucking and logistics company formerly headquartered in Cudahy, Wisconsin, on four counts of violating federal securities laws for his role in a complex securities and accounting fraud scheme.
According to court documents and evidence presented at trial, Peter R. Armbruster, 62, of Milwaukee, the former chief financial officer (CFO) of Roadrunner, whose shares were traded on the New York Stock Exchange using the ticker symbol #RRTS, committed securities fraud, falsified Roadrunner’s books and records, and misled Roadrunner’s auditors. Armbruster was convicted in relation to a sophisticated accounting fraud scheme that resulted in Roadrunner’s financial statements and Securities and Exchange Commission filings for the third quarter of 2016 being materially false and fraudulent.
Armbruster was convicted of one count of securities fraud, one count of misleading Roadrunner’s auditors, and two counts of falsifying Roadrunner’s books and records. He is scheduled to be sentenced on Oct. 29 before U.S. District Judge Matthew F. Kennelly. He faces a maximum prison sentence of 25 years' imprisonment for securities fraud, 20 years imprisonment for misleading auditors, and 20 years' imprisonment for each books and records violation. Judge Kennelly will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office and Special Agent in Charge Andrea Kropf of the Department of Transportation – Office of Inspector General’s Chicago Field Office made the announcement.
The FBI’s Milwaukee Field Office and the Department of Transportation’s Office of Inspector General are investigating the case.
Trial Attorneys Emily Scruggs and Kyle Hankey and Acting Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Caitlin R. Cottingham, formerly of the Criminal Division’s Fraud Section, provided valuable assistance.
The Fraud Section is the nation’s leading prosecuting authority for complex white-collar criminal cases, including accounting and securities fraud cases involving public companies.
Fentanyl Dealer Who Distributed Narcotics Which Resulted in Death Sentenced to 20 Years' ImprisonmentRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Jared Collins (28, Pasco County) to 20 years’ imprisonment for distributing narcotics, resulting in death. Collins had pleaded guilty on April 27, 2021.
According to the plea agreement, on December 16, 2019, Collins distributed narcotics to M.B. in Wesley Chapel. M.B. injected the narcotics and died. M.B. was found by family members, who immediately called 911. Deputies from the Pasco Sheriff’s Office responded to the scene and located a hypodermic syringe and a plastic bag, both of which tested positive for fentanyl. Law enforcement also recovered a cellphone that revealed that Collins had supplied M.B. with narcotics earlier that day.
The next day, deputies from the Pasco Sheriff’s Office arrested Collins as he was attempting to again distribute narcotics. Two syringes were found in his car, and two hypodermic syringes and a spoon with residue were found in his pocket, all of which tested positive for fentanyl. A federal search warrant was executed at Collins’s residence. Law enforcement officers recovered numerous items of drug paraphernalia, empty capsules containing traces of fentanyl, assorted spoons, straws, clear baggies, and approximately 20 syringes from his bedroom.
The Medical Examiner’s Office for Pasco and Pinellas Counties determined that M.B.’s cause of death was fentanyl toxicity.
On March 26, 2020, after bonding out of state custody, Collins again distributed fentanyl, this time to a law enforcement confidential source. The substance Collins distributed tested positive for fentanyl.
This case was investigated by Drug Enforcement Administration and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Felon indicted following roadway shootingRead the Press Release
ATLANTA – Rico Laprince Southall has been charged with possession of a firearm by a convicted felon. Southall fired shots at the victim, who happened also to be a family member.
“A key factor in reducing gun violence is to remove firearms from the hands of individuals prohibited from possessing them,” said Acting U.S. Attorney Kurt R. Erskine. “We will pursue those who illegally possess firearms and undermine the safety of our community through continued collaboration with our federal, state, and local law enforcement partners.”
“There is no question about the level of violence displayed by Southall,” said ATF Special Agent in Charge Arthur Peralta. “He indiscriminately fired the gun he illegally possessed without any concern about who might be hurt. The arrest and indictment of Southall is part of our commitment to make our communities safer each and every day.”
“The Cobb County Police Department continues to proudly coordinate investigations across jurisdictional boundaries in order to ensure justice is served for all victims. Law enforcement agencies must continue to share information in cases like this in order to maintain the safety of all those living and working within our communities,” said Cobb County Police Chief Tim Cox.
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: On April 1, 2021, Rico Laprince Southall targeted a victim, a member of his family, as the victim drove in the area of Powder Springs, Georgia. Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle from a semi-automatic pistol equipped with a high-capacity magazine. Several rounds entered the passenger compartment of the victim’s vehicle, with at least one round striking an unoccupied infant safety seat. One of the rounds also struck another car in the vicinity.
The Cobb County Police Department responded to the scene and saw Southall leaving the area in his vehicle in which his girlfriend and minor child were passengers. The responding officers arrested Southall and recovered the semi-automatic pistol he had fired, as well as a second gun, a revolver. The officers noted that Southall had reloaded the semi-automatic weapon during the shooting. Both firearms had been reported stolen.
Southall was arraigned before U.S. Magistrate Judge Christopher C. Bly on July 30, 2021, and detained pending trial. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Cobb County Police Department.
Assistant U.S. Attorney D’Juan B. Jones is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon Pleads Guilty to Illegal Possession of a Firearm with an Obliterated Serial Number and AmmunitionRead the Press Release
Baltimore, Maryland – Damian Covington, age 24, of Baltimore, Maryland, pleaded guilty today to being a felon in possession of a firearm and ammunition.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).
According to his guilty plea, on September 24, 2020 BPD officers observed a black vehicle bearing a Virginia license plate driving at a high rate of speed and committing several traffic violations, including changing lanes without a signal. Two BPD officers notified other officers of the traffic violations. Soon after, several BPD officers stopped the vehicle on Reisterstown Road in Baltimore, Maryland.
One of the BPD detectives informed the driver that he was being pulled over for an unsafe lane change and requested vehicle registration. Covington was seated in the passenger seat. As the driver reached for the registration, one of the BPD officers observed a clear tube containing suspected marijuana. The driver acknowledged the presence of marijuana in the tube and held it up for the officers to view. BPD officers then conducted a search of the vehicle.
During the search, a BPD detective discovered the driver’s 9mm firearm with 12 rounds of ammunition located in the locked glove compartment. Officers also recovered a semi-automatic pistol with an obliterated serial number, six bullets, and two rounds of ammunition in a backpack behind the Covington’s seat. The bag also contained Covington’s identification card, three debit cards, and suspected marijuana.
BPD read Miranda rights to Covington who then admitted that he possessed the firearm inside of the backpack.
Prior to possessing the firearm and ammunition on September 24, 2020, Covington had been convicted of a crime punishable by imprisonment for a term exceeding one year and his civil rights had not been restored.
Covington and the government have agreed that, if the Court accepts the plea agreement, Covington will be sentenced to 30 months in federal prison. U.S. District Judge George L. Russell III has scheduled sentencing for October 21, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lindsey McCulley and Zachary B. Stendig, who are prosecuting the case.
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Federal-State Settlement Resolves Environmental Violations at Hussey Copper Smelting Facility in Leetsdale, PennsylvaniaRead the Press Release
Hussey Copper has agreed to perform a comprehensive environmental audit, implement an updated environmental management system, and pay an $861,500 penalty to resolve alleged violations of the federal Clean Water Act (CWA) and Pennsylvania’s Clean Streams Law (PCSL) at its smelting facility in Leetsdale, Allegheny County, Pennsylvania.
The civil complaint, brought by the U.S. Department of Justice on behalf of the U.S. Environmental Protection Agency (EPA) and the Pennsylvania Department of Environmental Protection (PADEP) and filed simultaneously with the settlement, alleges violations of the CWA and PCSL that threaten to degrade receiving streams and impact public health and harm aquatic life. These include chronic exceedances of effluent limits in the facility’s PADEP-issued CWA permit -- limiting oil sheens and discharges of copper, chromium, nickel, oil and grease, lead, pH, total suspended solids and zinc.
“This settlement reaffirms that industrial polluters must do the necessary work to ensure that their operations are not causing harm to our nation’s waterways,” said Deputy Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division. “We are happy to have partnered with the Commonwealth of Pennsylvania to ensure the continued protection of the Ohio River.”
“This agreement holds Hussey Copper accountable for the impact their actions have had on the health of the Ohio River,” said Acting U.S. Attorney Stephen R. Kaufman for the United States Attorney’s Office for the Western District of Pennsylvania. “We will continue to work with our partners to enforce the laws enacted to protect our region’s abundant natural resources.
“Today’s settlement improves water quality for the citizens of Leetsdale and surrounding communities,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “This agreement requires Hussey to address their existing environmental violations, as well as implement plans to address any future noncompliance.”
Under the settlement, along with payment of the penalty, Hussey Copper will:
- Conduct a comprehensive review of its wastewater treatment system.
- Hire third-party consultants to conduct a compliance audit and implement corrective measures.
- Hire third-party consultants to review, update, and audit compliance with the facility’s environmental management system.
- Implement a process to prevent and correct violations of permit effluent limits.
- Conduct annual compliance training of employees and contractors.
Pay agreed-upon penalties on demand for future violations.
PADEP has assisted EPA in the investigation and litigation of this case and is a co-plaintiff and signatory to the proposed consent decree. Under the settlement, penalty funds will be distributed evenly between the United States and PADEP.Previous to this settlement, Hussey Copper was ordered to pay a criminal fine of $550,000 and to serve three years’ probation after pleading guilty to three felony CWA charges in December 2020 for offenses involving a multi-year pattern of submitting false discharge monitoring reports to conceal 140 National Pollutant Discharge Elimination System (NPDES) permit violations, discharges of oil into the Ohio River, and the failure to report those oil discharges to the federal government.
The settlement is with Libertas Copper LLC, which does business as Hussey Copper.
This settlement furthers EPA’s national compliance initiative to reduce significant noncompliance and improve surface water quality by assuring dischargers comply with NPDES permit requirements. For more information on this initiative, visit: https://www.epa.gov/enforcement/national-compliance-initiative-reducing-significant-non-compliance-national-pollutant
More information on the Clean Water Act is available at: https://www.epa.gov/laws-regulations/summary-clean-water-act
More information on Pennsylvania’s Clean Streams Law is available at: https://www.dep.pa.gov/Citizens/My-Water/Pages/default.aspx
The proposed consent decree, filed in the federal district court in Pittsburgh, is subject to a 30-day public comment period and approval by the court.
Federal Jury Convicts Massachusetts Man on Five Counts of Child Exploitation Related OffensesRead the Press Release
GREENEVILLE, Tenn. - Following a four-day trial in United States District Court at Greeneville, a jury convicted Nicholas Nassif Hayek, 22, of Leominster, Massachusetts, of knowingly or attempting to knowingly entice a minor to engage in sexual activity, knowingly or attempting to knowingly persuade a minor to engage in sexually explicit conduct for the purpose of producing any visual depiction of such conduct, knowingly transferring obscene matter to another individual who had not attained the age of 16 years, knowingly receiving child pornography and knowingly possessing child pornography involving a child less than 12 years of age.
Sentencing is set for November 29, 2021, at 1:30 p.m., before the Honorable J. Ronnie Greer, in United States District Court for the Eastern District of Tennessee at Greeneville. Hayek faces a maximum life sentence in prison and a 10-year minimum mandatory and a 15-year minimum mandatory for count one and two, respectively, for enticing a minor.
The evidence presented at trial demonstrated that Hayek found a 10-year-old child via social media. Hayek befriended the child and at trial the jury saw numerous chat messages exchanged between the two. The messages also detailed the countless requests from Hayek asking the child to send him nude photos. Law enforcement also obtained 22 pictures and one video of Hayek exposing himself to the child.
Acting U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement.
The Federal Bureau of Investigations led the investigation that resulted in the indictment and subsequent conviction of Hayek.
Assistant U.S. Attorneys Meghan L. Gomez and J. Gregory Bowman represented the United States at trial.
This case was brought as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc. For more information about internet safety education click on the link for “Publications & Resources.”
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Federal Judge Convicts Northeast Harbor Man of Failing to Register as a Sex OffenderRead the Press Release
BANGOR, Maine: A federal district court judge convicted a Northeast Harbor man today of failing to register as a sex offender following a half-day bench trial, Acting U.S. Attorney Donald E. Clark announced.
The evidence at trial revealed that in 2016, Jack Palmer, 70, was convicted in federal court in Bangor of possessing child pornography. As a result of that conviction, Palmer was required to register as a sex offender in Maine and to update that registration within three days if he changed residences. In November 2020, he moved from Portland to Northeast Harbor and failed to notify the Maine Sex Offender Registry. He lived at this residence until his arrest in April 2021.
Palmer faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Marshals Service and the Bar Harbor/Mount Desert Police Department investigated the case.
Cutt Master Barber School Settles Allegations of False Claims Act ViolationsRead the Press Release
EL PASO –Victor Phillips, owner of Cutt Master Barber School, LLC (Cutt Master), has agreed to pay $900,000 to settle allegations that he violated the False Claims Act by falsely submitting claims to the Veteran’s Administration (VA).
Cutt Master is a hair salon and barber shop school doing business in El Paso. In 2011 the Texas Veterans Commission approved Cutt Master offering veterans and active-duty military members educational courses for reimbursement under the GI Bill. The VA paid Cutt Master tuition and fees for covered courses.
The government alleged that Cutt Master received payments for claims that did not comply with VA requirements and submitted claims for courses not properly accredited. The government also alleged that Phillips falsely certified that he and Cutt Master complied with VA requirements regarding the appropriate ratio of VA students enrolled in their programs. Phillips and the government have agreed to resolve the dispute with Phillips paying $900,000.00 to the United States.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Department of Veterans Affairs OIG Special Agent in Charge Jeffrey Breen of the South Central Field Office made the announcement.
The matter was investigated by the Office of Inspector General for the Department of Veterans Affairs.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
Assistant U.S. Attorney Eduardo R. Castillo handled this matter.
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Cresco Man Will Spend a Decade in Federal Prison for “Tormenting” Minnesota Woman for Two YearsRead the Press Release
A Cresco man who cyberstalked a Minnesota woman for nearly two years was sentenced on July 30, 2021, to ten years in federal prison.
Michael Shawn McGuire, age 58, from Cresco, Iowa, received the prison sentence after a December 8, 2020 guilty plea to four counts of cyberstalking.
Information disclosed at the sentencing and plea hearings showed that in the fall of 2017, the victim, who was living in Minnesota, met McGuire on an online dating website. The two dated for approximately seven months before the victim broke up with McGuire. At that point, McGuire began texting and emailing the victim consistently, sending her harassing messages. In the summer of 2018, the victim obtained a no-contact order prohibiting McGuire from contacting her or anyone in her family. McGuire went on to harass and torment the victim over the course of the next approximately two years.
During that time, McGuire created five fake Facebook profiles. The profiles contained the victim’s name or photo and contained sexually explicit messages about the victim. The fake profiles sent over 80 friend requests to the victim’s friends and family. McGuire also made dozens of flyers and yard signs, which contained sexually explicit messages, photographs of the victim, and sexually explicit photographs of women appearing to be the victim. The flyers and yard signs contained the victim’s name, phone number, and address. The flyers were delivered to dozens of people, including the victim’s children, extended family members, neighbors, friends, her employer, a priest, and businesses she associated with. The yard signs were left in multiple places in the town the victim lived in, including her employer’s parking lot, her church lawn, and a popular local restaurant. On one occasion, McGuire spray painted a sexually explicit message including the victim’s name on a business front in the victim’s hometown. On another occasion, McGuire texted the victim that she should call the police because he was violating his restraining order, then proceeded to follow the victim around town in his car. McGuire was arrested for that incident and spent a few days in a county jail.
At the sentencing hearing, the judge pointed out that McGuire was undeterred by his arrest and continued to stalk and harass the victim for several months after his arrest. In the fall of 2019, investigators searched McGuire’s place of business in Cresco. There, they located and seized multiple items, including photos of the victim and her family and friends, her Facebook friends list, supplies used to make the flyers and yard signs, rubber gloves, and rope.
McGuire was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Judge Williams described McGuire’s conduct toward the victim and her friends and family as “a form of mental torture” and “form of public terrorism in a way.” McGuire was sentenced to 120 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. McGuire must pay $400 to the special assessment fund, a $15,000 fine, and $17,500 in restitution to the victim.
“Michael McGuire tormented the victim for over two years,” said Acting United States Attorney Sean R. Berry following the sentence. “He will spend the next decade in federal prison, protecting both his victim and the public from his malicious behavior. This sentence sends a strong message to all that this kind of behavior will not be tolerated.”
The case was prosecuted by Assistant United States Attorneys Ashley Corkery, Kyndra Lundquist, and Lisa Williams and was investigated by the Kandiyohi County (Minnesota) Sheriff’s Office, Willmar (Minnesota) Police Department, Litchfield (Minnesota) Police Department, Renville (Minnesota) Police Department, Pipestone County (Minnesota) Sheriff’s Office, Kandiyohi County (Minnesota) Community Corrections, Minnesota Bureau of Criminal Apprehension, Cresco (Iowa) Police Department, Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2075.
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Cheektowaga Man Arrested on Charges of Production and Possession of Child PornographyRead 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 Kenneth Ritchie, 30, of Cheektowaga, NY, was charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 50 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on July 16, 2021, an individual contacted the Cheektowaga Police Department and reported observing child pornography on a cell phone belonging to the defendant. The individual stated that he met Ritchie on the Grinder chat application and then met him in person at the defendant’s residence in Cheektowaga. While at the residence, the individual stated that Ritchie showed him images and videos containing what he believed to be child pornography. The individual told the defendant that he was disgusted by what he observed and told him he was reporting him to the police.
The individual took Ritchie’s cell phone, went to Cheektowaga Police Headquarters, and showed investigators two of the photos that the defendant had shown him. One of the photos was a sexually explicit photo of a boy under five years old (Victim). The second photo was a sexually explicit photo of Ritchie holding the same little boy. During the execution of a search warrant on the defendant’s cell phone, investigators recovered additional sexually explicit images of the Victim. The search also recovered additional videos and images containing child pornography on the cell phone, several of which appeared to be obtained through the Telegram application.
The defendant appeared before U.S. Magistrate Judge Jeremiah J. McCarthy for a detention hearing today and was ordered held.
The complaint is the result of an investigation by the Cheektowaga Police Department, under the direction of Assistant Chief Brian Gould, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Canadian Citizen Convicted for Pump-and-Dump Securities Fraud SchemeRead the Press Release
SAN DIEGO – A federal jury today convicted Andrew Hackett, a Canadian citizen who previously resided in Toronto, Canada, of participating in a securities fraud pump-and-dump scheme surrounding the publicly-traded stock of a small company.
The jury found that Hackett committed securities fraud, and conspired to commit securities fraud, by engaging in a scheme to manipulate the market for Arias Intel Corp stock. According to the evidence presented at trial, Hackett’s scheme included efforts to artificially inflate the price of Arias Intel’s stock by controlling the majority of the company’s free-trading shares through concealed offshore and other nominee accounts, coordinating the company’s press releases with the issuance of penny stock newsletters, and using high-pressure call rooms targeting innocent investors. Hackett and his co-conspirators also engaged in manipulative trading to create the appearance that Arias Intel stock traded at higher prices and with greater volume than was actually the case.
The FBI investigated this case through a combination of forensic analysis and sophisticated covert techniques, including the use of an undercover agent and an informant, both of whom gathered evidence through recorded phone conversations and captured email and text messages.
Hackett was one of several defendants charged here. His co-conspirators, Kuldeep Sidhu of Vancouver, British Columbia, Annetta Budhu of New York, New York, and Kevin Gillespie of Tampa, Florida all pleaded guilty in connection with the scheme.
“In addition to victimizing innocent investors, pump and dump schemes weaken the integrity of securities markets and alter the level playing field consumers expect when making investment decisions,” said Acting U.S. Attorney Randy S. Grossman. “As this verdict demonstrates, those who engage in pump-and-dump and similar market manipulation schemes will face serious consequences.” Grossman commended the work of Assistant U.S. Attorneys Aaron P. Arnzen and Andrew J. Galvin and the FBI agents who diligently pursued this matter.
“Securities fraud is a serious crime which impacts our citizens and our financial markets. The FBI is committed to aggressively investigating these complex crimes with considerable resources and sophisticated techniques,” stated FBI San Diego Special Agent in Charge Suzanne Turner. “The criminal enterprise behind this scam attempted to commit wholesale fraud using boiler rooms to victimize ‘mom and pop’ investors, including some of our elderly citizens. The hard work of our agents certainly limited the number of victims and losses in this case.”
Hackett will be sentenced for his crimes on October 25, 2021.
DEFENDANT Case Number 18cr3072-TWR
Andrew Hackett Age: 32 Toronto, CanadaSUMMARY OF CHARGES
Securities Fraud – Title 15, U.S.C., Section 78(j)
Conspiracy to Commit Securities Fraud – Title 18., U.S.C., Section 371
Maximum Penalty: 20 yearsAGENCY
Federal Bureau of Investigation
Brazilian National Arrested on Child Pornography ChargesRead the Press Release
BOSTON – A Brazilian national residing in Whitman was arrested on Friday, July 30, 2021, on charges of possession and distribution of child pornography.
Walace Lima, 40, was indicted on one count of possession of child pornography and one count of distribution of child pornography. Following an initial appearance before U.S. District Court Magistrate Judge Donald L. Cabell, Lima was detained pending a detention hearing scheduled for this afternoon.
According to the charging document, Lima possessed child pornography on or about Dec. 16, 2020, and distributed child pornography on various dates between Oct. 5 and Nov. 24, 2020.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of distribution of child pornography provides for a sentence of at least five years and up to 20 years in prison, up to a lifetime 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney David G. Tobin of Mendell’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baton Rouge Man Sentenced to 78 Months in Federal Prison for Multiple Firearm ViolationsRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Edward Thompson, age 35, of Baton Rouge, Louisiana, to 78 months in federal prison following his conviction for possession of a firearm by a felon. The Court further sentenced Thompson three years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, on January 4, 2020, the Baton Rouge Police Department was dispatched to the 3200 block of Fairfields Avenue in Baton Rouge, in response to an accident involving one vehicle that had run off the road and sideswiped a utility pole before coming to a stop. Upon arrival, officers found the driver, later determined to be Thompson, asleep at the wheel. The vehicle was still in contact with the utility pole and Thompson was the driver and sole occupant of the vehicle.
Officers approached the vehicle and detected the smell of marijuana. While questioning Thompson, officers observed a gun in between the driver’s seat and driver’s side door, as well as a clear baggie with a green leafy substance in the handle compartment of the driver’s side door. Officers retrieved the firearm, which was identified as a Smith & Wesson, model SD40, .40 caliber semi-automatic pistol.
Thompson was identified as a convicted felon. He admitted to possessing the firearm and said he needed it because of where he lives. After being taken into custody, officers located a clear baggie containing a white crystal, powdery substance in the pocket of Thompson’s pants, which Thompson stated was crystal methamphetamine. Officers also retrieved a clear baggie containing a white powdery substance and another with a rock like substance. Thompson told officers the baggies contained crack cocaine.
Prior to possessing the firearm, Thompson had four prior felony convictions, all in East Baton Rouge Parish: in November 2004, for possession of cocaine; in August 2005, for simple robbery and illegal use of a weapon; in February 2016, for aggravated flight from an officer and possession of Schedule II methamphetamine; and in March 2017, for possession of cocaine.
Acting U.S. Attorney Travis stated, “Keeping guns out of the hands of prohibited persons is one of my office’s top priorities. I commend our dedicated law enforcement personnel from BRPD and ATF and our prosecution team for their outstanding efforts to take a dangerous repeat offender off the streets of Baton Rouge.”
“The sentence imposed today sends a message to repeat offenders who illegally possess firearms that they will be held accountable for their crimes,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The collaborative effort of federal and local law enforcement of keeping our neighborhoods and communities safe is a top priority for ATF.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Kristen L. Craig.
Acting U.S. Attorney Farley Encourages Participation in National Night Out EventRead the Press Release
CONCORD – Assistant U.S. Attorneys will join law enforcement, community leaders and residents on Tuesday, August 3rd at Rollins Park, Concord from 5:00 pm to 8:00 pm and at Arms Park in Manchester from 5:00 pm to 8:00 pm to celebrate the 37th annual National Night Out crime and drug prevention event, announced Acting U.S. Attorney John J. Farley.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.
“Strong community partnerships are an important way to prevent violent crime,” said Acting U.S. Attorney Farley. “I encourage everyone to participate in National Night Out and to become involved in their communities. By working together, we can help to keep our cities and towns safe from crime.”
This year, National Night Out events will be held in several communities throughout New Hampshire. Registered events will take place in Bedford, Belmont, Brentwood, Center Tuftonboro, Claremont, Dover, Exeter, Farmington, Gilford, Goffstown, Greenland, Hollis, Hooksett, Hudson, Lebanon, Lincoln, Manchester, Merrimack, Milford, Nashua, Newport, Portsmouth, Raymond, Rochester, Salem, Seabrook, Somersworth, Stratham, Thornton, Waterville Valley and Woodstock. For more information about National Night Out, visit their website www.natw.org.
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76-month federal prison sentence for Arizona man who participated in South Florida prescription medication diversion schemeRead the Press Release
Miami, Florida – On Friday, a Miami federal judge sentenced a 38-year-old Arizona resident to 76 months in federal prison for his role in a sophisticated fraud scheme involving millions of dollars in diverted pharmaceutical drugs.
Joshua Ryan Joles managed one of the wholesale companies involved in the scheme. Rather than pay full price to drug manufacturers for HIV, cancer, and other expensive medications, Joles bought his wholesale supply at a discount from co-conspirators who obtained the drugs on the streets, from black market sellers. While the drugs were branded medications, produced by the original pharmaceutical developers, they had been diverted from legitimate, secure supply chains to the black market through health care fraud and other illegal means. Once purchased from the black-market sellers, the co-conspirators re-packaged the drugs and sold them to Joles, complete with fabricated documentation to disguise the drugs’ origins. Joles knew he was buying illegally diverted drugs that were not from legitimate suppliers. Nevertheless, he sold the diverted drugs to unwitting retail pharmacies and consumers at big mark-ups. During the conspiracy, which lasted from 2014 to 2019, $78 million in illegal proceeds was laundered through shell company bank account operated by Joles’ co-conspirators.
On May 27, Joles pled guilty to one count of conspiring to traffic in medical products with false documentation and one count of conspiring to launder money.
Joles is one of nine defendants originally charged in case no. 19-cr-20674, seven of whom have pled guilty and been sentenced. There are five more defendants facing charges in a second superseding indictment, and one fugitive. The charges against these five defendants are mere allegations. They are innocent until proven guilty in a court of law.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Justin Fielder, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), announced the sentence.
FBI Miami and FDA-OCI Miami Field Office investigated this case, with assistance from the U.S. Attorney’s Offices for the Northern District of California, the District of Arizona, and the Western District of Washington, and FBI’s Los Angeles, Phoenix and Seattle Field Offices.
Assistant U.S. Attorneys Frank Tamen and Walter Norkin are prosecuting the case.
Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
The prosecution was part of Operation Southern Hospitality, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20674.
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20 arrested for conspiracy to distribute thousands of pounds of marijuanaRead the Press Release
LAREDO, Texas – A total of 16 Laredoans are now in custody following the return of two separate, but related indictments related to the distribution of large quantities of marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.
Most are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga in Laredo as early as 1:30 p.m. today.
Among those taken into custody were Jose Guadalupe Alaniz and Fernando Garcia, both 39; 21-year-olds Eduardo Javier Vazquez, Carlos Alejo Soliz and Carlos Erik Lopez; Arturo Villarreal and Francisco Arturo Neri, both 22; Edgar Alejandro Mashuca and Gustavo Alberto Duenes-Perez, both 34; Gavino Cadena, 33, Eduardo Gutierrez, 27, Jose Gerardo Gutierrez-Gonzalez, 23, Jesus Hernandez, 20, Jesus Rodriguez, 37, Leonardo Garza, 40, and Juan Lopez, 30. Also arrested were Alberto Castro, 40, Austin, and Mexican nationals Sergio Rodriguez and Jose Hernandez-Vazquez, both 37; and Jonathan Guadalupe Rodriguez-Rivera, 29.
A federal grand jury returned a three-count indictment under seal June 29 charging Cadena, Sergio Rodriguez, Gutierrez, Villarreal and Mashuca. It alleges they conspired to possess with intent to distribute 1,000 kilograms or more of marijuana Feb. 5-21, 2019.
A separate, but related six-count sealed indictment was also returned June 29. It alleges Gutierrez-Gonzalez, Duenes-Perez, Hernandez, Castro, Garza, Juan Lopez, Hernandez-Vazquez, Jesus Rodriguez, Neri, Vazquez, Soliz, Carlos Lopez and Rodriguez-Rivera conspired to possess with intent to distribute 1,000 kilograms or more of marijuana between March 28, 2019 and April 23, 2020. Some are also charged with substantive counts of possession with intent to distribute marijuana on varying dates during that time.
Alaniz and Garcia were charged via a related criminal complaint, alleging they conspired to possess with intent to distribute 1,000 kilograms or more of marijuana March 28-May 15, 2019.
All men face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine, upon conviction. Those charged in the substantive possession counts could also face additional maximum terms ranging from 40 years to life.
The investigation was part of the Blue Indigo Task Force and brought as part of the Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Noreste. OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state, and local law enforcement.
The Drug Enforcement Administration and Laredo Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; Border Patrol; Customs and Border Protection; FBI; Homeland Security Investigations; U.S. National Guard; Webb County District Attorney’s Office, Sheriff’s Office and Constable's Office, Precincts 1 and 4; and Texas Department of Public Safety.
Assistant U.S. Attorney Jennifer Day is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
30 July 2021
Wilkes-Barre Man Sentenced to 180 Months’ Imprisonment for Running Methamphetamine LaboratoryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Laury, age 42, of Wilkes-Barre, Pennsylvania, was sentenced to 180 months’ imprisonment by United States District Court Judge Malachy E. Mannion, for methamphetamine and false statement offenses.
According to Acting United States Attorney Bruce D. Brandler, Laury was convicted at trial of one count of managing a drug premises, one count of conspiring to manufacture and distribute methamphetamine, and one count of making a false statement to the FBI. The evidence presented at trial showed that in May and June 2017, Laury assisted two drug dealers in running a methamphetamine laboratory in the basement of Laury’s Wilkes-Barre residence. The FBI and Pennsylvania State Police shuttered the laboratory in June 2017, when executing a search warrant. Following the search, Laury made false statements to the FBI about his knowledge of and involvement with the laboratory.
At sentencing, Laury was held accountable for between 50 grams and 200 grams of methamphetamine. In pronouncing sentence, Judge Mannion highlighted Laury’s extensive criminal history, and his efforts to bribe two witnesses into giving false testimony at trial, and to threaten a third witness against testifying. Laury also was held accountable for creating a substantial risk of harm to children that lived in the same residence as the methamphetamine laboratory.
Laury has remained in custody since his October 2017 arrest. He was charged with three coconspirators, all of whom pleaded guilty and have been sentenced:
- Mark Heath, of Wilkes-Barre, Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 84 months’ imprisonment;
- Shawn Melleski, of Wilkes-Barre, Pennsylvania, pleaded guilty to a methamphetamine conspiracy and was sentenced to 46 months’ imprisonment; and
- Amy Casey, of Wilkes-Barre, Pennsylvania, pleaded guilty to maintaining a drug premises and received a time served sentence of approximately 9 months.
The matter was investigated by the FBI, the Pennsylvania State Police, and the Wilkes-Barre Police Department. Assistant United States Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
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Westfield Man Sentenced for Wire Fraud and Money LaunderingRead the Press Release
INDIANAPOLIS – A Westfield man was sentenced to 5 years in prison for wire fraud and money laundering. He will also serve 3 years of supervised release and was ordered to pay over $1,500,000 in restitution.
According to court documents, George S. Blankenbaker Jr., 56, was charged April 1, 2021 with wire fraud and money laundering after an investigation by the Internal Revenue Service Criminal Investigation. Between May 2008 and August 2016, Blankenbaker created three business entities, Stargrower Commercial Bridge Loan Fund 1 LLC, Stargrower Asset Management LLC and EDU Holding Trust. He later used these entities, which he owned and managed, in the execution of a Ponzi and money laundering scheme.
Blankenbaker persuaded more than 100 individuals to invest more than ten million dollars in the Stargrower Entities. He represented to investors that the funds they invested would be used to finance the use of shipping containers of food. Contrary to Blankenbaker promises to investors, he did not invest their money as he had described. Blankenbaker diverted the investment money he received to primarily make interest payments and return of principal payments to other Stargrower Entities investors, and to fund personal expenses and unrelated business ventures of his. Thirty-four investors lost over $1,400,000 in this scheme.
Blankenbaker other business, EDU Holding Trust, was designed to utilize investor funds to purchase life insurance policies on the secondary market at a price less than the face maturity amount of the policies. Investors believed they were beneficiaries and that they would receive compensation from the profits generated when the life insurance policy matured, that is, when the insured died. In August 2016, one of the policies purchased matured, and a proceeds check in excess of 2.5 million dollars was issued by the life insurance company. The check was not deposited into an escrow account, but was rather deposited into an account Blankenbaker opened at PNC Bank in the name of EDU Holding Esc Acct. Although some of the funds were appropriately transferred to investors, others were transferred to another account he controlled at PNC Bank in the name of one of the Stargrower Entities. These funds were used, in part, for business and personal expenses of Blankenbaker. This scheme resulted in a loss of $110,200 to an investor.
This case was investigated by IRS Criminal Investigation, the United States Postal Inspection Service, and the Securities and Exchange Commission.
Assistant U.S. Attorney James M. Warden prosecuted the case.
Link to original release: https://www.justice.gov/usao-sdin/pr/central-indiana-man-faces-federal-fraud-charges
Valparaiso Man Sentenced to 151 Months of ImprisonmentRead the Press Release
HAMMOND-Christopher F. Zinanni, 34, of Valparaiso was sentenced by U.S. District Court Judge Phillip Simon upon his plea of guilty to one count of distribution of child pornography, announced Acting United States Attorney Tina L. Nommay.
Zinanni was sentenced to 151 months in prison followed by 15 years of supervised release.
According to documents in this case, Zinanni drew the attention of law enforcement personnel when he distributed child pornography to an undercover agent on the Whisper social media platform. An investigation revealed Zinnani distributed disturbing images of child pornography, including a graphic image of prepubescent females, to other individuals over the internet in an effort to trade them for additional images of child pornography.
This case was the result of Investigation by Department of Homeland Security Investigations with the assistance of the Hammond Police Department. This case was prosecuted by Assistant United States Attorneys Jill Koster and Molly Kelley
United States Seizes Oil Tanker Used to Violate Sanctions Against North KoreaRead the Press Release
A New York federal court today entered a judgment of forfeiture regarding the M/T Courageous, a 2,734-ton oil-products tanker used to make illicit deliveries of petroleum products through ship-to-ship transfers with vessels flagged in the Democratic People’s Republic of Korea (DPRK or North Korea) and direct shipments to the North Korean port of Nampo.
According to court documents, payments to purchase the Courageous, to obtain oil for supplying to North Korea using the Courageous, and to procure necessary services for the Courageous were made using U.S. dollars through unwitting U.S. banks, in violation of U.S. law and United Nations Security Council resolutions. On April 23, 2021, a civil forfeiture action was filed against M/T Courageous. Criminal charges of conspiracy to evade economic sanctions on the DPRK and money laundering conspiracy are pending against the alleged owner and operator of the Courageous, Kwek Kee Seng, a Singaporean national who remains at large.
Pursuant to the International Emergency Economic Powers Act (IEEPA) and the North Korea Sanctions and Policy Enhancement Act of 2016 (NKSPEA), the DPRK and individuals or entities that the Department of the Treasury, Office of Foreign Assets Control (OFAC), has determined are involved in the facilitation of proliferation of weapons of mass destruction are prohibited from engaging in transactions with U.S. persons or using the U.S. financial system. The United Nations Security Council has similarly imposed economic sanctions on North Korea, prohibiting among other things the conduct of ship-to-ship transfers with DPRK-flagged vessels and the provision of petroleum products to the DPRK.
According to documents filed in the civil forfeiture action and allegations contained in the criminal complaint, Kwek and his co-conspirators engaged in an extensive scheme to evade these U.S. and U.N. sanctions by using vessels under their control to covertly transport fuel to North Korea, thereby providing a critical resource for the North Korean government and for DPRK-based companies. One of those vessels was M/T Courageous — formerly known as the Sea Prima — which was purchased by Kwek through front companies to further the scheme to evade sanctions and launder money. Among other things, for a four-month period between August and December 2019, M/T Courageous illicitly stopped transmitting information regarding its location, during which time satellite imagery shows that M/T Courageous both engaged in a ship-to-ship transfer of more than $1.5 million worth of oil to a North Korean ship, the Saebyol, which had been designated by OFAC, and traveled to the North Korean port of Nampo. Kwek and his co-conspirators allegedly took additional steps to hide the scheme by (1) operating a series of shell companies, (2) lying to international shipping authorities about M/T Courageous’s dealings with North Korea, and (3) falsely identifying M/T Courageous as another ship in order to evade detection.
In furtherance of the scheme, Kwek and his co-conspirators arranged for a variety of payments denominated in U.S. dollars that were processed through U.S.-based correspondent accounts to purchase oil – including more than $1.5 million to purchase the oil that was transferred to the Saebyol, over $500,000 to buy M/T Courageous, and thousands more dollars to procure necessary services for M/T Courageous and another vessel, including registration fees, ship materials, and salary payments for crewmembers. Kwek and his co-conspirators overseas sought to conceal these sanctions-evading transactions by, among other things, using front companies to disguise the nature of the transactions; disguising location information for vessels carrying illicit shipments; and conducting ship-to-ship fuel transfers on the open sea in an attempt to hide their counterparties, such as the Saebyol.
Cambodian authorities seized M/T Courageous in March 2020 and held the vessel pursuant to a U.S. seizure warrant, which was issued under seal on April 2, 2020. On April 23, 2021, the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture complaint against M/T Courageous and the case was subsequently assigned to District Judge Hon. Valerie Caproni, who issued today’s judgment of forfeiture.
Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division, U.S. Attorney Audrey Strauss for the Southern District of New York and Assistant Director-in-Charge Michael J. Driscoll for the FBI’s New York Field Office made the announcement.
The FBI’s New York Field Office, Counterintelligence Division, is investigating the case, with valuable assistance provided by the FBI Legal Attaché Office in Phnom Penh, Cambodia; the Justice Department’s National Security Division, Counterintelligence and Export Control Section, Money Laundering and Asset Recovery Section’s Program Operations Unit, and Office of International Affairs; the U.S. Coast Guard; the Cambodian Ministry of Justice; and the Cambodian National Police.
Assistant U.S. Attorneys David W. Denton Jr. and Kimberly J. Ravener for the Southern District of New York and Trial Attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Promoter of Foreign Cryptocurrency Companies Pleads Guilty for Role in Multimillion-Dollar Securities Fraud SchemeRead the Press Release
A California man pleaded guilty today in the Eastern District of New York for his participation in a coordinated cryptocurrency and securities fraud scheme through purported digital currency platforms and foreign-based financial accounts.
As part of his guilty plea, John DeMarr, 55, of Santa Ana, admitted that he conspired with others to defraud investor victims by inducing them to invest in their companies, “Start Options” and “B2G,” based on materially false and misleading representations. Start Options purported to be an online investment platform that provided cryptocurrency mining, trading and digital asset trading services. B2G was purportedly an “ecosystem” that would allow users to trade B2G tokens, provide digital wallet staking and trade digital and fiat currencies “on a secure, comprehensive platform.” Both Start Options and B2G, however, were fraudulent.
As part of the conspiracy, in approximately December 2017, DeMarr and others began offering securities in the form of investment contracts to U.S. and international investors through the Start Options website. Investments were accepted in Bitcoin, U.S. dollars or Euros. To participate, investors had to deposit their funds for a specified contract period, after which they were told that they could withdraw their money at a significant profit.
According to court documents, DeMarr and others falsely claimed that investor funds would be invested in digital asset mining and trading platforms that would earn them massive profits. In truth, however, the money was never invested and was instead diverted to accounts controlled by DeMarr and others and used for various personal expenditures, including the purchase of a Porsche, jewelry, and to remodel DeMarr’s home in California.
Similarly, Start Options also claimed to feature celebrity endorsements to promote its securities offerings. For example, Start Options falsely represented that a professional athlete had endorsed Start Options when, in fact, the athlete was not involved with Start Options and his name and likeness were used without his consent. Based on this and other fraudulent promotional materials, investors sent millions of dollars’ worth of Bitcoin, Ethereum, and fiat currency to financial accounts, including cryptowallets, controlled by DeMarr and others in the U.S. and abroad.
In late January 2018, rather than permitting Start Options investors to withdraw money from their accounts after the requisite time period, DeMarr and others required investors to roll over their accounts into an unregistered “initial coin offering,” or ICO, of B2G, the second of the two fraudulent companies in which DeMarr was involved. Among other fraudulent misrepresentations, DeMarr and others falsely told investors that the ICO would raise capital for the company to build an “ecosystem” that would allow users to trade B2G tokens, provide digital wallet staking, and trading. In truth, investors never actually received any digital tokens, and funds from the offering were not used to develop the B2G platform.
As part of the conspiracy, DeMarr and others also paid various promoters, including an actor famous for martial arts films made in the 1980s and 1990s, to serve as a promoter and celebrity spokesperson, falsely claiming that B2G could generate an “8000%” return for investors within one year, and that he was a participant in the ICO. DeMarr and others also created false press releases and whitepapers about B2G, fabricated B2G account statements and refused to allow investors to withdraw their money.
DeMarr pleaded guilty to one count of conspiracy to commit securities fraud and is scheduled to be sentenced on Jan. 4, 2022. DeMarr faces a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Jacquelyn M. Kasulis of the Eastern District of New York, Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office, and Special Agent in Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
The FBI and IRS-CI are investigating the case.
Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kaitlin Farrell, Hiral Mehta and David Pitluck of the Eastern District of New York are prosecuting the case, with assistance on forfeiture matters from Assistant U.S. Attorney Laura Mantell.
The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department's fight against white collar crime around the country.
Two Shreveport Men Sentenced in Federal Court on Firearms ChargesRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that two defendants from Shreveport have been sentenced in the Western District of Louisiana.
Carnell L. Briggs, a/k/a “Bankroll” and “Bug,” 23, of Shreveport, was sentenced by United States District Judge Elizabeth E. Foote, to spend 49 months in prison, followed by 3 years of supervised release on firearms charges. Briggs, a local rapper, was arrested on September 15, 2020, only months after serving a federal sentence for possession of a stolen firearm in the Western District of Louisiana. Agents of the U.S. Marshal Service Task Force executed an outstanding arrest warrant for illegal use of a weapon on Briggs at his girlfriend’s apartment. The warrant had been issued as a result of Briggs being implicated in a recent shooting in Shreveport. Agents knocked on the door and Briggs answered, holding a 9mm pistol. He was immediately taken into custody. Briggs admitted to agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) that he purchased the firearm soon after being released from federal prison and knew he was prohibited from having a firearm in his possession.
Dschwadraa D. Wesley, 26, of Shreveport, Louisiana, was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to spend 120 months in prison, followed by 3 years of supervised release. Wesley was charged in a federal indictment with being a convicted felon in possession of a firearm and pleaded guilty to the charge on January 5, 2021. The charge stems from an incident which occurred on February 3, 2020, when Shreveport Police Department officers responded to a domestic call at a residence. Law enforcement officers began to search for and located a vehicle in which Wesley was a passenger. Officers attempted to stop the vehicle, but the driver refused to stop and a chase ensued. During the lengthy pursuit, officers observed Wesley throw something out of the window into a ditch. Other officers stopped and searched the ditch and recovered a 9mm pistol which had been reported stolen in November 2019. When the vehicle finally came to a stop, Wesley was arrested and taken into custody. He admitted to possessing the firearm and knew that it was illegal for him to do so as a person convicted of a felony offense. Wesley’s prior convictions are for possession with intent to distribute narcotics (2013) and attempted possession of a firearm by a convicted felon (2015).
The ATF, U.S. Marshal Service Task Force, and Shreveport Police Department conducted these investigations. Assistant U.S. Attorneys Brandon B. Brown and Tennille Gilreath prosecuted the cases.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Two Ramsey County Men Sentenced to Prison for Twin Cities Postal Crime SpreeRead the Press Release
ST. PAUL, Minn. – Two St. Paul area men involved in a Twin Cities-based mail theft scheme have been sentenced to prison for their roles in the conspiracy.
Sonny Vang Xiong, 32, of Maplewood, and Davis Her, 36, of St. Paul, each pleaded guilty to one count of conspiracy to commit theft of mail. Her also pleaded guilty to one count of felon in possession of a firearm. The defendants were sentenced to 36 and 78 months in prison, respectively.
According to court documents, from at least August 2020 through November 2020, Xiong and Her conspired with others to steal mail and packages from post offices, apartment complexes, and mailboxes. The defendants broke into apartment buildings and other locations where many mailboxes could be accessed at once to steal personal mail, business mail, packages, and other items. The defendants used stolen postal keys, pry bars, and other burglary tools to steal the mail. The defendants would look for checks, money orders, identification documents, credit and debit cards, and other items of value. Xiong and Her used the stolen checks and money orders to create fraudulent checks and falsified money orders that they gave to others to cash. Xiong and Her also used stolen account numbers, IDs, and personal identifying information to create fake checks and fake identification documents.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendants.
This case was the result of an investigation conducted by the United States Postal Inspection Service, with assistance from the St. Paul Police Department, the Roseville Police Department, the Coon Rapids Police Department, the Ramsey County Sheriff’s Office, and the St. Croix County (Wisconsin) Sheriff’s Office. United States Secret Service, and the United States Department of State, Diplomatic Security Service.
Assistant U.S. Attorney Sarah E. Hudleston prosecuted the case.
Two Kansas Companies Sentenced for Using Illegal SoftwareRead the Press Release
WICHITA, KAN. – In separate court cases, two Kansas-based companies have been sentenced for operating with pirated computer software. Lightning Aerospace, LLC, and Fly Manufacturing, LLC, had previously pleaded guilty to one count of Circumvention of Protected Copyrighted Work.
Dassault Systèmes owns the copyright to a software called Computer Aided Three-dimensional Interactive Application or CATIA. According to court documents, Lightning Aerospace and Fly Manufacturing admitted to intentionally acquiring unlicensed versions of CATIA and using the illegal software for years. During that time Lightning Aerospace and Fly Manufacturing didn’t purchase software from Dassault Systèmes or pay for licensing.
“Defendants involved in these types of crimes like to claim them as victimless,” said Katherine Greer, special agent in charge of Homeland Security Investigations (HSI) in the Kansas City area of operations.“The offenses in this case are aggravated by the fact that the accused used unlicensed software to design and test parts for aircraft-actions that could have grave consequences to consumers,” said Greer. “Not to mention the billions of dollars legitimate companies are losing each year to cybercriminals engaged in digital thefts, costs likely being passed along to customers.”
During sentencing, the court ordered Lightning Aerospace to pay $46,002 in restitution to Dassault Systèmes and pay approximately $28,000 in court fines. Fly Manufacturing was ordered to pay $67,272 in restitution and approximately $8,000 in fines.
“Not only did these two businesses defraud a software company, they also gave themselves an unfair financial advantage over competitors who obeyed the law by paying for software and licensing fees,” said Acting U.S. Attorney Duston Slinkard. “Hopefully these convictions will deter other companies from engaging in intellectual property theft.”
This case was investigated by Homeland Security Investigations (HSI), Kansas City.
Assistant U.S. Attorney Alan Metzger prosecuted the case.
###Three Plead Guilty to their Roles in Drug Trafficking ConspiracyRead the Press Release
Jackson, Miss. – Two Mississippi men and a Louisiana man pled guilty today to their roles in a drug trafficking conspiracy, announced Acting U.S. Attorney Darren J. LaMarca and Brad Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA).
Chey Johnson, 48, of Terry, pled guilty to conspiracy to possess with intent to distribute 5 kilograms or more of cocaine; Alton Monroe, 43, of Jackson, pled guilty to possession with intent to distribute 500 grams or more of cocaine; and Dwight Powell, 53, of New Orleans, pled guilty to use of a communication facility to facilitate a controlled substance offense.
According to court documents, from January 2017 to December 2017, DEA agents carried out an extensive investigation into drug traffickers in central Mississippi. The investigation resulted in the indictment of multiple defendants and the seizure of approximately $585,000 in U.S. currency and 12 kilograms of cocaine.
This Operation, dubbed “Deadly Dose” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
All three defendants will be sentenced on November 9, 2021 in Jackson. Johnson faces a maximum penalty of life in prison and a $10,000,000 fine; Monroe faces a maximum penalty of 40 years in prison and a $5,000,000 fine; and Powell faces a maximum penalty of 48 months in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jackson Police Department, the Mississippi Bureau of Narcotics, and the Internal Revenue Service.
The case is being prosecuted by Assistant United States Attorneys Chris Wansley and Keesha Middleton.
Suspect in Amarillo Explosion Charged with Possession of Destructive DeviceRead the Press Release
The man suspected of causing an explosion at his residence in Amarillo, Texas on Monday has been federally charged, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Erfan Salmanzadeh, a 32-year-old naturalized citizen of the U.S. born in Iran, was charged via criminal complaint on Friday with one count of possession of a destructive device. (He has also been charged by the state with possession of components of explosives.)
“Mr. Salmanzadeh had absolutely no business handling unregistered destructive devices. We believe this defendant is a danger to the community and must be kept behind bars,” said Acting U.S. Attorney Prerak Shah.
“The FBI is committed to protecting our communities from harm and working with our law enforcement partners to disrupt violent activity. This defendant allegedly possessed a device with the potential to cause significant damage or injury to innocent people,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We want to thank the Amarillo Police Department, Texas Department of Public Safety, and Homeland Security Investigations for their tireless assistance in this investigation.”
Following the explosion Monday afternoon, officers discovered explosive components in Mr. Salmanzadeh’s residence, his backyard, and the alleyway behind his home, law enforcement has confirmed. The incident prompted the immediate evacuation of the area; neighbors were allowed to return to their homes on Wednesday.
Though the arrest warrant against Mr. Salmanzadeh was unsealed this afternoon, the criminal complaint and affidavit remain sealed, per judicial order.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Salmanzadeh is presumed innocent until proven guilty in a court of law.
If convicted of the federal offense, he faces up to 10 years in prison.
The Federal Bureau of Investigation’s Dallas Field Office and the Amarillo Police Department’s Bomb Squad conducted the investigation with the assistance of the North Texas Joint Terrorism Taskforce, Homeland Security Investigations, the Texas Department of Public Safety, and the Amarillo Fire Department. Assistant U.S. Attorneys Jeffrey Haag and Josh Frausto are prosecuting the case.
UPDATE: On May 26, a federal grand jury returned a superseding indictment charging Mr. Salmanzadeh with attempted use of a weapon of mass destruction, a violation of 18 U.S.C. § 2332a(a)(2). The charge carries a potential sentence of up to life in federal prison. Mr. Salmanzadeh’s trial has been continued to Tuesday, August 9.
St. Louis County woman pleads guilty to straw purchasing a firearm linked to a homicideRead the Press Release
ST. LOUIS – Laquesha Hardimon, 29, of Dellwood, Missouri, appeared before United States District Court Judge Sarah E. Pitlyk on today’s date and pleaded guilty to providing false information to a federally licensed firearms dealer (Kevin’s Guns).
On October 2, 2020, Hardimon bought a firearm from Kevin’s Guns under false pretenses. Hardimon falsely indicated on paperwork, required to be completed prior to the purchase of the firearm, that she was buying the firearm for herself, when, in fact, she was purchasing the firearm for her brother. Hardimon believed her brother was prohibited from purchasing the firearm for himself under federal law.
After purchasing the firearm, Hardimon gave the firearm to her brother. Less than a week later, Hardimon’s brother gave the firearm to another individual. On October 17, 2020, the firearm was used in a homicide in Wisconsin. The individual to whom Hardimon’s brother gave the firearm is facing charges for that homicide.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorney Jennifer Szczucinski is handling the matter.
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Six Southwest Missouri Residents Indicted for Kidnapping, MurderRead the Press Release
SPRINGFIELD, Mo. – Six southwest Missouri residents have been indicted by a federal grand jury for their roles in a kidnapping conspiracy that resulted in the death of the victim.
Freddie Lewis Tilton, also known as “Ol’ Boy,” 48, and Carla Jo Ward, 47, both of Joplin, Mo.; Amy Kay Thomas, 38, of Webb City, Mo.; James B. Gibson, 39, of Neosho, Mo.; Lawrence William Vaughan, also known as “Scary Larry,” 49, of Newton County, Mo.; and Russell Eugene Hurtt, also known as “Uncle,” 49, of Greenwood, Mo.; were charged in a five-count indictment returned by a federal grand jury on Thursday, July 29.
The federal indictment alleges that each of the six defendants participated in a conspiracy to kidnap the victim, identified as “M.H.,” in July 2020. According to the indictment, Ward picked up M.H. and took him to Vaughan’s residence. Tilton, Thomas, and Gibson arrived at Vaughan’s residence in the early morning hours of July 15, 2020. They bound M.H.’s hands with handcuffs, and duct tape was placed around his mouth and other parts of his body. In Vaughan and Ward’s presence, the indictment says, Thomas cut M.H. repeatedly with a knife and Gibson beat M.H. with a club. Tilton fatally shot M.H. in the head. They wrapped M.H.’s body in plastic wrap and transported it to Hurtt’s property.
Law enforcement officers executed a search warrant at Hurtt’s property on July 28, 2020, based on information that a deceased body was located on the acreage. When officers attempted to contact the occupants of the residence, the indictment says, Tilton fired multiple shots from inside the residence at the officers. Tilton was apprehended. Officers found M.H.’s body on the property.
In addition to the conspiracy, the indictment charges each of the six defendants in one count of kidnapping resulting in death and in one count of using a firearm in furtherance of a crime of violence, resulting in murder.
Tilton, Thomas, Gibson, and Ward are also charged together in one count of being felons in possession of a firearm on July 14, 2020.
Tilton is also charged with one count of being a felon in possession of firearms on July 28, 2020. Tilton allegedly was in possession of a Rigarmi .25-caliber pistol, an Ithaca .22-caliber rifle, a Remington .22-caliber rifle, a Harrington and Richardson 12-gauge shotgun, a Ruger 9mm handgun, and a Taurus 9mm handgun at the time of his arrest.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Newton County, Mo., Sheriff’s Department, the Neosho, Mo., Police Department, the Joplin, Mo., Police Department, and the Cherokee County, Kan., Sheriff’s Department.
Organized Crime Drug Enforcement Task Forces (OCDETF)
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.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 28, 2021, by U.S. District Judge Lawrence L. Piersol.
Steven Roubideaux, age 51, was sentenced to 20 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roubideaux was indicted by a federal grand jury on March 2, 2021. He pled guilty on May 3, 2021.
The conviction stems from Roubideaux failing to register as a sex offender as required by federal law between May 17, 2020, and May 28, 2020. Roubideaux had previously been convicted of a sex offense in state court, which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Roubideaux was immediately turned over to the custody of the U.S. Marshals Service.
Savannah tire store owner convicted of selling methamphetamineRead the Press Release
SAVANNAH, GA: A Savannah tire store owner faces decades in federal prison after a U.S. District Court jury found him guilty of distributing methamphetamine.
Reginald Anderson, a/k/a “Red,” 49, of Savannah, awaits sentencing after being found guilty on three counts of Distribution of Methamphetamine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Anderson faces a possible statutory sentence of up to thirty years in prison, along with substantial financial penalties and a period of supervised release upon completion of any prison sentence.
There is no parole in the federal system.
“Meth is deadly and highly addictive, and its corrosive effects are devastating to our communities,” said Acting U.S. Attorney Estes. “’Red’ Anderson sold tires out of the front of his store and drugs from the back. That doesn’t make him a legitimate businessman; that makes him a drug dealer.”
As described in court documents and testimony, Anderson was the owner of Anderson’s Tire Shop, and was indicted in November 2019 after he sold methamphetamine on multiple occasions to informants for the U.S. Drug Enforcement Administration in June 2018. Testimony was delivered in which Anderson had propositioned at least one person for sexual favors in exchange for narcotics, and that the methamphetamine that he was selling at the time was nearly 100 percent pure. A jury convicted him on all counts after a two-day trial in federal court.
“The success of this investigation was possible because of unified law enforcement cooperation,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “As a result of a trial verdict, this methamphetamine trafficker was found guilty on all counts and will now spend well-deserved time in prison.”
“The Postal Inspection Service, along with our local, state, and federal partners, will continue to pursue individuals that abuse the Postal Service for their illegal drug enterprise and this verdict is a testament of the diligent investigative work performed by Postal Inspectors,” said Joseph W. Cronin, Inspector in Charge of the Miami Division for the U.S. Postal Inspection Service.
The case was investigated by the U.S. Drug Enforcement Administration and the U.S. Postal Inspection Service, and prosecuted for the United States by Assistant U.S. Attorney Joshua S. Bearden and Special Assistant U.S. Attorney Darron J. Hubbard.
Retired School Teacher Arrested and Charged with Enticement of A Minor and Possession of Child PornographyRead 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 Richard W. Scherer, 70, of Depew, NY, was arrested and charged by complaint with enticement of a minor and possession of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that according to the criminal complaint, on June 28, 2021, the FBI received information regarding the defendant from a citizens group known as Predator Poacher, which maintains a website and YouTube channel. The group maintains several online accounts that purport to be minors of various ages, using the accounts to chat with adults who later meet for sexual contact. These contacts are recorded, the individuals interviewed, and the videos then posted to the group’s platforms. A member of the group made contact with Scherer on the Instagram account richard_scherer. The defendant believed the member was a 13-year-old girl. The communications between the two were sexual in nature and culminated with a planned meeting at a retail store on Amherst Street in Buffalo. When Scherer arrived, the group confronted him outside the store and interviewed him for about 58 minutes, during which he allegedly admitted that he is a pedophile. The Buffalo Police were called following the interview.
Subsequently, investigators accessed Scherer’s communications with the purported 13-year-old girl, which occurred between April and June 2021. During those communications, which became graphic and sexual in nature, the defendant mentioned he was a teacher, who taught sexual education in the past. On June 27, 2021, Scherer arranged to meet the purported 13-year-old girl the following day, and when he showed up for that meeting, the defendant was confronted by members of Predator Poacher. The final text from Scherer was “I’m here.” According to the complaint, the defendant also communicated with a purported eight-year-old girl through Predator Poacher, during which the communications also became graphic and sexual in nature.
Scherer was a teacher for approximately 25 years in the Montgomery County (Maryland) Public Schools. A report obtained from the school system during the investigation stated, “On June 13, 2011, the parent of a 4th grade student, [redacted by MCPS], came to the school and made a report to an assistant principal about some concerns she had regarding possible inappropriate behavior by Mr. Scherer while interacting with students.” The report stated that the student related that when the defendant has lunch with a particular student, “he pulls her to him and hugs her, that he has patted her rear end and hips, and that he pressures her to each lunch with him.” The parent advised that her daughter and the daughter’s friend are often pressured to each lunch with Scherer. In September 2011, the Superintendent of Montgomery County Public Schools sent a letter to the State of Maryland Superintendent of Schools. The letter stated, “this is to notify you that Mr. Richard W. Scherer, an English for Speakers of Other Languages (ESOL) teacher for Montgomery County Public Schools, resigned after notice of allegations of misconduct involving a student. I recommend that Mr. Scherer’s certificate be revoked.” The defendant’s teaching certificate was subsequently revoked.
A search of the defendant’s cell phone recovered two images of child pornography.
Members of the public who have information related to this case are asked to call the Federal Bureau of Investigation at 716-843-1680.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Stephen Belongia, Special Agent-in-Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Repeat Offender Sentenced for Committing Two Armed Bank Robberies in April 2018Read the Press Release
LAS VEGAS, Nev. – A Las Vegas felon was sentenced Thursday to 10 years and one month in prison for robbing two banks at gunpoint on the same day in April 2018, stealing approximately $22,000.
According to court documents, on April 17, 2018, Robert Carl Litheredge, 61, entered a bank in Henderson wearing a ski mask and carrying a semi-automatic handgun. Litheredge commanded the bank customers and employees to get down on the floor as he waved the handgun in the air. He pointed the handgun at a bank employee and demanded money. Litheredge left the bank with the stolen money.
Several hours later, Litheredge — again wearing a ski mask and carrying a semi-automatic handgun — entered a different bank in Las Vegas and demanded money. He fired one round from his handgun into the ceiling. Before fleeing the bank with the stolen money, Litheredge also fired another round into the ceiling.
Litheredge was arrested the following day in a local casino, in possession of a semi-automatic handgun and cash. During a post-arrest interview with detectives from the Henderson Police Department and the Las Vegas Metropolitan Police Department, Litheredge admitted to robbing both banks.
Litheredge pleaded guilty to two counts of bank robbery and one count of use and discharge of a firearm during and in relation to a crime of violence. He has eight prior felony convictions, including two bank robbery convictions from 2001 and 2007. In addition to the prison term, U.S. District Judge Richard F. Boulware II sentenced Litheredge to five years of supervised release.
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, Henderson Police Department, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Steven Myhre prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Registered Sex Offender Arrested and Charged with Production of Child PornographyRead 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 Juan Quinones-Rivera, 39, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that on April 21, 2021, New York State Parole contacted the FBI after a parole officer, while conducting a search of defendant’s room, discovered that he had a cell phone, which was a violation of his parole. During a cursory search of the device, the parole officer located Snapchat chats and text messages between Quinones-Rivera and a female (Victim). A subsequent search of the phone recovered numerous images and videos of suspected child pornography. In addition, investigators recovered sexually explicit text conversations between the defendant and Victim, during which Quinones-Rivera requested and received approximately 50 videos and photos from the Victim. In May 2021, the FBI contacted the Greene County, Virginia Sheriff's Office for assistance in identifying the Victim. After doing so, investigators searched the Victim’s cell phone and located an image that was also found on the defendant’s phone.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger; and the Greene County, Virginia Sheriff’s Office, under the direction of Sheriff Steven Smith.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pennsylvania Man Pleads Guilty to Selling Methamphetamine in Cecil County, MarylandRead the Press Release
Baltimore, Maryland – Nakir Ali Kiett, age 25, of Philadelphia, Pennsylvania, pleaded guilty today to possession with intent to distribute approximately 211 grams of methamphetamine in Cecil County, Maryland.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and the members of Cecil County Drug Task Force, including Chief Carolyn Rogers of the Elkton Police Department, Cecil County Sheriff Scott Adams, Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police, and Cecil County State’s Attorney James Dellmyer.
According to his guilty plea, in the fall of 2019, Cecil County Drug Task Force officers received information that an individual known as “Omar” was selling methamphetamine in Cecil County, Maryland. “Omar” was later identified as Kiett.
In August 2019, a confidential informant introduced an undercover officer to Kiett. Between August 28 and September 30, 2019, the undercover officer then arranged and conducted five separate controlled purchases of methamphetamine from Kiett, totaling approximately 150 grams of methamphetamine.
As stated in the plea agreement, on October 9, 2019, investigators obtained a search warrant for Kiett’s vehicle. On October 10, 2019 investigators arranged for a controlled purchase of methamphetamine from Kiett. When Kiett arrived at the agreed-upon meeting location, investigators detained him and searched Kiett and his vehicle pursuant to the search warrant. During the search of the vehicle, investigators recovered approximately 61 grams of methamphetamine located in a space behind the vehicle’s radio.
In total, investigators purchased or seized approximately 211 grams of methamphetamine from Kiett between August 2019 and October 2019. Kiett agrees and admits that he knowingly and intentionally possessed the above-referenced methamphetamine with the intent to distribute it.
Kiett and the government have agreed that, if the Court accepts the plea agreement, Kiett will be sentenced to six years in federal prison. U.S. District Judge George L. Russell III has scheduled sentencing for September 21, 2021 at 9:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the Department of Homeland Security and the Cecil County Drug Task Force (CCDTF) comprised of the Elkton Police Department, the Cecil County Sheriff's Office, the Maryland State Police, the Cecil County State's Attorney's Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Anatoly Smolkin who is prosecuting the case.
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Owner of local marketing business pleads guilty to COVID relief fraudRead the Press Release
COLUMBUS, Ohio – A Columbus woman pleaded guilty in federal court here today to crimes related to COVID relief fraud.
Janet Jenison, 38, pleaded guilty to three counts of wire fraud and one count of making a false statement on a Paycheck Protection Program loan application. Jenison was charged by bill of information on May 20, 2021.
According to court documents, Jenison submitted three fraudulent applications to obtain Paycheck Protection Program (PPP) loans, created by the CARES Act, for Janet Minton Marketing, LLC, a business registered in her maiden name. The applications collectively sought $298,719.67 in fraudulent loans.
Two of the applications were approved and a financial institution disbursed $160,247. Jenison first received $98,120 in June 2020. She filed the second successful application on Feb. 18, 2021, and received $62,127.
To date, the United States has seized and recovered $58,276.56 of the fraudulent proceeds.
In support of the three applications, Jenison created false Fifth Third Bank account statements for her business for the period Feb. 8, 2020 to March 6, 2020. The bank statements showed debits for payroll, tax withholding and business expenses. The business account at Fifth Third Bank was not opened until April 27, 2020.
Jenison also submitted false tax documents. One document claimed she elected for her marketing business to be classified as a corporation and was dated Jan. 24, 2020, but the employer identification number on the form was not created until four months later. In support of her loan applications, the defendant also submitted fabricated tax documents claiming that she had made federal employment tax deposits on behalf of employees of her business, when in fact she had not done so.
Jenison was interviewed by law enforcement in March 2021 and admitted to creating the false documents submitted in support of the applications.
Wire fraud carries a maximum penalty of 20 years in prison. Making a false statement is punishable by up to five years in prison. Each crime carries a potential fine not to exceed $250,000. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; officials with the U.S. Treasury Inspector General for Tax Administration; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the plea entered today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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