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Monday 14 June 2021
Grand Island Husband and Wife Plead Guilty for Their Roles in Bank Robbery Committed by Their SonRead 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 Cheryl A. Mulvey, 68, and Lawrence Mulvey, 67, both of Grand Island, pleaded guilty before U.S. District Judge Richard J. Arcara to accessory after the fact, which carries a maximum penalty of six months in prison, and a fine of $125,000.
Assistant U.S. Attorney Joshua Violanti, who is handling the case, stated that, on July 11, 2018, the defendants’ son, Timothy Mulvey, robbed the M&T Bank at 880 Military Road in Niagara Falls. During the robbery, Timothy Mulvey pulled out of a bag he was carrying what appeared to be a gun. During a text conversation a few days later on July 14, 2018, Cheryl Mulvey suggested to Timothy Mulvey that he turn off his location monitoring and change his phone habits.
From July 19, 2018, until July 2019, Timothy Mulvey was in the custody of New York State because of a New York State parole violation. On July 22, 2018, Timothy Mulvey instructed his girlfriend in a telephone call to remove an airsoft gun from their shared basement and destroy it. Instead, his girlfriend, believing the gun to be linked to the bank robbery and FBI investigation, delivered the gun in a bag to Lawrence Mulvey at his residence. Lawrence Mulvey got rid of the bag and its contents in an effort to prevent Timothy Mulvey’s apprehension, trial, and punishment.
On August 21, 2018, during a phone conversation, Cheryl Mulvey told her son that his sister found BBs in his car. Cheryl Mulvey believed the BB’s were linked to the July 11th bank robbery but were never turned over to investigating law enforcement officers. On August 24, 2018, Cheryl Mulvey told her son not to trust law enforcement and not to make his girlfriend (a potential witness) mad. She also confirmed that she had passed along a message from Timothy Mulvey to his girlfriend related to the investigation of the bank robbery.
On January 27, 2019, FBI Special Agents delivered a grand jury subpoena to Lawrence Mulvey at his residence. At the time, he was asked what was in the black bag, referring to the bag that Timothy Mulvey talked about in a jail call with his girlfriend. Lawrence Mulvey stated that he didn’t know. An FBI Special Agent stated, “We know what was in the black bag and we know you know what was in the black bag because you thought Tim had something to do with the bank robberies after you saw what was in the black bag.” Timothy Mulvey responded shaking his head in an affirmative motion and stated, “Well, yeah.” The defendant then stated that he had thrown the bag out and could not recall what was in it.
On February 27, 2019, Cheryl Mulvey was subpoenaed, and on March 5, 2019, she testified before a federal grand jury. During her testimony, Cheryl Mulvey was evasive and misleading regarding Timothy Mulvey’s ownership of BB guns, her discussions of the bank robberies with her son, and the delivery of a gun to her residence sometime after the robbery. Cheryl Mulvey also admitted that during her testimony she intentionally attempted to discredit a potential witness. On a March 9, 2019, recorded jail call, she said that when testified before the grand jury, she made it clear that the potential witness had substance issues. Cheryl Mulvey admitted that she provided testimony to assist Timothy Mulvey and to hinder and prevent his apprehension, trial, or punishment for the bank robbery.
“Notwithstanding his parents’ efforts to cover for him, Timothy Mulvey was apprehended, convicted of aggravated bank robbery, and is awaiting sentencing,” noted U.S. Attorney Kennedy. “Another of the Mulvey’s children, Kelsey Mulvey, is a former nurse who is also awaiting sentencing in federal court following her prior plea to tampering with a consumer product in connection with her theft of controlled medications from medication dispensing machines at Roswell Park Cancer Center.”
The pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Niagara Falls Police Department, under the direction of Superintendent John Faso.
Cheryl and Lawrence Mulvey are scheduled to be sentenced on September 24, 2021, before Judge Arcara.
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Franklinville Woman Pleads Guilty to Methamphetamine ChargeRead 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 Heidi Jankowiak, 35, of Franklinville, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that on January 23, 2021, while on routine patrol in the Town of Salamanca, City of Salamanca Police Officers observed a vehicle with an obstructed license plate fail to use its turn signal. The officers conducted a traffic stop and, upon approaching the driver of the vehicle, believed the driver was operating the vehicle while impaired by drugs. The defendant was in the front passenger seat, while another person was in the back seat of the vehicle. The driver advised the officers that there was methamphetamine inside the vehicle. Following this admission, officers conducted a search of the vehicle and recovered a small purse belonging to Jankowiak. Inside the purse, officers recovered a digital scale, two suboxone strips, two hypodermic needles, a large quantity of methamphetamine, and cocaine.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, and the Salamanca Police Department, under the direction of Acting Chief Jamie Deck.
Sentencing is scheduled for October 22, 2021, before Judge Vilardo.
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Former PWSA Supervisor Charged with Violating the Clean Water ActRead the Press Release
PITTSBURGH - A former supervisor for the Pittsburgh Water and Sewer Authority has been charged in federal court with conspiring to violate the Clean Water Act, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count criminal Information, filed on Friday, June 11, 2021, named James Paprocki, age 51, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Information, Paprocki was a supervisor at the Pittsburgh Water and Sewer Authority’s (PWSA) drinking water plant located in Aspinwall, Pennsylvania. At various points between 2010 and 2017, Paprocki and another supervisor at the plant directed PWSA employees to discharge clarifier sludge into the Allegheny in violation of PWSA’s National Pollution Discharge Elimination (NPDES) permit. Clarifier sludge is generated when raw water is converted into potable drinking water. Under the terms of the NPDES permit, the sludge had to be sent to ALCOSAN’s treatment facility. In 2015, PWSA obtained an Industrial User permit. Under the terms of the Industrial User permit, PWSA was authorized to send up to one million gallons of clarifier sludge per day to ALCOSAN’s waste treatment facility. PWSA was also required to report the daily volume of sludge and install flow meters at various locations in the Aspinwall Plant to monitor the amount of sludge. These amounts had to be included in reports that PWSA was required to file with ALCOSAN. A number of the flow meters became inoperable and Paprocki and others employed at the plant began to estimate the amount sludge sent to ALCOSAN.
“Directing the discharge of pollutants into western Pennsylvania’s rivers is unacceptable and violates federal environmental law,” said Acting U.S. Attorney Kaufman. “Our office will continue to work with EPA and other state and local environmental regulators to hold offenders accountable and protect the environment.”
“The filing of these new charges in this investigation shows that EPA will hold responsible those who violate environmental regulations designed to ensure that our communities have safe drinking water,” said Jennifer Lynn, Special Agent in Charge of EPA’s Criminal Enforcement Program in Pennsylvania.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael Leo Ivory and Martin Harrell, Associate Regional Counsel for Criminal Enforcement, EPA Region 3, are prosecuting this case on behalf of the government.
The Environmental Protection Agency conducted the investigation leading to the filing of charges in this case.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Former Mascoutah Employee Sentenced for Accepting Illegal GratuitiesRead the Press Release
Mascoutah, Ill. – The former water treatment manager for the City of Mascoutah has been sentenced
for accepting illegal gratuities. Richard Lowell Jones, 60, of Troy, Illinois, was sentenced to 3
years’ probation, with the first 6 months on home confinement.According to court documents, Jones served as the city water treatment manager from 2016 to early
2020. During that time, he ordered chemicals and services on behalf of the city and
received a kickback from the vendor in the form of 10% of the total purchases, which he kept for
himself as a personal commission.Public officials are prohibited from using their positions to further their own financial
interests. When those positions are funded in part by federal dollars, the offense can be
prosecuted federally.As part of his sentence, Jones was ordered to complete 40 hours of community service
and pay restitution to the City of Mascoutah in the amount of $27,232.70.
FBI-Springfield and the Mascoutah Police Department investigated the case.Assistant U.S. Attorney Norman R. Smith prosecuted the case.
###Former JPS Band Volunteer Pleads Guilty to Producing Child PornographyRead the Press Release
Jackson, Miss. – A former Jackson Public School band volunteer and bus driver pleaded guilty today to producing child pornography, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Michelle Sutphin of the Federal Bureau of Investigation in Mississippi.
According to court documents, Jerrell Lea’Shun Jackson, 34, of Ridgeland, Mississippi, video recorded himself engaging in sexually explicit conduct with minor females beginning in 2017 and continuing through 2018 at his apartment in Ridgeland, Mississippi.
Jackson pleaded guilty today to three counts of producing child pornography. He is scheduled to be sentenced on September 30, 2021, and faces a mandatory minimum of 15 years and a maximum penalty of 30 years in prison. 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 Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Florida Man Guilty in Transnational Money Laundering Operation Involving Elder FraudRead the Press Release
TYLER, Texas – A Floridian who moved to Sulphur Springs, Texas has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jeremy Christopher Jones, 46, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love. Jones has additionally agreed to pay restitution in the amount of $438,433.00, representing the proceeds he and his recruits received and deposited.
“Multiple federal agencies worked together to dissect a complicated, international financial scheme that was bilking thousands of Americans from all over the country out of hard-earned funds,” said Acting U.S. Attorney Nicholas J. Ganjei. “Together, those agencies have ensured that individuals seeking to profit from fraudulent activities have been called to account. Today’s plea has added significance, given that it comes on the eve of World Elder Abuse Awareness Day.”
According to information presented in court, in 2014, Jones, who then lived in Florida, became involved with a money laundering operation. He picked up funds wired to various money services businesses, such as MoneyGram and Western Union. Jones created fictitious companies and opened bank accounts in the names of these businesses, and then deposited the money into the accounts for the fake companies. The wired funds were actually fraud proceeds obtained from victims of various schemes, including loan modification scams, IRS impersonation scams, and credit card scams.
Jones relocated to Sulphur Springs, Texas in 2015, but continued his money laundering activities. He made pickups of wired victim funds, and also recruited others, supervised their activity. Jones was paid a percentage of the cash and money orders that he and his recruits picked up. He returned to Florida in 2018 and resumed his money laundering operations there.
Jones was indicted by a federal grand jury on June 29, 2020. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigations; Housing and Urban Development-Office of Inspector General; the United States Secret Service; and Treasury Inspector General-Tax Administration and prosecuted by Assistant U.S. Attorneys Alan Jackson and Frank Coan.
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Escondido Businessman Sentenced for Tax Evasion Scheme with Former Chabad of Poway RabbiRead the Press Release
Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Valerie H. Chu (619) 546-6750
NEWS RELEASE SUMMARY – June 14, 2021
SAN DIEGO –Stuart Weinstock, an Escondido businessman and former owner of Salsa Market in Vista, was sentenced in federal court today to eight months in custody for evading over $180,000 in taxes as part of an eight-year tax-evasion scheme with former Chabad of Poway Rabbi Yisroel Goldstein.
At today’s hearing, U.S. District Judge Cynthia A. Bashant told the defendant: “It’s important to send the message: ‘You commit tax fraud, you go to jail.’”
Until around 2018, Rabbi Goldstein was the director and head rabbi at Chabad of Poway, a tax-exempt religious organization. Weinstock pleaded guilty in February 2021, admitting that starting in approximately 2010, he met monthly with Goldstein to give him purported donation checks for the Chabad, generally about $8,000 a month. Goldstein would then funnel back 75 percent of the funds, or generally about $6,000 to Weinstock, keeping the remaining 25 percent of the funds for himself.
Between 2010 and 2018, Weinstock gave over $870,000 in fraudulent donations to the Chabad, of which over $650,000 was funneled back to him in cash. Although Weinstock knew that he had received back, in cash, the vast majority of his donations, he nonetheless falsely claimed on his tax returns that the checks to the Chabad were either tax-deductible charitable contributions or legitimate business expenses.
In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million dollar tax evasion scheme and other financial deceptions involving theft of public money. Rabbi Goldstein’s plea agreement outlined the tax evasion scheme with Weinstock.
“Stuart Weinstock has cheated the system and evaded paying his fair share of taxes,” said Acting U.S. Attorney Randy S. Grossman. “Those who cheat the system by exploiting the tax-exempt status of non-profits and religious organizations will be held to account for their conduct.” Grossman praised prosecutors Michelle Wasserman and Valerie Chu and FBI and IRS agents for their excellent work on this case.
“For nearly nine years, Mr. Weinstock, a successful business man, funneled hundreds-of-thousands of dollars, veiled as donations, through Chabad of Poway’s tax-exempt status to skirt paying his fair share,” said IRS Criminal Investigation Special Agent in Charge, Ryan L. Korner. “When you get an envelope of cash in exchange for your ‘donation’, it is neither charitable giving nor a legitimate business expense; it is fraud. Today’s sentencing of the 10th defendant to plead guilty in this widespread tax evasion scheme sends a clear message – the IRS will pursue and seek punishment for tax cheats who exploit religious organizations to enrich themselves.”
“The FBI and our law enforcement partners continue to pursue those who use fraudulent charitable contributions to shield their tax obligations,” said FBI Special Agent in Charge Suzanne Turner. “What Mr. Weinstock was doing was illegal – and he knew it – however he continued to do it for years to line his own pockets and avoid paying taxes. These crimes shake the confidence of potential donors and adversely affect legitimate charities who rely on those donations to survive and it will not be tolerated.”
SUMMARY OF CHARGES Case Number 21CR0042-BAS
Stuart Weinstock Age: 64 Escondido, CA
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Mendel Goldstein, Case Number 20CR2772-BAS Age: 63 Brooklyn, NY
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Bruce Baker, Case Number 20CR1912-BAS Age: 75 San Diego
Conspiracy to Defraud the United States and File False Tax Returns, in violation of Title 18, U.S.C. §371
Maximum Penalty: Five years in prison
Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Igor Shtilkind, Case Number 20CR3955-BAS Age: 55 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Detroit Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Lamont Thomas, 42, of Detroit, Michigan was sentenced today to 87 months in prison for possession with intent to distribute 50 grams or more of a mixture containing methamphetamine and a quantity of heroin.
According to court documents, Thomas traveled from Detroit to Charleston by Greyhound bus on May 14, 2020. After leaving the Greyhound Bus Station, the vehicle in which Thomas was a passenger was stopped by officers with the Charleston Police Department. When a drug K-9 alerted on Thomas’s backpack, officers searched it and found approximately eight pounds of methamphetamine and approximately 61 grams of suspected heroin. Thomas admitted that the drugs were his and that he intended to distribute the controlled substances.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT) and the Drug Enforcement Administration (DEA). Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Monica Coleman handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00198.
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Daniel Chase Pleads Not Guilty to Making False Statements to Social Security AdministrationRead the Press Release
The United States Attorney’s Office for the District of Vermont announced that Daniel Chase, 60, of Weathersfield, VT, pleaded not guilty today in United States District Court in Burlington to charges that he made false statements to the Social Security Administration. U.S. Magistrate Judge Kevin Doyle released Chase on conditions pending trial, which has not been scheduled.
On May 20, a federal grand jury in Burlington returned an indictment charging Chase with three counts of making false statements to the Social Security Administration. In June 2020, Chase’s spouse, who had been receiving Social Security disability payments, died. Upon learning of the spouse’s death, SSA stopped the spouse’s monthly payment, which was about $867. The indictment charges that, in an effort to get his spouse’s benefit payments reinstated, Chase repeatedly made false claims to SSA that he was the spouse, that he was alive and that the payments had been wrongly terminated. Chase also submitted forged documents to SSA purportedly as proof that the spouse was alive.
The Acting U.S. Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Chase faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by SSA’s Office of Inspector General and Vermont’s Department of Children and Families.
Chase is represented by Ian Carleton. The prosecutor is Assistant U.S. Attorney Gregory Waples.
DOJ and Whatcom County resolve multiple complaints regarding violations of the Americans with Disabilities ActRead the Press Release
Seattle –The U.S. Department of Justice and Whatcom County have reached agreements to ensure individuals who are deaf or hard of hearing are able to effectively communicate during encounters with the criminal justice system, announced Acting U.S. Attorney Tessa M. Gorman. Two agreements resolved claims that the Whatcom County Sheriff’s Office, the Public Defender’s Office, and the Superior Court failed to ensure effective communication with a defendant who is deaf during the investigation, arrest, and advice of counsel phases of his criminal justice experience. The resolution calls for the Whatcom County Sheriff’s Office and the Whatcom County Public Defender’s Office to make a number of changes to the way in which they interact with people who are deaf or hard of hearing, including developing written policies, monitoring and logging interactions, contracting with sign language interpreters and reporting back to DOJ on their compliance with the agreements.
“When a person’s freedom is at stake, protecting rights guaranteed by the Americans with Disabilities Act is paramount,” said Acting U.S. Attorney Tessa M. Gorman. “I’m pleased the Whatcom County Public Defender’s Office and the Sheriff’s Office are taking these steps to make sure they protect the rights of all area residents who are deaf or hard of hearing.”
According to the settlement agreement with the Whatcom County Sheriff, a Whatcom County resident filed a complaint that his rights under the Americans with Disabilities Act (ADA) were violated when he was questioned and arrested by Sheriff’s deputies after a dispute with his tenant. The investigation found that the deputies knew the complainant was deaf and communicated via American Sign Language (ASL). Nevertheless, when investigating a complaint from the man’s tenant, they failed to use an interpreter and instead relied on hand-written notes to communicate. The complainant was arrested and taken to jail without effective communication with law enforcement and without an ability to tell his side of the story. As part of the settlement the Sheriff’s Office is paying the complainant $60,000.
Under the terms of the settlement with the Whatcom County Sheriff’s Office (WCSO), there will be significant improvements in its ADA policies. The WCSO will hire an ADA coordinator to ensure implementation and monitoring of new policies. WCSO will train staff on the policies and compile logs on interactions with residents who need auxiliary services such as sign language interpretation. The WCSO will enter into contracts with ASL service providers so that interpretation services are available at all times. The WCSO will prominently post information on interpreter services and the contact information for ADA services. Every six months for a two-year period WCSO will report back to the U.S. Attorney’s Office on the requests for and use of interpreter services.
The agreement also calls for WCSO to modify its handcuffing policy for persons who are deaf or hard of hearing. Such individuals are to be handcuffed in the front of their body unless there is a reasonable safety risk. In each instance where a staff member maintains there is such a risk, the interaction must be logged and reported to DOJ in the six-month review.
According to the resolution with the Whatcom County Public Defender’s Office, following complainant’s arrest in June 2018, the Whatcom County Public Defender’s Office and Whatcom County Superior Court failed to provide the complainant with an interpreter so that he could communicate with his assigned public defender. The lack of an interpreter meant the complainant had to spend an additional night in jail because there was no interpreter for his initial appearance. Under the terms of the resolution with Whatcom County, the Public Defender’s Office will ensure that, among other things, there is a contract in place for interpreter services in person or via video to ensure that defendants who are deaf or hard of hearing are able to effectively communicate with their attorneys.
Both matters were investigated and negotiated by Assistant United States Attorney Sarah Morehead in conjunction with the Civil Rights Division of the U.S. Department of Justice.
Columbus Couple in Custody, Charged with CARES Act FraudRead the Press Release
COLUMBUS, Ga. – Two Columbus residents were taken into custody today after a federal grand jury returned an indictment charging them both with wire fraud and theft of government property related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Curtis Porch, 48, and Dereen Porch, 43, both of Columbus, GA, were taken into custody earlier today by federal agents after a federal grand jury returned a four-count indictment on Wednesday, June 9, charging them with three counts of wire fraud and one count of theft of government property. If convicted, the defendants face a maximum penalty of 20 years in prison and a $250,000 fine for wire theft and a maximum penalty of 10 years in prison and a $250,000 fine for theft of government property. An indictment is an allegation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The defendants appeared in federal court this morning.
According to the filed indictment, the defendants allegedly submitted fraudulent loan applications to the Small Business Administration (SBA) in June and July 2020, seeking CARES Act money for shell companies that suffered no losses as a result of harm related to the COVID-19 pandemic. The Government alleges that companies either did not exist, did not conduct business or only existed on paper. As a result of the fraud, the defendants are accused of stealing or converting $364,200 from SBA.
FBI and IRS-Criminal Investigations are investigating the case.
Assistant U.S. Attorney Melvin Hyde is 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.
Claymont Man Sentenced to over 10 Years in Federal Prison for Selling Fake Oxycodone Pills that Contained FentanylRead the Press Release
WILMINGTON, Del. – A Claymont, Delaware man was sentenced today to over 10 years in federal prison for possessing fake oxycodone pills containing fentanyl with intent to distribute.
According to court documents, Charles Crest, 29, was arrested by the Drug Enforcement Administration (DEA) in May 2020 after he sold over a thousand fake oxycodone pills to an undercover DEA task force officer. The pills actually contained fentanyl. Inside Crest’s apartment, law enforcement found over 4,000 additional fake oxycodone pills containing fentanyl in the dishwasher. DEA agents also found over $5,400 in cash elsewhere in the apartment.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after sentencing by U.S. District Judge Richard G. Andrews. U.S. Attorney Weiss commented, “Selling illegal drugs, especially fentanyl made to appear as legitimate pharmaceutical oxycodone, is a potentially deadly practice that contributes to the pernicious effects of the opioid epidemic. To ensure the safety of our community, we will seek significant federal prison sentences against all who seek to profit from such drug peddling.”
“Crest stands convicted of distributing thousands of counterfeit oxycodone pills that contained illicit fentanyl,” said Jonathan A. Wilson, Special Agent in Charge of the DEA Philadelphia Field Division. “Illicit fentanyl is a potentially deadly drug that has destroyed thousands of lives across our region; Crest’s distribution of it is all the more malicious in that he distributed it in counterfeit pill form.”
At the same time, the U.S. Attorney’s Office remains committed to helping those who suffer from substance abuse disorder. If you need help, drug treatment information is available any time through the federal Substance Abuse and Mental Health Services Administration’s Treatment Referral Routing Service, found online at dpt2.samhsa.gov/treatment, findtreatment.gov, or by calling 1-800-662-HELP.
Assistant U.S. Attorney Alexander P. Ibrahim prosecuted the case, which was investigated by the DEA Wilmington Resident Agency’s Tactical Diversion Squad, Group 42.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cr-55-RGA.
China Resident Indicted for Laundering Millions of Fraud Proceeds Through Big Island PropertiesRead the Press Release
HONOLULU – A federal grand jury returned an indictment on June 10, 2021, charging Yao Zhungjun, 50, of Beijing, China, a former project manager at J.R. Simplot Company, an entity operating out of China, which had acquired the Jacklin Seed Company, a producer and marketer of grass seed and turfgrass based in Liberty Lake, Washington, with conspiracy to commit money laundering as part of multiple schemes to defraud Simplot, and route the proceeds through real estate developments in Hawaii.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, said that according to the indictment, Yao solicited grass seed orders at artificially inflated prices from Chinese customers and then negotiated kickback payments from those customers in exchange for rebate payments from Simplot. Christopher Claypool, Jacklin’s general manager, approved and Yao collected millions of dollars in kickbacks from just one Chinese grass seed distributor, Beijing Oasis, on more than $10 million in rebates Simplot paid to Beijing Oasis.
The indictment also alleges that Yao and Claypool conspired to defraud Simplot directly. Specifically, Claypool arranged for seller commissions purportedly owed to a European partner to be paid to Yao through a Citibank Hong Kong account in Yao’s wife’s name. Claypool directed the payment of more than $7.3 million in fraudulent commissions to this account from 2008 through 2014.
As part of the money laundering conspiracy for which Yao was indicted, he and Claypool then routed the proceeds of these schemes through at least six pieces of real estate on the Island of Hawaii. From not later than March 2010 and continuing through June 2016, Yao caused more than 55 wires, totaling more than $11.6 million, to be sent from accounts he controlled in Hong Kong to accounts at First Hawaiian Bank for use in the acquisition and development of six parcels under Claypool’s control. From 2010 through October 2018, Claypool developed and then sold those properties for more than $11.4 million and later transferred the proceeds to investments accounts at brokerage firm Edward Jones.
Claypool was separately charged and pleaded guilty to this conspiracy in the District of Oregon. Yao remains at large. If convicted, he faces a maximum sentence of ten years in prison, a fine of more than $20 million, and three years’ supervised release.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by IRS Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, a Special Assistant U.S. Attorney for the District of Hawaii.
Chemung County Man Pleads Guilty to Receiving Images of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Carling, 47, of, Millport, NY, pleaded guilty before U.S. District Judge David G. Larimer to receiving child pornography. The charge carries a minimum penalty of 15 years in prison, a maximum of 40 years, and a fine of $250,000.
Assistant U.S. Attorney John J. Field who is handling the case, stated that on October 31, 2019, the defendant knowingly received images of a minor victim who was acquainted with his family. Carling was previously convicted in 1999 of a sexual offense and as a result is facing enhanced penalties. He will also be required to register as a sex offender under federal law.
The plea is the result of an investigation by Special Agents with the Federal Bureau of Investigation, acting under the direction of Special Agent-in-Charge Stephen Belongia, and New York State Police, Horsehead Barracks, acting under the direction of Major Barry Chase.
Sentencing is scheduled for September 13, 2021, at 2:30 p.m. before Judge Larimer.
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Buffalo Man and Oklahoma Woman Charged for Their Roles in A Nearly $1,000,000 COVID-19 Relief Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
JPHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – A New York man and an Oklahoma woman were arrested and charged by criminal complaint for their roles in fraudulently obtaining and laundering nearly $1 million in funds from the COVID-19 relief Paycheck Protection Program (PPP). Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney James P. Kennedy Jr. for the Western District of New York; Special Agent in Charge Stephen Bolongia of the FBI’s Buffalo Field Office; and Acting Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) Criminal Investigation Division made the announcement.
According to court documents, from May 2020 through October 2020, Adam D. Arena, 44, of Buffalo, NY, and Amanda J. Gloria, 44, of Altus, Oklahoma, allegedly conspired fraudulently to obtain and misuse a nearly $1 million PPP emergency relief loan through the U.S. Small Business Administration (SBA). Arena and Gloria allegedly submitted a false loan application to an SBA approved participating lender on behalf of a defunct business owned by Arena called ADA Auto Group LLC. This loan application allegedly contained materially false representations and certifications about Arena’s business and how the loan would be used. After fraudulently obtaining the loan, Arena and Gloria are alleged to have misused the loan proceeds on personal expenses including the purchase of two cars.
Arena is charged with one count of conspiracy to commit bank fraud, one count of conspiracy to engage in monetary transactions with criminally derived proceeds, one substantive count of bank fraud, and three substantive counts of engaging in monetary transactions with criminally derived proceeds. Gloria is charged with one count of conspiracy to commit bank fraud, one count of conspiracy to engage in monetary transactions with criminally derived proceeds, one substantive count of bank fraud, and one substantive count of engaging in monetary transactions with criminally derived proceeds. If convicted, Arena and Gloria each face a maximum penalty of 30 years in prison for each conspiracy and substantive count of bank fraud, and a maximum of 10 years in prison for each conspiracy and substantive count of engaging in monetary transactions with criminally derived proceeds.
The FBI and IRS-CI are investigating the case. Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins of the U.S. Attorney’s Office for the Western District of New York are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Bloods Gang Leader Convicted of Attempted Murder-in-Aid of Racketeering and Other Violent CrimesRead the Press Release
Following six weeks of trial, a federal jury in Central Islip today convicted Howard Davis, also known as “Mousey” and “Mr. Fedup,” a Bloods gang leader from Bellport, New York, on all 48 counts, including attempted murder in-aid-of racketeering, conspiracy to commit murder, attempted murder, assault, robbery, distribution of controlled substances, obstruction of justice and brandishing and discharging firearms during the commission of these offenses. Davis faces up to life imprisonment when he is sentenced by United States District Judge Joan M. Azrack.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Stuart J. Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the verdict.
“With today’s conviction, a jury of his peers has held Davis to account for his long and brutal reign of terror, consisting of standing orders to kill, the shooting of six victims, and the spread of poisonous crack cocaine and heroin in our communities,” stated Acting U.S. Attorney Lesko. “This Office and its law enforcement partners will continue their tireless efforts to eliminate the threats posed by violent defendants like Davis and dangerous street gangs like the Bloods.” stated Acting United States Attorney Lesko. Mr. Lesko extended his grateful appreciation to the law enforcement agencies involved in the investigation and prosecution of Davis, including the FBI Long Island Gang Task Force and HSI Long Island Violent Gangs and Narcotics Unit.
“This infamous Bloods gang leader known as “Mousey” is convicted in federal court because of the unrelenting commitment of HSI’s Long Island Transnational Crime Task Force and our law enforcement partners to make our communities safer here on Long Island,” stated HSI Special Agent-in-Charge Fitzhugh. “Davis was arrested and charged with a litany of violent felony crimes for his barbarous actions, and now his conviction has made the Suffolk County neighborhoods he terrorized safer with one less gang leader calling the shots. Davis clearly lost this game of cat and mouse.”
“Mr. Davis and his fellow gang members are the type of criminals who wreck neighborhoods by dealing potentially lethal drugs. They terrorize communities by firing illegal guns without thinking about the innocent people they may hit. These are the criminals who belong behind bars, and our job as law enforcement is to stop their criminal behavior before their actions harm anyone else,” stated FBI Assistant Director-in-Charge Sweeney.
“The conviction of Howard Davis highlights the outstanding results that can be achieved when local law enforcement works in tandem with our federal law enforcement partners,” stated SCPD Acting Commissioner Cameron. “His criminal activities endangered the residents of our county on a daily basis and his criminal activities know no bounds as he went as far as enticing the mother of his child to commit perjury for him. I would like to thank all of the law enforcement officers involved for their hard work to put this dangerous individual behind bars.”
As proven at trial, Davis was the leader of Long Island-based G-Shine Bloods set, a racketeering enterprise that engaged in multiple crimes of violence and narcotics trafficking. Davis directed a campaign of violence against his rivals, including issuing a standing order to kill certain individuals whenever and wherever they were found. In addition, Davis committed numerous shootings. During the trial, the government elicited details of the injuries suffered by more than six shooting victims at the hands of Davis and his G-Shine crew. Davis and his gang financed its activities through extensive narcotics trafficking. Over the course of the defendant’s narcotics trafficking conspiracy, he distributed large quantities of crack cocaine and heroin, as well as quantities of fentanyl. The evidence also established that Davis possessed and used firearms to further his drug business and gang activities. Davis was also convicted of obstruction of justice for arranging for the mother of his child to testify falsely before a federal grand jury, resulting in the 2016 dismissal of a firearms charge.
This case was brought as 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. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone, Mark Misorek and Monica Castro are in charge of the prosecution.
The Defendant:
HOWARD DAVIS (also known as “Mousey” and “Mr. Fedup”)
Age: 34
Bellport, New YorkE.D.N.Y. Docket No. 17-CR-615 (JMA)
Beaumont Felon Sentenced for Parkdale Mall Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Derionte Chrishaun Thomas, aka, Shug, 25, pleaded guilty on Feb. 24, 2021, to being a felon in possession of a firearm and was sentenced to 100 months in federal prison today by U.S. District Judge Michael J. Truncale.
“Felons who possess firearms, and certainly those who possess firearms in connection with other felony offenses, will receive swift justice in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “This violent felon is now off the streets of Beaumont for a considerable time thanks to the hard work of the Beaumont Police Department and the ATF.”
According to information presented in court, on Sep. 24, 2020, Beaumont police officers responded to a call regarding a theft and aggravated assault at Parkdale Mall in Beaumont. Upon arrival, officers spoke to the victim, who told officers that men in a black SUV stole her purse in the parking lot, and that the driver pointed a handgun at her face. A short time later, officers located the black SUV parked at Smoke Deez Smoke Shop in Beaumont, and observed three males, including Thomas, exiting the smoke shop and walk towards the SUV. Officers engaged the suspects, who fled on foot. During this pursuit, officers saw Thomas discard a handgun. All three individuals were eventually caught and placed in custody, and the victim’s purse was found inside the black SUV. The handgun that Thomas tossed was also recovered. Further investigation revealed Thomas was a convicted felon having previously been found guilty of unauthorized use of a vehicle in 2016 in Harris County; unlawful possession of a firearm by a felon in 2017 in Jefferson County; and continuous family assault in 2017 in Jefferson County. As a convicted felon, Thomas is prohibited from owning or possessing forearms or ammunition. Thomas was indicted by a federal grand jury on Oct. 27, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Matt Quinn.
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Baltimore Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – Eric Donovan Ashe, age 24, of Baltimore, Maryland, pleaded guilty today to distribution of child pornography.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, from 2017 to September 2019, Ashe posed as multiple minor girls and sold purported self-made pornography to various men in exchange for over $24,000 in gift cards. In addition to searching for child pornography for at least five years, Ashe also distributed and received child pornography.
As detailed in his plea agreement, in 2016 Ashe pretended to be a female minor while communicating with a 13-year-old female victim (Minor Victim 1) on a social media platform. Ashe later communicated with Minor Victim 1 as himself, including engaging in sexually explicit conversations with Minor Victim 1. Ashe also created a fictious social media account in Minor Victim 1’s likeness, using pictures he uploaded from Minor Victim 1’s genuine social media account and a fictitious name. The Minor Victim 1 did not give permission for Ashe to use her likeness in any capacity.
While posing as a minor in the likeness of the Minor Victim 1, Ashe communicated with dozens of men, and arranged to sell sexually explicit pictures and videos of Minor Victim 1 (who he claimed to be to the men). Ashe offered various poses and sex acts in exchange for gift cards in various amounts. For example, on September 27, 2017, while posing as Victim 1, Ashe sent a “menu” to dozens of social media users for the price of certain images and sex acts to online users. In one instance, Ashe sent a messaging stating “100 would get u 2 nude 2 masturbation video and a full body nude”.
Once Ashe completed the negotiations on social media, he instructed buyers to send gift cards to him and then directed the buyers to communicate with him on another messaging application. Once on the messaging application, Ashe received payment and sent the explicit images to the buyers.
From July 7, 2017 to December 17, 2018, Ashe loaded over $24,000 in gift cards and spent at least $17,000 on electronics, restaurant gift cards, and clothing. All orders were shipped to Ashe’s Baltimore address.
As stated in his plea agreement, Ashe used two other fictitious social media profiles where he purported to be minor females. Specifically, on September 5, 2017, Ashe used a messaging application to send a 1 minute and 41 second video that depicts a prepubescent minor female engaged in sexual acts.
On September 11, 2019 law enforcement officials executed a search warrant at Ashe’s Baltimore residence. During the search, investigators seized three of Ashe’s devices which contained over 500 videos and 250 images of child pornography. The files included images of prepubescent minors engaging in sexual acts. A subsequent forensic analysis of Ashe’s devices revealed that Ashe had been searching for child pornography since 2014 and as recently as 2019. For example, on one of Ashe’s cell phones, Ashe searched phrases including: “movies about kids getting raped”, “are all men pedophile” and “necrophilia.”
Ashe faces a mandatory minimum sentence of five years in prison and a maximum of 20 years in prison followed by up to lifetime of supervised release for distribution of child pornography. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 8, 2021 at 2 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Bakersfield Man Pleads Guilty to Possessing and Attempting to Sell Large Amounts of Fentanyl, Cocaine and MethamphetamineRead the Press Release
FRESNO, Calif. — Jose Mario Quintero Beltran, 31, of Bakersfield, pleaded guilty today to possessing with the intent to distribute fentanyl, cocaine, and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 31, Quintero Beltran arranged to meet a customer at a Bakersfield shopping mall and sell him 20,000 counterfeit oxycodone pills containing fentanyl for $42,000. During their meeting, Quintero Beltran also offered to sell the customer methamphetamine. Afterwards, law enforcement officers searched Quintero Beltran’s vehicle and residence and located a total of 51,000 counterfeit oxycodone pills containing fentanyl, approximately 40 pounds of cocaine, and approximately 3 pounds of crystal and liquid methamphetamine, all of which Quintero Beltran intended to distribute to others.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Quintero Beltran is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 7. Quintero Beltran faces a mandatory minimum penalty of 10 years in prison and a maximum life sentence, and up to a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Alleged CJNG Cartel Enforcers Charged with Drug TraffickingRead the Press Release
NEWS RELEASE SUMMARY – June 14, 2021
SAN DIEGO – A superseding indictment and arrest warrants were unsealed recently in federal court against alleged Mexican drug cartel enforcement leaders in connection with their alleged violent support of heroin and methamphetamine trafficking.
The superseding indictment, returned on March 6, 2020, plus a related indictment returned on March 16, 2021, collectively charge Edgar Herrera Pardo, aka Caiman; Carlos Lorenzo Hinojosa Guerrero, aka Cabo 96; Edgar Perez Villa, aka Cabo 89; and Israel Alejandro Vazquez-Vazquez, aka Cabo 50, among others, with Conspiracy to Distribute Controlled Substances Intended for Importation, and Conspiracy to Import Controlled Substances.
According to court filings filed by the government, Caiman, Cabo 96, Cabo 89 and Cabo 50 were leaders of a violent group of cartel enforcers, known as Los Cabos, who operated in Baja California to secure control of the region for Cártel de Jalisco Nueva Generación, commonly known as CJNG. Los Cabos allegedly employed rampant violence to ensure that CJNG maintained the ability to traffic drugs through Tijuana, Mexico, and into the United States through San Diego Indeed, in one approximately 6.5-month period of judicially-authorized interceptions of a group chat operated by leaders of Los Cabos, these individuals planned over 150 murders, the majority of which took place in Tijuana, according to the filings. Los Cabos’s bloody reign of terror included the murder of two teenaged United States citizens in Tijuana in November 2018, the government alleges. These teenagers were residents of Chula Vista. The government also alleges that Los Cabos targeted law enforcement in Tijuana, killing at least three police officers.
Los Cabos allegedly engaged in this violence in support of CJNG, one of the most dangerous transnational criminal organizations in the world. The cartel has its hands in trafficking multiple deadly substances. It is responsible for moving tons of cocaine, methamphetamine, and fentanyl-laced heroin into the United States. CJNG is also a prolific methamphetamine producer and chemical importer, using precursors procured from China and India. CJNG is one of the most powerful Mexican cartels operating within the United States.
At the same time, CJNG has contributed to a catastrophic trail of human and physical destruction in Mexico. It is the most well-armed cartel in Mexico. Its members willingly confront rival cartels and even the security forces of the Mexican government. CJNG is responsible for grisly acts of violence and loss of life.
“For too long, powerful cartels have visited unspeakable violence on Tijuana, a city that is right next door to San Diego,” said Acting U.S. Attorney Randy S. Grossman. “We will continue our campaign to end the cartels’ reign of terror and stop the flow of drugs across the border by prosecuting the highest-ranking leaders and enforcers.”
Grossman praised federal prosecutors, agents with the Drug Enforcement Administration and Homeland Security Investigations and detectives with the San Diego Sheriff’s Department for their excellent work on this case. In addition, Grossman thanked the Mexican Fiscalía General de la República, which provided significant assistance to this investigation.
“Drug cartels like Cártel de Jalisco Nueva Generación, also known as CJNG, continue to flood our communities with heroin and methamphetamine,” said DEA Special Agent in Charge John W. Callery. “These cartels not only perpetrate violence and murders that effect our neighbors south of the border, but their drugs cause death and destruction in our own communities. The superseding indictments and arrest warrants against violent CJNG members are testament that DEA and our law enforcement partners will continue to work vigorously to identify and arrest members of these drug cartels.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
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.
DEFENDANTS
Case Number: 19CR1274-BAS
Edgar Herrera Pardo, aka Caiman
Carlos Lorenzo Hinojosa Guerrero, aka Cabo 96, aka C96
Edgar Perez Villa, aka Cabo 89, aka Nier
Case Number: 21CR0861-BAS
Israel Alejandro Vazquez-Vazquez, aka Cabo 50
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963;
Maximum Sentence: Mandatory minimum ten years and up to life imprisonment, $10 million fine
Conspiracy to Distribute Controlled Substances, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.
Maximum Sentence: Mandatory minimum ten years and up to life imprisonment, $10 million fine
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
Department of Justice, Organized Crime Drug Enforcement Task Force
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego Sheriff’s Department
*An indictment or complaint is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
3 Inland Empire Women Plead Guilty to Wire Fraud for Illegally Obtaining COVID-Related Jobless Benefits in Prison Inmates’ NamesRead the Press Release
RIVERSIDE, California – Three Inland Empire women have pleaded guilty to federal criminal charges accusing them of using information belonging to other people – including California state prison inmates – to file for pandemic-related unemployment benefits, with each defendant causing at least $350,000 in losses.
Paris Denise Thomas, 33, of San Bernardino, pleaded guilty today to a one-count information charging her with wire fraud. United States District Judge Jesus G. Bernal has scheduled a September 13 sentencing hearing.
On Friday, Sequoia Edwards, 35, of Moreno Valley, and Mireya Ramos, 42, of Colton, each pleaded guilty to one count of wire fraud. United States District Judge John W. Holcomb has scheduled an August 27 sentencing hearing for Ramos. Edwards’ sentencing hearing will be scheduled on a later date set by Judge Holcomb.
As a result of their guilty pleas, all three women face a statutory maximum sentence of 30 years in federal prison.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress and signed into law in March 2020 provided additional unemployment insurance (UI) benefits to qualified individuals and helped provide UI benefits during the COVID-19 pandemic to people who did not otherwise qualify, including business owners, self-employed workers, independent contractors, and those with a limited work history.
According to her plea agreement, from June 2020 to December 2020, Thomas submitted at least 47 fraudulent UI claims to the California Employment Development Department (EDD), which administers the UI program in California.
Thomas admitted to receiving the names, Social Security numbers, dates of birth and other personally identifiable information of California state prison inmates and others, which she used to submit applications for UI benefits via the internet as if those persons were submitting the claims themselves. Thomas falsely represented to the EDD that the inmates were unemployed because of the COVID-19 pandemic. In exchange for cash payments, Thomas provided third parties with the electronic benefit payment debit cards which were loaded periodically with UI benefits and EDD website login credentials linked to the fraudulent UI claims.
In total, Thomas caused EDD to disburse approximately $477,000 in fraudulently obtained unemployment benefits.
Edwards admitted in her plea agreement that, from July 2020 to August 2020, she submitted at least 27 fraudulent UI claims to the EDD using the information of California state prison inmates and other people, and falsely stating they had lost their jobs because of the COVID-19 pandemic. In total, Edwards caused the EDD to disburse approximately $456,218 in UI benefits from July 2020 to March 2021.
Ramos admitted that, from June 2020 to December 2020, she submitted approximately 37 fraudulent UI claims to the EDD using the personal information of California prison inmates and others, falsely representing to the EDD that the inmates were unemployed because of the COVID-19 pandemic. Ramos entered false occupations for each “applicant” and created various email addresses so she could monitor the status of each application, according to her plea agreement.
In total, Ramos caused the EDD to fraudulently disburse approximately $353,532 in UI benefits from June 2020 to January 2021.
The United States Department of Labor – Office of Inspector General, the FBI, and the United States Postal Inspection Service investigated these matters. Investigators with the California Employment Development Department and special agents from the California Department of Corrections and Rehabilitation – Office of Correctional Safety provided substantial assistance.
Assistant United States Attorney Byron R. Tuyay of the Riverside Branch Office is prosecuting these cases.
"Operation Ceasefire" Results in over 60 ArrestsRead the Press Release
LITTLE ROCK—Law enforcement authorities have announced the results of a targeted effort to curb violent crime in Little Rock. “Operation Ceasefire” took place each day last week and resulted in 61 arrests of some of Little Rock’s most wanted. These efforts are part of a series of law enforcement actions that combine federal, state, and local resources to reduce gun crime.
Beginning on June 7 and continuing through the rest of last week, law enforcement identified the most violent targets in the Little Rock area, focusing on individuals who had active warrants for their arrests. The United States Marshals Service, Little Rock Police Department (LRPD), and the FBI’s Gang Enforcement Task Force—known as GETROCK—combined their resources to identify, locate, and arrest 61 wanted individuals in the Little Rock area.
Those arrested were wanted for crimes including capital murder, rape, aggravated assault, battery, terroristic act, aggravated robbery, and various drug and other charges. Approximately 10 of these targets were arrested for federal indictments charging them with being a felon in possession of a firearm. The 61 people who were arrested have been charged with 78 total felonies and 27 total misdemeanors. During the arrests, authorities seized 12 firearms and $16,095 in cash associated with criminal activity.
Statistics collected by LRPD indicate violent crime has increased 16% from 2020 to 2021. These arrests are part of a continued effort to combat violent crime in the Little Rock area and were conducted by the United States Marshals Service, the FBI GETROCK task force and their participating agencies: LRPD, Arkansas State Police, North Little Rock Police Department, Arkansas Department of Community Corrections, Pine Bluff Police Department, and Arkansas Air National Guard Counter Drug Unit.
An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Saturday 12 June 2021
Individual in Texas and Felon in Puerto Rico Indicted for Illegal Firearms TraffickingRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a three-count indictment charging Luis Rodríguez Cruz and Jason Morales de Jesús with firearms trafficking, sending and receiving firearms from out of state, and sending firearms via the mail without written notice, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Defendant Rodríguez Cruz also faces a charge of possessing a firearm while being a felon.
According to the Government’s allegations, between October 2020 and February 2021, Jason Morales de Jesús acquired guns in Texas and sent them via U.S. Priority Mail to Puerto Rico, where Luis Rodríguez Cruz would sell the guns for profit. Among other events:
• In October 2020, Rodríguez Cruz negotiated the illegal sale of Glock pistols for $1,400 each in Puerto Rico. In addition, he offered to sell a 9mm pistol with a high-capacity magazine for $1,600.
• In February 2021, Morales de Jesus in Texas arranged for the shipping to Rodríguez Cruz in Puerto Rico of two Taurus pistols with obliterated serial numbers. Rodríguez Cruz then sent proceeds from firearm sales via the ATH Móvil application to Morales de Jesús using accounts belonging to third parties.
• In February 2021, Morales de Jesús in Texas arranged for the shipping to Rodríguez Cruz in Puerto Rico of a Zastava Arms pistol, three magazines and 75 rounds of ammunition.
Assistant U.S. Attorney Jeanette Collazo of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The United States Postal Inspectors and the Department of Homeland Security are jointly in charge of the investigation. If convicted, the defendants face a maximum of five years in prison for the illegal firearm trafficking. Defendant Rodríguez Cruz faces a maximum of ten years in prison for being a felon in possession of a firearm.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Friday 11 June 2021
Winnebago Couple Sentenced for AssaultRead the Press Release
Acting United States Attorney Jan Sharp announced that Curtis Kearnes, age 42, and Jalyssa Harlan, age 28, of Winnebago, Nebraska, were both sentenced in federal court today in Omaha, Nebraska. United States District Judge Robert F. Rossiter, Jr. sentenced Kearnes to 87 months’ imprisonment for burglary and assault and sentenced Harlan to 36 months’ imprisonment for the assault. There is no parole in the federal system. After completing their terms of imprisonment, Kearnes and Harlan will both begin a 3-year term of supervised release.
On June 19, 2020, at about 2:00 a.m. in Winnebago, Kearnes and Harlan entered without permission the home of two women, ages 59 and 74. Kearnes then attacked both women. Harlan directed Kearnes to attack one of the women. Kearnes repeatedly struck the women with his fists. One of the women suffered a broken nose and stiches to her face and the other suffered a broken jaw.
The case was investigated by the Federal Bureau of Investigation and the Winnebago Police Department.
Waterloo Man who Ran from Fleet Farm with Stolen Gun Sentenced to Federal PrisonRead the Press Release
A man who stole a semiautomatic firearm with a 16-round magazine from Fleet Farm in Cedar Falls, Iowa, and ran from the store was sentenced today to five years in federal prison.
Dalyn Jamil Culp, age 19, from Waterloo, Iowa, received the prison term after a December 11, 2020 guilty plea to theft of a firearm from a federal firearms licensee.
In a plea agreement, Culp admitted he stole a Smith and Wesson 9mm pistol from Fleet Farm in Cedar Falls on February 27, 2020, and fled from the store. Law enforcement was able to find photographs on Culp’s cell phone where he was wearing pants that matched the pants worn by the perpetrator in the surveillance video obtained from Fleet Farm. There was also a video of a firearm with the same make and model as the stolen gun, as well as a photograph of the Fleet Farm barcode attached to the same make and model of firearm which was stolen.
Culp was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Culp was sentenced to 60 months’ imprisonment and fined $100. He was ordered to make restitution to Fleet Farm. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Culp is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Cedar Falls Police Department, the Waterloo Police Department, and the Department of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2041-CJW.
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Virginia Woman Pleads Guilty to Fraudulently Obtaining COVID-Related Unemployment Benefits for Prison InmatesRead the Press Release
RICHMOND, Va. – A Glen Allen woman pleaded guilty today to mail fraud for her role in a conspiracy to fraudulently obtain pandemic-related unemployment benefits for 22 prison inmates, which she shared with the inmate beneficiaries.
“These critical unemployment funds were intended for deserving members of our communities to help alleviate their economic hardship during the pandemic,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution and the defendant’s guilty plea send a clear message that EDVA will bring to justice those who unlawfully exploit taxpayer-funded assistance for personal gain.”
According to court documents, Virginia Smith, 37, conspired with an inmate at Baskerville Correctional Center to collect the personally identifiable information of inmates to fraudulently apply for Virginia unemployment benefits from around June 2020 to January 2021, during the COVID-19 pandemic. Smith, with the assistance of the inmate co-conspirator, submitted successful applications for Virginia unemployment benefits for at least 22 inmates at Baskerville Correctional Center, resulting in the dispersal of at least $223,984.72 in fraudulent benefits.
“Smith and her co-conspirators used the identities of prisoners housed at the Baskerville Correctional Center to file fraudulent unemployment claims and unlawfully collect more than $223,000 in resulting benefit payments,” said Derek Pickle, Special Agent-in-Charge, Washington Region, U.S. Department of Labor Office of Inspector General. “As the primary law enforcement agency responsible for investigating unemployment insurance fraud, the Department of Labor Office of Inspector General is committed to supporting the prosecution of individuals who take advantage of unemployment insurance programs. We are grateful to the U.S. Attorney’s Office, the Virginia Employment Commission, and our law enforcement partners for their invaluable support of our mission.”
“Intentional abuse of COVID-19 unemployment benefits for personal gain is appalling,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security. “Today’s sentencing illustrates that DHS OIG and our law enforcement partners will work tirelessly to dismantle these greed-driven schemes.”
As part of their scheme, Smith’s co-conspirator would provide her with the names, dates of birth, and Social Security numbers of inmates serving a sentence at Baskerville Correctional Center. Smith would then file unemployment claims with the Virginia Employment Commission using that information. Once the applications were approved, Smith would share the proceeds of the crime with the inmates whose personal information she used to file the fraudulent claims, keeping a portion of the proceeds for herself. The applications contained several false statements such as a false physical address, rather than the address of the correctional facility at which the inmates were actually living; a false last employer; and a false certification that the inmates were ready, willing, and able to work in the event employment became available.
Smith is scheduled to be sentenced on September 9. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Joseph V. Cuffari, Inspector General for the Department of Homeland Security; Jerald W. Page, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office; and Eric D. English, Chief Henrico County Police Division, made the announcement after U.S. District Judge John A. Gibney, Jr. accepted the plea.
This investigation was conducted under the auspices of “Operation Checkmate,” the Virginia Department of Corrections Inmate Unemployment Insurance Fraud Task Force. The task force is led by the U.S. Attorney’s Office for the Eastern District of Virginia, DOL-OIG, DHS-OIG, and the Virginia Department of Corrections. This investigation included significant assistance from the Virginia Employment Commission.
Assistant U.S. Attorney Kashan Pathan is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-60.
Venice Man Sentenced to 15 Years in Federal Prison for Distributing, Receiving and Possessing Child Sexual Abuse Images and VideosRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Travis Vance (36, Venice) to 15 years in federal prison for distributing, receiving, and possessing images and videos depicting children being sexually abused. Vance was also ordered to serve a 10-year term of supervised release, register as a sex offender, and forfeit the electronic devices that he had used to commit his offenses.
Vance had been found guilty by a jury on March 10, 2021.
According to court documents, on July 6, 2018, Vance received child sex abuse images over a social media application on the internet from a Canadian user. Also, on July 6, 2018, Vance distributed similar contraband images over the same social media application to the same user in Canada. The Royal Canadian Mounted Police (RCMP) then received information from the company hosting this social media application that Vance was sharing child sex abuse images online. The RCMP determined that Vance resided within the Middle District of Florida and shared this information with Homeland Security Investigations (HSI). On June 12, 2019, HSI agents and other officers executed a search warrant at Vance’s residence. A forensic examination of Vance’s electronic devices revealed that they contained more than 600 images depicting the sexual abuse of children, some of whom were under the age of 12.
“This case is an example of the unique international investigative authorities of HSI special agents,” said HSI Tampa Assistant Special Agent in Charge Hector Colon. “Because of the law enforcement partnership between HSI and the British Columbia Integrated Child Exploitation Unit, our communities will be safer with this child predator behind bars.”
This case was investigated by the Royal Canadian Mounted Police and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
Upshur County Man Convicted of Sex Offense Against MinorRead the Press Release
BECKLEY, W.Va. – A federal jury convicted an Upshur County man yesterday of attempted sex trafficking of a minor. George Albert Romer, Jr., 63, of Buckhannon was charged by a single-count Indictment in November 2019.
Evidence at trial revealed that on October 31, 2019, Romer began communicating via a dating application with a person he understood to be a 15-year-old girl in Lewisburg, West Virginia. During the messages, Romer offered to pay the girl $100 to engage in sexual intercourse. On November 1, 2019, Romer drove from Buckhannon to Lewisburg and rented a hotel room in order to meet the minor. He was placed under arrest shortly thereafter.
Romer faces at least 10 years and up to life in prison when he is sentenced on October 18, 2021. He will also be required to register as a sex offender.
“The work of the FBI Child Exploitation and Human Trafficking Task Force is critical in our efforts to combat child sexual exploitation,” said Acting United States Attorney Lisa G. Johnston. “I congratulate all those who worked on this case, including Assistant United States Attorneys Jennifer Rada Herrald and Courtney Cremeans, and the rest of the trial team for bringing this sex offender to justice.”
The Honorable United States District Judge Frank W. Volk presided over the trial.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:19-cr-00293.
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Upper Skagit Tribal member convicted of assault connected to drug rip-offRead the Press Release
Seattle – A 44–year-old member of the Upper Skagit Indian Tribe was convicted today in U.S. District Court in Seattle of three federal felonies in connection with a February 6, 2019, shooting on the Tulalip Indian Reservation, announced Acting U.S. Attorney Tessa M. Gorman. Joseph Sam a/k/a William Earlystar Clark was convicted of conspiracy to commit robbery, robbery, and assault resulting in serious bodily injury following a four-day jury trial. U.S. District Judge John C. Coughenour scheduled sentencing for October 4, 2021.
According to records filed in the case and testimony at trial, Sam participated in a conspiracy to rob the victim of an ounce of heroin. The co-conspirators’ plan was for one of them to pose as a buyer of the heroin and for Sam to then show up and rob the victim. Sam arrived at a residence where the other two co-conspirators were waiting with the victim. His face was covered to hide his identity and he had a gun. When the victim fought back, Sam shot him in the back, paralyzing him from the waist down. Following the robbery and shooting, law enforcement was able to piece together the gunman’s identity by reviewing social media posts and obtaining warrants for Facebook accounts and other electronic information. Sam was arrested on May 15, 2019 and has been in custody since his arrest.
The jury deliberated about four hours before returning the guilty verdicts.
Conspiracy to commit robbery is punishable by up to five years in prison. Robbery is punishable by up to fifteen years. Assault resulting in serious bodily injury is punishable by up to 10 years. Judge Coughenour will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Tulalip Tribal Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorneys Rebecca Cohen and Cecelia Gregson.
Unlawful Gun Possession Leads to 10-Year Sentence for East St. Louis ManRead the Press Release
East St. Louis, Ill. – A convicted felon from the Metro East is headed to prison for possessing a
loaded rifle. Fernandez White, 28, of East St. Louis, Illinois, was sentenced on Thursday to the
statutory maximum term of 10 years in prison. White previously pled guilty to the offense in
February.
According to court documents, the case against White began on Oct. 31, 2020, when a woman notified
the East St. Louis Housing Authority that she had been stopped by a man asking for a ride. When the
woman refused, the man reportedly grew angry, brandished a rifle, and walked away.
Officers approached the man, later identified as White, and took him into custody without incident.
The rifle was recovered and determined to be stolen. It was loaded with 26 rounds of ammunition.At the sentencing hearing, the district court heard evidence that at the time of the offense White
was on probation for robbery and out on bond for three separate felony offenses. In
fact, White was wearing an electronic location monitor on his ankle when he was arrested.The case was investigated by the Public Safety Enforcement Group (PSEG), the East St. Louis Police
Department, the East St. Louis Housing Authority Police, and the ATF. PSEG is a newly formed
Illinois State Police unit embedded in and working in direct partnership with the East St. Louis
Police Department.Assistant U.S. Attorney Laura Reppert prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of
the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program
proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders
work together to identify the most pressing violent crime problems in the community and develop
comprehensive solutions to address them. As part of this strategy, PSN focuses
enforcement efforts on the most violent offenders a d partners with locally based
prevention and reentry programs for lasting
reductions in crime.U.S. Entertainer/Businessman and Malaysian National Charged with Back-Channel Lobbying Campaign to Drop 1MDB Investigation and Remove Chinese Dissident from U.S.Read the Press Release
A federal grand jury in the District of Columbia returned a superseding indictment Thursday charging a U.S. entertainer and businessman and a Malaysian national with orchestrating an unregistered, back-channel campaign beginning in or about 2017 to influence the then-administration of the President of the United States and the Department of Justice both to drop the investigation of Jho Low and others in connection with the international strategic and development company known as 1Malaysia Development Berhad (1MDB), and to send a Chinese dissident back to China.
According to the superseding indictment, Low Taek Jho, 39, also known as Jho Low, and Prakazrel “Pras” Michel, 48, are alleged to have conspired with Elliott Broidy, Nickie Lum Davis, and others to engage in undisclosed lobbying campaigns at the direction of Low and the Vice Minister of Public Security for the People’s Republic of China, respectively, both to have the 1MDB embezzlement investigation and forfeiture proceedings involving Low and others dropped and to have a Chinese dissident sent back to China. Michel and Low are also charged with conspiring to commit money laundering related to the foreign influence campaigns. Michel is also charged with witness tampering and conspiracy to make false statements to banks.
In May 2019, Michel and Low were charged in the District of Columbia for allegedly orchestrating and concealing a foreign and conduit contribution scheme in which they funneled millions of dollars of Low’s money into the U.S. presidential election as purportedly legitimate campaign contributions, all while concealing the true source of the money. According to the indictment, to execute the scheme, Michel received Low’s money and contributed it both personally and through approximately 20 straw donors.
If convicted, Low faces a maximum penalty of five to 10 years in prison, per count. If convicted, Michel faces a range of maximum penalties from five to 20 years in prison, per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General Cyber Investigations Office; Assistant Director in Charge Kristi Koons Johnson of the FBI’s Los Angeles Field Office; and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
The Justice Department’s Office of the Inspector General and the FBI’s Los Angeles Field Office and International Corruption Squad in New York are investigating the case.
Principal Deputy Chief John D. Keller, Deputy Director of Election Crimes Sean F. Mulryne, and Trial Attorney Nicole R. Lockhart of the Criminal Division’s Public Integrity 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.
Two Philadelphia Men Indicted for Conspiracy to Distribute HeroinRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 10, 2021, Naim Taylor, age 23, and Antwan Dozier, age 23, both of Philadelphia, Pennsylvania, were indicted by a federal grand jury for conspiracy to distribute and possession with intent to distribute 100 grams, or more, of heroin (one hundred grams of heroin is equivalent to 4,000 individual doses.
According to Acting United States Attorney Bruce D. Brandler, the 7-count indictment alleges that Taylor and Dozier conspired from in or around July 2020 through the date of the indictment to distribute heroin to a network of drug sellers and users in the Lewisburg, Bloomsburg, and Williamsport regions. In addition, the indictment charges Taylor and Dozier with distribution and possession with intent to distribute heroin on separate dates in 2020 and 2021.
The case was investigated by the FBI, the Pennsylvania State Police, and the Lycoming County Narcotics Enforcement Unit. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two PA Chiropractic Practices Pay over $800,000 to Resolve Alleged False Claims Act Liability Arising from Billing of P-Stim DevicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that two related, integrative chiropractic practices and their chiropractor owners have agreed to make payments totaling $805,978 to resolve liability under the False Claims Act for the alleged improper billing of P-Stim electro-acupuncture devices, in these cases branded ‘ANSiStim.’
The settling parties are: (1) Discover Optimal Healthcare of Brookhaven, PA, with its owner, Jason Weigner, and his affiliate Weigner Healthcare Management Group, LLC (collectively, “Weigner”); and (2) Yucha Medical Pain Management & Chiropractic Rehabilitation, LLC of Pottstown, PA, and its owners, Randolph E. Yucha and Rodney Gabel (collectively, “Yucha”).
Chiropractors are generally limited in what services they can bill to federal healthcare programs (more information here). However, integrative chiropractic practices such as Weigner and Yucha may in certain circumstances bill additional services to federal healthcare programs through affiliated medical providers, in this case a medical doctor contractor. From approximately September 2016 to February 2017, Weigner and Yucha separately billed Medicare, and Weigner also billed the Federal Employees Health Benefit Program, for the implantation of neuro-stimulators – a surgical procedure which usually requires an operating room and which is reimbursed by federal healthcare programs – when in fact the only procedures performed had been the non-surgical application of ANSiStim by a non-surgeon contractor physician. ANSiStim is another brand name for the P-Stim device, which is also branded as NeuroStim, Stivax, E-Pulse, and NSS-2 Bridge. ANSiStim devices are applied with an adhesive and insertion of a limited number of needles; their application does not involve surgery or anesthesia, nor does it take place in an operating room. Federal healthcare programs do not reimburse for devices such as ANSiStim, whether they are characterized as an electro-acupuncture device or as an implantable neuro-stimulator. Weigner promoted this scheme to Yucha and received a portion of Yucha’s profits.
For the fraudulently billed P-Stim services here, Weigner previously repaid $306,342 to Medicare and will pay an additional $356,150. Likewise, Yucha had repaid $94,089 to Medicare and will pay an additional $49,397.
“As we have said before, the application of P-Stim devices is not surgery and should not be billed using the surgical codes improperly pushed by marketers,” said Acting U.S. Attorney Williams. “If a marketer pushes a healthcare scheme like P-Stim that sounds too good to be true, it likely is – and you shouldn’t agree to it.”
These are the fourth and fifth P-Stim provider settlements announced in this District as part of an ongoing investigation. Other jurisdictions including the Southern District of Texas, the Southern District of Georgia, and the Middle District of Tennessee have also taken action to hold providers accountable.
Acting U.S. Attorney Williams continued: “Our continued enforcement through this series of cases has already recovered millions and is a lesson to anyone who might consider a similar fraudulent billing scheme – especially those that prey on vulnerable Medicare beneficiaries looking for legitimate pain management solutions. You will be held accountable by our Office and our partners at the Centers for Medicare & Medicaid Services’ Center for Program Integrity, the Department of Health and Human Services Office of Inspector General, other federal healthcare programs, state partners, and sister U.S. Attorney’s Offices around the country. And if you have already been involved in such a scheme, it is better to come forward and self-disclose than have us find you, as we will.”
“Every time DOJ stops a provider who is committing fraud, it protects patients and improves the sustainability of the Medicare program,” said Chiquita Brooks-LaSure, Administrator for the Centers for Medicare and Medicaid Services (CMS). “Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of CMS, the Department of Justice and Department of Health and Human Services Office of Inspector General.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.
Two Charged as Co-Conspirators for Nearly $1 Million COVID-19 Relief Fraud Scheme and Money LaunderingRead the Press Release
A New York man and an Oklahoma woman were arrested Wednesday in Buffalo, New York and Altus, Oklahoma, respectively, on a criminal complaint filed in the Western District of New York charging them for their roles in fraudulently obtaining and laundering nearly $1 million in funds from the COVID-19 relief Paycheck Protection Program (PPP).
According to court documents, from May 2020 through October 2020, Adam D. Arena, 44, of Buffalo, and Amanda J. Gloria, 44, of Altus, allegedly conspired to fraudulently obtain and misuse a nearly $1 million PPP emergency relief loan through the U.S. Small Business Administration (SBA). Arena and Gloria allegedly submitted a false loan application to an SBA‑approved participating lender on behalf of a defunct business owned by Arena called ADA Auto Group LLC. This loan application allegedly contained materially false representations and certifications about Arena’s business and how the loan would be used. After fraudulently obtaining the loan, Arena and Gloria are alleged to have misused the loan proceeds on personal expenses the purchase of two cars.
Arena is charged with one count of conspiracy to commit bank fraud, one count of conspiracy to engage in monetary transactions with criminally derived proceeds, one substantive count of bank fraud, and three substantive counts of engaging in monetary transactions with criminally derived proceeds. Gloria is charged with one count of conspiracy to commit bank fraud, one count of conspiracy to engage in monetary transactions with criminally derived proceeds, one substantive count of bank fraud, and one substantive count of engaging in monetary transactions with criminally derived proceeds.
Arena made his initial court appearance Wednesday before U.S. Magistrate Judge Michael J. Roemer of the U.S. District Court for the Western District of New York. Gloria made her initial appearance today before U.S. Magistrate Judge Shon T. Erwin of the U.S. District Court for the Western District of Oklahoma. If convicted, Arena and Gloria each face a maximum penalty of 30 years in prison for each conspiracy and substantive count of bank fraud, and a maximum of 10 years in prison for each conspiracy and substantive count of engaging in monetary transactions with criminally derived proceeds. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney James P. Kennedy Jr. for the Western District of New York; Special Agent in Charge Stephen Bolongia of the FBI’s Buffalo Field Office; and Acting Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) Criminal Investigation Division made the announcement.
The FBI and IRS-CI are investigating the case.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins of the U.S. Attorney’s Office for the Western District of New York are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Alleged Boston Gang Members Sentenced for Cocaine Trafficking and Firearm PossessionRead the Press Release
BOSTON – Two alleged Boston gang members were sentenced this week in federal court in Boston for cocaine conspiracy and firearm charges.
Winston McGhee, 36, of Dorchester, was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 115 months in prison, six years of supervised release and ordered to pay forfeiture of $24,984.
Eric Davis, 37, of Mattapan, was sentenced on Wednesday, June 9, 2020 by Judge Stearns to 105 months in prison, four years of supervised release and ordered to pay forfeiture of $49,000.
In February 2021, both men pleaded guilty to conspiracy to distribute cocaine and cocaine base and being a felon in possession of a firearm.
In June 2020, Davis and McGhee were charged along with 22 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Davis even traveled to California in April 2020 to try to obtain kilograms of cocaine.
At the conclusion of the investigation, law enforcement executed search warrants at Davis’s residence, a hotel room in Canton where Davis was arrested, McGhee’s residence and a “stash house” and recovered approximately two kilograms of cocaine, firearms, ammunition and nearly $75,000 in cash.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Mendell’s Organized Crime and Gang Unit prosecuted the case.
The operation was conducted by a multi-agency task force through 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 most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Toppenish Man Convicted of Murdering A Native American Woman Within the External Boundaries of the Yakama NationRead the Press Release
Yakima – Today, Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that on June 10, 2021, a federal jury in Yakima, Washington, convicted Jordan Everett Stevens, an Indian, of First Degree Murder in violation of 18 U.S.C. §§ 1111, 1153 and Discharging a Firearm During and in Relation to a Crime of Violence in violation of 18 U.S.C. § 924(c)(1)(A)(iii).
According to court documents and evidence presented at trial, on or about April 30, 2019, Stevens assaulted a woman in Toppenish, Washington. A potential witness, ACM, a Native American female, was near the location of the assault and had a conversation with responding police officers. Stevens erroneously believed that ACM provided information to the police. On May 3, 2019, Stevens and two females drove ACM to a rural section of the Yakama reservation. Stevens pulled ACM out of the vehicle and shot her in the head as payback for speaking with the police. Stevens threatened to kill the female witnesses if they told anyone about the murder.
The FBI was alerted by a family member that ACM was missing and immediately began an investigation. In late May 2019, the FBI tracked down one of the female witnesses who identified Stevens as ACM’s killer. On May 29, 2019, the FBI found ACM’s body in a remote area of the Yakama Indian Reservation. Shortly after the FBI found the second female witness who confirmed what had happened to ACM. On July 17, 2019, an Indictment was filed charging Stevens with Discharge of a Firearm During a Crime of Violence, and First Degree Murder.
On June 7, 2021, a jury trial began at the federal courthouse in Yakima. Multiple witnesses were reluctant to testify out of fear of retribution and refused to appear for court. They were subsequently apprehended with the assistance of the U.S. Marshals Service and testified at the trial. On June 10, 2021, a federal jury found the Defendant guilty of First Degree Murder and Discharge of a Firearm in Furtherance of a Crime of Violence. A conviction for First Degree Murder carries a mandatory sentence of life imprisonment. On June 10, 2021, the Honorable Stanley Bastian ordered a sentencing hearing to take place on September 1, 2021.
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the officers with the Yakama Nation Police Department, the Federal Bureau of Investigation, and the Klickitat County Sheriff’s Office who investigated this case. Their seamless partnership resulted in the successful outcome of this senseless murder. Investigating and prosecuting cases involving Missing and Murdered Indigenous Person (MMIP) is a top priority of the United States Attorney’s Office for the Eastern District of Washington. This Office is committed to prosecuting aggressively cases involving violent acts committed against Native American women who reside on Reservation lands within this District.”
“Too often, violence on the reservation results in the tragic and senseless loss of life,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “The FBI is committed to combatting crime on our state’s reservations. Stevens will have the rest of his life in prison to contemplate his choices.”
This case was investigated by the Yakama Nation Police Department, the Federal Bureau of Investigation and the Klickitat County Sheriff’s Office. This case was prosecuted by Benjamin D. Seal and Richard C. Burson, Assistant United States Attorneys for the Eastern District of Washington
Toledo Man Charged with Sex Trafficking and Transportation of a MinorRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a two-count indictment charging Derrick Murphy, 38, of Toledo, Ohio, with sex trafficking and transportation of a minor.
In April 2021, law enforcement officers received information regarding the sexual exploitation of a minor victim in the Toledo and Detroit areas by an individual later identified as the Defendant. After investigating the information, investigators were able to identify the minor victim and rescue her.
The Defendant was arrested on April 27, 2021.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation – Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Tohono O'odham Member Sentenced to over 8 Years for Assault with Intent to Commit KidnappingRead the Press Release
TUCSON, Ariz. – On Wednesday, Marvin Lee Enos, of Tucson was sentenced by U.S. District Judge James A. Soto to 102 months in prison, followed by three years of supervised release. Enos previously pleaded guilty to assault with intent to commit kidnapping.
On April 2, 2018, Marvin Lee Enos assaulted the victim by punching the victim in the head and stomach areas. Enos did this while physically moving the victim from one area of his house into another and while preventing the victim from leaving the house. Enos is an enrolled member of the Tohono O’odham Nation.
The Federal Bureau of Investigation and the Tohono O’odham Police Department conducted the investigation in this case. Assistant U.S. Attorney Raquel Arellano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-2041-TUC-JAS
RELEASE NUMBER: 2021-038_Enos# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tampa, Florida Man Facing Federal Indictment for Conspiracy to Commit Wire Fraud, Mail Fraud, and Other Federal ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Christopher Kenneth Guy, age 29, of Tampa, Florida, for the federal charges of conspiracy to commit wire fraud and mail fraud, access device fraud, possession of unauthorized access devices, and aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Chief Lisa D. Myers of the Howard County Police Department.
According to the indictment, from May 2020 to August 2020, Guy and his co-conspirators submitted bogus unemployment benefit applications to the Oklahoma Employment Security Commission using the personal identifying information of several identity theft victims. Guy and his co-conspirators allegedly listed mailing addresses, easily accessible to members of the conspiracy, to receive prepaid debit cards through the United States Postal Service.
Due to a heightened financial need caused by the Covid-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) established the Federal Pandemic Unemployment Compensation program (FPUC). The FPUC program allotted an additional $600 per week to unemployment benefit recipients. Allegedly, Guy and his co-conspirators caused the disbursement of more than $176,970 in unemployment and FPUC proceeds. Guy purportedly expended the sum of the illegally obtained proceeds on personal retail transactions and cash withdrawals.
Additionally, the indictment further alleges that Guy spent more than $10,000 in fraudulent transactions using 15 debit cards issued in seven victims’ names.
If convicted, Guy faces a maximum of 20 years in federal prison for conspiracy to commit wire fraud and mail fraud; a maximum of 15 years in federal prison for access device fraud; a maximum of 10 years in federal prison for possession of unauthorized access devices; and a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of Labor- OIG, U.S. Postal Inspection Service, and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew Maddox and Sean Delaney, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach. For more information on resources regarding reporting fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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Tampa Man Sentenced to Five Years in Federal Prison for Uploading and Possessing Child Sexual Abuse Images and VideosRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced John Dixon (76, Tampa) to five years in federal prison for possessing images and videos depicting children being sexually abused. Dixon was also ordered to serve a 10-year term of supervised release, register as a sex offender, and forfeit the electronic devices that he had used to commit his offense.
Dixon had pleaded guilty on December 20, 2020.
According to court documents, on January 26, 2019, Dixon uploaded 32 child sex abuse images to his cloud storage account. The National Center for Missing and Exploited Children then received information from the company hosting Dixon’s account that Dixon had uploaded these contraband images and referred the information to the Hillsborough County Sheriff’s Office (HCSO). On January 29, 2019, HCSO detectives and other officers executed a search warrant at Dixon’s residence in Tampa.
Several electronic devices were seized from Dixon. A forensic examination of these devices revealed that they contained more than 2,000 images and 100 videos depicting the sexual abuse of children, some of whom were under the age of 12. Additionally, some of these videos depicted children to whom Dixon had access and who were as young as three and five years old at the time the videos were created.
This case was investigated by the Hillsborough County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
This is another case brough as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tallahassee Man Convicted of Enticing A Minor to Engage in ProstitutionRead the Press Release
TALLAHASSEE, FLORIDA – This morning a federal jury in Tallahassee convicted Jirard Quin Kincherlow, 39, of Tallahassee, on the sole count of coercing or enticing a minor to engage in prostitution. The conviction, which followed a three-day trial that began on Wednesday, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The jury’s verdict provides justice for this child victim and affirms our commitment to the protection of our most vulnerable,” said Acting U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence, we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
The Tallahassee Police Department is pleased to learn about the latest conviction in the cases related to Operation Stolen Innocence,” said Chief Lawrence Revell. “Our investigators worked tirelessly with our partners at United States Attorney’s Office, Florida Department of Law Enforcement, Leon County Sheriff’s Office, Homeland Security and the Federal Bureau of Investigations, to bring justice to the victims in this case and this is just the next step in the right direction. Additionally, this conviction serves as a reminder that this type of activity has no place in our community.”
“The effects of Operation Stolen Innocence continue to net results across our communities, making them safer for everyone,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Kincherlow’s sentencing hearing is scheduled for October 22, 2021, at 10:00 am, at the United States Courthouse in Tallahassee before the Honorable Mark Walker. Kincherlow faces a mandatory minimum term of ten years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of State Attorney, Second Judicial Circuit, to combat human trafficking in the Tallahassee area. Assistant United States Attorney Michelle Spaven prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
String of Armed Robberies Leads to Decades in Prison for Nebraska PairRead the Press Release
Fairview Heights, Ill. – Two Nebraska men were sentenced this week to lengthy prison terms for
committing a series of armed robberies in Effingham, Illinois, and the Metro East in April 2017.
Allen McCray, 23, and Victor Linton, 27, of Omaha, Nebraska, appeared in federal district court in
the Southern District of Illinois this week and were sentenced to 26 years and 24 years,
respectively.According to court documents, McCray, Linton, and a third man – Brandon D. English, Jr., 21 – stole
a Hyundai Santa Fe out of a Nebraska driveway and went on a week-long, multi-state crime spree. The
first robbery took place on April 13, 2017, in Raytown, Missouri, where they held up
a convenience store. Receipts recovered later from the Santa Fe show they used the proceeds from
the robbery to make cash purchases at Dollar General, Rally House, Foot Locker, and TJ Maxx
locations in the Kansas City metropolitan area.Two nights later, the trio covered their hair and faces and entered a Moto Mart in O’Fallon,
Illinois, where English put a gun to the cashier’s head and demanded money. They also struck the
cashier with her own purse before taking money out of her cash register and leaving. Less than an
hour later, the men used similar methods to rob a Circle K in Troy, Illinois, and a Casey’s General
Store in Maryville.After purchasing ammunition and attempting to purchase another gun, the three robbers left the
Metro East, driving first to the Chicago area and from there to Indianapolis. They returned to
Illinois on April 19, 2017, where McCray and Linton stopped in a Prime Sole shoe store in
Effingham. When they tried to take merchandise without paying, a store employee confronted them.
McCray pulled out a gun and fired a shot at the clerk. The two men then fled the scene with the
stolen items.McCray and Linton eventually abandoned the Santa Fe in Booneville, Missouri, when they missed the
turn into the Break Time gas station just after midnight on April 21, 2017. The men spotted a truck
in the parking lot and fired six shots into the vehicle, striking the driver four times.
Eventually, they stole another vehicle and led law enforcement on a chase through Lafayette County,
Missouri. Spikes were used to stop the vehicle, and the pair were taken into custody.All three defendants entered guilty pleas to conspiracy, robbery (three counts), and brandishing a
firearm during a crime of violence. McCray and Linton also pled guilty to a fourth robbery count
and to discharging a firearm during a crime of violence.
English was sentenced in December 2018 to 20 years in prison.In addition to their terms of imprisonment, McCray and Linton will both serve 5 years of supervised
release and pay $793.51 in restitution.The FBI led the investigation, with assistance from state and local law enforcement
agencies, including the O’Fallon Police Department, the Maryville Police Department, the
Troy Police
Department, Illinois State Police, and the Missouri Highway Patrol.St. Petersburg Man Indicted in Investment SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Thomas Coelho (52, St. Petersburg), formerly Thomas Jurewicz, with two counts of wire fraud. If convicted, Coelho faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Coelho that the United States is seeking a money judgment of approximately $1.8 million, the proceeds of the wire fraud scheme.
According to the indictment, Coelho recruited investors for a business opportunity that purportedly involved purchasing event tickets and reselling those tickets to third parties for a profit. Coelho used his association with persons and entities in the entertainment industry to give the appearance of the means and ability to acquire tickets to certain high-profile events. Instead of using investors’ money to buy event tickets, however, Coelho primarily used the funds for personal expenses, entertainment, and cash withdrawals.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigations and the Treasury Inspector General for Tax Administration. It will be prosecuted by Assistant United States Attorneys Rachel Jones and David Chee.
St. Francis Man Sentenced for Methamphetamine DistributionRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, was sentenced on June 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Richard Charles Young, a/k/a RC Young, age 46, was sentenced to 60 months in federal prison, followed by four years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Young was indicted by a federal grand jury on August 14, 2019. He pled guilty on March 25, 2021.
The conviction stemmed from a conspiracy that occurred between January 2015 and December 2019. During this time, Young conspired with several others to distribute between 200 and 350 grams of methamphetamine on the Rosebud Sioux Indian Reservation in central South Dakota.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Young was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Woman Sentenced for Meth and Launder Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) and Conspiracy to Launder Monetary Instruments was sentenced on June 3, 2021, by U.S. District Judge Karen E. Schreier.
Maria Delsolorro Garibay, age 37, was sentenced to 108 months in federal prison for each count to be served concurrently, followed by three years of supervised release on each count to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Garibay was indicted by a federal grand jury on September 1, 2020. She pled guilty on March 8, 2021.
The conviction regarding methamphetamine distribution stemmed from incidents beginning on an unknown date and continuing until approximately August 2020, when Garibay, along with at least one other person reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
The conviction regarding money laundering stemmed from incidents beginning on an unknown date and continuing until approximately August 2020, when Garibay knowingly and intentionally combined, conspired, confederated, and agreed together, and with others, to knowingly conduct and attempt to conduct money transfers at financial institutions and transporting case drug proceeds, which involved the proceeds of a conspiracy to distribute a controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Garibay was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Michael Lovejoy, Jr., age 38, was indicted on June 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 10, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 28, 2020, and April 29, 2021, Lovejoy, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under state law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Lovejoy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Lovejoy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Russell Co. Woman Sentenced in $499,000 Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Russell County woman was sentenced today to 108 months in prison and to pay $455,930.00 in restitution, for conspiring with others to defraud the government of more than $499,000 and to commit mail fraud, and committing aggravated identify theft and for distributing drugs into a prison facility.
According to court documents, Leelynn Danielle Chytka, 31, waived her right to be indicted in March 2021 and pleaded guilty to one count of conspiracy to defraud the government, one count of conspiracy to commit mail fraud with respect to benefits authorized and paid in connection with a presidentially declared major disaster or emergency, one count of aggravated identity theft, and one count of distribution of suboxone.
“In the midst of a global pandemic, this defendant conspired with others to defraud the Virginia Employment Commission of nearly $500,000 intended for Virginians in need,” Acting United States Attorney Bubar said today. “This was money set aside by the federal government to assist those struggling during the COVID-19 crisis—not meant to line the pockets of fraudsters. I am grateful for the work of the Department of Labor and the IRS for the tireless work the put in to uncovering this fraud and bringing these defendants to justice.”
“Chytka and her co-conspirators dishonestly obtained nearly half a million dollars in pandemic unemployment compensation. We will continue to investigate those who exploit programs designed to help those struggling through this global pandemic. There are criminal consequences to personally enriching yourself at the cost of others,” said Darrell J. Waldon, IRS-CI Special Agent in Charge of the Washington DC Field Office.
“LeeLynn Chytka defrauded the United States of at least $499,000 by leading a scheme involving more than 35 co-conspirators to include inmates in the custody of the Virginia Department of Corrections, in the fraudulent filing for and receipt of Pandemic Unemployment Assistance benefits. This type of fraud causes significant harm to many citizens. The U.S. Department of Labor Office of Inspector General and its partners at the Virginia Employment Commission will continue working with our law enforcement partners to vigorously pursue those who commit fraud against the unemployment insurance program,” said Syreeta Scott, Acting Special Agent-in-Charge, Philadelphia Region, U. S. Department of Labor Office of Inspector General.
Chytka admitted to leading a conspiracy to commit fraud against the United States in connection with a scheme involving the filing of fraudulent claims for pandemic unemployment benefits.
According to court documents, Chytka, and others, conspired to collect personal identification information of more than 35 co-conspirators, including 15 inmates in the custody of the Virginia Department of Corrections, and to file fraudulent claims of pandemic-related unemployment benefits.
Over the course of nine months, Chytka filed fraudulent claims for at least 37 individuals, with a total actual loss to the United States of at least $499,000.
The Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorney Daniel J. Murphy prosecuted the case.
Rochester Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jeremy Hernandez, 30, of Rochester, NY, pleaded guilty to production of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in September and October 2018, the National Center for Missing and Exploited Children (NCMEC) received information from an electronic service provider that a user had uploaded several images of child pornography to a blog on the provider’s platform. The information was forwarded to the New York State Police Internet Crimes Against Children Taskforce. Between November 2018 and October 2019, the NYSP identified and located the source of the child pornography at an address in Rochester, NY.
On October 24, 2019, a search warrant was executed at defendant’s residence. Defendant, who was present during the search, admitted that he owned the user profile that had uploaded the child pornography to the internet blog. The NYSP seized several digital devices, including two cellular phones that belonged to defendant. A forensic analysis recovered images and videos from the phones which depicted Hernandez sexually abusing a minor less than 13 years old on multiple occasions between 2017 and 2019. The child has since been identified and located.
The plea is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police, under the direction of Major Barry Chase; Monroe County Child Protective Services, under the direction of Director Kathy Cardilli; the Bivona Child Advocacy Center, under the direction of Executive Director Deb Rosen; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for September 9, 2021, before Judge Siragusa. Hernandez is being held in custody without bail.
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Repeat Offender Sentenced to 200 Months in Prison for Dealing up to Ten Kilos of HeroinRead the Press Release
MACON, Ga. – A repeat offender arrested during an investigation into the distribution of heroin in Middle Georgia was sentenced to serve a total of 200 months in prison for his crimes.
Kenneth Bernard Miles, 59, of Jonesboro, Georgia, was sentenced to serve a total of 200 months in prison, to include 30 months of imprisonment for violating his supervised release, by U.S. District Judge Marc Treadwell on Thursday, June 10, after previously pleading guilty to one count distribution of heroin. There is no parole in the federal system.
“Miles chose to distribute a substantial amount of heroin into our Middle Georgia communities,—undoubtedly causing death and despair for users and their families—even after he served time in federal prison for trafficking drugs in Florida. Miles is now being held accountable for his continued criminal actions,” said Acting U.S. Attorney Leary. “Local, state and federal law enforcement agencies will work together to root out the most egregious repeat offenders who continually violate the law.”
On June 20, 2020, a confidential source (CS) contacted Miles about obtaining heroin. They agreed to meet off Exit 205 on I-75 in Butts County, Georgia. Prior to meeting with Miles, the CS was searched by agents with the Drug Enforcement Administration (DEA) and provided with an audio/video recording device. The two met, and Miles provided a bag of what was later confirmed to be 27.47 grams of heroin. As part of his plea, Miles admitted that the amount of heroin attributable to him in the investigation was more than 3 kilograms, but less than 10 kilograms.
Miles was previously convicted of conspiracy to manufacture, distribute and possess with intent to distribute more than five kilograms of cocaine and more than 50 grams of cocaine base and possession with intent to distribute more than 500 grams of cocaine in the Northern District of Florida. In that case, Miles was sentenced to a total of 135 months imprisonment and ten years of supervised release on April 12, 2006. When Miles entered his guilty plea in the Middle District of Georgia, he admitted that he had violated the terms of his supervised release from his prior Northern District of Florida conviction.
This case was investigated by the DEA, GBI, Butts County Sheriff’s Office and Byron Police Department.
Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government.
Rapid City Woman Sentenced to 20 Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, woman who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on June 4, 2021, by U.S. District Court Judge Karen E. Schreier.
Sara Skinner, age 34, was sentenced to 20 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately July 2019 to late December 2019, methamphetamine was brought to South Dakota from Nevada by others. Skinner then dispersed the methamphetamine to others for use or additional distribution.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Skinner was immediately returned to the custody of the U.S. Marshals Service.