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Tuesday 8 June 2021
Buckhannon man admits to drug and counterfeit chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Garry William Moran, II, of Buckhannon, West Virginia, has admitted to drug and counterfeit charges, Acting United States Attorney Randolph J. Bernard announced.
Moran, 41, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute Methamphetamine” and one count of “Possession of Counterfeit Obligations.” Moran admitted to having methamphetamine to sell from January to May 2019 in Upshur County and elsewhere. Moran also admitted to having $1,100 in counterfeit bills in May 2019 in Upshur County.
Moran faces up to 20 years of incarceration and fine of up to $1,000,000 for the drug charge and faces up to 20 years of incarceration and a fine of up to $250,000 for the counterfeit charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force and the U.S. Secret Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Biotech Research Company Ordered to Pay $881,669.69 in Restitution for False Statements in Grant ApplicationsRead the Press Release
GREENSBORO, N.C. – Bio-Adhesive Alliance, Inc. (Bio-Adhesive) was sentenced yesterday in federal court for false statements made in grant applications submitted to the Environmental Protection Agency and the National Science Foundation, announced Acting U.S. Attorney Sandra J. Hairston.
United States District Court Judge Catherine C. Eagles of the Middle District of North Carolina ordered Bio-Adhesive to pay restitution in the amount of $562,500.00 to the National Science Foundation and $319,199.69 to the Environmental Protection Agency a $800 special assessment, and serve five years of a probationary term. The defendant corporation pleaded guilty in March 2021 to two counts of false statements.
According to court records, Bio-Adhesive was founded in February of 2013 by Employee-1, Employee-2, and Employee-3. Employee-1 is the President and Co-Owner of Bio-Adhesive. At the time of founding until the summer of 2019, Employee-1 was an Assistant Professor in the Applied Engineering and Technology Department at North Carolina Agricultural and Technical State University (“A&T”). Employee-2 is a Co-Owner of Bio-Adhesive and, until the summer of 2019, was an Associate Professor in the Civil, Architectural and Environmental Engineering Department, also at A&T. Employee-1 and Employee-2 are married to each other. North Carolina Secretary of State documents list Employee-3 as the Chief Operating Officer of Bio-Adhesive. Until the summer of 2019, Employee-3 was a graduate student at A&T. At all times relevant herein, Employee-3 was pursuing a Master’s Degree in Civil Engineering from A&T and worked as a Graduate Assistant at A&T.
The Environmental Protection Agency (EPA) and the National Science Foundation (NSF) are federal agencies that participate in set-aside programs for small businesses, including the Small Business Innovative Research (SBIR) Program and the Small Business Technology Transfer Program (STTR). SBIR supports federal research and development (R&D) with potential for commercialization of the developed product, and STTR expands funding opportunities in the federal innovation R&D arena. The programs require that applicants establish the technical merit, feasibility, and commercial potential of proposed R&D efforts in Phase I. In Phase II, the awarding agency must determine the quality of performance of the small business awardee organization in Phase I and the potential of the proposed project prior to providing further federal support.
Bio-Adhesive applied for and received multiple STTR and SBIR grant awards from NSF and EPA between 2013 and 2016. The awards totaled $1,375,000. Not all of the awarded funds were disbursed: Bio-Adhesive received, in total, $881,669.69 in award funds from NSF and EPA. During this time period, Bio-Adhesive submitted multiple proposals that contained misrepresentations regarding its eligibility to seek SBIR and/or STTR grant awards from NSF and EPA, as well as other material aspects of their project, including employees, budget, and recommenders. For example, on or about July 30, 2015, in an NSF SBIR/Phase II award application, Bio-Adhesive represented that:
- Employee-3 was eligible to be the Principal Investigator (PI) for the project, knowing that he was not;
- A subcontract of $134,058 would be paid to A&T (it was not);
- An individual with the initials S.H. would act as the Chief Technology Officer of Bio-Adhesive, knowing that S.H. had not agreed to assume that role; and
- An individual with the initials W.M. had written a letter in support of Bio-Adhesive’s application, knowing that he had not.
“Applicants that make false representations in order to access government grants are cheating taxpayers and taking resources from honest researchers and businesses,” said Acting United States Attorney Hairston. “We commend NSF-OIG and EPA-OIG for their vigilance and determined investigation of the Bio-Adhesive fraud.”
“The National Science Foundation’s Small Business Innovation Research program provides small businesses with funding to conduct research and development work that will lead to the commercialization of innovative new products and services,” said NSF Inspector General Allison Lerner. “Today’s sentence serves as a reminder that fraud in the SBIR Program will not be tolerated. The NSF Office of Inspector General remains committed to ensuring the integrity of the SBIR program and will actively pursue oversight of these taxpayer funds. I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”
“Protecting the integrity of research and development programs funded by the U.S. Environmental Protection Agency is a priority for my office,” said EPA Inspector General Sean W. O’Donnell. “This sentencing follows a joint effort with the National Science Foundation’s Office of Inspector General. The EPA Office of Inspector General is committed to working with its law enforcement partners in bringing to justice individuals who defraud the SBIR and STTR programs.”
The case was investigated by the National Science Foundation Office of Inspector General and the Environmental Protection Agency Office of Inspector General. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Berkeley County man sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Theodore Richardson, of Martinsburg, west Virginia, was sentenced today to 30 months of incarceration for his role in a drug conspiracy that spanned several states, Acting United States Attorney Randolph J. Bernard announced.
Richardson, also known as “JR,” age 57, pleaded guilty in March 2021 to one count of “Aiding and Abetting the Distribution of Fentanyl and Cocaine.” Richardson admitted to selling cocaine hydrochloride, also known as “coke,” and fentanyl in June 2019 in Berkeley County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Find the related case here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Berkeley County man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jeffrey Allen Johnson, of Martinsburg, West Virginia, was sentenced today to one year of home confinement and a lifetime of supervision for having child pornography, Acting U.S. Attorney Randolph J. Bernard announced.
Johnson, age 51, pleaded guilty in February 2020 to one count of “Possession of Child Pornography.” Johnson admitted to having more than 600 images of child pornography in May 2019 in Berkeley County.
Johnson was also ordered to pay $10,000 in assessments toward a victim assistance fund.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Baker City Man Pleads Guilty in Covid-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Baker City, Oregon man pleaded guilty today for fraudulently converting loans intended to help small business during the COVID-19 pandemic to his personal use.
Jeremy Clawson, 32, pleaded guilty to one count of theft of public money.
Clawson took advantage of economic relief programs administered by the Small Business Administration (SBA) through Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP), as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
According to court documents, on August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Jeremy Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger. Umpqua Bank investigators detected the unusual activity and reported it to the SBA.
SBA loan documents showed that the loan was made for the benefit of Halperin Manufacturing Company in San Diego, California. Though there is no record of any such company, the loan application listed the company’s owner and claimed it employed 350 people. Investigators contacted the person listed as the owner, but that person denied owning or being affiliated with any such company. The purported owner further stated that the company’s supposed address in San Diego was that individual’s personal residence and not a commercial property with 350 employees.
In early September 2020, investigators learned that, in late August, Clawson had been arrested by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.
On September 11, 2020, investigators interviewed Clawson at the Baker County Jail where he was incarcerated on an unrelated charge. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.
On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money.
Federal agents seized the Dodge Challenger and approximately $50,000 in cash derived from the fraudulent EIDL pursuant to seizure warrants issued by the federal court and voluntary abandonment of funds in third parties’ possession.
Theft of public money is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. With Clawson’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a 24-month prison sentence followed by three years’ supervised release. Clawson will be sentenced on September 13, 2021.
As part of the plea agreement, Clawson has agreed to pay $125,200 in restitution to the U.S. Treasury.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the SBA and U.S. Secret Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Anyone with information about fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Australian National Pleads Guilty to Multimillion-Dollar Text-Messaging Consumer Fraud SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that MICHAEL PEARSE, an Australian national who was extradited to the United States from Australia in January 2021, pled guilty today to conspiracy to commit wire fraud stemming from his participation in a fraudulent scheme to charge hundreds of thousands of mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent – a practice to which the conspirators referred as “auto-subscribing.” PEARSE played a key role in the scheme as CEO of a company that created the computer program that was used to enroll victims into the text message services without their knowledge or consent. PEARSE pled guilty before United States District Judge Analisa Torres.
U.S. Attorney Audrey Strauss said: “As he admitted in court today, Michael Pearse played a vital role in an international consumer fraud conspiracy that swindled hundreds of thousands of mobile phone customers out of more than $50 million. Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse now awaits sentencing for his crime.”
According to the allegations contained in the Indictment, evidence presented at the trial of co-conspirator Darcy Wedd, court filings, and statements made during plea proceedings:
From in or about 2011 through in or about 2013, PEARSE and his co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills. To carry out the scheme, PEARSE and others caused unsolicited and recurring text messages to be sent to mobile phone users containing content such as horoscopes, celebrity gossip, or trivia facts. The victims of the fraud scheme never ordered these services, which were known in the industry as premium text messaging (“PSMS”) services, but were fraudulently “auto-subscribed” and billed for them at a rate of $9.99 per month. The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds were often unsuccessful.
During the relevant period, co-conspirator Lin Miao operated a company called Tatto Inc., a/k/a “Tatto Media” (“Tatto”), which offered PSMS services to mobile phone customers. PEARSE was the CEO of a company called Bullroarer, which was affiliated with Tatto. To enable Tatto to auto-subscribe consumers to unwanted PSMS services, PEARSE and co-defendant Yongchao Liu, a/k/a “Kevin Liu,” who worked as a Java Development Engineer for Bullroarer, agreed to build a computer program that could spoof the required consumer authorizations – i.e., a program that could generate the text message correspondence that one would ordinarily see with genuine PSMS subscriptions. PEARSE and Liu agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011. PEARSE, Liu, and Miao then used the Auto-Subscription Platform to fraudulently auto-subscribe hundreds of thousands of mobile phone customers, using phone numbers provided by co-conspirators at Mobile Messenger, a U.S. aggregation company operated by Darcy Wedd that served as a middleman between content providers such as Tatto and mobile phone carriers. Through their successful orchestration of the fraudulent scheme, PEARSE and his co-conspirators generated more than $50 million in fraud proceeds for themselves.
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PEARSE, 52, of Australia, pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum penalty of 20 years in prison. As part of his plea agreement, PEARSE agreed to forfeit $10,162,937.96, as well as his interest in three real properties in Australia and other assets, representing proceeds traceable to the fraud that PEARSE personally obtained.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence of PEARSE will be determined by the Court.
To date, nine defendants, Liu, Miao, Andrew Bachman, Michael Pajaczkowski, Erdolo Eromo, Jonathan Murad, Francis Assifuah, Jason Lee, and Christopher Goff have pled guilty in connection with their participation in the fraud. Two additional defendants, Darcy Wedd and Fraser Thompson, were convicted in 2017 following jury trials.
Ms. Strauss praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. In addition, Ms. Strauss thanked law enforcement partners in Australia, as well as the U.S. Department of Justice’s Office of International Affairs, for their support and assistance with the extradition of PEARSE and co-defendant Liu.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan Kamal and Olga I. Zverovich are in charge of the prosecution.
2 Defendants Plead Guilty to Rioting for Their Roles in Arsons During May 2020 Violent Protests in RochesterRead 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 two defendants pleaded guilty before U.S. District Judge David G. Larimer for their roles in violent protests held in the City of Rochester in May 2020. Shakell Sanks and Mackenzie Drechsler pleaded guilty to rioting and face a maximum penalty of five years in prison and a $250,000 fine. Following her plea, Judge Larimer ordered defendant Drechsler to be held in custody until sentencing stating that she is a danger to the community based on her conduct during the violent protests.
“These defendants, like all of us, enjoy certain rights under our Constitution, including the right to assemble and the right to speak freely,” stated U.S. Attorney Kennedy. “Rioting, the setting of fires, and the destruction of property, however, are not constitutionally protected activities. They are crimes. The proceedings before Judge Larimer should serve as a reminder to those who commit crimes that when you do so you may ultimately forfeit your most precious constitutional right—your right to liberty.”
Assistant U.S. Attorneys Brett A. Harvey and Cassie M. Kocher, who are handling the cases, stated that on May 30, 2020, Rochester Police Department (RPD) officers were assigned to assist with crowd control during protests scheduled at the Public Safety Building (PSB) on Exchange Boulevard. During the late-afternoon/early evening, those protests, being held in response to the death of George Floyd in Minneapolis, Minnesota, turned violent and resulted in vandalism, damaged property, looting, and fires.
At approximately 6:00 p.m. on May 30th in downtown Rochester, Sanks and Dreschler assisted others in attempting to light fabric on fire. The fabric was stuffed into the gas tank of a parked car belonging to the City of Rochester Family Crisis Intervention Team (FACIT). At approximately 6:20 p.m., the FACIT car began to smoke and shortly thereafter became engulfed in flames. The car was a total loss. Dreschler also set fire to an official vehicle owned by the New York State Attorney General’s Office, after crouching down, placing cardboard inside the vehicle and then walking away. Approximately one minute later, smoke began billowing from the car, and as the fire grew, the car became engulfed in flames. The car was a total loss. Following her actions in the burning of the two cars, Drechsler also participated in breaking glass during looting that took place.
The pleas are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Barry Chase; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Robert Hill; and the Rochester Fire Department, under the direction of Fire Chief Felipe Hernandez Jr.
Drechsler is scheduled to be sentenced on August 9, 2021, while Sanks is scheduled to be sentenced on August 23, both before Judge Larimer.
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Monday 7 June 2021
United States Attorney’s Office Announces Tina L. Nommay as Acting United States AttorneyRead the Press Release
HAMMOND- The United States Attorney’s Office announced that Tina L. Nommay is now the Acting United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney. As a result of Thomas L. Kirsch’s resignation in December 2020, Gary T. Bell was the Acting United States Attorney. Mr. Bell has resigned to take a position as the Clerk of Court for the Northern District of Indiana, therefore, Tina L. Nommay will now be the Acting United States Attorney. She will hold this position until the Northern District of Indiana receives its politically appointed, senate confirmed United States Attorney.
Ms. Nommay has been an Assistant United States Attorney in the Fort Wayne Division since 1989, when she started her career in the civil division. In 1992, Ms. Nommay transitioned to the criminal division, where, as an AUSA, she prosecuted a wide range of criminal cases. In 2012 she was promoted and served as the Fort Wayne Division’s Branch Chief. In that role, she supervised and mentored AUSAs while personally being involved in a series of complex white collar, gun, drug and violent crime cases. In October 2020, Ms. Nommay was promoted to Chief of the Criminal Division where she oversees the work of over 30 AUSAs from the Hammond, South Bend and Fort Wayne divisions. Most recently she was also named FAUSA. Prior to her employment in this Office, Ms. Nommay was a Judicial Law Clerk in the Hammond Division of the Northern District of Indiana for two years.
Tina earned a Bachelor of Arts Degree in Philosophy from Michigan State University in June 1984, and her law degree (Juris Doctor) from Valparaiso University School of Law in May 1987. Over her career, she earned a number of law enforcement awards and recognition. She is a Fellow of the American College of Trial Lawyers.
“I will continue the District’s long tradition of seeking justice and protecting the citizens of the Northern District of Indiana by prosecuting those individuals who violate federal law,” said Acting United States Attorney Tina L. Nommay. “My office will continue to promote public safety throughout Northern Indiana by coordinating our efforts with federal, state, tribal and local law enforcement agencies, local prosecutors, along with civic and community groups.”
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Two Dominican Republic Citizens Plead Guilty to Mail Fraud and Aggravated Identity Theft SchemeRead the Press Release
EL PASO – Wilver Jose Polanco-Alvarez, a 26-year-old Dominican Republic citizen residing in Miami, and Jose Eduardo Gomez Salas, a 25-year-old Dominican Republic citizen residing in New York, admitted in federal court today to using stolen personal identification information to obtain high-end electronic devices such as cell phones, laptop computers, tablets and watches.
Appearing before Senior U.S. District Judge David Briones this morning, both defendants pleaded guilty to one count of conspiracy to commit mail fraud and three counts of aggravated identity theft.
According to court documents, U.S. Customs and Border Protection officers at the Paso Del Norte International Bridge in El Paso encountered the defendants on April 11, 2020. During an inspection, officers seized several electronic devices belonging to the defendants. A subsequent review of Gomez’s iPhone revealed personal identification information of multiple individuals as well as photographs of Polanco assuming and utilizing different aliases in the form of fraudulent driver’s licenses from Indiana, Texas, California, New Mexico, South Carolina and Tennessee.
Further investigation revealed that the defendants operated a scheme in at least five different states with the help of others to purchase and activate cell phones and other electronic devices at retail stores using fraudulent identification documents and stolen personal identification information to include wireless account information. After collecting the new phones and devices, Gomez mailed the items to 28-year-old alleged ringleader Marcos Andres Briceno-Romero in New Jersey.
Polanco and Gomez have remained in federal custody since their arrest in April 2020. They face up to 20 years in federal prison on the conspiracy charge. Each aggravated identity theft charge calls for a mandatory two years in federal prison. Sentencing has yet to be scheduled.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Erik P. Breitzke of Homeland Security Investigations’ (HSI) El Paso Division made today’s announcement.
Jury selection and trial has yet to be scheduled for three remaining co-defendants: Briceno-Romero, 21-year-old Wiktoria Lawika of New York and 20-year-old Justin Brito of New York.
HSI, U.S. Secret Service and U.S. Customs and Border Protection investigated this case. Assistant U.S. Attorney Sarah Valenzuela is prosecuting this case.
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Texas man admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Alcendor, of Houston, Texas, has admitted to his role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Alcendor, age 20, pleaded guilty today to one count of “Conspiracy to Distribute Controlled Substances,” one count of “Distribution of Fentanyl,” and one count of “Possession with Intent to Distribute Methamphetamine.” Alcendor admitted to working with others to distribute methamphetamine, crack cocaine, fentanyl, and heroin from the spring of 2018 to October 2020 in Monongalia County and elsewhere.
Alcendor faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case 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.
U.S. Magistrate Judge Michael John Aloi presided.
Taylor County man admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dallas Edward Weber, Jr. has admitted to a child pornography charge, Acting United States Attorney Randolph J. Bernard announced.
Weber, 40, pleaded guilty today to one count of “Aiding and Abetting Production of Child Pornography.” Weber is accused of using a minor child to engage in sexually explicit conduct and producing child pornography from that conduct in June 2020 in Taylor County.
Weber is facing at least 15 and up to 30 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Taylor County Sheriff’s Office and the FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Tax Preparer and His Company Permanently Barred from Preparing Federal Tax Returns for Others; Defendants to Pay Disgorgement to the United StatesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that U.S. District Judge Jed S. Rakoff entered an order today permanently barring RAFAEL ALVAREZ (“ALVAREZ”) and ATAX New York LLC (“ATAX NEW YORK”) from, among other things, preparing federal tax returns for others. In its civil complaint, the United States alleged that ALVAREZ and ATAX NEW YORK had prepared and filed fraudulent tax returns on behalf of their customers in which they falsely reduced their customers’ tax liabilities and generated tax refunds to which those customers were not entitled. According to the complaint, ATAX NEW YORK filed over 36,000 tax returns on behalf of its customers from 2016 to 2019.
Manhattan U.S. Attorney Audrey Strauss said: “This Office will take appropriate actions to shut down tax preparation businesses that prepare and file fraudulent returns and unfairly shift the tax burden to honest American taxpayers.”
After the Government filed its complaint, ALVAREZ and ATAX NEW YORK consented to the entry of a permanent injunction and admitted, among other things, that:
- Between 2016 and 2019, they prepared and filed many federal income tax returns for ATAX NEW YORK’s customers that included claims of expenses, losses, or “head of household” status that lacked adequate supporting information or documentation.
- These unsupported entries caused the customers’ tax liabilities to be substantially understated.
- They had no adequate basis for including these entries on their customers’ returns.
The Government’s complaint also asked the Court to order disgorgement of the net profits that ALVAREZ and ATAX NEW YORK earned for preparing federal tax returns in which they made reckless or fraudulent claims with respect to their customers’ federal income tax liability. As part of today’s court-ordered resolution, ALVAREZ and ATAX NEW YORK agreed to pay $159,600 to the United States in disgorgement.
Ms. Strauss thanked the Internal Revenue Service’s Small Business/Self-Employed Division for its invaluable assistance in this matter.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant United States Attorneys Charles S. Jacob and Ilan Stein are in charge of the case.
- Between 2016 and 2019, they prepared and filed many federal income tax returns for ATAX NEW YORK’s customers that included claims of expenses, losses, or “head of household” status that lacked adequate supporting information or documentation.
Staples Man Sentenced to Prison, $12 Million in Restitution for Minneapolis Police Third Precinct ArsonRead the Press Release
MINNEAPOLIS – A Staples man was sentenced today to 27 months in prison for his role in the arsons at the Minneapolis Police Department’s Third Precinct building.
According to court documents, on the night of May 28, 2020, Bryce Michael Williams, 27, went to the Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. Williams, along with other co-conspirators, breached the fence and entered the Third Precinct building. Surveillance video footage from the Third Precinct showed Williams standing near the entrance of the Third Precinct holding a Molotov cocktail while a co-conspirator (later identified as Davon De-Andre Turner) lit the wick. The Molotov cocktail was taken into the Third Precinct by Turner and was used to start a fire. Williams later threw a box on an existing fire located just outside the Third Precinct entrance.
“All four defendants charged in federal court have now been sentenced for their individual roles in the burning and near total destruction of the Minneapolis Police Department’s Third Precinct building,” said Acting U.S. Attorney W. Anders Folk. “Mr. Williams and his co-defendants have been held accountable for their dangerous and destructive actions. I thank our federal, state, and local partners who pursued justice in these cases.”
On November 19, 2020, Williams pleaded guilty to one count of conspiracy to commit arson. As part of his sentencing, Williams was ordered to serve two years of supervised release and pay $12 million in restitution.
This case was the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case was prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
Six Charged in Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Six individuals are charged with a methamphetamine conspiracy in an indictment returned by a federal grand jury sitting in Madison on May 12, 2021, announced Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, and Wisconsin Attorney General Josh Kaul. The indictment was unsealed following the arrests of the defendants.
The defendants are Levi Bagne, 30, Buckeye, Arizona; Corey Freyermuth, 38, Oshkosh, Wisconsin; TJ Myers, 32, Merrill, Wisconsin; Amy Pehlke, 33, Merrill; Krista Sparks, 26, Phoenix, Arizona; and Matthew White, 36, Merrill.
Each of the defendants is charged with conspiring to distribute methamphetamine and to possess 50 grams of more of methamphetamine for distribution. The indictment alleges that the conspiracy operated from June 2019 through May 2021. In addition, Myers is charged with possessing 50 grams or more of methamphetamine for distribution on June 8, 2020. Pehlke and White also are charged with distributing 50 grams or more of methamphetamine. The indictment alleges that Pehlke distributed the drug on July 23, 2020, and White did so on July 28, 2020. Bagne and Freyermuth are charged with possessing 50 grams or more of methamphetamine for distribution on September 2, 2020.
The government’s investigation revealed that beginning in June of 2019, Bagne and Sparks used the United States Postal Service to mail methamphetamine from Phoenix, Arizona, to Freyermuth in Oshkosh. In November of 2019, agents seized a mail parcel sent by Bagne and Sparks to Freyermuth and found two pounds of methamphetamine. In February of 2020, agents seized another mail parcel sent by Bagne and Sparks to Freyermuth and found approximately six pounds of methamphetamine. On September 2, 2020, agents executed a search warrant on a storage facility in Stevens Point, Wisconsin, used by Bagne and Freyermuth and found ten pounds of methamphetamine. In total, agents have seized approximately 20 pounds of methamphetamine and 14 firearms during the course of the investigation.
The indictment also seeks the forfeiture of property constituting or derived from proceeds of the conspiracy, including real property located in Buckeye, Arizona; $5,866 in U.S. currency seized on July 23, 2020, in Merrill; $1,180 in U.S. currency seized on April 8, 2021, in Merrill; and $31,220 in U.S. currency seized on April 8, 2021 in Schofield, Wisconsin.
“A combined local, state, and federal investigation led to the indictment charging these six individuals with operating an interstate drug trafficking scheme,” said Acting U.S. Attorney O’Shea. “The U.S. Attorney’s Office is committed to working with our law enforcement partners to identify and prosecute those who bring methamphetamine into Wisconsin and distribute it in our communities.”
“By working up the supply chain, the investigators in this case were able to identify individuals allegedly responsible for trafficking large amounts of meth into Wisconsin,” said AG Kaul. “Thank you to Lake Winnebago Area Metropolitan Enforcement Group and the many agencies that worked together to make Wisconsin safer by taking down this alleged drug trafficking organization.”
Bagne and Sparks were arrested in Arizona on May 26. The same day, Freyermuth was arrested in Oshkosh and Pehlke was arrested in Merrill. Myers and White are in state custody on state charges. Bagne and Sparks have made an initial appearance in Arizona; no date has been set for their appearance in U.S. District Court in Wisconsin. Pehlke and Freyermuth had detention hearings in federal court in Madison on June 1 and June 2, respectively. Pehlke was released this morning on court-imposed conditions, and Freyermuth remains detained.
If convicted, each defendant faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on each charge. The charges against the defendants are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Drug Enforcement Administration, Lake Winnebago Area MEG Unit, Central Wisconsin Narcotics Task Force, Glendale (Arizona) Police Department – Special Investigations Unit, Arizona High Intensity Drug Trafficking Area West Valley Task Force, and the U.S. Postal Inspection Service.
Shooter pleads guiltyRead the Press Release
VICTORIA, Texas - A 20-year-old Bloomington man has admitted to assaulting a federal marshal, announced acting U.S. Attorney Jennifer B. Lowery.
Today, Jose Luis Vasquez Jr. also admitted he discharged a weapon and used a weapon during a crime violence.
On Feb. 3, Vasquez assaulted a U.S. deputy marshal as she and the other members of the Violent Crimes Fugitive Task Force attempted to arrest him. The marshal had to shield herself behind a truck for protection as Vasquez fired his weapon numerous times, striking the door of the vehicle.
Vasquez shouted “I’m not going back” as he fired a Smith and Wesson M7P40, .40 caliber semi-automatic pistol at authorities. The weapon’s magazine held at least 20 rounds of ammunition.
Senior U.S. District Judge John D. Rainey accepted the plea and has set sentencing for Sept. 7. At that time, Vasquez faces a sentence up to 20 years for the assault as well as a minimum of 10 years for the firearms conviction which must be served consecutively to the other sentence imposed.
He has been and will remain in custody pending sentencing.
The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Rangers and U.S. Marshals Service conducted the investigation with assistance from the Victoria County Sheriff ‘s Office and Victoria County District Attorney’s Office. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
Saraland Man Sentenced to More Than Twenty Years in Methamphetamine and Firearms CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that William Thomas Carver II, 44, of Saraland, was sentenced today for his participation in a conspiracy to possess with intent to distribute methamphetamine. In January of 2021, Carver pled guilty to the conspiracy charge and a charge of carrying a firearm in relation to and in furtherance of the drug trafficking felony.
According to documents filed in connection with his guilty plea, Carver participated with several others in the conspiracy to possess with intent to distribute methamphetamine. He had different sources of supply and several distributors who received methamphetamine from him for further distribution in Mobile and Baldwin Counties. Carver was arrested with a firearm, methamphetamine and cash in his vehicle by Saraland police, and he provided information to federal and local agencies about the scope of some of his illegal activities.
United States District Court Judge Jeffery U. Beaverstock imposed a 248-month sentence in Carver’s case this morning, consisting of 188 months as to the drug count, to run consecutively to the 60-month sentence imposed for the gun count. Upon his release from custody, Carver was ordered to serve a five-year term of supervised release. Carver was also ordered to pay $200 in mandatory special assessments. No fine was imposed. The judge further entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office, the Baldwin County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Ringleader and Five Members of Rochester Drug Trafficking Organization Charged with Narcotics ConspiracyRead 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 six Rochester men were charged by criminal complaint with conspiring to possess with intent to distribute, and distributing, at least 280 grams or more of crack cocaine, and at least 500 grams or more of cocaine. The charges carry a mandatory minimum term of imprisonment of 10 years and a maximum penalty of life in prison, as well as a $10,000,000 fine. Named in the complaint are:
• Jason Siplin a/k/a J, 44;
• Jason Siplin, Jr. a/k/a Mush, 27;
• Ernest Gamble a/k/a Dred, 19;
• Lytrice Jackson a/k/a Storm, 31;
• Timothy Granison, 42; and
• Dkeidron Dublin, 39.Defendant Dkeidron Dublin is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a minimum penalty of five years in prison and a maximum of life, which must be served consecutive to any penalty imposed on the drug conspiracy charge.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that according to the criminal complaint, the Greater Rochester Area Narcotics Enforcement Team (GRANET) has been investigating a drug trafficking organization led by Jason Siplin. The investigation revealed that since at least August 2020, the drug trafficking organization was distributing large quantities of cocaine and crack cocaine in the City of Rochester and the surrounding areas. Jason Siplin regularly obtained large quantities of cocaine that he in turned used to supply a drug house located at 230 Glenwood Avenue in Rochester, from which cocaine and crack cocaine were sold to individual drug users. Siplin had one or more storage locations for narcotics and United States currency. At least one of those storage locations was 62 Clifton Street in Rochester, and the 230 Glenwood Avenue was regularly supplied with crack cocaine stored at 62 Clifton Street.
The drug trafficking organization included a number of members who fulfilled various roles in furtherance of Siplin’s narcotics trafficking activities. Siplin obtained bulk quantities of cocaine, which would then be cooked or transformed into crack cocaine by another member. The crack cocaine was then broken down into individual units and bagged for street sale. Members also staffed the aforementioned drug house at 230 Glenwood Avenue. Siplin’s workers included his son, Jason Siplin, Jr. Ernest Gamble and Lytrice Jackson, who were among a number of individuals who packaged drugs for street sale and conducted hand-to-hand drug transactions out of 230 Glenwood Avenue. The investigation determined that roughly 40 to 50 drug transactions were conducted each day out of 230 Glenwood Avenue. Investigators also believe that Jason Siplin supplied bulk quantities of cocaine and crack cocaine to other drug dealers, including Timothy Granison, which Granison, in turn, distributed to other narcotics traffickers, including Dkeidron Dublin.
On May 19, 2021, defendants Granison and Dublin were detained after investigators observed a suspected drug deal at 5 Birch Crescent in Rochester. A “31” or a bag of cocaine equaling approximately 31 grams was found wrapped in a paper towel on the floor of Granison’s vehicle. Dublin was found in possession of approximately $1,241.00 in U.S. currency. During the execution of a search warrant of 5 Birch Crescent, which is believed to be the residence of Dkeidron Dublin, investigators recovered a quantity of crack cocaine, a razor blade, a scale and numerous new and unused plastic baggies commonly used to package narcotics. Approximately $400.00 in U.S. currency and .22 caliber semiautomatic pistol and ammunition were also recovered. A search warrant was also executed at Granison’s residence at 93 Woodman Park in Rochester.
Also on May 19, 2021, in addition to executing search warrants at the Birch Crescent and Woodman Park residences, search warrants were also executed at four additional premises, including the stash house and drug house located at 62 Clifton Street in Rochester, and 230 Glenwood Avenue in Rochester, respectively. During the search of 62 Clifton Street, investigators recovered quantities of bulk cocaine and crack cocaine, four boxes of baking soda, three digital scales, new and unused small plastic baggies, and beakers and other paraphernalia associated with cooking crack cocaine. During the search of 230 Glenwood Avenue, investigators encountered defendants Ernest Gamble and Lytrice Jackson, among others. It appeared that individuals inside the residence were in the process of flushing narcotics down an upstairs toilet. Over 80 small plastic baggies containing crack cocaine were recovered from the toilet bowl. During the search, quantities of crack cocaine were recovered along with walkie-talkies, a closed-circuit television system and DVR, digital scales, and approximately $10,888.00 in U.S. currency. Ernest Gamble had approximately $5,470.00 in U.S. currency on his person when taken into custody.
On that date, search warrants were also executed at 2013 Norton Street in Rochester, the residence of Jason Siplin, Jr., and 14 Elwood Drive in Rochester, the residence of Jason Siplin. As agents were preparing to execute the search warrant, Siplin, Jr. left the residence and began driving away. Law enforcement officers stopped him as he drove away and located approximately $62,581.00 in U.S. currency inside of Siplin Jr.’s vehicle. Another $300.00 in U.S. currency was recovered on Siplin, Jr.’s person, along with individually packaged baggies of cocaine. Another 8.5 grams of cocaine were found in the vehicle. During the search of the residence, investigators recovered a quantity of cocaine, new and unused plastic baggies, and numerous cellular phones. A search warrant was also executed that same night at 14 Elwood Drive, and a digital scale with white residue, baggies, and a small amount of crack cocaine were recovered along with $62,593.00 in U.S. currency.
During the execution of the six search warrants, investigators seized more than 1 kilogram of cocaine and more than a ½ kilogram of crack cocaine.
Defendants Jason Siplin, Jason Siplin, Jr., Ernest Gamble, and Dkeidron Dublin made an initial appearance this morning before U.S. Magistrate Mark W. Pedersen and were detained. DefendantTimothy Granison made an initial appearance and was released on conditions.
The complaint is the result of an investigation by the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Barry Chase; the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Robert Hill; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley. Additional assistance was provided by the New York State Department of Corrections and Community Supervision and Customs and Border Protection.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Registered sex offender sentenced to 29 years in prison for soliciting and producing child pornography from teenage boys on social mediaRead the Press Release
DAYTON, Ohio – Brendan J. Eardly, 50, of Troy, Ohio, was sentenced in U.S. District Court to 348 months in prison for producing child pornography by enticing juvenile males to send him sexually explicit videos and images via social media.
According to court documents, between October 2015 and August 2018, Eardly created multiple social media accounts on Facebook, Instagram and Kik Messenger and communicated with more than 60 juveniles worldwide.
Eardly told some of the minors that he could be their “gay mentor,” someone whom they could talk to about sex, and someone who could provide them advice about sex. The defendant sent and requested nude and sexually explicit images to and from the minors.
For example, Eardly sent videos and images of himself to a 13-year-old male in Utah. Eardly purchased gifts for the boy and coerced him into sending at least 8 images and two videos of child pornography.
Eardly similarly victimized teenage males in Ohio, Colorado, Nevada, California and New York. He sometimes sent the child pornography obtained from one victim to other victims with whom he was communicating.
At the time of his instant offense, Eardly was required to register as a sex offender as the result of a prior sex conviction in Miami County.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Troy Police Chief Charles Phelps; and Ohio Attorney General Dave Yost’s Ohio Bureau of Criminal Investigation (BCI) announced the sentence imposed Friday evening by U.S. District Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.
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Queens Acupuncture Clinic Owner Charged with Tax CrimesRead the Press Release
A federal grand jury in Brooklyn, New York, returned an indictment on June 4, charging a New York City woman with conspiring to defraud the United States and aiding and assisting in the preparation of a false tax return.
According to the indictment, from 2008 to 2013, Alice Bixuan Zhang of Queens owned and operated Welling Physical Therapy and Acupuncture PLLC (Welling) and, from 2012 to 2013, co-owned Wellife Physical Therapy and Acupuncture PLLC (Wellife). Both businesses had locations throughout New York City. As charged, Zhang and her co-conspirator took multiple steps to reduce the income they reported and taxes they paid to the IRS. They allegedly diverted funds from Welling and Wellife to other entities that they controlled (“Related Companies”), and Zhang and her co-conspirator reported those funds as deductible business expenses, thereby reducing the taxable income of Welling and Wellife. Zhang and her co-conspirator then allegedly sought to conceal from the IRS income earned by the Related Companies by cashing checks made to those firms at a check cashing business, and not disclosing that income to their tax return preparers, which resulted in the preparation of false income tax returns.
Zhang will make her initial court appearance at a later date before a U.S. Magistrate Judge of the U.S. District Court for the Eastern District of New York. If convicted, she faces a maximum penalty of five years in prison on the conspiracy charge and three years in prison for assisting in filing a false return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Mark J. Lesko for the Eastern District of New York made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Anahi Cortada and Thomas F. Koelbl of the Tax Division 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.
Providence Man Sentenced to Five Years in Prison for Trafficking CocaineRead the Press Release
PROVIDENCE, R.I. – A Providence man who took possession of a package containing more than a kilogram of cocaine shipped from Puerto Rico moments after it was delivered by the U.S. Postal Service to the front porch of a Providence residence was sentenced today to five years in federal prison.
Modesto Batista, 30, was sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by four years of federal supervised release. He pleaded guilty on March 11, 2021, to possession of over 500 grams of cocaine with the intent to distribute.
According to documents filed with the court, on December 10, 2020, Batista, while under surveillance by law enforcement, was seen sitting inside of a vehicle parked near a Providence residence as the U.S. Postal Service delivered a package, which law enforcement knew to contain cocaine. Shortly after the package was left on the front porch, Batista retrieved the package and immediately drove to his residence.
Moments after Batista arrive at his home, Homeland Security Investigations agents, U.S. Postal Inspection Service agents, and detectives assigned to the Rhode Island High Intensity Drug Trafficking Area Task Force, forcibly entered the building. Batista was found standing at the foot of the stairs leading to the upstairs portion of the house. The package Batista was seen removing from the front porch and transporting to his residence was found at his feet. The package contained more than 1,400 grams of cocaine.
A court-authorized search of Batista’s residence resulted in the seizure of a 9mm semi-automatic handgun and a magazine with fourteen rounds of live ammunition.
Batista’s sentence is announced by Acting United States Attorney Richard B. Myrus.
The case was prosecuted by Assistant United States Attorney William J. Ferland.
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Pittsburgh Pagans Motorcycle Club Vice-President Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
PITTSBURGH, PA – The vice-president of the Pagans Motorcycle Club, Pittsburgh Chapter pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Patrick Rizzo, 46, formerly of McKees Rocks, PA 15136, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation into drug-trafficking and illegal firearms activity occurring in the Western District of Pennsylvania, involving, among others, members and associates of the Pagans Motorcycle Club (MC), Pittsburgh Chapter. One of the targets of the investigation was Pagans MC Vice President, Patrick Rizzo.
Beginning in August of 2020 and continuing through November 2020, the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones, one of which was Rizzo’s.
In connection with his guilty plea, Rizzo admitted that on October 17 and 18, 2020, over intercepted communications, Rizzo and other members of the conspiracy discussed Rizzo possessing a “Judge” – that is, a Taurus Judge revolver. Then, on October 21, 2020, Rizzo acknowledged that he was the subject of a lawful traffic stop by City of Pittsburgh Police (PBP) after he nearly caused an accident in downtown Pittsburgh. After smelling marijuana coming from the inside of the vehicle, Rizzo was patted down, and a marijuana roach was found on his person. Law enforcement searched his vehicle and located a Black Taurus Judge revolver with five live rounds, as well as a black holster for the firearm in the center console. Rizzo further admitted that he has a prior felony conviction and could not lawfully possess that firearm.
Further, in connection with his guilty plea, Rizzo also admitted that on December 8, 2020, law enforcement executed a federal search warrant at his apartment and located two additional handguns, one of which was stolen as well as related magazines and 165 rounds of ammunition. Further, law enforcement seized marijuana, packaged for resale, as well as user quantities of heroin and cocaine and paraphernalia related to using controlled substances. Rizzo admitted that in addition to his prior felony conviction, which prohibited him from possessing these firearms and ammunition as well, it was also illegal for him to possess them because he was an unlawful user of and addicted to controlled substances.
Judge Colville scheduled sentencing for October 26, 2021, at 9:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Rizzo remains in custody pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pensacola Insurance Company Owner Arrested on Wire Fraud Charges; FBI Seeks Victims of Potential FraudRead the Press Release
PENSACOLA, FLORIDA – John Michael Thomas, 51, of Pensacola made his initial appearance today on wire fraud charges related to his business, Thomas Insurance, LLC. A federal criminal complaint was filed on March 12, 2021, charging Thomas with selling fraudulent insurance policies to his clients in exchange for approximately $4 million in insurance premium payments. On April 1, 2021, Thomas was arrested on the criminal complaint in Phoenix, Arizona, and was transported to Pensacola by the United States Marshal’s Service for today’s hearing. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the charges today after Thomas made his initial appearance in federal court in Pensacola.
The criminal complaint alleges between September 2013 and December 2020, John Thomas operated an insurance business known as Thomas Insurance, LLC, and defrauded customers through a type of insurance fraud known as premium diversion. Thomas executed this scheme by collecting insurance premiums from customers and keeping the funds for personal use instead of producing insurance policies. Thomas gave the customers fraudulent documents referencing insurance policies that did not exist.
This arrest resulted from a joint investigation by the FBI and the Florida Division of Investigative and Forensic Services, Bureau of Insurance Fraud, and work is ongoing to ensure all alleged victims are identified. If you are a client of Thomas Insurance, LLC and wish to speak to an investigating agent regarding your policy, please contact FBI Jacksonville at (904) 248-7000 or email [email protected], and reference “Thomas Insurance.” An FBI representative will respond with additional instructions.
Assistant United States Attorney Jeffrey Tharp is prosecuting this case for the Northern District of Florida.
A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 available 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.
Oregon Biotech Consultant Sentenced for Insider Trading SchemeRead the Press Release
BOSTON – An Oregon biotechnology consultant was sentenced today in federal court in Boston in connection with his role in an insider trading scheme involving the acquisition of a Cambridge biotechnology company in 2017.
Mark Joseph Ahn, 58, of Lake Oswego, Ore., was sentenced by U.S. District Court Judge Richard G. Stearns to six months in prison, six months of home detention, two years of supervised release, a fine of $5,500, forfeiture of $49,421 and restitution to be determined at a later date. On March 2, 2021, Ahn pleaded guilty to two counts of securities fraud.
From April to August 2017, Ahn, a long-time senior corporate executive and board director for biotech companies, worked as a consultant for a New York firm, and advised it during its efforts to acquire Dimension Therapeutics, Inc., a biotech firm formerly headquartered in Cambridge, Mass. In the course of his work for the New York firm, Ahn learned about Dimension’s intention to be acquired by another biotech firm, the details and the timing of his employer’s proposals to acquire Dimension and gained access to confidential information about Dimension’s business. Ahn thereafter bought Dimension stock while in possession of that nonpublic information. When Dimension announced that it would be acquired in August 2017, its stock increased 262% in one day.
The SEC previously filed a separate civil action against Ahn in federal court in Boston.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Operation Second Wave Update: Montgomery Man Sentenced to Ten Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Montgomery man charged as a result of a long-term investigation known as “Second Wave” was sentenced today to 10 years in federal prison for conspiracy to distribute methamphetamine.
According to court documents, Sammy Joe Fragale, Sr., 73, pleaded guilty in December and admitted to working with his son, Sammy Joe Fragale II, also known as “Bubby Fragale,” to distribute methamphetamine in Montgomery and St. Albans. Between February and August 2020, Fragale sold more than 100 grams of ICE methamphetamine to a confidential informant working with the Drug Enforcement Administration (DEA). Earlier this year, Bubby Fragale was sentenced to 42 months in federal prison.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the DEA. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
This case was part of operation “Second Wave,” a long-term investigation of a drug trafficking ring involved in the distribution of methamphetamine, cocaine, heroin, marijuana, and THC products. More than a dozen individuals have been charged in federal court as part of the investigation. All have pled guilty. The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force, the United States Postal Inspection Service (USPIS), the United States Postal Service – Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Office (KCSO), the Metropolitan Drug Enforcement Network Team (MDENT), and the Charleston Police Department conducted the “Second Wave” investigation
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 Nos. 2:20-cr-00184 (Fragale, Sr.);and 2:20-cr-00176 (Fragale, II).
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Ohio County man admits to a drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mark Joseph Dobrzynski, of Valley Grove, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Dobrzynski, 58, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Dobrzynski admitted to having methamphetamine in November 2020 in Ohio County.
Dobrzynski faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New York Plumbing Contractor Sentenced to 20 Months in Prison for Employment Tax FraudRead the Press Release
A New York man was sentenced today to 20 months in prison for failing to collect and pay over to the IRS $732,462 in employment taxes.
Sergei Denko, of Queens, New York, owned and operated Denko Mechanical Inc. and Independent Mechanical Inc., both contracting businesses in Queens that specialized in plumbing. According to court documents and statements made in court, from 2010 through 2014, Denko cashed more than $5 million in checks made out to companies he owned and operated to fund an “off the books” cash payroll. He did not report the cash wages to the IRS, filed false employment tax returns, and did not pay to the IRS the employment taxes arising from the cash payroll. Denko admitted to causing a total tax loss of $732,462 .
In addition to the term of imprisonment, U.S. District Judge Rachel P. Kovner ordered Denko to serve one year of supervised release. The defendant has already paid $366,231 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
The IRS Criminal Investigation investigated the case.
Trial Attorneys Sam Bean and Mark Kotila of the Tax Division prosecuted the case.
New Orleans Felon Indicted on Numerous Gun and Drug Distribution ChargesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on June 4, 2021, a Federal Grand Jury indicted QUENTRELL BERTHOLOTTE, age 29 of New Orleans, Louisiana, in a four count indictment for violations of Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A)(i) and Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
According to court documents, BERTHOLOTTE was previously convicted of a drug trafficking offense in Orleans Parish. He is now alleged to be in possession of multiple firearms and in possession with the intent to distribute a large amount of a narcotic mixture containing fentanyl. BERTHOLOTTE is prohibited from possessing firearms due to his criminal history.
BERTHOLOTTE, if convicted of possession with intent to distribute narcotics, faces a minimum term of five (5) years up to a maximum term of life imprisonment, a fine of up to $5,000,000.00, a minimum of five (5) years of supervised release following any term of imprisonment, and a $100.00 mandatory special assessment fee. If convicted of possession of a firearm in furtherance of a drug trafficking crime, he faces a minimum term of five (5) years up to a maximum term of life imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee. If convicted of possession of a firearm by a convicted felon, he faces up to a maximum of ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee for each count.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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New Jersey Company Fined $325,000 and Sentenced to A Two Year Term of Corporate Probation for Committing an Osha Violation That Resulted in A Worker’s DeathRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dana Container, Inc., (“Dana”), a company headquartered in Avenel, New Jersey, was sentenced by United States Magistrate Judge Joseph F. Saporito, Jr. to pay a fine of $325,000 and to serve a two-year term of probation for willfully committing an OSHA violation that resulted in an employee’s death.
According to Acting United States Attorney Bruce D. Brandler, in or about March of 2019, using the trade name “Dana Rail Care,” Dana contracted with another firm to clean crude oil residue from approximately 100 rail cars that were located at a rail yard in Pittston, Pennsylvania. Under regulations issued by the Occupational Safety and Health Administration (“OSHA”), an employee who is tasked by his or her employer to work in a confined space, like the interior of a rail car, must be protected in various ways. Employers are required to test and monitor atmospheric conditions within the space to ensure that the atmosphere is non-hazardous and to purge, flush or ventilate the space as necessary to eliminate or control any atmospheric hazards, including oxygen concentrations below 19.5 percent. Employers must also outfit any employee tasked with working in any atmosphere considered to be potentially hazardous with a particular type of OSHA-certified respirator.
On May 31, 2019, a Dana employee entered one of the rail cars at the Pittston site in order to scrape crude oil from the walls of the car. About 30 minutes later, the employee collapsed inside the car. He later died on scene, with the cause of death ruled asphyxiation. The atmosphere inside the car was determined to be oxygen-deficient and although Dana was aware of applicable OSHA regulations, the employee had not been outfitted with the proper OSHA-certified respirator. At sentencing, Dana represented to the Court that it is no longer in the business of cleaning crude oil from rail cars. Under the terms of its probation, Dana is required to make regular, monthly payments in satisfaction of the $325,000.00 fine, as well as to immediately report any future OSHA citations to the Court.
“The death of the employee was a tragedy and could have been avoided if the company had followed the regulations for this type of dangerous activity,” stated Acting U.S. Attorney Bruce D. Brandler. “Our office and OSHA take these cases very seriously and willful violations of OSHA regulations will be aggressively prosecuted to deter this type of behavior and ensure that workers are protected. Our investigation continues as to any individuals who may have criminal responsibility for this tragic event.”
This matter was investigation by the Occupational Safety and Health Administration (OSHA) and by the United States Department of Labor, Office of Inspector General, Office of Investigations. The case was prosecuted by Assistant U.S. Attorney Jeffery St John.
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New Haven Man Charged with Distributing Heroin and FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that VINCENT CLARK, also known as “Pudge,” 26, of New Haven, was arrested today on a federal criminal complaint charging him with distributing heroin and fentanyl.
Clark appeared today via videoconference before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained.
As alleged in court documents, between March and May 2021, law enforcement made six controlled purchases of redistribution quantities of heroin/fentanyl from Clark in New Haven. Clark is currently on state parole for a 2019 narcotics conviction.
The complaint charges Clark with possession with intent to distribute, and distribution of, heroin and fentanyl, which carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s New Haven Task Force, which includes personnel from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Michigan Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man caught selling drugs in Huntington last year was sentenced today to 15 months in federal prison for aiding and abetting the distribution of heroin.
According to court documents, Steven McGee, 51, admitted that on February 24, and March 10, 2020, he directed the distribution of heroin and fentanyl to a confidential informant in Huntington. McGee also admitted that he previously distributed methamphetamine to an informant on June 26, 2019, also in Huntington.
Acting United States Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams 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. 3:20-cr-00170.
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McLean County Man Sentenced to 20 Years in Prison for Distribution of Heroin Resulting in DeathRead the Press Release
PEORIA, Ill. – A Bloomington, Ill., man, Jacob R. Schultz, 36, of the 500 block of W. Seminary St., was sentenced on June 3, 2021, to serve 20 years in prison for distribution of heroin that resulted in the death of an individual in November 2018. In addition to the prison sentence, Senior U.S. District Judge Michael M. Mihm ordered that Schultz remain on supervised release for five years following his release from prison.
Schultz has been in the custody of the U.S. Marshals Service since his arrest on June 19, 2019. On Feb. 18, 2021, Schultz pleaded guilty to one count of distribution of heroin resulting in the death of an individual on Nov. 8, 2018, and one count of distribution of heroin on Feb. 24, 2019, which also resulted in a heroin overdose; however, the individual was successfully resuscitated.
The Bloomington Police Department and McLean County Sheriff’s Office investigated the case; Assistant U.S. Attorney Douglas F. McMeyer represented the government in the prosecution.
Martinsburg woman sentenced for role in drug conspiracyRead the Press Release
ARTINSBURG, WEST VIRGINIA – Lisa Richardson, of Martinsburg, West Virginia, was sentenced today to 30 months of incarceration for her role in a drug conspiracy that spanned several states, Acting U.S. Attorney Randolph J. Bernard announced.
Richardson, 50, pleaded guilty in October 2020 to one count of “Distribution of Fentanyl and Heroin.” Richardson admitted to selling heroin and fentanyl in June 2019 in Berkeley County.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Marshall County, Kentucky Man Pleads Guilty to Importing and Distributing U-4Read the Press Release
PADUCAH – A Marshall County, Kentucky man pleaded guilty today to Conspiracy to Distribute U-47700, commonly known as U-4, a Schedule I controlled substance, and to Distributing, Possessing with the Intent to Distribute, and Importing U-4 from China.
According to court documents, Jevan Sheppard, 29, of Marshall County, Kentucky, admitted to conspiring with others to distribute and to possess with the intent to distribute U-4, a Schedule I controlled substance over the period from November 14, 2016 to March 22, 2017. Further, Sheppard admitted to distributing U-4 on or about March 13 and 14, 2017, and to possessing U-4 with the intent to distribute on or about March 22, 2017. Sheppard also admitted to importing U-4 into the United States from China during the period from November 14, 2016, until March 22, 2017. He will be sentenced September 23, 2021 at 10;00 a.m. CDT.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and the Special Agent in Charge of the Drug Enforcement Administration (DEA) Louisville Field Division Jeffrey T. Scott, made the announcement.
The DEA, Calvert City Police Department, Marshall County Sheriff’s Department, McCracken County Sheriff’s Department, Paducah Police Department, and United States Customs and Border Protection all investigated the case, with assistance from the Marshall County Attorney’s Office and the Commonwealth’s Attorney for Marshall County.
Assistant U.S. Attorneys Seth A. Hancock and Raymond McGee of the Paducah, Kentucky United States Attorney’s Branch Office prosecuted the case.
Livingston Man Convicted of Attempted Enticement of a Minor Sentenced to 292 Months in Federal PrisonRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Jonathan Kimbrell, age 46, of Livingston, Louisiana, to 292 months in federal prison following his conviction for attempted enticement of a minor. The Court further sentenced Kimbrell to five years of supervised release following his term of imprisonment and he must register as a convicted sex offender upon his release from prison.
Kimbrell was unanimously convicted by a jury on February 13, 2020, after a four-day trial. As the evidence at trial demonstrated, from May 2, 2019, until June 6, 2019, he communicated online with two undercover FBI agents. Kimbrell believed that he was communicating with an 11-year old girl, her stepfather, and her mother, when in fact, the FBI agents had undertaken those online personas. He believed that the “stepfather” had been repeatedly molesting his “stepdaughter” and was now offering the “child” for sexual encounters by another adult. Kimbrell did his best to convince the stepfather, mother, and child that he should be allowed to join in molesting the child. Hundreds of emails were exchanged over more than 30 days in which Kimbrell sent numerous graphic emails describing how he would have sex with the child. Kimbrell also did his best to convince the three that sex would be better with him than with the stepfather. During the conversations with the fictitious child, Kimbrell developed and encouraged the nicknames of “Turtle” for himself and “Princess” for the child. Eventually, Kimbrell met the undercover agents whom he believed to be the stepfather and mother at a restaurant in Denham Springs to discuss the ground rules for his first sexual encounter with the 11-year old girl. At this meeting, he believed the child to be waiting in a motel room across the parking lot. Kimbrell was arrested as he left the restaurant walking toward the motel where he believed the child was waiting. When he was arrested, Kimbrell was found to be in possession of two boxes of condoms, personal lubricant, and baby oil. Kimbrell was also in possession of a rhinestone key chain that spelled out “Princess,” which he had purchased as a gift for the child.
Acting U.S. Attorney Travis stated, “This conviction and sentence demonstrates our continued commitment to bring justice to those individuals such as Kimbrell who exploit or harm our children. Working alongside our law enforcement partners in protecting our communities from child predators is a top priority of this office and I commend our prosecutor and our partners at FBI, Louisiana State Police, East Baton Rouge Sheriff’s Office, and Denham Springs Police Department for their excellent work in this matter.”
“Investigating individuals like Jonathan Kimbrell is one of the highest priorities of the FBI. As this case shows, the FBI continues to vigorously investigate and identify unknown individuals involved in the sexual exploitation of children. This sentence is the culmination of an investigation and successful prosecution by federal prosecutors, special agents, and intelligence analysts who work tirelessly to remove sexual predators from children’s lives,” stated FBI Special Agent in Charge Douglas Williams, Jr. “I would also like to thank our partners the Louisiana State Police, East Baton Rouge Sheriff’s Office, and Denham Springs Police Department for their collaboration and efforts with this investigation.”
This matter was investigated by the Federal Bureau of Investigation, Louisiana State Police, East Baton Rouge Sheriff’s Office, and Denham Springs Police Department. The case was prosecuted by Assistant United States Attorneys Frederick A. Menner, Jr. and Demetrius D. Sumner.
Lewis Center man pleads guilty to COVID-relief fraud scheme & laundering more than $2.4M related to online romance scamsRead the Press Release
COLUMBUS, Ohio – A Lewis Center man pleaded guilty in federal court today for his role in conspiring to launder the proceeds of online romance scams for roughly two years. He also admitted to fraudulently misapplying CARES Act loan funds to buy himself boats while out on release from his initial charges.
Eric Ahiekpor, 50, was indicted by a grand jury in June 2020 and charged by a superseding bill of information in May 2021.
In total, as part of the romance scams, bank accounts under Ahiekpor’s control received more than $2.4 million in criminally derived funds.
Kwame Yeboah, 37, of Columbus, has also pleaded guilty in the money laundering scheme. Robert Asante, 36, of Canal Winchester, was charged in the money laundering scheme and is awaiting trial.
According to court documents, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons, and provided victims with account information and directions for where money should be sent. In part, these accounts were in the names of Ahiekpor and his co-defendants, in the names of the defendants’ family members, and in the names of the defendants’ companies. The funds were not used for the purposes claimed by the perpetrators of the romance scams.
Ahiekpor is not accused of committing romance fraud. Instead, by pleading guilty he admits that he helped the perpetrators of the romance fraud move the fraud proceeds from the United States to Ghana.
While he was on release in the romance scam case, in a separate and unrelated scheme, Ahiekpor obtained a coronavirus relief loan for $150,000 and fraudulently misapplied the loan proceeds. In June 2020, Ahiekpor submitted an application for an Economic Injury Disaster Loan (EIDL) on behalf of Premier Choice Health Services, a business he owned.
The EIDL Program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. The EIDL Program was expanded under the CARES Act. EIDL proceeds can be used for working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. EIDL proceeds cannot be used for the applicant’s personal benefit.
One day after receiving the relief funds, Ahiekpor bought a 2017 Sun Tracker “Fishin’ Barge 22 DKX” boat for $32,000, motor and boat trailer. Shortly thereafter, he also purchased a 1995 Sea Ray Sundancer boat. He continued to fraudulently misapply the EIDL proceeds after his release from his money laundering charges.
Conspiracy to launder money and wire fraud are federal crimes punishable by up to 20 years in prison and a fine, as well as forfeiture of any proceeds involved in the crimes.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI), announced the plea entered into today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Kanawha County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Qundre Isaiah Payton, of Institute, West Virginia, was sentenced today to 21 days of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Payton, 24, pleaded guilty in February 2020 to one count of “False Statement During Purchase of Firearms.” Payton admitted to making a false statement when purchasing three 9mm pistols at a firearms dealer in Berkeley County in December 2019.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Justice Department Issues Proposed Rule and Model Legislation to Reduce Gun ViolenceRead the Press Release
Today, the Department of Justice announced two new steps to help address the continuing epidemic of gun violence affecting communities across the country. First, the department issued a notice of proposed rulemaking that makes clear that when individuals use accessories to convert pistols into short-barreled rifles, they must comply with the heightened regulations on those dangerous and easily concealable weapons. Second, the department published model legislation to help states craft their own “extreme risk protection order” laws, sometimes called “red flag” laws. By sending the proposed rule to the Federal Register and publishing the model legislation today, the department has met the deadlines that the Attorney General announced alongside President Biden in April.
“The Justice Department is determined to take concrete steps to reduce the tragic toll of gun violence in our communities,” said Attorney General Merrick B. Garland. “Today we continue to deliver on our promise to help save lives while protecting the rights of law-abiding Americans. We welcome the opportunity to work with communities in the weeks and months ahead in our shared commitment to end gun violence.”
The department issued a notice of proposed rulemaking that would make clear that the statutory restrictions on short-barreled rifles apply to pistols that are equipped with certain stabilizing braces and intended to be fired from the shoulder. The National Firearms Act imposes heightened regulations on short-barreled rifles because they are easily concealable, can cause great damage, and are more likely to be used to commit crimes. But companies now sell accessories that make it easy for people to convert pistols into these more dangerous weapons without going through the statute’s background check and registration requirements. These requirements are important public safety measures because they regulate the transfer of these dangerous weapons and help ensure they do not end up in the wrong hands. The proposed rule would clarify when these attached accessories convert pistols into weapons covered by these heightened regulations.
Once the proposed rule is published in the Federal Register, the public will have 90 days to submit comments. To view the Notice of Proposed Rulemaking, please see here.
The department also published model legislation and detailed commentary that will make it easier for states to craft “extreme risk protection orders” authorizing courts to temporarily bar people in crisis from accessing firearms. By allowing family members or law enforcement to intervene and to petition for these orders before warning signs turn into tragedy, “extreme risk protection orders” can save lives. They are also an evidence-based approach to the problem. The model legislation, developed after consultation with a broad range of stakeholders, provides a framework that will help more states enact these sensible laws.
To read the model legislation, please see here.
To learn more about the rulemaking process, please see here.
Judges sentences member of major drug trafficking organization for conspiring to distributeRead the Press Release
ST. LOUIS – United States District Judge Audrey G. Fleissig sentenced David M. Foston to 125 months in prison today. The 49-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of conspiracy to distribute cocaine.
Foston was indicted with 14 others in St. Louis, Missouri, in May 2019 for conspiring to distribute more than 25 kilograms of cocaine, 10 kilograms of heroin, and three kilograms of fentanyl. Throughout the investigation, law enforcement seized more than $2,036,981 from drug payments and profits, luxury jewelry, and vehicles.
Investigators from of the Drug Enforcement Administration St. Louis Division uncovered a cocaine, heroin, and fentanyl distribution organization transporting kilogram quantities of cocaine, heroin and fentanyl from Mexico, through Texas and Florida, to the St. Louis Metropolitan area. The higher echelon of the conspiracy served federal prison sentences for prior controlled substance violations in the Federal Correction Institution in Florence, Colorado beginning in the late 2000s.
Throughout 2018, Foston and his co-conspirators utilized drug couriers and vehicles with concealed compartments to ship multi-kilogram amounts of cocaine, heroin and fentanyl to a residence in Spanish Lake, Missouri from Houston, Texas and Fort Lauderdale, Florida. Foston and his co-conspirators unloaded the drugs at the residence and distributed them throughout the St. Louis Metropolitan area. The proceeds from the sale of those controlled substances were stored at residences in St. Louis City and County and loaded into the concealed compartments of vehicles for transportation back to Texas and Florida.
On March 17, 2018, DEA special agents and task force officers located and seized $1,304,804.00 in drug payments from the St. Louis-based distributors in Phelps County, Missouri as a courier was traveling back to drug suppliers in Texas. On April 20, 2018, the DEA intercepted a courier in possession of 25 kilograms of cocaine destined for the St. Louis drug distributors. In July 2018, investigators seized three kilograms of fentanyl and $263,000 in drug payments from a courier’s vehicle in Oklahoma. On September 8, 2018, investigators searched the Spanish Lake residence and seized 10 kilograms of heroin.
In October 2018, the St. Louis based distributors attempted to purchase $385,000 worth of cocaine during a sting operation in a suburb of Houston. DEA investigators intercepted the courier and seized the United States currency belonging to the other St. Louis based distributors. The currency was to be a partial payment for 25 kilograms of cocaine, which the organization intended to distribute.
This case was investigated by Drug Enforcement Administration offices in St. Louis, Houston (Texas), Fort Lauderdale (Florida), Detroit (Michigan), the United States Marshal’s Service, St. Charles County Police, St. Louis Metropolitan Police, Bridgeton Police, Phelps County Sherriff’s Department and Cleveland, Texas Police.
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Jefferson Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – ERIC RODRIGUEZ and GREG TRAHAN were charged on June 4, 2021, in a four-count indictment by a Federal Grand Jury with violations of the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
In counts 1 and 2, RODRIGUEZ is charged with possession with the intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). If convicted of count 1, RODRIGUEZ faces a minimum of five years imprisonment up to a maximum of 40 years imprisonment, up to a $5,000,000 fine, at least 4 years of supervised release, and a $100 mandatory special assessment. If convicted of count 2, RODRIGUEZ faces up to a maximum term of 20 years imprisonment, up to a $1,000,000 fine, at least 3 years of supervised release, and a $100 mandatory special assessment.
TRAHAN is charged in counts 3 and 4 with possession with the intent to distribute methamphetamine and heroin, respectively, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). If convicted on either count, he faces up to a maximum of 20 years imprisonment, up to a $1,000,000 fine, at least 3 years of supervised release, and a $100 mandatory special assessment.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the defendants’ guilt must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
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Hurricane Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
CHARLESTON, W.Va. – A Hurricane man pleaded guilty today to being a prohibited person in possession of a firearm.
According to court documents, Derrick Lee Racer, 38, admitted that in the early morning hours of March 2, 2020, he was riding a bicycle through St. Albans and had a loaded Smith & Wesson .38 caliber revolver on his person. An officer with the St. Albans Police Department stopped Racer because he was not wearing a helmet, in violation of city ordinances. Racer admitted that he had the firearm and that he knew he should not be carrying it due to a 2005 felony conviction for attempted distribution of marijuana in Putnam County Circuit Court. At the time of the stop, Racer’s rights to possess a firearm had not been restored.
Racer faces up to 10 years in prison when he is sentenced on September 8, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the St. Albans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Court Judge Joseph R. Goodwin presided over the plea hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00095.
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Harrison County man admits to bank robberyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Clint Monroe Utter, of West Milford, West Virginia, has admitted to the robbery of Summit Community Bank in November 2020, Acting U.S. Attorney Randolph J. Bernard announced.
Utter, 43, pleaded guilty today to one count of “Bank Robbery” and one count of “Conspiracy to Commit Money Laundering.” Utter admitted to robbing the Summit Community Bank in Salem, West Virginia, of $69,100 on November 17, 2020 and then attempting to conceal the proceeds from the bank robbery by directing the purchase of prepaid cards.
Utter faces up to 20 years of incarceration and a fine of up to $250,000 for the bank robbery charge. Utter faces up to 20 years of incarceration and a fine of up to $500,000 for the money laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan National Extradited to Eastern District of Texas and Sentenced for Conspiracy to Import Cocaine into the United StatesRead the Press Release
PLANO, Texas – A Guatemalan man was sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jose Ramon Reyes Villagran, 37, pleaded guilty on Sep. 1, 2020, to conspiracy to import cocaine into the United States and manufacturing, distributing, and importing cocaine into the United States and was sentenced to 292 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Despite the sophisticated network of land, sea, and air smuggling routes, it wasn’t enough to conceal the criminal activities of Mr. Villagran and his associates from American investigators and our overseas law enforcement allies,” said Acting U.S. Attorney Nicholas J. Ganjei. “The long arm of the American justice system extends even overseas, and brings international drug traffickers and their conspirators to our shores to face justice in American courts.”
According to information presented in court, Villagran, a resident and national of Guatemala, was a member of a drug trafficking organization responsible for multi-ton cocaine shipments which originated from Columbia. The drugs were then shipped to Costa Rica, Guatemala, and Mexico for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments. Villagran was involved with coordinating airplanes used to transport cocaine shipments departing from Colombia and Venezuela to arrive at his clandestine landing strips in Guatemala. Thereafter, he distributed the bulk cocaine to his customers in Guatemala and Mexico. A federal grand jury returned an indictment charging Villagran with federal drug trafficking violations on August 8, 2018.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Georgia Man Sentenced to 57 Months in Prison for Tax FraudRead the Press Release
A federal district court in Cincinnati, Ohio, sentenced an Atlanta, Georgia, man to 57 months in prison today for tax evasion. This sentence included an enhancement for failing to report income from drug trafficking.
According to court documents and statements made in court, from at least 2011 to 2016, Darryl Brown earned at least $1 million. To evade paying taxes on this income, Brown did not file returns. He created nominee businesses, opened bank accounts and lines of credit in the names of those businesses, and then used the accounts to pay for his luxury lifestyle. This included extravagant overseas trips, Rolex and Cartier watches, and luxury clothing and vehicles. Brown further used cash to purchase money orders in structured amounts to avoid triggering reporting requirements to the Department of Treasury and the IRS. Brown then used the money orders to pay off the balances on his nominee accounts. In total, Brown caused a tax loss of more than $250,000.
U.S. District Judge Timothy S. Black in the Southern District of Ohio also ordered Brown to serve three years of supervised release and pay restitution to the IRS in the amount of $377,240.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Vipal J. Patel of the Southern District of Ohio made the announcement.
IRS Criminal Investigation and local law enforcement officials conducted the investigation.
Trial Attorneys Sarah C. Ranney and William Guappone of the Tax Division prosecuted the case, and Criminal Chief Karl Kadon of the Southern District of Ohio provided substantial assistance in this matter.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Former Scranton Police Officer Charged with Federal Bribery ViolationRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Thomas McDonald, age 47, of Scranton, Pennsylvania, was charged in a criminal information with a federal bribery violation.
According to Acting United States Attorney Bruce D. Brandler, the information alleges that McDonald, while working as a police officer for the Scranton Police Department in April 2018, corruptly solicited for his own benefit, sex and sexual favors from Person #1, intending to be influenced in official actions of the Scranton Police Department and the City of Scranton.
It is also alleged that McDonald’s related conduct also included felony bribery violations with respect to Persons #2 through #4.
“Law enforcement officers hold enormous power over the citizenry and we trust them to exercise that power ethically and with integrity,” stated Acting United states Attorney Bruce D. Brandler. “While most officers perform their duty in an exemplary fashion, we will not hesitate to prosecute those officers who break the law and undermine the administration of justice by engaging in the reprehensible behavior charged here. I want to thank all the law enforcement agents and the entire prosecution team for handling this sensitive matter professionally and expeditiously.”
“The activities alleged today are a serious divergence from the oath Thomas McDonald took to faithfully serve and protect the city of Scranton,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He betrayed the people of his community and all of us who wear a badge and believe no one is above the law. The FBI will continue to root out corrupt law enforcement officers, on behalf of the vast majority of officers who carry out their duties honestly and honorably.”
“The Pennsylvania State Police worked in collaboration with local, state, and federal law enforcement agencies to ensure a thorough and comprehensive investigation,” said Major Randy Devine, commander of the Pennsylvania State Police Area III. “Corruption and bribery in any form are serious crimes. When public trust is violated by a municipal law enforcement agency, it is our duty to hold those responsible accountable for their actions.”
“I am as appalled and disappointed by this tragedy today as I was the day I first learned that a former member of our force grossly abused his authority, committing vile, repulsive acts,” said Scranton’s Police Chief, Superintendent Leonard Namiotka. “Mr. McDonald must pay the price for his crimes, like anyone else. If there is a bright spot, it is that since she came into office last year, Mayor Cognetti’s uniformed services agenda has included making significant improvements to our department’s internal processes and communications. Accomplishing that should go a long way towards providing earlier warning of issues like this going forward. But what may be most important right now is for Scrantonians to know that McDonald’s actions are not at all representative of our well-trained, caring and dedicated police personnel, a group of men and women whose actions each and every day are proof that they live by the credo of protecting and serving our community.”
McDonald was terminated from his position as a Scranton Police Officer in June 2020.
The case was investigated by the Scranton Federal Bureau of Investigation’s Public Corruption Task Force, which consists of members of the Pennsylvania State Police and the Pennsylvania Attorney General’s Office, and federal agents from the FBI and Internal Revenue Service. Assistant U.S. Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations 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 ten years of imprisonment, 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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Former Karnes County Sheriff’s Deputy Sentenced for Straw Purchasing Firearms Smuggled to MexicoRead the Press Release
SAN ANTONIO – A federal judge sentenced Former Karnes County Sheriff’s Deputy Oswaldo Bernal today to 32 months in federal prison for straw purchasing approximately 40 firearms that were subsequently trafficked to Mexico.
In addition to the prison term, U.S. District Court David A. Ezra ordered the San Antonio resident to pay a money judgment in the amount of $7,191.96 and be placed on supervised release for a period of three years after completing his prison term.
“Bernal betrayed his badge. He knowingly purchased handguns for an individual he knew could not legally purchase them in the U.S. and who would smuggle them into Mexico,” said U.S. Attorney Ashley C. Hoff. “I could not agree more with Judge Ezra’s comments in court today that if any member of the public were to have purchased this many firearms in such a short time period, it would have raised red flags. But because Bernal was a law enforcement officer, he could purchase those weapons without raising suspicion.”
On March 11, 2021, Bernal pleaded guilty to one count of aiding and abetting smuggling goods from the U.S. By pleading guilty, Bernal admitted that while employed as a Karnes County Deputy Sheriff, he purchased the firearms in 2020 from San Antonio firearms dealers under a discount program for law enforcement officers called the “Blue Label Program.” Bernal then sold those weapons to Juan Cesar Fabian Ayala-Melendez, a native of Monterrey, Mexico who was illegally residing in the U.S.
“Public trust is a critical element of accomplishing law enforcements mission. This former officer stepped outside of that public trust by committing crimes and received the proper treatment from the justice system,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Houston Field Office.
Ayala has admitted that he smuggled the firearms into Monterrey through a Laredo-based international shipping company. On March 4, 2021, Ayala pleaded guilty to one count of conspiracy to launder monetary instruments, namely the proceeds of the weapons trafficking conspiracy, and one count of being an alien in possession of a firearm. He remains in federal custody awaiting sentencing that is scheduled for July 19, 2021.
A third co-defendant who also remains in federal custody, Yesenia Berenice De La Cerda Mendoza, faces federal charges for her role in the weapons trafficking and money laundering scheme. Her re-arraignment is set for June 17, 2021 before U.S. Magistrate Judge Richard B. Farrer in San Antonio.
The ATF investigated this case. Assistant U.S. Attorneys Matthew W. Kinskey and Fidel Esparza III prosecuted this case.
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Former CEO of Publicly Traded Company Sentenced to 15 Months’ Imprisonment and Ordered to Pay More Than $1.2 Million in Restitution for Securities Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Dennis Mancino, the former Chief Executive Officer of HD View 360, Inc., a publicly traded penny stock company that purported to distribute and install security surveillance systems, was sentenced by United States District Judge Kiyo A. Matsumoto to 15 months’ imprisonment for conspiracy to commit securities fraud. Mancino’s conviction stemmed from his participation in a scheme to manipulate the price and trading volume of HD View’s stock, which traded under the ticker symbol HDVW. Mancino was also ordered to pay more than $1.2 million in restitution and $257,000 in forfeiture. Mancino pleaded guilty in September 2019.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, announced the sentencing.
“Today, Mancino has been held accountable for abusing the trust of more than 1,200 of his own investors in order to line his pockets,” stated Acting United States Attorney Lesko. “As this case demonstrates, we remain committed to protecting the investing public and the integrity of the financial markets from fraudulent schemes such as those advanced by the defendant.” Mr. Lesko expressed his thanks to the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office and Washington, D.C. Office, for their invaluable efforts in the case.
Between July 2017 and February 2018, Mancino conspired to increase HD View’s stock price by executing numerous fraudulent matched trades designed to create the false appearance that HD View’s stock price had risen as a result of genuine market demand. Once HD View’s stock price increased, the conspirators sold the stock for profit and caused more than $1.2 million in losses to more than 1,200 HD View investors. Mancino also agreed to pay kickbacks to stock brokers who would execute manipulative trades designed to increase the price and trading volume of HD View’s stock.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David Gopstein and Michael T. Keilty are in charge of the prosecution.
The Defendant:
DENNIS MANCINO
Age: 49
Residence: Miami, FloridaE.D.N.Y. Docket No. 18-CR-296 (KAM)
Former Augusta Man Sentenced for Possessing Child PornographyRead the Press Release
BANGOR, Maine: A former Augusta resident was sentenced today in U.S. District Court in Bangor for possessing child pornography, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Michael C. O’Brien, 40, now of New Lenox, Illinois, to 87 months in prison followed by 10 years of supervised release. O’Brien was also ordered to pay $19,000 in restitution. He pleaded guilty on November 18, 2019.
According to court records, O’Brien possessed thousands of images and hundreds of videos of child pornography that he had received over the internet. Many of these images and videos depicted prepubescent girls under 12 years old. Law enforcement officers discovered the child pornography when they executed a search warrant at O’Brien’s home on September 26, 2018.
Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated the case. The 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Jury Convicts Greeley Man of Drug and Gun CrimesRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Joel Flores of Greeley, Colorado was convicted by a federal jury of possession with intent to distribute more than 5 grams of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm and ammunition by a prior felon.
According to the facts presented at trial, Flores was the passenger in a vehicle that crashed while attempting to evade a police officer. After the crash, Flores and the driver fled on foot. Flores was located a short time later hiding under a porch in a nearby trailer park. Officers searched Flores and located a baggie containing methamphetamine, cash, and a 9mm bullet. Law enforcement searched the area and recovered a firearm and more cash in the area near where Flores fled from the vehicle.
“Drug dealing and guns are a potential volatile mix,” said Acting United States Attorney Matt Kirsch. “Our prosecutors are committed to doing their part, together with our law enforcement partners, to keep our communities safe.”
“It is a top priority for ATF to prevent prohibited individuals from possessing firearms,” said ATF Special Agent in Charge David Booth. “We are proud to work with our local and Federal partners to stop such individuals from bringing violence into our communities.”
United States District Court Judge William J. Martinez presided over the jury trial that began on Tuesday, June 1, 2021, and concluded on Friday. Flores will be sentenced on November 17 at 9:30AM.
This case was investigated by the Greeley Police Department and the Bureau of Alcohol Tobacco and Firearms, with assistance from the Drug Enforcement Administration and the Colorado Bureau of Investigation. This case was prosecuted by the Violent Crime and Immigration Section of the U.S. Attorney’s Office for the District of Colorado.
CASE NUMBER: 19-cr-522
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Federal Jury Convicts Armed Career Criminal for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A federal jury today convicted a St. Paul man on charges of illegally possessing a firearm, announced Acting U.S. Attorney W. Anders Folk.
Following a five-day trial, Darnell Andre Dunn, 30, was convicted on one count of felon in possession of firearm – armed career criminal.
According to the evidence presented at trial, on August 30, 2019, Dunn was involved in a drive-by shooting in St. Paul. Minutes after the shooting, St. Paul police pulled over the car in which Dunn and two others were riding. The police let Dunn and the others go after receiving incorrect information about the license plate of the drive-by shooter’s car from the 911 dispatcher. When they realized the error, Dunn and the others were gone. The following day, St. Paul police saw Dunn parked at a gas station in St. Paul. After asking Dunn about the false name he had given the night before, the officer ordered Dunn out of the car. When Dunn got up, a .40 caliber Smith & Wesson he had been sitting on fell to the floor. A ballistics analysis later showed that it was one of the guns that had been used in the drive-by shooting the night before. Because of his prior felony convictions, Dunn is prohibited under federal law from possessing firearms or ammunition at any time.
Dunn faces a mandatory minimum of 15 years, up to life imprisonment, a maximum fine of $250,000 and up to three years of supervised release. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the St. Paul Police Department.
This case was prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and Melinda A. Williams.
Federal Inmate Found Guilty of Possessing Foot-long KnifeRead the Press Release
ABINGDON, Va. – A federal jury convicted an inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia, on June 1, for illegally possessing a knife inside the prison.
According to court documents and evidence presented at trial, Jose Soto-Ramirez, 34, was found in possession of a 12-inch-long handmade knife while housed as an inmate at the prison. A sentencing hearing has been scheduled for September 7, 2021. Soto-Ramirez faces up to five years in prison.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The Bureau of Prisons Special Investigative Service is investigating the case.
Assistant U.S. Attorney Randy Ramseyer and Special Assistant United States Attorney Christine Hummert are prosecuting the case.