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Thursday 3 June 2021
Swindler Sentenced to Federal Prison for $6.8M Securities Fraud SchemeRead the Press Release
AUSTIN – A federal judge sentenced 45-year-old Christopher Matthew Meredith of Shawnee, Kansas to 14 years in federal prison today for his scheme to defraud investors of more than $6.8 million.
In addition to the prison term, U.S. District Judge Robert Pitman ordered Meredith to pay $6,820,510.50 in restitution and to be placed on supervised release for a period of three years after completing his prison term. Following today’s hearing, Judge Pitman remanded Meredith to the custody of the U.S. Marshals Service to begin serving his prison term.
“This con artist targeted dozens of retirees and other investors who resided in the Brenham area as well as other parts of Texas and the country. He obtained millions of dollars through blatant lies and then funded his lifestyle with their money,” said U.S. Attorney Ashley Hoff. “I commend the prosecutors and our partners from the FBI and the Texas State Securities Board for bringing Meredith to justice and providing his victims with a measure of closure.”
On January 8, 2020, Meredith pleaded guilty to one count of securities fraud. According to court documents, Meredith solicited investors for his company, Strategic Pharma, Inc. (SPI), under false pretenses from January 2015 to March 2017. Meredith told investors that SPI had agreements, business operations, money and assets, knowing this was false. For example, Meredith intentionally told investors that SPI had entered into agreements with the Department of Veterans Affairs (VA) and Biopharma Services, Inc. that would result in substantial revenue for SPI. Meredith created a counterfeit VA contract and showed it to investors to prop up his lie. Meredith also failed to disclose to his investors that he was under investigation for a similar investment fraud scheme in Florida where he eventually pleaded guilty to felony grand theft. Meredith persuaded investors to give him money in return for shares of SPI stock. Then he used investor funds for his own personal benefit, including the purchase of a home, and for the benefit of his relatives and associates.
“As a result of the relentless investigative efforts of the FBI San Antonio, Austin White Collar Task Force and the Texas State Securities Board, Meredith will no longer swindle members of our community out of their hard-earned dollars,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. “Over 100 investors were identified as victims in this case, many of whom lost their retirement savings. We hope they find some solace in seeing Meredith brought to justice and held accountable for his pattern of willful deceit."
“The State Securities Board is pleased with today’s sentencing. The gravity of financial crime and its impact on our investors was well reflected with the imposition of a fourteen-year sentence for Mr. Meredith,” said Texas State Securities Board Commissioner Travis J. Iles. “Texas investors saw justice today. The good work of the Western District’s U.S. Attorney's Office, the FBI, and our investigator made the result possible.”
Assistant U.S. Attorneys Alan M. Buie, Daniel Castillo and Robert Almonte prosecuted this case.
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St. Croix Man Sentenced to Federal Prison for Attempting to Smuggle Cocaine Thru the Henry E. Rohlsen AirportRead the Press Release
ST. CROIX, USVI - U.S. Attorney Gretchen C.F. Shappert announced that yesterday, Zion Hazel, 24, of St. Croix, appeared before Visiting Judge Anne E. Thompson in U.S. District Court on St. Croix and was sentenced to 27 months in prison on the charge of Conspiracy to Possess Cocaine with Intent to Distribute.
According to court documents, on April 12, 2018, Zion Hazel, along with co-defendants Keithley Parris and Don-Luke George, conspired to bring 2 kilograms of cocaine into the Henry E. Rohlsen Airport with the intent to transport the cocaine to Miami via American Airlines flight #2227. Specifically, George, who was employed at the airport, smuggled four bricks of cocaine into the passenger waiting area of the airport, and delivered them to Hazel in the handicap stall of the men’s restroom. Hazel was a passenger on the outgoing American Airlines flight but was intercepted with the cocaine prior to boarding his flight by Customs and Border Protection officers.
Customs and Border Protection and Homeland Security Investigations investigated the case. The DEA Southeast Laboratory in Miami analyzed the cocaine.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
St. Croix Man Previously Convicted of a Felony Pleads to Firearm Charge in Federal CourtRead the Press Release
ST. CROIX, USVI – U.S. Attorney Gretchen C.F. Shappert announced that yesterday, Lionel Woodley, 35, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., in U.S. District Court on St. Croix and entered a guilty plea to the charge of Felon in Possession of Firearm.
According to court documents, on March 17, 2019, Virgin Islands Police Department (VIPD) officers stopped the vehicle driven by Woodley at around 11:30 p.m. for failing to observe a stop sign and passing on a double yellow line. During the traffic stop, VIPD officers noticed the odor of marijuana emanating from Woodley’s vehicle. The officers searched the vehicle and located a revolver in the center console, a bag on the front seat containing approximately 20 grams of marijuana, approximately 7 grams of cocaine, along with $105.00, and a scale. Police also found and seized $701 on Woodley’s person. Woodley did not have a license to possess the firearm and had previously been convicted of the felony offense of Attempted Robbery Second Degree by the Superior Court of the Virgin Islands.
This offense carries a possible sentence of incarceration of up to 10 years, a maximum fine of up to $250,000 dollars, and a term of supervised release of at least 2 years. Sentencing is set for October 1, 2021.
The Virgin Islands Police Department and the Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.Somersworth Man Sentenced to 90 Months for Child Pornography CrimesRead the Press Release
CONCORD - Joseph Gaudreau, 25, of Somersworth, was sentenced to 90 months in federal prison for possessing and distributing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on April 26, 2017, the New Hampshire State Police (“NHSP”) received three tips previously submitted to the National Center for Missing and Exploited Children by the online communications application Skype. The tips reported that on three separate occasions on March 21, 2017, the same user account uploaded files to Skype that were identified as child sexual abuse images. NHSP investigators later determined that the Skype account was associated with Gaudreau.
NHSP investigators spoke with Gaudreau at his residence in Somersworth on August 30, 2017. In a voluntary interview, Gaudreau admitted to possessing child pornography and sharing it with others on the internet using multiple applications, including Skype. He told law enforcement that he generally stored images in his Dropbox account, which he could access from any internet-capable device.
Law enforcement officers next obtained a search warrant for the contents of any Dropbox account associated with the username or e-mail that Gaudreau voluntarily provided them during the interview. The materials received from Dropbox included numerous video files and still images of child pornography.
Gaudreau previously pleaded guilty on January 7, 2021. In addition to the prison sentence, Gaudreau will be under supervised release for seven years once he is released.
“In order to protect children, we work closely with our law enforcement partners to investigate crimes involving child pornography and child exploitation,” said Acting U.S. Attorney Farley. “As this prison sentence demonstrates, crimes against children are serious offenses with very significant penalties. This sentence should serve as a warning that those who possess or distribute child sexual abuse images will be held accountable for their unlawful and disturbing conduct.”
“Today’s sentencing of Gaudreau is a significant step toward preventing him from further possessing and distributing repulsive online child abuse images such as those uncovered in this investigation,” said William S. Walker, Acting Special Agent In Charge, Homeland Security Investigations, Boston. “HSI hopes that the sentence imposed today will bring some measure of justice to the innocent victims who were exploited by the repeated distribution of these illicit images by Gaudreau and his cohorts. Today’s sentencing would not have been achieved without the crucial teamwork and strong support of the New Hampshire Internet Crimes Against Children Task Force, the New Hampshire State Police, the Somersworth Police Department and the Office of the U.S. Attorney for New Hampshire.”
This matter was investigated by the New Hampshire State Police, NH Internet Crimes Against Children Task Force, and Homeland Security Investigations, with assistance from the Somersworth Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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 www.projectsafechildhood.gov.
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Serial Fraudster Sentenced to More Than Six Years in Federal Prison for Multiple Fraud Schemes Resulting in Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Robert Lee Snowden Jr., age 45, of Owings Mills, Maryland, to 78 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and for aggravated identity theft, in connection with a series of fraud schemes perpetrated between 2013 and 2020. Additionally, Judge Hollander ordered that Snowden pay restitution of $1,021,583.72.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Inspector General M. Sutherland of the Office of Inspector General for the Maryland Department of Human Services.
According to the statement of facts that was part of his guilty plea, from 2013 to July 16, 2020, Snowden conspired to defraud the Maryland Department of Human Services (DHS) and the Federal Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the “Food Stamp Program,” by using victims’ stolen identification information to obtain SNAP benefits. Snowden sold the SNAP benefits for cash at approximately 50% of the value of the benefits on the SNAP card.
In 2011, prior to being laid off from his temporary position at a health care business, Snowden stole lists of health care professionals’ personal identifying information. Beginning in 2013, Snowden used the health care professionals’ stolen identity information to apply for SNAP benefits, creating fraudulent supporting documents in the names of the victims to provide when requested during the application process. Snowden used the addresses of acquaintances or nearby vacant homes for the mailing of SNAP cards, which Snowden, or another at his direction, would pick up from those addresses.
Snowden admitted that he sold the majority of the SNAP benefit cards for cash. After the buyer used the SNAP card, the card was returned to Snowden, who would sell the card to another buyer when the next month’s benefits were loaded to the card. Snowden and his co-conspirator, Larae Betrand, also used the SNAP cards at stores to purchase groceries for themselves. Over 220 victims’ identities were used to apply for SNAP benefits and at least $1,021,583.72 in SNAP benefits were issued and redeemed through the scheme. Snowden also used victims’ identities to open utility accounts including internet, phone, and electricity at his residence.
From 2015 to 2019, Snowden was in a relationship with Larae Betrand. Betrand was aware of and participated in the SNAP fraud scheme. In addition to receiving DHS mail and SNAP benefit cards at her home address, Betrand sometimes posed as victims on phone calls with DHS and provided false information to secure approval of the fraudulent SNAP applications. Snowden provided Betrand fraudulent SNAP cards for her personal use.
As detailed in his plea agreement, Snowden and Betrand also engaged in a scheme to obtain fraudulent loans from banks and a credit union by providing false employment information on applications for six vehicle loans. Snowden fabricated documents, intending to deceive the lenders regarding his and Betrand’s ability to repay the loans. Snowden was unemployed during all relevant times, and Snowden was aware that Betrand earned significantly less than they claimed on the false documents. Between March 2017 and February 2020 Snowden and Betrand fraudulently obtained $92,668.58 for four auto loans—two loan applications were denied.
Finally, in the spring of 2020 and continuing through at least July 9,2020, Snowden attempted to obtain COVID-19 SBA Economic Injury Disaster Loan (EIDL) using the identity of at least one of the SNAP victims. Using the victim’s information, Snowden established a fictitious business entity in the name of the victim and obtained fraudulent credentials to apply for EIDL. Snowden did not complete the transaction before law enforcement searched his residence on July 16, 2020.
Betrand, age 39, of Elkridge, Maryland, previously pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in relation to this scheme and is awaiting sentencing. Betrand will also be ordered to pay at least $5,000 restitution.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of Agriculture Office of Inspector General, the U.S. Postal Inspection Service, and the Maryland Department of Human Services Office of Inspector General for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the case.
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Sacramento Man Sentenced to 27 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Javontae D. Rucker, 29, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 27 years in prison for production of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February and March 2017, while babysitting, Rucker took advantage of an infant in his care, and he used his cellphone to produce pornographic images and a video of the victim and himself. Rucker also admitted to possessing over a thousand child pornography videos and images of other victims.
“Given the severity of this defendant’s conduct and the need to deter him and protect the public from further crimes by him—especially young, vulnerable children like the infant victim—today’s sentence is necessary and appropriate,” said Acting U.S. Attorney Talbert. “We are committed to investigating and prosecuting those who create or possess these horrific images and will relentlessly pursue predators who sexually abuse children.”
“This case exemplifies the work the FBI and our law enforcement partners at the Sacramento County Sheriff’s Office do to identify and investigate child predators who exploit innocence and trust in truly horrific ways,” said Special Agent in charge Sean Ragan of the FBI Sacramento Field Office.“ Javontae Rucker exploited his trusted role as a babysitter for a family, preying upon an innocent infant in his care. Cases like these remind us all of the important role the FBI has in protecting our country’s children from child predators who live among us.”
This case was the product of an investigation by the Internet Crimes Against Children Task Force, composed of various law enforcement agencies, including the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rockland Man Pleads Guilty to Making Hoax Distress CallRead the Press Release
PORTLAND, Maine: A Rockland man pleaded guilty today in federal court to making a hoax distress call, Acting U.S. Attorney Donald E. Clark announced.
According to court documents, on December 3, 2020, while at the Spruce Head Fisherman’s Co-op, Nathan Libby, 31, communicated a false distress call for a vessel and crew reportedly taking on water in the vicinity of Spruce Head. In response, the U.S. Coast Guard initiated a search lasting more than five hours, which included the use of a local Coast Guard vessel, a Maine Marine Patrol vessel, and a helicopter from Coast Guard Air Station Cape Cod. Further investigation identified Libby as the caller and the search was suspended as a hoax call.
The Coast Guard pursues all distress calls, and when dealing with hoax cases, crews will search until the nature and legitimacy of the calls are resolved.
“I applaud the collaborative efforts of the Department of Justice, Maine Marine Patrol, Rockland Police Department, and the United States Coast Guard in bringing this case to a close and ensuring accountability for Mr. Libby’s actions,” said Capt. Brian LeFebvre, Sector Commander of Coast Guard Sector Northern New England. “Hoax calls like the call Mr. Libby placed unnecessarily put our rescue crews at risk, waste resources, and may limit our ability to respond to actual emergencies.”
Libby faces up to five years in prison, a $250,000 fine, a $10,000 civil penalty and reimbursement for all costs incurred in responding to the false distress message. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Coast Guard Investigative Service, the Maine Marine Patrol and Coast Guard Sector Northern New England investigated the case.
Riverside Man Pleads Guilty to Animal Crushing Charge for Severely Injuring Puppy Then Posting Videos of the Animal on Social MediaRead the Press Release
LOS ANGELES – A Riverside County man pleaded guilty today to a federal criminal charge for inflicting severe injuries on a puppy – including slitting its throat – then posting videos of the suffering animal on his social media accounts.
Angel Ramos-Corrales, 19, of Riverside, pleaded guilty to one felony count of animal crushing.
According to his plea agreement, on February 13, Ramos-Corrales assaulted his pet dog, whom he named “Canelo,” inflicting severe injuries to the puppy’s head and torso, causing skull and rib fractures. The dog’s injuries caused it to continuously fall headfirst, and Ramos-Corrales recorded a video of the injured puppy and posted it on his Instagram account.
On the same day, Ramos-Corrales slit Canelo’s throat by approximately 4.4 centimeters (1.7 inches), causing the dog to bleed significantly and lapse into unconsciousness. While Canelo was lying on a bathroom floor, Ramos-Corrales recorded a video of the puppy and posted it on his Snapchat account, according to the plea agreement. On the video, Ramos-Corrales makes a series of statements, including “I’m cold-hearted,” and then callously kicks the still-alive Canelo.
After law enforcement arrived at Ramos-Corrales’ residence, Riverside County Department of Animal Services took custody of Canelo and a veterinarian determined that the dog was still alive, but later euthanized Canelo because of the severity of the dog’s injuries.
United States District Judge John F. Walter has scheduled an August 16 sentencing hearing, at which time Ramos-Corrales will face a statutory maximum sentence of seven years in federal prison.
The FBI investigated this matter and received substantial assistance from the Riverside Police Department. The Riverside County District Attorney’s Office received the initial referral from the Riverside Police Department, and, after reviewing the matter and conferring with the United States Attorney’s Office, a decision was made that federal prosecutors would file the case.
Assistant United States Attorney Julius J. Nam of the Riverside Branch Office is prosecuting this case.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Allen Libby, age 29, was sentenced on May 26, 2021, to 48 months in federal prison and 3 years of supervised release and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Libby, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Hi-Point, 9mm semiautomatic pistol and 9mm ammunition, which was found after Libby came into contact with law enforcement in April 2020 in Rapid City.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Libby was immediately remanded to the custody of the US Marshals Service.
Project Parkersburg Update: Wood County Man Sentenced to 25 Years in Prison for Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Aurelius Edmonds, 37, of Vienna was sentenced today to 25 years in federal prison for conspiracy to distribute more than 500 grams of methamphetamine.
According to court documents, Edmonds admitted that he and co-defendants Terrence McGuirk and Antoine Terry together agreed to purchase methamphetamine and cocaine from a source of supply in Phoenix, Arizona in August 2018. Edmonds traveled to Phoenix to purchase the drugs and make arrangements with Todd Land and Troy Pastorino to ship them to Dayton, Ohio where he, Terry and McGuirk would take possession of the shipment. Police learned of the deal and intercepted the shipment in a traffic stop of Troy Pastorino in Dayton, Ohio on September 19, 2018. Edmonds, Terry and Land were arrested at a night club where they were awaiting word from Pastorino that the shipment was ready for pickup. McGuirk was arrested in his nearby hotel room. The shipment contained 121 pounds of ICE methamphetamine and 6 kilograms of cocaine. Edmonds admitted his intent to distribute the cocaine in Ohio and return to Parkersburg with the proceeds. For their roles in the drug conspiracy, Terry and McGuirk received sentences of 10 years and 25 years in prison, respectively.
Of the other defendants charged in federal court, Todd Land, Jeffrey Hoyler, Nicholas Easton, T.J. Gibson, Edward Marks, Amy Rake, Marshall Polan, Troy Pastorino, Michael Holley, Colleen Moyle, Amanda Atkinson, and Michael Rhodes have been sentenced.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the excellent investigative work of the Federal Bureau of Investigation (FBI), the Parkersburg Police Department, the Dayton (Ohio) Police Department and the Parkersburg Narcotics and Violent Crime Task Force.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Joshua Hanks and Jeremy Wolfe are 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. 2:18-cr-00225.
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Presque Isle Man Sentenced on Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Presque Isle man was sentenced in federal court today for conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Kaleb Dahlgren, 32, to 10 years in prison and three years of supervised release. Dahlgren pleaded guilty in January 2021.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Dahlgren and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Dahlgren traveled with co-conspirators on at least one such trip to Mexico and Arizona to obtain methamphetamine and transport it back to Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Petal Woman Pleads Guilty to CARES Act Unemployment Insurance Benefits FraudRead the Press Release
Hattiesburg, Miss. – Delma Ruth High, 64, of Petal, pleaded guilty to theft of government funds involving unemployment insurance benefits fraud, announced Acting U.S. Attorney Darren J. Lamarca and U.S. Secret Service Resident Agent in Charge Shawn Wolfe.
In May 2020, a local bank alerted the U.S. Secret Service Jackson Resident Office that unemployment insurance benefits from the State of Washington and Arizona had been deposited into High’s account. This information was provided in relation to High’s actions in the days leading up to her account being closed for fraudulent activity. An investigation into these benefits revealed that they were deposited into High’s account under other individuals’ names. The unemployment insurance benefits were federally subsidized through the CARES Act in response to the COVID-19 pandemic.
High pled guilty today to theft of government funds. She is scheduled to be sentenced on Wednesday, October 6, 2021, and faces up to 10 years in prison. Senior U.S. District Court Judge Keith Starrett will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the United States Secret Service.
Assistant U.S. Attorneys Meghan M. McCalla and William Dieters prosecuted the case.
This case is being prosecuted as part of the Department of Justice’s National Unemployment Insurance Fraud Task Force (NUIFTF). In response to the unprecedented scope of Unemployment Insurance (UI) fraud, the Department of Justice established the NUIFTF. The NUIFTF is a prosecutor-led multi-agency task force with representatives from FBI, DOL-OIG, IRS-CI, HSI, DHS-OIG, USPIS, USSS, SSA-OIG, FDIC-OIG, and other agencies. Members of the NUIFTF are working with state workforce agencies, financial institutions, and other law enforcement partners across the country to fight UI fraud, and consumers should be vigilant in light of these threats and take the appropriate steps to safeguard themselves.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Parker Man Sentenced to Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX, Ariz. – On Tuesday, Marcus Leon Tuchawena, 24, of Parker, Arizona, was sentenced by U.S. District Judge Dominic W. Lanza to 84 months in prison for abusive sexual contact with a minor. Tuchawena was also sentenced to lifetime supervised release and is required to register as a sex offender. Tuchawena previously pleaded guilty to this charge.
On October 21, 2019, Tuchawena engaged in abusive sexual contact with the minor victim at a home in Parker, Arizona, on the Colorado River Indian Tribes Indian Reservation. Tuchawena and the victim are both enrolled members of the Colorado River Indian Tribes.
The Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix handled the prosecution.
CASE NUMBER: CR-20-00145-PHX-DWL
RELEASE NUMBER: 2021-036_Tuchawena# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Owners of Underground, International Financial Institutions Sentenced for Operating Unlicensed Money Transmitting BusinessRead the Press Release
Assistant U.S. Attorneys Daniel Silva (619) 546-9713 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – June 3, 2021
SAN DIEGO –Lei Zhang of Las Vegas, Nevada, was sentenced in federal court yesterday to 15 months in prison and the forfeiture of $150,000 for operating an unlicensed money transmitting business.
Zhang is believed to be the first individual in the United States sentenced for his role in developing a new form of unlawful underground financial institution that transfers money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.
As set forth in court documents, Zhang would collect U.S. dollars (in cash) from various third-parties in the United States and deliver that cash to a customer, typically a high-roller gambler from China who could not readily access cash in the United States due to capital controls that limit to $50,000 per year the amount of Chinese currency an individual can convert to foreign currency. Upon receipt of the U.S. dollars, the gambler would transfer the equivalent value of Chinese yuan (using a banking app) from the customer’s Chinese bank account to a Chinese bank account designated by defendant Zhang. For facilitating these transactions, Zhang was paid a commission based on the monetary value illegally transferred.
Zhang further admitted that he was regularly introduced to customers by casino hosts, who sought to increase the gambling play of the casino’s customers. By connecting cash-starved gamblers in the United States with Zhang’s illicit money transmitting businesses, the casinos increased the domestic cash play of their China-based high-roller customers. All a gambler needed was a mobile device with remote access to a China-based bank account. As a result, Zhang managed to transmit and convert electronic funds in China into hard currency in the United States, all while circumventing the obstacles imposed both by China’s capital controls and the anti-money laundering scrutiny imposed on all United States financial institutions. For their efforts, the casino hosts often received a cut of Zhang’s commission.
“The groundbreaking work by these investigative agents in identifying and ferreting out this new form of illicit money transmittal cannot be overstated,” noted Acting U.S. Attorney Randy Grossman. “Prosecuting global money laundering is a priority for the U.S. Attorney’s Office.”
Special Agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force, and the Drug Enforcement Administration led the investigation into Zhang’s operations.
DEFENDANT Case Number 20-CR-370-WQH
Lei Zhang Las Vegas, NV Age: 41
SUMMARY OF CHARGES
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
IRS Criminal Investigation Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
Orlando Man Sentenced to 32 Months in Federal Prison for Passport Fraud and Illegal Reentry After DeportationRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Donovan Davey (57, Orlando) to 32 months in federal prison for making a false statement in a passport application, aggravated identity theft, falsely claiming U.S. citizenship, and illegally reentering the United States after being deported.
Davey had pleaded guilty on March 3, 2021.
According to court documents, Davey is a citizen of Jamaica. He does not have lawful status to reside in the United States and was physically removed from the United States to Jamaica in 2005 and 2012. In October 2009, Davey fraudulently filed an application for a U.S. passport using the name of Connecticut resident J.T. and including J.T.’s date of birth and social security number but submitting Davey’s photograph. As a result of this fraudulent application, a U.S. passport was issued to Davey in J.T.’s name.
In March 2020, Davey fraudulently filed an application with the U.S. Department of State to renew the passport that he held in J.T.’s name. In the renewal application, Davey again provided J.T.’s personal identifying information, but Davey’s photograph. In the renewal application, Davey attested under penalty of perjury that he was “a citizen or non-citizen national of the United States,” which was not true.
In September 2020, Davey was arrested in Orlando after having returned to the United States without authorization from the U.S. Attorney General or the Secretary of the Department of Homeland Security.
“Today’s sentencing sends a strong message: the Diplomatic Security Service is committed to ensuring those who commit passport fraud and identity theft face consequences for their criminal actions,” said DSS Special Agent in Charge Peter Kapoukakis of the Miami Field Office. “Our strong relationships with the U.S. Attorney’s Office and other law enforcement agencies continue to be essential in the pursuit of justice and safeguarding our national security.”
“A U.S. passport is an important document around the world, and this criminal thought he could get one through fraud,” said U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Miami Field Office Director Michael Meade. “Federal agencies working together stopped his scheme and made our communities and nation safer.”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service (DSS) and U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations (ERO). It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Oncologist Sentenced to 20 Years in Prison in Pill Mill ConspiracyRead the Press Release
An oncologist has been sentenced to 20 years in federal prison for running a pill mill, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Arrested in DEA Dallas’ “Operation Wasted Daze,” Dr. Caesar Mark Capistrano, 61, was convicted at trial in January three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance. He was sentenced Thursday by U.S. District Judge Reed C. O’Connor.
“Doctors who run pill mills knowingly profit off of vulnerable people’s addictions,” said Acting U.S. Attorney Prerak Shah. “The Justice Department is determined to prosecute doctors who funnel powerful prescription drugs onto our streets. We will do everything within our power to curb the opioid epidemic.”
“Using one’s trusted status as a medical professional for unlawful acts cannot go unpunished,” stated Eduardo A. Chávez, Special Agent in Charge of the DEA’s Dallas Field Division. “The Dallas DEA will always seek justice against those who take advantage of individuals, especially ones who suffer from addiction.”
According to evidence presented at three different trials conducted in early 2021, Dr. Capistrano and his associate, 36-year-old Dr. Tameka Lachelle Noel, wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.
Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, used a network of recruiters to enlist individuals from the community and local homeless shelters to pose as “patients.” Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel.
The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pill mill pharmacies and diverted the drugs for resale on the streets. The pharmacists charged the recruiters between $200 and $800 per prescription, filling hundreds and hundreds of prescriptions for a fee, according to evidence presented at trial.
At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose. In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.
Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine.
Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.
Medical professionals convicted in the scheme include:
- Caesar Mark Capistrano, medical doctor
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance and was sentenced to 20 years in federal prison
- Tameka Lachelle Noel, medical doctor
Pleaded guilty on 11/16/2020 to conspiracy to dispense a controlled substance and was sentenced to eight years federal prison
- Ngozika Tracey Njoku, nurse practitioner
Pleaded guilty on 11/20/2020 to conspiracy to dispense a controlled substance and was sentenced to six months in federal prison
Clinic staff convicted in the scheme include:
- Shirley Ann Williams, clinic office manager
Pleaded guilty on 11/18/2020 to conspiracy to disperse a controlled substance and was sentenced to six years in federal prison
- Latonya Ann Tucker, office staff
Pleaded guilty on 11/20/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison
Pharmacists convicted in the scheme include:
- Wilkinson Oloyede Thomas, Calvary Pharmacy
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense controlled substances and one count of possession with intent to distribute controlled substances
- Christopher Kalejaiye Ajayi, Remcare Pharmacy
Convicted at trial on 3/2/2021 of three counts of conspiracy to dispense controlled substances, and two counts of possession with intent to distribute controlled substances
- Bartholomew Anny Akubukwe, Beco Pharmacy
Pleaded guilty on 11/18/2020 to conspiracy to dispense a controlled substance and was sentenced to 11 years in federal prison
- Nedal Helmi Naser, Brandy Pharmacy
Pleaded guilty on 3/16/2021 to conspiracy to dispense a controlled substance
- Ethel Oyekunle-Bubu, Ethel’s Pharmacy
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute controlled substances
Recruiters convicted in the scheme include:
- Ritchie Dale Milligan, Jr
Pleaded guilty on 11/18/2020 to conspiracy to distribute a controlled substance and was sentenced to eight years federal prison
- Wayne Benard Kincade
Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance
- Katie Lorane Parker
Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance and was sentenced to four years in federal prison
- Cynthia Denise Cooks
Pleaded guilty on 11/25/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison
The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department. The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Assistant U.S. Attorneys Laura Montes and Shawn Smith are prosecuting the case.
- Caesar Mark Capistrano, medical doctor
Office Manager Pleads Guilty to Embezzling More Than $1 Million from His Former EmployerRead the Press Release
CHARLOTTE, N.C. – Richard Allen Clark, 55, of Lenoir, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for embezzling more than $1 million from his former employer, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to plea documents and statements made in court, from 2013 to 2019, Clark was employed as an office manager for two family owned businesses in Lenoir, and was responsible for, among other things, handling the companies’ bookkeeping and financial records, making payments to vendors and the IRS, and reconciling the companies’ bank accounts. According to court documents, Clark used his position and his access to the companies’ financial records and bank accounts to embezzle more than $1 million from his employers, and used the United States mail to carry out his scheme. According to the indictment, Clark stole money from a company bank account the owner had directed Clark to close. Instead of closing the account, Clark used it to steal from his employer, by instructing customers to make payments to that account.
Clark also admitted that he laundered the funds he embezzled from his employer by withdrawing customer funds from the company’s bank account through multiple fraudulent checks payable to himself, which he deposited into multiple personal bank accounts. Court records show that Clark then used the stolen funds to pay for his personal lifestyle, including to make payments for his home mortgage, to make auto loan payments for an F-150 truck and other vehicles, to install a home theater system, and to pay for travelling and shopping expenses, among other things.
Finally, Clark pled guilty to filing a false U.S. income tax return for tax year 2018 by deliberately failing to claim the additional income he stole from his employers. According to the filed Indictment, Clark falsely declared only his legitimate W-2 income on his 2014 through 2018 U.S. Joint Income Tax Returns, resulting in approximately $195,000 in lost taxes to the United States.
Clark pleaded guilty to one count of mail fraud, which carries a maximum prison term of 30 years in prison and a $1 million fine; one count of money laundering, which carries a maximum penalty of 20 years in prison and a $500,000 fine; and one count of making a false statement on his tax return, which carries a maximum term of three years in prison and a $100,000 fine per count.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI, the USPIS, and the Caldwell County Sheriff’s office for their investigation which led to the charges.
Assistant U.S. Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
New Orleans Woman Sentenced on Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on May 26, 2021, ZYETA RUDOLPH, age 42, a resident of Orleans Parish, Louisiana, was sentenced to serve 37 months in the custody of the United States Bureau of Prisons for participating in a conspiracy to distribute cocaine. RUDOLPH was also sentenced to 4 years of supervised release following imprisonment and payment of a $100 mandatory special assessment fee.
These charges stemmed from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in South Louisiana and Houston, Texas. This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, ZYETA RUDOLPH, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”. To date, Elbert Childs, ZYETA RUDOLPH, and Dale Phillips have pled guilty.
During her guilty plea in this case, ZYETA RUDOLPH admitted that she was a drug courier for her brother Gene Rudolph. She acknowledged that she had transported between 3.5 and 5 kilograms of cocaine from Houston to the greater New Orleans area on behalf of her brother.
The case was investigated by the Drug Enforcement Administration (D.E.A.), and the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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New Orleans Woman Sentenced on Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on May 26, 2021, ZYETA RUDOLPH, age 42, a resident of Orleans Parish, Louisiana, was sentenced to serve 37 months in the custody of the United States Bureau of Prisons for participating in a conspiracy to distribute cocaine. RUDOLPH was also sentenced to 4 years of supervised release following imprisonment and payment of a $100 mandatory special assessment fee.
These charges stemmed from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in South Louisiana and Houston, Texas. This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, ZYETA RUDOLPH, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”. To date, Elbert Childs, ZYETA RUDOLPH, and Dale Phillips have pled guilty.
During her guilty plea in this case, ZYETA RUDOLPH admitted that she was a drug courier for her brother Gene Rudolph. She acknowledged that she had transported between 3.5 and 5 kilograms of cocaine from Houston to the greater New Orleans area on behalf of her brother.
The case was investigated by the Drug Enforcement Administration (D.E.A.), and the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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Monterey Attorney Sentenced to Two Years in Prison for Embezzling from Trust That Owned Premises of San Francisco’s Elite Cafe RestaurantRead the Press Release
SAN FRANCISCO – John Arthur Hudson was sentenced in federal court yesterday to two years in prison and ordered to pay $828,521.52 in restitution for his wire fraud convictions based on fraudulent loans he obtained that were secured by real property held in a trust that he administered, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig Fair. The sentence was handed down by the Honorable James Donato, United States District Judge.
Hudson, 71, an attorney whose law practice was based in the Monterey County area, pleaded guilty to two counts of wire fraud on October 28, 2020. According to the complaint that charged him, Hudson was appointed to be trustee of a trust in 2011. The trust owned a commercial property on Fillmore Street in San Francisco and received rental income from its tenant The Elite Cafe, a New Orleans-inspired restaurant.
According to the plea agreement, Hudson committed fraud by obtaining loans secured by the trust’s property in a scheme that began in or about April 2011 and continued through June 2018. As trustee of the trust, Hudson pledged the Fillmore property as security for loans and concealed the loans from the trust’s two beneficiaries, to whom he owed fiduciary duties. He also lied to the lenders by representing the loan proceeds would be used to improve the Fillmore property. Once he obtained the loan proceeds, Hudson did not put the funds towards improving the Fillmore property but instead used the funds to benefit himself personally, including paying his own mortgage, issuing checks payable to himself, paying credit card bills for expenses unconnected to the trust, and paying other personal expenses.
The plea agreement further revealed the steps Hudson took to conceal his fraud. For example, Hudson hid the existence of the loans in documents and communications regarding the trust by falsifying the balance of the trust’s funds. He concealed information regarding a personal injury lawsuit against the trust from the two trust beneficiaries, as the lawsuit named a lender as a co-defendant in the action. Hudson further obtained documentation reflecting improvements made to the Fillmore property but paid for by its tenant and then provided that documentation to a lender, misrepresenting to the lender that he had used the lender’s funds to pay for those improvements to the Fillmore property.
Hudson personally obtained at least $693,000 by embezzling from his victims, according to his plea agreement.
In addition to the prison term, United States District Judge Donato ordered Hudson to pay $828,521.52 in restitution and sentenced him to a three-year period of supervised release. Hudson remains out of custody and will begin serving his prison term on September 13, 2021.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is a result of an investigation by the Federal Bureau of Investigation.
Monmouth County Man Charged with Bankruptcy FraudRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man made his initial court appearance today for allegedly filing a fraudulent bankruptcy petition claiming he had limited assets and hundreds of millions of dollars in liabilities, when, in fact, he had $2.9 million in a hidden bank account, Acting U.S. Attorney Rachael Honig announced today.
Elia Zois, 56, of Colts Neck, New Jersey, is charged by complaint with one count of concealment in bankruptcy. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Leda Dunn Wettre.
According to the complaint:
Zois was one of five partners in “Business-2,” a New Jersey-based health care organization that maintained approximately 50 senior living facilities throughout New Jersey, Michigan, and Wisconsin. On Feb. 6, 2019, he and his spouse filed for Chapter 7 bankruptcy protection, alleging that between 2014 and 2018 he had only $9,000 in assets and $201 million in liabilities, based upon his partnership in Business-2. A forensic accounting report concluded that during that period Zois received $2.9 million in deposits into the bank account of “Business-1” – of which Zois was the sole owner – including approximately $200,000 in undeclared income after he filed for bankruptcy. The hidden account was intended to conceal a portion of his income to circumvent existing IRS liens on his known assets.
The count of concealment in a bankruptcy carries a maximum penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited the investigators of the U.S. Department of Labor, Employee Benefits Security Administration, under supervision of Regional Director Thomas Licetti; and special agents of the Department of Labor (OIG), New York Region, under the direction of Acting Special Agent in Charge Nikitas Splagounias, with the investigation leading to the charges. She also thanked special agents of the FBI, Milwaukee field office, for their assistance.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michigan Registered Sex Offender Sentenced to 10 Years for Using the Internet to Attempt to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan today sentenced Arthur Jay Traxler, Jr. (55, Monroe, Michigan) to 10 years in federal prison for attempted online enticement of a minor to engage in sexual activity. Traxler has been detained since his arrest in November 2020. Traxler was already a registered sex offender, having been convicted of criminal sexual conduct (4th degree) in 2016, and was on probation at the time that he committed this federal offense.
Traxler had pleaded guilty on March 4, 2021.
According to the plea agreement, between July 21 and August 4, 2020, Traxler engaged in a series of conversations over the internet with a person whom he believed to be a 14-year-old child. Unbeknownst to Traxler, this “child” was an undercover FBI agent. During the course of the online conversations, Traxler discussed in detail his desire to have the “child” send him images of the “child” engaging in sexually explicit conduct. FBI agents arrested Traxler in Michigan on November 9, 2020, and he admitted that he had been chatting online with the “child.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Massachusetts Man Sentenced to 60 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Doriel Guerrero, 22, of Methuen, was sentenced to 60 months in federal prison for conspiracy to distribute, and possess with intent to distribute, fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in early June 2019, Guerrero contacted an undercover law enforcement officer via Facebook. He explained to the agent he was looking for potential business partners to help distribute fentanyl and provided the agent with a phone number. On several occasions between August and November of 2019, law enforcement agents used undercover officers and cooperating individuals to purchase fentanyl from Guerrero and his co-defendant, Joel Espinosa.
Guerrero previously pleaded guilty on February 23, 2021. Espinosa previously pleaded guilty and was sentenced to 30 months in prison.
“Fentanyl traffickers continue to cause tremendous damage to our community,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute those who distribute this deadly drug in the Granite State.”
“Fentanyl is causing grave damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “The men and women of DEA along with our law enforcement partners are hard at work protecting the public by taking this poison off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration, New Hampshire State Police, Massachusetts State Police, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Matthew T. Hunter.
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Massachusetts Man Sentenced for Robbing Two Rhode Island BanksRead the Press Release
PROVIDENCE, R.I. – A Weymouth, MA, man was sentenced today to four years in federal prison for robbing two Rhode Island banks.
In December 2019, Kevin Donovan, 43, pled guilty as charged by way of a federal indictment with two counts of bank robbery.
At the time of his guilty plea, Donovan admitted that on May 23, 2019, he walked into a Citizen’s Bank branch in East Providence, handed a teller a note that read, “No die packs. Sorry,” grabbed $3,475 from a teller draw the bank teller placed on the counter, and fled.
Donovan also admitted, that on June 4, 2019, he entered a Citizen’s Bank branch in North Providence, handed a teller a blank note, and left the bank. About 45 minutes later he entered a Citizen’s Bank branch in Pawtucket, handed a teller a note that read, “Please don’t yell, lets make this fast. It was either this or kill myself No die Packs. Quick! Very sorry.” Donovan left the bank with a bag containing $3,371.90 and a dye pack.
Today, U.S. District Court Judge William E. Smith sentenced Donovan to a term of 48 months of incarceration in federal prison to be followed by three years of federal supervised release. Donovan was ordered to pay restitution in the amount of $6,846.90.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The robberies were investigated by the East Providence Police Department, North Providence Police Department, Pawtucket Police Department and the FBI.
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Massachusetts Man Pleads Guilty After Getting Caught with Nearly 60-Pounds of MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Daren Lewis, 40, of Quincy, MA, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute 500 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Justin G. Bish and Nicholas T. Cooper, who are handling the case, stated that on July 10, 2020, Homeland Security Investigations (HSI) in Flagstaff, Arizona received an alert regarding a suspicious cargo shipment, originating in California and destined for Tonawanda, NY. The shipment was manifested as personal effects and the phone number provided by the shipper was not a working number.
HSI Buffalo and the Erie County Sheriff's Office began investigating the shipment after its arrival in Tonawanda. At approximately 1:45 p.m. on July 13, 2020, the defendant arrived at an area cargo terminal in a U-Haul rental truck. After going inside the office, Lewis returned to the truck and backed the U-Haul up to the container holding the suspicious shipment. Lewis opened the locks on the container and positioned the doors of the U-Haul truck to obscure the area between the truck and the container before going into the container. After a short time, he was observed in the cab of the truck and appeared to be using a telephone. After closing the doors on the back of the U-Haul truck and driving away from the cargo terminal, the defendant was stopped on Sheridan Drive in Tonawanda by Erie County Sheriff's Deputies. The defendant and the U-Haul truck were transported to an Erie County Sheriff's Office. A search warrant was executed on the U-Haul. Inside, investigators discovered two cardboard boxes containing shrink wrapped packages. One of the packages was opened and found to contain a bag of a white crystal substance, which field tested positive for methamphetamine. The shipment contained a total of 59.5 pounds of suspected methamphetamine. The estimated street value of the suspected methamphetamine is $2,700,000. Lewis was arrested.
The plea is the culmination of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Niagara County Drug Task Force, under the direction of Niagara County Sheriff Michael Filicetti.
Sentencing is scheduled for October 13, 2021, before Judge Vilardo.
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Marysville Man Indicted on Child Exploitation ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Brent Hooton, 48, of Marysville, charging him with sexual exploitation of a child and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Hooton produced images of a child under the age of 12 engaged in sexually explicit conduct. Hooton then distributed those images to other users over the Kik messaging application.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
If convicted of sexual exploitation of a child, Hooton faces a mandatory minimum sentence of 15 years in prison, a maximum statutory penalty of 30 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Lorain Man with History of Violence Sentenced to 15 Years After Conviction of Felon in Possession of AmmunitionRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Ronald Mickel, 41, of Lorain, was sentenced on Wednesday, June 2, 2021, by U.S. District Court Judge Sara Lioi to 15 years imprisonment. A federal jury convicted Mickel of being a felon in possession of ammunition in September 2020.
According to court documents and evidence presented at trial, on January 4, 2019, Mickel was sentenced to 3 years of community control supervision following a conviction for domestic violence in the Lorain County Common Pleas Court. In November of 2019, Parole Officers with Ohio Adult Parole Authority (APA) received reliable information that Mickel was in possession of a firearm. On November 21, 2019, Mickel tested positive for THC, a violation of the conditions of his supervision.
As a result of these developments, on November 26, 2019, APA Parole Officers conducted a search at the residence belonging to Mickel and located in the 32 rounds of 9mm ammunition and 16 grams of suspected marijuana. Mickel was arrested and charged with one count of felon in possession of ammunition.
Prior to his arrest on November 26, 2019, Mickel had several convictions for other violent crimes. In 1999, Mickel was convicted of aggravated robbery. In 2013, Mickel was convicted of assault and in 2015, Mickel was convicted on three separate occasions of felony domestic violence and once of burglary. Finally, in 2019, Mickel was once again convicted of felony domestic violence.
This investigation was conducted by the ATF and Ohio Adult Parole Authority. This case was prosecuted by Assistant U.S. Attorneys John C. Hanley and Bryson Gillard.
Lincoln Woman Sentenced for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Taeh Mitchell, 27, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for possession with the intent to distribute 50 grams or more of actual methamphetamine. Chief United States District Judge John M. Gerrard sentenced Mitchell to 63 months in prison followed by a 4-year term of supervised release. There is no parole in the federal system.
On August 4, 2019, law enforcement was dispatched to investigate a suspicious vehicle in Lincoln. Law enforcement encountered Mitchell in a van with another individual. Mitchell’s purse was seized from the van and searched. Inside was 97.65 grams of lab-confirmed methamphetamine, of which at least 93 grams was actual methamphetamine, a digital scale, and number of unused baggies.
This case was investigated by the Lincoln Police Department and Lincoln/Lancaster County Narcotics Task Force.
Lancaster Man Going to Prison for A Decade for Selling Heroin and Fentanyl That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Levine, 24, of Lancaster, NY, who was convicted of conspiring to distribute heroin and fentanyl, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Joseph M. Tripi and Charles J. Volkert, Jr., who handled the case, stated that between June 2013 and March 23, 2017, the defendant conspired with Robert Moore and others to distribute heroin in the City of Buffalo and surrounding suburbs. Levine was a user of the heroin and fentanyl he obtained from Moore, but during the course of the conspiracy, he also re-distributed some of the drugs to other users for profit.
On February 18, 2017, Levine received a quantity of heroin and fentanyl from Moore, which Levine, in turn, distributed to an individual identified as B.G., who thereafter died as the result of an overdose.
During the course of the investigation, law enforcement officers from the Amherst, Lancaster, and Buffalo Police Departments, and the New York State Police and DEA, conducted 11 controlled purchases of fentanyl and butyryl fentanyl from co-defendant Robert Moore. Additionally, on February 23, 2017, law enforcement officers with the Amherst Police Department conducted a controlled purchase of fentanyl from Joshua Levine. On March 16, 2017, law enforcement officers conducted search warrants at Robert Moore’s residence on Glenwood Drive in Williamsville, NY, and also at Joshua Levine’s residence on Aurora Street in Lancaster, NY. A quantity of fentanyl with identical drug packaging was discovered at each of those residences.
Both Robert Moore and Joshua Levine were arrested the day of the search warrants.
Robert Moore was previously convicted and is awaiting sentencing. Two other co-defendant, Reese Moore, and Kevin Abernathy, were also previously convicted and sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division; the Amherst Police Department, under the direction of Chief Scott P. Chamberlin; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Mary Clark, and Lieutenant Kevin Reyes; the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Buffalo Police Department Narcotics Squad, under the direction of Commissioner Byron C. Lockwood; the Lockport Police Department, under the direction of Police Chief Steven Abbott; the Depew Police Department, under the direction of Chief Jerome Miller; the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff Michael Filicetti; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; and Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
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Kissimmee Man Pleads Guilty to Conspiring to Distribute Kilos of CocaineRead the Press Release
Jacksonville, Florida – Eddie “Macho” Martinez-Marquez (32, Kissimmee) has pleaded guilty to conspiring to possess with intent to distribute and to distribute five kilograms or more of cocaine. Martinez-Marquez faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between December 2016 and August 2018, Martinez-Marquez supplied cocaine to a co-conspirator in Jacksonville, Florida. The amounts varied, but Martinez-Marquez typically would supply one or two kilograms, twice per month, which the co-conspirator would then sell in the Jacksonville area. Martinez-Marquez charged $27,000 per kilogram, and at times, “fronted” the drugs to his co-conspirator, essentially supplying the drugs on credit. The pair used couriers to transport drugs and money between each other in the Jacksonville and Orlando metro areas.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Florida Highway Patrol, and the North Florida High Intensity Drug Trafficking Area Task Force. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
KC Man Sentenced to 20 Years for Metro-area Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for the armed robberies of eight metropolitan-area businesses during the summer of 2017.
Calvin C. Wallace, III, 30, was sentenced by U.S. Chief District Judge Beth Phillips to 20 years in federal prison without parole.
On Nov. 9, 2020, Wallace pleaded guilty to one count of conspiracy to commit robbery, seven counts of robbery, and one count of possessing a firearm in furtherance of a violent crime.
Wallace admitted that he engaged in a conspiracy to commit robberies at eight Kansas City metropolitan area businesses from June 29 to Aug. 3, 2017. The total loss over the month and a half was approximately $24,511. After the stolen iPhones and iPad were recovered, the court today ordered Wallace to pay $1,917 in restitution.
Wallace robbed Tobacco Outlet, 5020 Parvin Road in Kansas City, Mo., at gunpoint on June 29, 2017. Wallace took money, scales, a torch, tobacco wraps and boxes of cigarettes.
Wallace robbed (or attempted to rob) two businesses on July 24, 2017. Wallace attempted to rob GNC, 2682 N.E. Vivion Road in Kansas City, Mo., at knifepoint. Wallace robbed Conoco Minit Mart, 8100 Westridge Road in Raytown, Mo., at gunpoint.
On July 27, 2017, Wallace robbed Cosmo Prof, 5526 N. Antioch Road in Kansas City, Mo., at gunpoint.
Wallace robbed another Cosmo Prof, 9429 Mission Road in Leawood, Kan., at gunpoint on July 28, 2017. Wallace demanded that the clerk give him her ring, but she refused. The clerk opened two cash registers while Wallace pointed a firearm at her, and he took money from those registers, as well as a pair of hair clippers. Wallace demanded that the clerk go into the back of the store or he would shoot her.
Wallace robbed Circle K, 909 N.W. Chipman Road in Lee’s Summit, Mo., at gunpoint on Aug. 1, 2017. Wallace stole money and cartons of cigarettes.
Wallace attempted to rob Shell, 5401 Northwest 64th Street in Kansas City, Mo., at gunpoint on Aug. 2, 2017.
Wallace robbed AT&T, 303 South Commercial Street in Harrisonville, Mo., at gunpoint on Aug. 3, 2017. Wallace stole money, 29 iPhones and an iPad.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Raytown, Mo., Police Department, the Leawood, Kan., Police Department, the Lee’s Summit, Mo., Police Department, the Harrisonville, Mo., Police Department, the Cass County, Mo., Sheriff’s Department and the Belton, Mo., Police Department.
Justice Department, EPA, and the State of Indiana Reach Clean Air Act Settlement with Lone Star IndustriesRead the Press Release
INDIANAPOLIS - Lone Star Industries Inc, a subsidiary of Italian company Buzzi Unicem, has agreed to upgrade and optimize pollution control equipment and procedures at its cement manufacturing facility in Greencastle, Indiana, to resolve Clean Air Act (CAA) violations brought by the U.S. Environmental Protection Agency (EPA) and the State of Indiana Department of Environmental Management.
The complaint filed simultaneously with the settlement alleges numerous, longstanding Clean Air Act violations at the Greencastle plant that date from 2010 to the present. Many of the violations involved opacity in emissions that exceeded state and federal limits. Opacity measures the amount of light blocked by emissions of particulate matter (PM). Particulate matter, especially fine particulates, contains microscopic solids or liquid droplets, which can migrate deep into the lungs and cause serious health problems. The complaint also alleges violations of CAA requirements that limit emissions of other hazardous air pollutants from the burning of hazardous wastes which Lone Star uses to heat its cement kilns.
“This settlement is a reminder that industrial facilities must comply with laws and prevent illegal emissions of harmful pollutants from plant operations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD) “The settlement requires Lone Star to improve its processes and pollution controls to protect air quality and the public health in surrounding communities.”
“The health of the citizens of the State of Indiana is a top priority of my office” said Acting U.S. Attorney John Childress. “Successful efforts such as this to protect and preserve the environment for current and future generations, demonstrates our ongoing dedication to that goal.”
“EPA is committed to improving air quality in Indiana in order to protect people’s health and the environment,” said Acting EPA Region 5 Administrator Cheryl Newton. “Reducing particulate matter especially benefits vulnerable populations such as children, older adults, and people with heart or lung diseases.”
Under the settlement, Lone Star will also pay $729,000 in civil penalties spilt equally between the United States and the State of Indiana, and undertake additional measures not required by law to mitigate past violations of CAA opacity limits.
EPA estimates that the measures in the consent decree will reduce emissions of particular matter from the Lone Star plant by 2.44 tons per year, carbon monoxide emissions by 46.39 tons per year, and other hazardous air pollutants by 1.69 tons. Lone Star will spend approximately $1.4 million at the Greencastle facility to bring it into compliance and to mitigate for past harm.
The settlement was lodged today in the U.S. District Court for the Southern District of Indiana and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.
Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.
Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.
Justice Department, EPA and the State of Indiana Reach Clean Air Act Settlement with Lone Star IndustriesRead the Press Release
Lone Star Industries Inc, a subsidiary of Italian company Buzzi Unicem, has agreed to upgrade and optimize pollution control equipment and procedures at its cement manufacturing facility in Greencastle, Indiana, to resolve Clean Air Act (CAA) violations brought by the U.S. Environmental Protection Agency (EPA) and the State of Indiana Department of Environmental Management.
The complaint filed simultaneously with the settlement alleges numerous, longstanding Clean Air Act violations at the Greencastle plant that date from 2010 to the present. Many of the violations involved opacity in emissions that exceeded state and federal limits. Opacity measures the amount of light blocked by emissions of particulate matter. Particulate matter, especially fine particulates, contains microscopic solids or liquid droplets, which can migrate deep into the lungs and cause serious health problems. The complaint also alleges violations of CAA requirements that limit emissions of other hazardous air pollutants from the burning of hazardous wastes which Lone Star uses to heat its cement kilns.
“This settlement is a reminder that industrial facilities must comply with the law and prevent illegal emissions of harmful pollutants from plant operations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “The settlement requires Lone Star to improve its processes and pollution controls to protect air quality and the public health in surrounding communities.”
“The health of the citizens of the State of Indiana is a top priority of my office,” said Acting U.S. Attorney John Childress of the Southern District of Indiana. “Successful efforts such as this protect and preserve the environment for current and future generations and demonstrate our ongoing dedication to that goal.”
“EPA is committed to improving air quality in Indiana in order to protect people’s health and the environment,” said Acting EPA Region 5 Administrator Cheryl Newton. “Reducing particulate matter especially benefits vulnerable populations such as children, older adults, and people with heart or lung diseases.”
Under the settlement, Lone Star also will pay $729,000 in civil penalties, split equally between the United States and the State of Indiana, and will undertake additional measures not required by law to mitigate past violations of CAA opacity limits.
EPA estimates that the measures in the consent decree will reduce emissions of particulate matter from the Lone Star plant by 2.44 tons per year, carbon monoxide emissions by 46.39 tons per year, and other hazardous air pollutants by 1.69 tons per year. Lone Star will spend approximately $1.4 million at the Greencastle facility to bring it into compliance and to mitigate for past harm.
The settlement was lodged in the U.S. District Court for the Southern District of Indiana and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.
Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.
Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.
Justice Department Obtains Settlement from San Diego Landlord to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
Assistant U. S. Attorney Leslie Gardner (619) 546-7603
NEWS RELEASE SUMMARY – June 3, 2021
SAN DIEGO – The Justice Department today announced it has reached an agreement with landlord Larry Nelson to resolve a Fair Housing Act lawsuit alleging that he sexually harassed female tenants while owning and managing San Diego area rental properties.
Under the consent order entered by the United States District Court for the Southern District of California, Nelson must pay at least $230,000: $205,000 in damages to tenants harmed by his harassment and a $25,000 civil penalty to the United States. A judgment for an additional $350,000 also was entered against Nelson in favor of the United States but is suspended based on sworn disclosure statements reflecting Nelson’s financial situation. Any misrepresentation or omission by Nelson on those disclosure statements will trigger collection of the suspended judgment. Nelson also is prohibited from being involved in property management of rental units in the future and must hire an independent professional property manager. He also must implement a nondiscrimination policy and complaint procedure, and must release judgments obtained against victims whom he wrongfully evicted.
The United States’ lawsuit alleged that Nelson’s harassment spanned a period of nearly two decades. The allegations included that Nelson, among other things, engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicted or threatened to evict female tenants who objected to or refused his sexual advance.
“A person’s home should be a refuge, a place where an individual can feel secure and protected,” said Pamela Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. “Sexual harassment in housing often destroys that sense of safety and security and leaves victims afraid in their own homes. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants, and will continue vigorously to pursue allegations of sexual harassment.”
“Abusive landlords in San Diego and Imperial counties should be on notice that protecting the civil rights of citizens in our district is a top priority, and we do not tolerate discrimination and harassment in housing,” said Acting U.S. Attorney for the Southern District of California Randy S. Grossman. “Holding a key to someone’s property is a position of trust, not a license to engage in illegal sexual harassment and sexual demands.”
This case was jointly litigated by attorneys in the Civil Rights Division and the Civil Division of the United States Attorney’s Office for the Southern District of California. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.5 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
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Justice Department Obtains Settlement from San Diego Landlord to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department today announced it has reached an agreement with defendant Larry Nelson to resolve a Fair Housing Act lawsuit alleging that he sexually harassed female tenants while owning and managing San Diego area rental properties.
Under the consent order entered by the U.S. District Court for the Southern District of California, Nelson must pay at least $230,000 to $205,000 in damages to tenants harmed by his harassment and a $25,000 civil penalty to the United States. A judgment for an additional $350,000 also was entered against Nelson in favor of the United States, but is suspended based on sworn disclosure statements reflecting Nelson’s financial situation. Any misrepresentation or omission by Nelson on those disclosure statements will trigger collection of the suspended judgment. Nelson also is prohibited from being involved in property management of rental units in the future and must hire an independent professional property manager. He also must implement a nondiscrimination policy and complaint procedure and must release judgments obtained against victims whom he wrongfully evicted.
The United States’ lawsuit alleged that Nelson’s harassment spanned a period of nearly two decades. The allegations included that Nelson engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicted or threatened to evict female tenants who objected to or refused his sexual advance.
“People deserve to be safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives them of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue vigorously to pursue allegations of sexual harassment.”
“Abusive landlords in San Diego and Imperial counties should be on notice that protecting the civil rights of citizens in our district is a top priority, and we do not tolerate discrimination and harassment in housing,” said Acting U.S. Attorney Randy S. Grossman for the Southern District of California. “Holding a key to someone’s property is a position of trust, not a license to engage in illegal sexual harassment and sexual demands.”
This case was jointly litigated by attorneys in the Civil Rights Division and the Civil Division of the U.S. Attorney’s Office for the Southern District of California. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $2.5 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Judges sentences St. Louis man for murder, witness tampering and drug chargesRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Maurice Woodson to 276 months in prison today. The 34-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of conspiracy to distribute cocaine, one count of discharging a firearm in furtherance of a drug trafficking crime resulting in death and one count of witness tampering.
Woodson was a member of a large-scale and long-term cocaine trafficking conspiracy between 2012 and 2016. Woodson and others bought large quantities of cocaine from convicted drug trafficker Adrian Lemons and Lemons’ associates in the St. Louis area. The investigation into Woodson and his associates developed evidence of a well-defined distribution network with a direct Mexican source of supply for cocaine. During the course of investigation, agents seized more than 70 kilograms of cocaine and well over one million dollars, among other things.
In furtherance of the drug trafficking conspiracy, Woodson was recruited to kill a person. Woodson agreed to commit the murder. On December 5, 2013, Woodson intentionally shot and killed the person as that person tried to enter his vehicle in the 3500 block of Kossuth. Woodson received both drugs and money as compensation for the murder. Similarly, Woodson was recruited to kill another victim in furtherance of the cocaine trafficking conspiracy. On November 28, 2014, Woodson lured the other person to a meeting. When the person arrived in the 900 block of Harlan, Woodson intentionally shot and killed him. He died as a result of his gunshot wounds. Two others who accompanied the victim were also shot and injured.
In January 2016, Woodson was indicted in federal court for his roles in the drug conspiracy and December 2013 murder. Woodson was ordered detained by a magistrate judge pending trial. While detained in a local holding facility, Woodson initiated a murder-for-hire scheme. As part of the scheme, Woodson recruited an individual to murder a potential witness to the December 2013 murder committed by Woodson. Utilizing female companions, Woodson arranged meetings with and payments to the individual recruited to murder the potential witness. Unbeknownst to Woodson, the individual recruited by Woodson to commit the murder-for-hire was an undercover law enforcement official.
“The purchase of a firearm intended for someone else, is straw purchasing and it is illegal. Doing so circumvents background checks and record keeping requirements that are intended to keep the public safe and impede access to firearms by prohibited and often violent criminals," said Frederic Winston, Special Agent-in-Charge for the ATF St. Louis Division. "Firearms trafficking is not a victimless crime; It is illegal and puts firearms in the hands of said prohibited and violent criminals. These investigation are a priority for ATF in our mission of reducing violent gun crime. “
Homeland Security Investigations, Drug Enforcement Administration, Federal Bureau of Investigation, St. Louis Metropolitan Police Department; Kennett Police Department, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Judge sentences registered sex offender to more than 20 years on child pornography chargesRead the Press Release
CAPE GIRARDEAU – United States District Judge Rodney W. Sippel sentenced Justin A. Williams to 270 months in prison today. The 29-year-old Cape Girardeau resident pleaded guilty, in December, to one count of receiving child pornography.
Williams admitted using the internet to solicit sexually explicit material from a 14-year old female from the state of Washington in December 2019. At the time he committed the offense, Williams was already required to register as a sex offender because of his 2015 state conviction for first-degree child molestation from the Circuit Court of Scott County. According to court records from that case, Williams sexually abused a six-year old female relative in 2014. Williams was released from the Missouri Department of Corrections just months before committing the federal offense.
After serving his 270-month federal sentence, Williams will be placed on supervised release for the rest of his life. Williams will also be required to continue registering as a sex offender.
This case was investigated by the Missouri State Highway Patrol and the Federal Bureau of Investigation. Assistant United States Attorney Jack Koester is handling the case.
Jacksonville Man Pleads Guilty to Submitting False Claims for FEMA Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – Deontres Javan Taylor (27, Jacksonville) has pleaded guilty to disaster assistance fraud involving Federal Emergency Management Agency (FEMA) benefits. He faces up to 30 years in federal prison and payment of restitution to the United States in the amount of $8,083.19. A sentencing date has not yet been set.
According to court documents, on September 4, 2017, Taylor made an application for disaster assistance benefits to FEMA. In the application, he claimed that his primary residence in Jacksonville had suffered storm damage from Hurricane Irma. Taylor stated that storm surge flooded his home and that lightning caused a power surge which resulted in the residence losing power. As a result of these issues, Taylor claimed that he had moved to a hotel and needed housing assistance. Based on the false statements made by Taylor in his application, FEMA paid $8,038.19 in benefits for Taylor.
Follow up investigation by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations, determined that Taylor hadn’t lived at the residence he had listed in his benefits application since at least 2015, and that he was not there when Hurricane Irma impacted the Jacksonville area. An inspection by FEMA of the residence that Taylor had listed in his benefits application determined that the home did not suffer storm surge damage nor lose power due to Hurricane Irma.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721 or submit a complaint online: https://www.justice.gov/DisasterComplaintForm.
Jackson Man Pleads Guilty to Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Jackson, Miss. - A Jackson man pleaded guilty today to possessing a firearm in furtherance of drug trafficking, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
On May 13, 2019, FBI agents and Jackson police officers executed a search warrant on a house in Jackson. When agents entered, Jekobie Lewis Ransburgh, 23, was sitting on a couch with a digital scale, packaged marijuana and crack-cocaine, and cash. In addition, a handgun was tucked in his pants. Ransburgh told agents the cash was drug proceeds and that he possessed the gun to protect the drugs and cash.
Ransburgh was indicted and pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced on September 16, 2021, and faces a mandatory minimum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the Jackson Police Department are investigating the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hudson County Man Admits Using Fake Passports to Conduct $450,000 Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in a conspiracy that used fake passports to open accounts at victim banks into which he and others deposited phony IRS refund checks, Acting U.S. Attorney Rachael A. Honig announced.
Mamadou Diallo, 44, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank fraud conspiracy and one count of false use of a passport.
According to documents filed in the case and statements made in court:
From June 2012 through December 2018, Diallo and others conspired to fraudulently obtain money from four victim banks. Diallo and his conspirators created false passports from various West African countries by affixing their own pictures onto passports bearing names other than their own. They opened fraudulent bank accounts at the victim banks using the doctored passports as photo identification. The conspirators deposited fraudulent checks bearing the routing number for the U.S. Treasury. Once the fraudulent checks were deposited, the conspirators withdrew the funds. To date, the losses associated with the conspiracy exceed $450,000.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greater. The passport fraud charge carries a maximum potential penalty of 15 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Oct. 13, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the U.S. Department of Treasury-Office of Inspector General, under the direction of Inspector General Richard K. Delmar; and the New York State Department of Taxation and Finance, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Honduran National Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Honduran national who led police on a high-speed chase after threatening to shoot one victim and carjacking another, has been sentenced in federal court for illegally possessing a firearm.
Jose Arevalo-Inestroza, 29, of Kansas City, Missouri, a Honduran national who is illegally in the United States, was sentenced by U.S. District Judge Greg Kays on Wednesday, June 2, to five years in federal prison without parole.
On Sept. 8, 2020, Arevalo-Inestroza pleaded guilty to being an alien in possession of a firearm. Arevalo-Inestroza, who entered the United States illegally from Honduras, admitted that he was in possession of a Sig Sauer 9mm semi-automatic pistol.
According to court documents, Arevalo-Inestroza and another person, both armed, threatened an employee at T&F Auto, 9701 Independence Ave., Kansas City, Mo. The employee told police the two men asked about a vehicle he had just finished working on, which they claimed belonged to one of their friends. He told them they couldn’t take the vehicle since it did not belong to them, and the battery was not working. Arevalo-Inestroza pulled out a handgun from his waistband and pointed it at the employee, and said, “Do you think I’m a clown? Guess what? I’m gonna kill you!” The employee put his hands up, and the second man appeared with a rifle and ordered him to turn around. The employee heard three gunshots from behind, which a witness later explained as Arevalo-Inestroza firing the shots into the ground near the employee.
The two men fled with Arevalo-Inestroza driving a white van. Police officers located the van at 8501 Winner Road in Kansas City, and pulled it over. When they got out of the van, Arevalo-Inestroza fled on foot and the other man resisted arrest. Officers found a loaded Sig Sauer 9mm semi-automatic handgun next to the driver’s seat and a loaded .22-caliber rifle under the front passenger seat.
As Arevalo-Inestroza fled from the police officers, he carjacked a white pick-up truck. When officers attempted to stop the truck, Arevalo-Inestroza fled at speeds exceeding 80 miles per hour, and nearly struck at least one vehicle while weaving in and out of traffic. He abandoned the truck at I-435 and 40 Highway and again fled on foot, at which point officers arrested him.
Arevalo-Inestroza was charged in Jackson County, Mo., with unlawful use of a weapon related to these events. He pleaded guilty on Feb. 20, 2020, was sentenced to a four-year suspended execution of sentence and was released to Immigration and Customs Enforcement on an immigration detainer.
Arevalo-Inestroza first entered the United States illegally in November 2006. After serving a 30-day sentence for the misdemeanor convictions of theft and criminal damage to property in Wyandotte County, Kansas, he was deported from the United States on May 17, 2018. He illegally reentered the United States sometime thereafter.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations.
Havre man admits to receiving child pornographyRead the Press Release
GREAT FALLS – A Havre man accused of receiving child pornography on his cell phone admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Joshua Daniel Kaupang, 38, pleaded guilty to receipt of child pornography. Kaupang faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and at least five years to life of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Sept. 19. Kaupang was released pending further proceedings.
In court documents filed in the case, the government alleged that in January 2019 in Havre, law enforcement executed a search warrant on Kaupang’s cell phone looking for evidence in a theft case. While searching the phone, agents observed child pornography files. An agent applied for a second search warrant and located child pornography. The investigation determined that Kaupang used his phone to view “sets” of child pornography that were available for download.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the Internet Crimes Against Children Task Force and the Montana Division of Criminal investigation.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Harrison County man admits to his involvement in bank robberyRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Alan Gill, of Salem, West Virginia, has admitted to his involvement in the robbery of Summit Community Bank in November 2020, Acting U.S. Attorney Randolph J. Bernard announced.
Gill, 61, pleaded guilty today to one count of “Accessory After the Fact – Bank Robbery.” Gill admitted to helping Clint Monroe Utter evade authorities. Utter is accused of robbing the Summit Community Bank in Salem, West Virginia, of $69,100 on November 17, 2020. (https://www.justice.gov/usao-ndwv/pr/harrison-county-man-indicted-bank-robbery)
Gill is facing up to 10 years of incarceration and a fine of up to $125,000. 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 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.
Guilty Verdict in Case of Unpermitted Snowboard-Instruction Business on Mammoth Mountain Ski Area, Within the Inyo National ForestRead the Press Release
BAKERSFIELD, Calif. — After a one–day bench trial, U.S. Magistrate Judge Jennifer L. Thurston found Jason E. Murchison, 37, of Huntington Beach, guilty today of one count of operating an unpermitted business on National Forest land, Acting U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Murchison operated an unpermitted snowboard-instructing service on Mammoth Mountain Ski Area, within the Inyo National Forest. In February 2020, an undercover operation revealed that Murchison was the principal operator of Learn to Snowboard and advertised paid lessons on a website www.learntosnowboardbb[.]com. Neither Learn to Snowboard nor Murchison had a special use authorization from the U.S. Forest Service to operate on Forest Service lands.
“The USDA Forest Service is entrusted with sustaining the health, diversity, and productivity of the nation’s forests to meet the needs of present and future generations,” said Don Hoang, Special Agent in Charge, Forest Service - Law Enforcement and Investigations, Pacific Southwest Region. “Unpermitted activity on National Forest System lands, however, negatively impacts our shared natural resources and authorized permittees. Forest Service Law Enforcement investigates and prosecutes unauthorized use like in this case to ensure the sustainability of National Forest System land.”
This case was the product of an investigation by the U.S. Forest Service and the Newport Beach Police Department. Special Assistant U.S. Attorney Philip N. Tankovich and Assistant U.S. Attorney Jeffrey Spivak prosecuted the case.
The charge is a class B misdemeanor, and immediately after trial, Judge Thurston sentenced Murchison to two years of probation and a fine of $500. A restitution hearing is scheduled for July 21.
Gaithersburg Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Bruce Ralph Sturtz, age 73, of Gaithersburg, Maryland, today to 10 years in federal prison, followed by 10 years of supervised release, for possession of child pornography. Judge Grimm also ordered that, upon his release from prison, Sturtz must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to Sturtz’s plea agreement, on February 26, 2017, a Maryland State Police (“MSP”) investigator conducted an online investigation of Sturtz after three separate law enforcement officers working through the Internet Crimes Against Children Task Force (“ICAC”) downloaded child pornography videos from a device at an IP address assigned to Sturtz’s residence. The investigator found that Sturtz’s computer was running software that allowed other users to download a video that had previously been identified as child pornography. The investigator downloaded and viewed the video, which documented the sexual abuse of a prepubescent female.
Less than a month later, on March 23 and March 24, 2017, investigators conducting online investigations for offenders sharing child pornography directed their focus to the Sturtz device because it was running the same computer software. The investigators downloaded and viewed videos shared by the Sturtz device, which contained images of prepubescent females engaged in sexually explicit conduct, including bondage and bestiality.
On October 25, 2017, a federal search warrant was executed on Sturtz’s residence. At the time the search warrant was executed, Sturtz was downloading child pornography onto his computer. Law enforcement seized a number of electronic devices. A subsequent forensic analysis of the seized electronic devices revealed at least 1,356 videos and 16 pictures depicting child pornography. The videos and images found on the seized electronic devices included child pornography of babies and toddlers, other children under 12 years of age, including incest, bondage, bestiality, and sexual acts between adults and victim children. Forensic analysts were also able to identify on the seized electronic devices the three video files that were downloaded by investigators from Sturtz’s device.
Sturz has previously been convicted of a sex offense involving a minor. On October 6, 2000, Sturtz pled guilty to a third-degree sex offense in the Circuit Court for Montgomery County, Maryland and was later sentenced to 10 years in prison, with all but eighteen months suspended, plus five years of probation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, and the Maryland State Police Internet Crimes Against Children Task Force for their work in this investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Joseph R. Baldwin, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Gainesville Man Convicted of Production, Receipt, and Possession of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville has convicted John Ernst Tennant, Jr., 70, of Gainesville, on charges of production, receipt, and possession of child pornography. The guilty verdict, reached by the jury today at the conclusion of a 3-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The prosecution of persons who sexually victimize children is a priority of this District,” stated Acting U.S. Attorney Coody. “With the assistance of our law enforcement partners, we will ensure that those who engage in such heinous conduct will be held accountable for their actions.”
Tennant’s sentencing hearing is scheduled for August 17, 2021, at 2:00 pm, at the United States Courthouse in Gainesville before the Honorable Allen Winsor. Tennant faces a mandatory minimum term of fifteen years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation between the Gainesville Police Department and Federal Bureau of Investigation Jacksonville Division as part of the North Florida Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Frank Williams prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fugitive from drug-trafficking investigation sentenced to federal prison after capture in Reno casinoRead the Press Release
SAVANNAH, GA: A California man who once operated a drug-trafficking ring in the Savannah area has been sentenced to federal prison after his capture in Nevada.
Antonio Acosta, 45, of Berkeley, Calif., was sentenced to 120 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to two counts of Interstate and Foreign Travel or Transportation in Aid of Racketeering Enterprises (Conspiracy to Distribute, and Distribution, of Controlled Substances), said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Acosta will be required to serve three years of supervised release.
There is no parole in the federal system.
“We commend the alert law enforcement professionals who captured Antonio Acosta and returned him to the Southern District to be held responsible for spreading poison throughout the Savannah community,” said Acting U.S. Attorney Estes. “Justice was delayed, but it’s no longer denied.”
Acosta and eight co-defendants were indicted in February 2014 on federal drug trafficking charges following a two-year investigation by the U.S. Drug Enforcement Administration (DEA) and the Chatham-Savannah Counter Narcotics Team (CNT). As described in court documents and testimony, Acosta shipped kilogram quantities of cocaine via the U.S. Postal Service, and an extensive network of co-conspirators distributed those drugs throughout the greater Savannah area.
At the culmination of the investigation, DEA and CNT investigators executed search warrants in multiple locations, seizing large quantities of drugs, more than $200,000 in cash, multiple firearms, and drug distribution paraphernalia. Seven of the co-defendants pled guilty to charges in the indictment and received sentences of up to 127 months in federal prison; an eighth co-defendant died shortly after indictment. Acosta fled from the Savannah area, and on July 29, 2020, officers from the Reno, Nev., Police Department received a tip that Acosta was wanted for arrest and was in a Reno casino. Acosta was taken into custody without incident while sitting at a gambling table, and U.S. Marshals returned him to the Southern District where he was re-indicted in November 2020 and later pled guilty.
“This cocaine trafficker eluded justice and evaded law enforcement capture for six years,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “With patience, investigative skill and relentless pursuit, this fugitive from justice was captured. This is a shining example of how DEA and its law enforcement partners will work tirelessly to pursue drug traffickers who run from justice.”
“The dedication of the CNT Agents and our partners across the country who worked together for years to investigate, apprehend, and prosecute Acosta is remarkable,” said Michael G. Sarhatt, Director of the Chatham-Savannah Counter Narcotics Team. “The sentencing in this case demonstrates that no matter how long someone tries to hide, they will be held responsible for distributing these poisons in our community.”
The case was investigated by the DEA and CNT, with assistance from the Reno, Nev., Police Department and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorney Noah J. Abrams.
Fresno Gang Member Faces Federal Firearms ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Keith Breazell, 31, of Fresno, charging him with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 25, 2021, detectives arrested Breazell for unlawfully possessing a semi‑automatic, .40-caliber pistol with no serial number. These guns are often referred to as “ghost guns” because the lack of a serial number on the firearm renders them untraceable. Breazell’s ghost gun was found inside a satchel that he had abandoned after fleeing from the approaching officers. The firearm was loaded with 15 rounds of ammunition. Breazell is prohibited from possessing firearms and ammunition because of his prior criminal history. In 2014, he was convicted of assaulting a person with a semiautomatic firearm. He also has two prior convictions for illegally possessing firearms.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Breazell faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Members of Twin Cities Methamphetamine Trafficking Ring Sentenced to PrisonRead the Press Release
ST. PAUL, Minn. – Acting U.S. Attorney W. Anders Folk today announced that four people involved in a Twin Cities-based methamphetamine trafficking ring have been sentenced to prison for their roles in the drug distribution conspiracy.
Brandon Earl Swanson, 41, of Crystal, Minnesota, was sentenced to 144 months in prison and five years of supervised release. Jared William Merta, 40, of Montrose, Minnesota, was sentenced to 170 months in prison and five years of supervised release. Wayde Salem Salwei, 46, of Minnetonka, Minnesota, was sentenced to 132 months in prison and five years of supervised release. Katherine Byrd Campbell, 33, of Rochester, Minnesota, was sentenced to time served and five years of supervised release. Co-defendants Lucas Jay Madison and Mark Oren Schorn were previously sentenced by Judge Eric C. Tostrud to 235 and 180 months in prison, respectively.
According to court documents, between March 2020 through at least April 2020, the defendants were involved in a large-scale methamphetamine trafficking operation. On April 14, 2020, law enforcement stopped Madison and Campbell near Faribault, Minnesota, as they traveled back from Phoenix, Arizona. Law enforcement conducted a search of the vehicle and recovered approximately 23 pounds of methamphetamine contained within a backpack. The methamphetamine was intended for delivery to multiple co-conspirators in the Twin Cities and surrounding metropolitan area. On the same day, law enforcement conducted multiple search warrants, including Merta’s and Schorn’s apartments in Montrose, Madison’s apartment in St. Paul, and Madison’s car detailing business in Bloomington, Minnesota, where Madison, Swanson and other co-conspirators conducted their operations. As a result of these searches, law enforcement agents recovered more than $100,000 in U.S. currency, more than 780 grams of methamphetamine, three handguns, multiple digital scales, THC cartridges, multiple cell phones, and other drug paraphernalia.
This case was the result of an investigation conducted by the United States Drug Enforcement Administration, the Anoka Hennepin Drug Task Force, the Cannon River Drug & Violent Offender Task Force, the Southeast Minnesota Gang and Drug Task Force, the Wright County Sheriff’s Office, the Rice County Sheriff’s Office, the Anoka County Sheriff’s Office, the Minnesota State Patrol, and the Edina Police Department.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Former Youngstown Area Physician Sentenced to 22 Years for Sex Trafficking MinorsRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Albert Aiad-Toss, 53, of Canfield, was sentenced today by U.S. District Court Judge Pamela A. Barker to 22 years of imprisonment, lifetime supervised release, a $50,000 fine and a special assessment of $40,800. Aiad-Toss, a Youngstown-area physician at the time of the offense conduct, previously pleaded guilty to seven counts of sex trafficking of a minor and one count of child exploitation. This case is the District’s largest juvenile sex trafficking prosecution to date.
“Juvenile sex traffickers like Aiad-Toss prey upon our most important resource – our children,” said Acting U.S. Attorney Bridget M. Brennan. “Through the collaborative efforts of the Ashland Police Department, the Federal Bureau of Investigation, the Ashland County Prosecutor’s Office and our office, law enforcement has once again demonstrated our unwavering commitment to holding traffickers accountable and protecting our children. The young victims in this case bravely and courageously shared their experiences and certainly prevented other young girls from being similarly victimized.”
“The sentence today is the culmination of months of hard work by multiple law enforcement agencies to bring this offender to justice,” said Christopher Tunnell, Ashland County Prosecutor and Special Assistant U.S. Attorney. “We are sending a unified message to anyone perpetrating crimes against our children that no matter who you are, we will bring every resource at our disposal to bear upon you, and you will be made to answer for your crimes.”
"The abuse of a child is both despicable and incomprehensible," said FBI Special Agent in Charge Eric B. Smith. "Aiad-Toss, using his position of trust, admitted to engaging in sexual acts with minors. As a result, Aiad-Toss will be serving a significant and just sentence in federal prison. Law enforcement will continue our unceasing efforts to protect our most precious resource, our children."
As set out in court documents, between June 1, 2019, and June 29, 2019, Aiad-Toss used the online application Snapchat to entice, recruit and patronize six minor female victims, all between the ages of 12 and 15, to engage in sexual conduct with him by providing them with money, alcohol, new clothes and other items of value. He specifically budgeted $2,000 per month to be spent on obtaining young girls for sexual exploitation.
To avoid detection, Aiad-Toss targeted young girls in Ashland County, which was approximately 90 miles away from his home in Youngstown, to avoid being seen by anyone he knew. To further avoid detection, he typically arranged for the girls to enter hotel rooms through a side door rather than through the main entrance.
Many of Aiad-Toss’ encounters involved more than one of the juvenile victims meeting him in a hotel room at the same time. On June 15, 2019, surveillance video obtained by investigators show Aiad-Toss inside a hotel with three juvenile victims. Additionally, investigators located an image taken on June 17, 2019, depicting Aiad-Toss in a vehicle with three juvenile victims.
Aiad-Toss’ conduct also included the exploitation of another child by using Snapchat to entice and receive sexually explicit images and videos.
Aiad-Toss was arrested on July 5, 2019.
This case was investigated by the Federal Bureau of Investigation and the Ashland Police Department. This case was prosecuted by Assistant U.S. Attorney Ranya Elzein, Acting U.S. Attorney Bridget M. Brennan and with the assistance of Ashland County Prosecutor and Special Assistant U.S. Attorney Christopher Tunnell.