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16 July 2021
Methamphetamine Dealer Sentenced in Federal CourtRead the Press Release
A methamphetamine dealer was sentenced on July 13, 2021, to more than seven years in federal prison. Jason Wayne Persons, age 42, from Quimby, Iowa received the prison term after a guilty plea to distribution of a controlled substance.
Persons distributed methamphetamine in and around Sioux City, Iowa in August of 2020. On August 17, 2020, Sioux City police officers executed a search warrant on Persons’ residence. Officers recovered methamphetamine in his bedroom. In a police interview, he admitted to selling methamphetamine to support his addiction to methamphetamine. Persons was convicted in federal court in 2003 of conspiracy to manufacture and distribute methamphetamine.
Persons was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Persons was sentenced to 90 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Persons is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4077.
Man Sentenced to 13 Years for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Judge Francisco A. Besosa sentenced Marcos Rivera-Ramos to 156 months (13 years) in prison and 10 years of supervised release for sexual enticement of a 14-year old girl, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the facts admitted during the change of plea hearing, the parents of the female minor reported to the FBI that their daughter received at least one image of an adult male’s penis on her Apple iPhone through the Snapchat application. The victim told her parents the image was sent to her by Rivera-Ramos, an usher at their church.
The defendant had known the victim for approximately four years. They began communicating in a group chat of people from church, but later switched to communicating privately with each other via WhatsApp. Over the last year when they were communicating on WhatsApp, the conversation turned sexual. Defendant Rivera-Ramos asked the 14-year-old girl to send him sexually explicit images and videos of herself.
The Federal Bureau of Investigation was in charge of the investigation. Assistant United States Attorney Ginette Milanes prosecuted the case.
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Madison Man Sentenced to 5 Years for Unlawful Gun PossessionRead the Press Release
EAST ST. LOUIS, Ill. – Jeremy D. Mosby, 28, of Madison, Illinois, has been sentenced to 63 months for being a convicted felon in possession of a firearm. Mosby pleaded guilty to the charge in
March.
On Feb. 16, 2020, Mosby drove a rental car to the BP Crown Food Mart in East St. Louis. According to court documents, Mosby was caught on surveillance video standing outside talking to another man identified as J.H. Mosby had a gun tucked into his waistband. Both men got into the car and continued their conversation. A struggle ensued, and Mosby got out and fired his gun into the car.
J.H. fled the parking lot in Mosby’s rental car.East St. Louis police officers stationed nearby heard the gunshots and responded to the scene.
Mosby matched the description of the shooter and was walking across the parking lot talking on his cell phone when officers arrived. A 9mm semi-automatic handgun was found nearby under a bush.
Officers also recovered 13 spent 9mm shell casings from the scene. One of the shots fired by Mosby hit the East St. Louis City Hall vestibule.When he was arrested, Mosby was found in possession of a small amount of methamphetamine and
$5,500 in cash. Mosby later admitted to police that he was the shooter but claimed he was being robbed and only fired in self-defense. Court records show Mosby has a 2014 felony conviction for unlawful possession of a firearm in St. Clair County circuit court.In addition to his prison term, Mosby was ordered to serve 3 years on supervised release and pay a
$100 fine.The case was investigated by the East St. Louis Police Department and the Bureau of
Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Ali Burns prosecuted the case.This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
MS-13 Fugitive Extradited from Guatemala to Face Charges for Killing Four Young Men in a Long Island ParkRead the Press Release
Henry Edenilson Salmeron, a member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” and fugitive from justice, was extradited from Guatemala to the United States yesterday to face charges for his alleged participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre and Jefferson Villalobos. Salmeron, who was originally charged in an indictment returned by a federal grand jury in Central Islip, New York, on July 12, 2017, was arrested in Guatemala City, Guatemala, on February 3, 2021, by the Transnational Anti-Gang (TAG) Unit on a provisional arrest warrant, and has been detained since then, pending his extradition to the United States. Salmeron was arraigned this afternoon before United States Circuit Judge Joseph F. Bianco and was ordered detained pending trial.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Vincent F. DeMarco, United States Marshal for the Eastern District of New York, and Stuart J. Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the arrest and extradition.
“Although this defendant sought to evade answering for these horrific crimes by fleeing more than 3,000 miles from the Central Islip park where he and his fellow MS-13 gang members callously slaughtered four young men, the relentless determination of our law enforcement partners led to his capture and extradition, and he will now face justice in a courthouse that overlooks that very same park,” stated Acting U.S. Attorney Kasulis. “More than four years have passed since the victims were murdered, but we hope that today’s extradition brings some measure of comfort to the victims’ family and friends.” Acting U.S. Attorney Kasulis expressed her grateful appreciation to the investigators and analysts of the FBI’s Guatemala TAG Unit and Safe Streets Gang Unit, the members of the FBI’s Long Island Gang Task Force, and the United States Marshals Service (USMS) for their outstanding collaboration in locating and apprehending this fugitive. Ms. Kasulis also expressed thanks to Homeland Security Investigations (HSI) and the Department of Justice’s Office of International Affairs for their assistance in this case.
“Gang violence erodes the very fabric of our communities, in many cases leaving parents to fear for the lives of their children, and the average citizen to doubt their safety in the comfort of their own neighborhood,” stated FBI Assistant Director-in-Charge Sweeney. “Today’s extradition of Salmeron will now allow us to hold him accountable for the murders he’s accused of committing, and hopefully restore some faith in the community that we, too, share the same concerns and won’t stop pursuing these criminals until they all face justice for their crimes.”
“Criminals often think they can flee the United States to avoid prosecution but United States Marshals Service is determined to work with our federal and international law enforcement partners and give victims of violent crime the justice they deserve,” stated United States Marshal DeMarco.
“The extradition of violent criminals like Henry Edenilson Salmeron sends a clear and powerful message to members of MS-13 that gang activity will not be tolerated in Suffolk County,” stated SCPD Acting Commissioner Cameron. “I commend our law enforcement partners, both here and in Guatemala, for their dedication to apprehending Salmeron and bringing him back to Suffolk County to answer for these crimes and bring justice to the victims’ families.”
On the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including Llivicura, Lopez, Tigre and Villalobos, to a community park in Central Islip, so that Salmeron and other MS-13 members and associates could attack and kill them. The victims were believed to be rival gang members who were disrespectful toward the MS-13. Salmeron and numerous other MS-13 members and associates met in the park where they distributed weapons and discussed the plan to kill the victims. Once the female MS-13 associates led the men to a wooded area, Salmeron and the other MS-13 members and associates surrounded, attacked and killed Llivicura, Lopez, Tigre and Villalobos, using machetes, knives, wooden clubs and an axe. The fifth intended victim escaped. The victims’ bodies were discovered the following evening.
After committing the murders, Salmeron fled to Guatemala to evade arrest and prosecution in this case. Salmeron remained a fugitive for nearly four years until he was located by the USMS and FBI, and arrested by the TAG in Guatemala City on February 3, 2021. The United States requested Salmeron’s extradition, and his formal surrender was authorized on May 10, 2021, so that he could be transported to the Eastern District of New York to face the charges pending against him.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Salmeron faces up to life in prison.
Salmeron is the ninth MS-13 member or associate to be charged publicly with the April 11, 2017 murders. Six of those defendants are pending trial and are presumed innocent until proven guilty. Josue Portillo and Freiry Martinez previously pleaded guilty and were sentenced to 55 and 50 years in prison, respectively.
Today’s extradition is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent transnational criminal organization. The MS-13’s leadership is based in El Salvador, Mexico, Guatemala and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the most violent street criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, the Nassau County Police Department (NCPD), the SCPD, the Nassau County Sheriff’s Department, the Suffolk County Sheriff’s Office, the Suffolk County Probation Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department, and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
HENRY EDENILSON SALMERON
Age: 22
Guatemala City, Guatemala; formerly of Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Mario Martin Prieto-Guerrero, 36, of Lincoln, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 11 years and three months in federal prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine actual (pure) and 500 grams or more of methamphetamine mixture. Following his prison term, Prieto-Guerrero will serve five years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated that Prieto-Guerrero was responsible for the distribution of at least 150 grams (approximately 5 1/3 ounces) of methamphetamine actual (pure) and at least five kilograms, (approximately 11 pounds) of methamphetamine mixture in the Lincoln area between July of 2019 and June of 2020. On July 29, 2020, a search warrant was executed at Prieto-Guerrero’s Lincoln residence. During that search, officers found a digital scale and packaging materials and a .22 caliber semi-automatic handgun which Prieto-Guerrero admitted belonged to him. Prieto-Guerrero’s sentencing range was enhanced due to his possession of the handgun.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lewiston Men Sentenced for Million-Dollar Health Care FraudRead the Press Release
PORTLAND, Maine— Two Lewiston men were sentenced today in U.S District Court in Portland for health care fraud, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Jon D. Levy sentenced Abdirashid Ahmed, 41, to two years in prison and three years of supervised release, and Garat Osman, 35, to three years of probation. Judge Levy also ordered Ahmed to pay $1,863,264.83 and Osman to pay $544,097.78 in restitution to MaineCare. Both men pleaded guilty in May 2019.
According to court records, Ahmed and Osman were interpreters who conspired with several Lewiston/Auburn mental health counseling services to defraud MaineCare. One of the counselors was Nancy Ludwig, who was the owner of Facing Change, a mental health and substance abuse counseling agency in Lewiston. From about November 2015 until May 2018, Ludwig and Ahmed led a conspiracy to commit health care fraud by submitting claims to MaineCare for services that were not rendered as billed.
Beginning in February 2015, Ludwig agreed to pay Ahmed a kickback in return for Ahmed bringing MaineCare beneficiaries to Facing Change. Ludwig, Ahmed and other employees at Facing Change then caused false and fraudulent claims to be submitted to MaineCare for both counseling and interpreter services. The false claims included claims for visits that never occurred and claims that inflated the level of service provided. In 2016, in response to a MaineCare regulatory change, Ludwig and Ahmed conspired to change the diagnosis of many of Ahmed’s clients to schizophrenia so they could remain eligible to receive MaineCare reimbursement for the services at Facing Change.
In the fall of 2016, auditors with the MaineCare Program Integrity Unit audited Facing Change. Ludwig and many of her employees conspired to manufacture false and fraudulent records in an attempt to deceive the auditor. Osman joined the fraud scheme in December 2016 and established an interpreter company that received all the fraudulent payments from that time until early May 2019. In May 2019, agents with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), the FBI and the Maine Attorney General’s Office executed search warrants at Facing Change and Ahmed’s business. Investigators eventually determined that MaineCare was defrauded of $1,863,264.83 in this fraud scheme.
“Healthcare fraud depletes funds intended to provide care for our most vulnerable citizens,” said Phillip M. Coyne, Special Agent in Charge for HHS-OIG. “Today’s sentencing is a strong reminder that we will spare no resources to bring to justice those that undermine the integrity of our federal health care system and those served by it. I appreciate the continued partnership with the Maine U.S Attorney’s Office to protect public funds.”
“Federal and state investigators did tremendous work in uncovering this fraud scheme,” said Acting U.S. Attorney Clark. “The U.S. Attorney’s Office was proud to be part of the team that brought these defendants to justice. We will always aggressively pursue those who attempt to defraud the public in this fashion.”
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
This prosecution was the result of a three-year collaborative investigation by HHS-OIG, the FBI and the Maine Attorney General’s HealthCare Crimes Unit. The investigation started because of the auditing work done by the MaineCare Program Integrity Unit.
Laurel meth trafficker sentenced to more than 14 years in prisonRead the Press Release
BILLINGS – A Laurel man who admitted meth trafficking and firearms crimes after investigators found seven pounds of the drug along with firearms in a search of his residence was sentenced today to 14 years and nine months in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Robert Ernest Frazier II, 46, pleaded guilty on Nov. 20, 2020 to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in early 2019, agents used a confidential informant to make two controlled drug purchases of about two ounces each time from Frazier. In February 2019, agents executed a search warrant on Frazier’s residence and vehicle and found about seven pounds of meth, marijuana, drug paraphernalia and firearms in his residence. Two pistols were found in the same safe Frazier was using to store his meth. In Frazier’s vehicle, agents found another large stash of meth, marijuana and drug paraphernalia. Frazier admitted to being a meth distributor and estimated he had sold nearly one pound of meth per week for the last year. He also stated that he had received a 10-pound delivery of meth the previous week and what was found was what was left of it. Ten pounds of meth is the equivalent of 36,240 doses.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on July16 was:
George Thomas Walker, 44, of Hamilton, on charges of conspiracy to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious crime, Walker faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Walker was detained pending further proceedings. The FBI, Missoula County Sheriff’s Office, Missoula Police Department, Great Falls Police Department, Ravalli County Sheriff’s Office and Montana Department of Corrections’ Probation and Parole investigated the case. PACER case reference. 21-26.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July15 was:
Steven Roy DeCarlo, 31, of Browning, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and prohibited person in possession of a firearm. If convicted of the most serious crime, DeCarlo faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. DeCarlo was detained pending further proceedings. The FBI, Homeland Security Investigations and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-45.
Louis Jay Remillard, 49, of Helena, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Remillard faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Remillard was detained pending further proceedings. The FBI, Drug Enforcement Administration, Great Falls Police Department, Cascade County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 21-47.
Jeremiah Lewis Camphouse, 40, of Great Falls, on charges of possession of a firearm by unlawful user of a controlled substance. If convicted of the most serious crime, Camphouse faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Camphouse was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Great Falls Police Department investigated the case. PACER case reference. 21-37.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July14 was:
Peggy Waples, 61, and Sherrie Lynn Cain, 51, both of Miles City, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Waples and Cain face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Waples and Cain were detained pending further proceedings. The Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 21-45.
Ashley Michael Stella, 28, of Reno, Nevada, on charges of transportation of a minor with intent to engage in prostitution. If convicted of the most serious crime, Stella faces a mandatory minimum 10 years to life in prison, a $250,000 fine and three years of supervised release. Stella was detained pending further proceedings. The FBI investigated the case. PACER case reference. 21-41.
Latisha Marvala West, 26, of Billings, on charges of receipt of a firearm by a person under indictment and prohibited person in possession of a firearm. If convicted of the most serious crime, West faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. West was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-98.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Charges 4 Ecuadorian Nationals for Participating in Tax Refund Fraud SchemeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England; Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations (HSI), Boston; and Joshua W. McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that four Ecuadoran nationals living in Connecticut were arrested today on federal charges stemming from their alleged participation in a tax refund fraud scheme.
On July 6, 2021, a grand jury in Hartford returned a five-count indictment charging OLGA AUCAPINA, a.k.a. Olga Aucapina Paredes, 51, last residing in Woodbridge; DIEGO AUCAPINA, a.k.a. Diego Aucapina Paredes, 33, last residing in Woodbridge; JAIRO SANTIAGO SARANGO SOLANO, a.k.a. Jairo Santiago Sarango, 33, last residing in Hamden; and EDWIN F. GUTIERREZ, 43, last residing in East Haven. The indictment was unsealed after the defendants were arrested this morning.
As alleged in the indictment, from approximately May 2013 to April 2017, the four defendants conspired to file fraudulent federal tax returns, in the names of other foreign nationals (“claimants”), with the IRS in order to illegally obtain tax refunds. The fraudulent tax returns stated that the claimants resided in the U.S., earned wages from companies in the U.S., and had federal income tax withheld from the claimants’ wages. In truth, the claimants never worked for or earned income from those companies. In addition, U.S. Customs and Border Protection have no records of the claimants even being present in the U.S. during the tax years for which the returns were filed. Based on these false tax returns, the IRS issued tax refunds, which were then deposited into bank accounts that were controlled by some of the defendants.
It is further alleged that the IRS received at least 34 false tax returns for the 2012 through 2016 tax years, resulting in illegally obtained tax refunds in excess of $103,000. The defendants spent some of the proceeds for their personal use, and they wired some of the proceeds to relatives in Ecuador.
The indictment charges all four defendants with one count of conspiracy to commit theft of public money, which carries a maximum term of imprisonment of five years; one count of conspiracy to defraud the government with respect to claims, which carries a maximum term of imprisonment of 10 years; and one count of conspiracy to commit money laundering, which carries a maximum term of imprisonment of 20 years. In addition, the indictment charges Olga Aucapina and Gutierrez with one count of theft of public money, which carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service, with the assistance of Immigration and Customs Enforcement’s Enforcement and Removal Operations and the East Haven, Hamden, New Haven, Woodbridge and Wilton Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Idaho Man Sentenced for the Unlawful Possession of Firearms and SilencersRead the Press Release
BOISE -Travis Richard Hampton, 41, of Glenns Ferry, Idaho, was sentenced in U.S. District Court to 46 months in federal prison based upon his April 2021 guilty plea for the unlawful possession of firearms and the possession of unregistered silencers, Acting U.S. Attorney Rafael M. Gonzalez, Jr., announced today. U.S. District Judge B. Lynn Winmill also ordered Hampton to serve three years of supervised release following his prison sentence. Hampton pleaded guilty to the charges on April 22, 2021.
According to court records, on January 5, 2021, law enforcement conducted a traffic stop on Hampton’s vehicle in Gooding County, Idaho. Hampton was the driver and he was accompanied by one passenger. A search of the vehicle was conducted pursuant to a search warrant and seven firearms were located, along with other dangerous items. It was determined that four of these firearms were jointly possessed by Hampton and the passenger, and which they intended to sell together. Hampton is prohibited from possessing firearms as a result of a prior felony conviction for Injury to Child in Elmore County, Idaho in 2008.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) also executed a search warrant at Hampton’s residence in Elmore County, Idaho. There, agents located two additional firearms, four non-commercially manufactured silencers with no serial numbers, and other dangerous items. None of the silencers were registered to Hampton under the National Firearms Registration and Transfer Record as is required by law.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the ATF, the Twin Falls Police Department, the Elmore County Sheriff’s Office, and the Idaho State Police, which led to charges.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Henryetta Resident Found Guilty by Federal Jury of Murdering His FatherRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Diamond Levi Britt, age 26, of Henryetta, Oklahoma was found guilty by a federal jury of First-Degree Murder in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151, and 1153. The jury trial began with testimony on Tuesday, July 13, 2021 and concluded on Thursday, July 15, 2021 with the guilty verdict. The punishment for First-Degree Murder in Indian Country is imprisonment for life.
During the jury trial, the United States presented evidence that on September 16, 2019, the defendant attacked his father, Gary Britt, with a sword. The victim suffered significant injuries including a partially severed arm, multiple head wounds, and a transected quadriceps tendon. The victim died nine days after the attack due to complications from his injuries.
The evidence further demonstrated that on at least two occasions prior to the attack the defendant informed family members he intended to kill his father. After the vicious attack, the defendant left the crime scene and was observed by Henryetta police officers walking along a roadway carrying a sword. The defendant was taken into custody where he made additional statements indicating he knowingly and deliberately killed his father, with premeditation. The defendant said he wanted to kill his father on the night of the attack and that he regularly thought about stabbing his father.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally-recognized Indian tribe and the crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation, and within the Eastern District of Oklahoma.
The guilty verdict was the result of an investigation by the Okmulgee County Sheriff’s Office, the Henryetta Police Department, and the Federal Bureau of Investigation.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Britt was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Special Assistant United States Attorneys Kyle J. Essley and Robert Reeves represented the United States.
Helena firearms dealer, three others charged with firearms violationsRead the Press Release
GREAT FALLS—A federal firearms licensee at Modern Pawn and Consignment, a Helena business, and three others were arraigned on July 15 on charges in an indictment alleging multiple firearms crimes, Acting U.S. Attorney Leif M. Johnson said today.
Appearing before U.S. Magistrate Judge John T. Johnston and pleading not guilty were Isaiah Maurice Morsette, 38 of Boulder; Catherine Suzanne Morsette, 38, of Boulder; Douglas Wayne Sullivan, 69, of Boulder and Helena; and Richard Joe Munoz, 34, of Helena. All defendants were released pending further proceedings.
Isaiah Morsette is charged with possession of stolen ammunition (propellant powder), prohibited person in possession of firearms and false statement during firearms sale.
Catherine Morsette, a licensed dealer of firearms, is charged with possession of stolen ammunition (propellant powder), false statement during firearms sale at Modern Pawn and Consignment and failure to keep proper records at Modern Pawn and Consignment.
Douglas Sullivan is charged with possession of stolen ammunition (propellant powder) and prohibited person in possession of ammunition.
Richard Munoz is charged with prohibited person in possession of firearms.
The indictment alleges the crimes occurred from February to April in Helena and Boulder.
If convicted of the most serious crime, the defendants face a maximum 10 years in prison, a $250,00 fine and three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Helena Police Department investigated the case.
An indictment is merely an accusation and defendants are presumed innocent until proven guilty in a court of law.
PACER case reference. 21-6.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former Tennessee County Official Indicted for Kidnapping and Sexual AssaultRead the Press Release
Today, the Justice Department announced the unsealing of a nine-count indictment charging Michael Harvel, 59, of Crossville, Tennessee, with civil rights violations for kidnapping and sexually assaulting women that he supervised during his tenure as the Cumberland County, Tennessee, Solid Waste Director. FBI agents arrested Harvel at his home earlier today, and he will appear before a U.S. Magistrate Judge later this afternoon.
According to the indictment, Harvel’s official duties as the former Solid Waste Director included supervising women who served their court-ordered community service time or worked as paid county employees. The indictment alleges that, from 2015 to 2018, Harvel sexually assaulted seven women under his supervision. Two counts charge that Harvel kidnapped and sexually assaulted women he supervised, and a third count charges him with committing aggravated sexual abuse by forcibly raping a woman in a dark office. The indictment alleges several other incidents of sexual assault, including Harvel fondling the breasts and genitals of women against their will.
If convicted, Harvel faces a maximum sentence of up to life in prison.
This case is being investigated by the FBI. Assistant U.S. Attorney Sara Beth Myers for the Middle District of Tennesee and Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division are prosecuting the case.
In March, in a separate civil action, the Department of Justice settled a sexual harassment lawsuit against Cumberland County for $1.1 million. The lawsuit alleged, among other things, that Cumberland County failed to take adequate precautions to prevent Harvel, as the director of the county’s Solid Waste Department, from sexually harassing women he supervised. According to the complaint, Harvel regularly subjected the women to unwanted sexual contact, including kissing and groping; unwelcome sexual advances, including propositioning the women for sexual favors; and offensive sexual remarks about their bodies and sex acts.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Former Police Detective and FBI Task Force Officer Convicted of Bribery and Other OffensesRead the Press Release
A federal jury convicted a veteran detective for the Carlisle, Pennsylvania, Police Department, who was also a task force officer with the FBI and a member of the Cumberland County Drug Task Force, today of bribery, drug distribution and making false statements.
According to court documents and evidence presented at trial, Christopher Collare, 53, of Blythewood, South Carolina, used his official position to obtain sex from two women in exchange for agreeing to take actions in prosecutions. Specifically, in 2015, Collare agreed to accept sex in exchange for not appearing at an evidentiary hearing so that a criminal charge would be dismissed. In 2018, Collare agreed to accept sexual favors in exchange for taking steps to help reduce a potential sentence. Collare distributed heroin in 2016. He also lied in November 2015 on a federal form he completed during the process of becoming an FBI task force officer, and he made multiple false statements in an interview with federal agents in May 2018.
Collare was convicted of federal program bribery, bribery by a federal official, distribution of heroin, and six counts of false statements. Collare was taken into custody following the verdict. His sentencing date has not yet been scheduled. He faces a maximum penalty of 10 years in prison for federal program bribery, 15 years in prison for bribery by a federal official, 20 years in prison for distribution of heroin and five years in prison for false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania; Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office; and Special Agent in Charge Russell W. Cunningham of the Department of Justice Office of the Inspector General’s Washington Field Office made the announcement.
The FBI and the Department of Justice Office of the Inspector General investigated the case.
Trial Attorney James I. Pearce of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Carlo D. Marchioli and Phillip J. Caraballo are prosecuting the case.
Former Police Detective and FBI Task Force Officer Convicted of Bribery and Other OffensesRead the Press Release
HARRISBURG – Acting United States Attorney Bruce D. Brandler for the Middle District of Pennsylvania; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office; and Special Agent in Charge Russell W. Cunningham of the U.S. Department of Justice Office of the Inspector General’s Washington Field Office announce that a federal jury convicted a veteran detective for the Carlisle, Pennsylvania Police Department, who was also a task force officer with the FBI and a member of the Cumberland County Drug Task Force, today of bribery, drug distribution, and making false statements.
According to court documents and evidence presented at trial, Christopher Collare, 53, of Blythewood, South Carolina, used his official position to obtain sex from two women in exchange for agreeing to take actions in prosecutions. Specifically, in 2015, Collare agreed to accept sex in exchange for not appearing at an evidentiary hearing so that a criminal charge would be dismissed. In 2018, Collare agreed to accept sexual favors in exchange for taking steps to help reduce a potential sentence. Collare distributed heroin in 2016. He also lied in November 2015 on a federal form he completed during the process of becoming an FBI task force officer, and he made multiple false statements in an interview with federal agents in May 2018.
Collare was convicted of federal program bribery, bribery by a federal official, distribution of heroin, and six counts of false statements. Collare was taken into custody following the verdict. His sentencing date has not yet been scheduled. He faces a maximum penalty of 10 years in prison for federal program bribery, 15 years in prison for bribery by a federal official, 20 years in prison for distribution of heroin, and five years in prison for false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“The defendant victimized numerous vulnerable women and in the course of doing so, betrayed the trust placed in him by the public and multiple law enforcement agencies, said Acting U.S. Attorney Bruce D. Brandler. “His actions not only violated federal law, but also had a negative impact on cases he investigated. Today’s verdict reflects our office’s commitment to ensuring that those who abuse their official positions for their own benefit are held accountable. I want to thank all the prosecutors and law enforcement agents who worked tirelessly to make sure justice was served in this case.”
"Christopher Collare's actions were antithetical to the oath he swore to serve and protect," said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. "He’s tarnished the badge he wore and failed his colleagues and the community he served. We in law enforcement must be held to the highest of ethical standards, and those falling short, like Collare, need to be booted from the ranks and held accountable. The public needs to know we mean it when we say that no one is above the law."
The FBI and the U.S. Department of Justice Office of the Inspector General investigated the case. Trial Attorney James I. Pearce of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Carlo D. Marchioli and Phillip J. Caraballo are prosecuting the case.
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Former Daycare Director Sentenced for Submitting False Documents to Tennessee Department of Human ServicesRead the Press Release
Memphis, TN – Ollie Stephenson, 55, of Germantown, Tennessee, has been sentenced to one year and one day in federal prison for submitting false documents to the Tennessee Department of Human Services (TDHS).
According to information presented in court, Louise’s Learning Tree Daycare Center in Memphis, Tennessee was a participant in the U.S. Department of Agriculture’s Child and Adult Care Feeding Program (CACFP), which was administered by TDHS. Stephenson, the daycare’s former director, submitted a fictious Regions Bank statement and a fictitious US Food invoice which reflected a non-existent food purchase during a TDHS audit conducted in April and May 2020.
On April 14, 2021, Stephenson pled guilty to a one-count criminal information.
On July 15, 2021, U.S. District Judge Sheryl H. Lipman sentenced Stephenson to a year and a day in federal prison and a three-year period of supervised release. Stephenson was also ordered to pay $375,158.80 in restitution to TDHS. There is no parole in the federal system.
"Today’s sentence serves not only as just punishment for this defendant but also as notice to others who seek to prey on feeding assistance programs used to feed vulnerable populations," said Jason M. Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. "This collaborative effort with our state and federal partners demonstrates that wherever you are, we will find you and hold you accountable to the fullest extent of the law."
"This fraud is coming to light thanks to the vigilance and hard work of multiple public entities who recognized something was wrong and began looking into it," said TDHS Commissioner Clarence H. Carter. "Tennesseans expect their tax dollars to be used to help the people that need them, not individuals seeking to take advantage of the system for their own gain."
This case was investigated by the U.S. Department of Agriculture Office of Inspector General and the Special Investigations Unit of the Tennessee Department of Human Services.
Assistant U.S. Attorney Carroll L. André III prosecuted this case on behalf of the government.
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Former Cumberland County Solid Waste Director Indicted for Civil Rights ViolationsRead the Press Release
NASHVILLE – A nine-count indictment was unsealed today charging the former Cumberland County, Tennessee Solid Waste Director with civil rights violations, including kidnapping and sexually assaulting women that he supervised, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. A federal grand jury in Nashville on Monday indicted Michael Harvel, 59, of Crossville, Tennessee. FBI agents arrested Harvel at his home this morning and he will appear before a U.S. Magistrate Judge later today.
According to the indictment, Harvel was the Director of Solid Waste for Cumberland County with an office located in the Cumberland County Recycling Center. Harvel’s official duties included supervising workers at the recycling center and at other satellite locations and county landfills where he supervised dozens of women who served their community service time or worked as paid employees.
The indictment alleges that between 2015-2018, Harvel sexually assaulted seven women under his supervision. Specific allegations include that he kidnapped and sexually assaulted two women and forcibly raped one of them on two separate occasions.
During one incident in July 2017, Harvel confined a woman in a locked room at a county facility, physically pushed her onto a table and sexually assaulted her. In another incident in November 2015, Harvel approached another woman in a dark office, physically pushed her onto a desk and raped her. In December 2015, Harvel drove this same woman to an isolated landfill and raped her again.
The indictment alleges several other incidents of sexual assault, including fondling the breasts and genitals of other women under his supervision and against their will.
If convicted, Harvel faces up to life in prison.
This case is being investigated by the FBI. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Michael Songer of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Felon Sentenced for Selling MethamphetamineRead the Press Release
LAS VEGAS, Nev. – A Henderson man was sentenced on Thursday to six years in prison for distributing methamphetamine.
According to court documents, between March 6 and April 3, 2018, Kenneth Hall, 38, sold a total of 383.6 grams of methamphetamine in Henderson and Las Vegas. At the April 3 drug sale, Hall showed and offered to sell a handgun to the buyer. Later that day, during a traffic stop, officers found over 300 grams of methamphetamine, plastic baggies, and $4,080 in cash in Hall’s vehicle. When officers executed a search warrant at Hall’s residence, they found a 9mm Sig Sauer semiautomatic handgun, along with two magazines and ammunition. A convicted felon, Hall is prohibited from possessing a firearm.
Hall pleaded guilty to one count of possession of a controlled substance with intent to distribute methamphetamine. In addition to the prison term, U.S. District Judge Andrew P. Gordon sentenced Hall to five years of supervised release.
Assistant U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI) made the announcement.
This case was investigated by HSI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
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Federal Inmate Found Guilty of Mailing Suspicious Letters to United States SenateRead the Press Release
LAFAYETTE, La. – Clifton Lamar Dodd, 49, a federal inmate, has been found guilty by a jury in Lafayette of mailing a number of hoax letters to United States Senate post office boxes, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge James D. Cain, Jr. presided over the four-day trial.
According to evidence presented at trial, on May 2, 2016, personnel at the United States Senate mail facility received four suspicious mailed envelopes, each containing a white powdery substance. Each envelope bore a return address of FCI Oakdale and each listed a different inmate as the purported sender. The United States Capitol Police’s Hazardous Response Unit responded and confirmed that the white powder was merely talcum powder. In addition to the talcum powder, each letter contained a note scrawled in all caps on a small scrap of paper that stated, “MY BOSS MADE ME DO THIS.” On the back of each note was the name of four different inmates, all of which were housed at FCI Oakdale.
U.S. Capitol Police and agents from the FBI and Bureau of Prisons began an investigation into the origin of the letters. Agents interviewed the inmates whose names were listed as senders of the letters and learned that Dodd had sent one of the inmates threatening notes and bragged about getting the inmate removed from the prison yard. FBI submitted the hoax letters to its crime lab for forensic evaluation and found one of Dodd’s fingerprints on the outside of one of the envelopes.
Dodd faces a penalty of up to five years in prison, a $250,000 fine, or both. Sentencing has been set for October 28, 2021.
The FBI, Bureau of Prisons, and U.S. Capitol Police conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips prosecuted the case.
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Environmental Safety International Inc. and its Agents to Pay $1.66 Million for Telemarketing ViolationsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the government will collect $1.66 million in civil penalties as part of a settlement to resolve alleged violations of the FTC Act and the FTC’s Telemarketing Sales Rule (TSR) by New Jersey-based Environmental Safety International Inc. (ESI), as well as its co-owners, Joseph and Sean Carney, and its telemarketer, Raymond Carney, all of whom reside in New Jersey.
In a complaint filed in the U.S. District Court for the District of New Jersey, the United States alleged that the defendants made millions of unlawful telemarketing calls to consumers in an effort to sell septic tank cleaning products. Among other things, the complaint alleges that the defendants violated the TSR by initiating “robocalls” from a seller without the recipient’s consent. The complaint further alleges that the defendants violated the TSR by making telemarketing calls that failed to disclose the seller’s identity, that were directed to numbers on the National Do-Not-Call Registry, and that were initiated to individuals who previously stated that they did not wish to receive calls from the defendants. Lastly, the company and its co-owners are alleged to have violated the FTC Act by falsely representing they would commence legal action or debt collection activities if customers failed to pay for its septic tank products.
“Americans should be protected from unwanted, deceptive telemarketing calls,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is working together with the FTC to prevent the scourge of robocalls that harass and invade the privacy of millions of people every day.”
As reflected in the stipulated orders entered by the court today, the defendants have agreed to a civil penalty of $10.2 million, all of which will be suspended except for $1.66 million; to forfeit real property worth $774,000; and to forego $164,402 in unpaid customer balances. The orders also require the defendants to take a number of steps to prevent a recurrence of the alleged unlawful conduct. Among other things, ESI must dissolve and the individual defendants must forego activities in its name. Furthermore, the individual defendants are enjoined from engaging in future telemarketing activities and must meet recordkeeping, certification and compliance obligations.
This matter was handled by Assistant Director Lisa K. Hsiao and Trial Attorney Zachary L. Cowan of the Civil Division’s Consumer Protection Branch. Amy C. Hocevar, Christian M. Capece, Derek E. Diaz and Fil M. de Banate represented the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Dominican National Pleads Guilty to Social Security Misuse and Theft of Government FundsRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston in connection with misusing another individual’s Social Security number to receive housing and unemployment benefits.
Ramon Hiciano, 59, formerly of Roxbury, pleaded guilty to false representation of a Social Security number and theft of government money. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 7, 2021. Hiciano was charged in October 2020.
Between January 2016 and August 2020, Hiciano used the identity of a Puerto Rican citizen to apply for and receive MassHealth benefits and Section 8 housing assistance. Specifically, Hiciano fraudulently received over $58,000 in federally-funded MassHealth benefits and approximately $20,780 in Section 8 housing assistance benefits over the four-year period. He also used the stolen identity to receive $5,736 in Pandemic Unemployment Assistance benefits.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip M. Coyne, Special Agent in Charge of U.S. Department of Health & Human Services, Office of the Inspector General, Office of Investigations, Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Dominican National Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence pleaded guilty yesterday to fentanyl distribution charges.
Luis Aybar-Guerrero, 24, pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 18, 2021. In August 2020, Aybar-Guerrero was indicted along with co-conspirator Guillermo Aybar-Guerrero.
According to charging documents, investigators conducted controlled purchases of fentanyl from Guillermo on June 10 and 17, 2020. On June 25, 2020, investigators set up a third controlled purchase, at which time Guillermo was arrested in possession of approximately 30 grams of suspected fentanyl. It is alleged that Guillermo retrieved these 30 grams of fentanyl from his brother, Luis. A search of Luis’ residence resulted in the seizure of an additional 263 grams of fentanyl as well as a scale, baggies and other drug-distribution paraphernalia.
A plea hearing for Guillermo scheduled for July 27, 2021.
The charges of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, and possession with intent to distribute of 40 grams or more of fentanyl provide for a mandatory minimum sentence of five years and a maximum of 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Selling COVID-19 “Cure” Pleads GuiltyRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 and Jaclyn Stahl (619) 546-8456
NEWS RELEASE SUMMARY – July 16, 2021
SAN DIEGO – Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing a “miracle cure” for COVID-19, pleaded guilty in federal court today, admitting that he tried to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”
Staley, the former operator of Skinny Beach Med Spas in and around San Diego, also admitted in his plea agreement that he abused his position of trust as a physician in making the extreme claims, and that he lied to the FBI when confronted about it.
The doctor pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.” Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his 2020 business venture selling the COVID-19 “treatment kits.”
In his plea agreement, Staley also admitted that he wrote a prescription for hydroxychloroquine for one of his employees and then misused the employee’s name and personal identifying information and answered questions as though he were the employee to fill the prescription, all without the employee’s knowledge or consent. Staley agreed that he engaged in this conduct in order to obtain more of the drug for his enterprise.
In late March and early April 2020, Staley marketed and sold his treatment kits to Skinny Beach customers. According to the plea agreement, he described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true,” and stated that the products would provide at least six weeks of immunity. Staley admitted that these statements were material to his potential customers, and that as a doctor he abused a position of public trust. An undercover agent purchased six of Staley’s treatment packs for $4,000.
Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents. Specifically, he falsely denied ever claiming that his treatment packages were a “one hundred percent effective cure,” adding “that would be foolish.” Staley likewise falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or his five supposed family members.
“While healthcare workers around the world selflessly labored on the frontlines of an international pandemic, this doctor used his position of trust to cash in on COVID-19 fears,” said Acting U.S. Attorney Randy Grossman. “We are committed to protecting the American people from such scams and holding the scammers accountable.” Grossman commended the federal agents from FBI and FDA-OCI, and Assistant U.S. Attorneys Nicholas Pilchak and Jaclyn Stahl, who worked hard pursuing justice in this case. He also commended U.S. Customs and Border Protection for its assistance with the investigation.
“Dr. Staley offered a 'magic bullet' - a guaranteed cure for COVID-19 to people gripped in fear during a global pandemic,” said FBI Special Agent in Charge Suzanne Turner. “Today, Dr. Staley admitted it was all a lie as part of a scam to make a quick buck. The FBI will continue to vigorously pursue doctors who abuse their professions to defraud innocent victims with gimmicks of false hope and promises.”
“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.
Staley’s next court date is October 8, 2021 before U.S. District Judge Gonzalo Curiel.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
If you think you are a victim of COVID-19 fraud, immediately report it to the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800). The public is also urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANT Case Number 20cr1227-GPC
Jennings Ryan Staley, M.D. Age: 46 Residence: San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: Twenty years in prison; fine; special assessment
AGENCIES
Federal Bureau of Investigation
U.S. Food and Drug Administration, Office of Criminal Investigations
U.S. Customs and Border Protection
Convicted Sex Offender Pleads Guilty to Failure to Register as a Sex Offender in Federal CourtRead the Press Release
A convicted sex offender pled guilty July 15, 2021, to failure to register as a sex offender in federal court in Sioux City.
Duane Levering, age 36, from Fort Dodge, Iowa, was convicted of failure to register as a sex offender.
At the plea hearing, Levering admitted to being convicted of aggravated sexual abuse of a minor in the United States District Court for the District of Nebraska on April 25, 2005. Levering knew he was required to register and continue to update his residence as a sex offender. Levering moved from Nebraska to Sioux City, then again to Fort Dodge, Iowa where he was caught living in the attic of a home from Spring 2020 to the time of his arrest on December 9, 2020. At no time during that period did Levering update his sex offender registration.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Levering in custody of the United States Marshal pending sentencing. Levering faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the United States Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3011.
Chinese National Sentenced to More than Three Years in Federal Prison for Attempting to Illegally Export Maritime Raiding Craft and Engines to ChinaRead the Press Release
A Chinese national was sentenced Wednesday to three years and six months in federal prison for conspiring to submit false export information through the federal government’s Automated Export System and to export maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently in violation of U.S. law. As part of his plea agreement, he agreed to the administrative forfeiture of $114,834.27, the amount caused to be wired to a U.S. manufacturer to purchase the raiding craft and engines.
Ge Songtao, 51, of Nanjing, People’s Republic of China, pleaded guilty on Nov. 2, 2020. According to court documents, Ge was the chairman of Shanghai Breeze Technology Co. Ltd., a company headquartered in Shanghai, China. Beginning in 2018, Ge was interested in identifying a source of supply of U.S.-manufactured combat rubber raiding craft equipped with engines that could operate using gasoline, diesel fuel or jet fuel. These vessels and multi-fuel engines are used by the U.S. military and can be operated after being launched from a submerged submarine or dropped into the ocean by an aircraft. No comparable engine is manufactured in China.
One of Ge's U.S.-based employees, co-defendant Yang Yang, attempted to order seven of the raiding craft equipped with these engines from a U.S. manufacturer. When the U.S. manufacturer suggested that Yang purchase cheaper gasoline-fueled engines, she insisted that she wanted to purchase the military-model multi-fuel engines. To induce the manufacturer to sell this equipment, Yang falsely represented that her customer was an entity called United Vision Limited in Hong Kong, rather than Shanghai Breeze Technology Co. in Shanghai. One of Yang’s Chinese co-workers had told her that American manufacturers would be more likely to sell to an entity in Hong Kong rather than one in mainland China. By misrepresenting what company was buying the equipment and where it was located, Yang caused the entry of false information in the Department of Commerce’s Automated Export System in violation of federal law.
To facilitate the purchase of the raiding craft and engines, Ge arranged for wire transfers to a separate company in Hong Kong, Belt Consulting Company Limited, which in turn wired $114,834.27 to the U.S. manufacturer. He also coordinated plans to send an employee to Hong Kong to receive the raiding craft and engines and transship them to mainland China. The plot failed and authorities arrested Ge and his co-defendants before the raiding craft and engines were shipped overseas.
On Sept. 15, 2020, Yang pleaded guilty to the same two charges to which Ge pleaded guilty, and on Dec. 9, 2020, was sentenced to a time-served sentence or the equivalent of approximately 14 months’ imprisonment. On Aug. 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently in violation of U.S. law, and on March 31, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention. The trial of remaining co-defendant, Fan Yang, is scheduled to begin on August 2.
Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
The FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Controls Section and Assistant U.S. Attorney Michael J. Coolican of the Middle District of Florida prosecuted the case.
Chinese National Sentenced to More Than Three Years in Federal Prison for Attempting to Export Maritime Raiding Craft and Engines to China IllegallyRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey Schlesinger today sentenced Ge Songtao (51, Nanjing, People’s Republic of China) to three years and six months years in federal prison for conspiring to submit false export information through the federal government’s Automated Export System and to export maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. As part of his plea agreement, he agreed to the administrative forfeiture of $114,834.27, the amount caused to be wired to a U.S. manufacturer to purchase the raiding craft and engines.
At the sentencing hearing, Judge Schlesinger found that Ge Songtao intended to buy the engines in order to reverse-engineer them and supply his own version to the Chinese military. In addition, the judge found that, after being charged in this case, Ge Songtao attempted to obstruct the proceedings in multiple ways, including soliciting an associate in China to help him manufacture false documents for use in court.
Ge Songtao had pleaded guilty on November 2, 2020.
According to court documents, Ge Songtao was the chairman of Shanghai Breeze Technology Co. Ltd., a company headquartered in Shanghai, China. Beginning in 2018, Ge Songtao was interested in identifying a source of supply of U.S.-manufactured combat rubber raiding craft equipped with engines that could operate using gasoline, diesel fuel, or jet fuel. These vessels and multi-fuel engines are used by the U.S. military and can be operated after being launched from a submerged submarine or dropped into the ocean by an aircraft. No comparable engine is manufactured in China.
One of Ge Songtao’s U.S.-based employees, co-defendant Yang Yang, attempted to order seven of the raiding craft equipped with these engines from a U.S. manufacturer. When the U.S. manufacturer suggested that Yang Yang purchase cheaper gasoline-fueled engines, she insisted that she wanted to purchase the military-model multi-fuel engines. To induce the manufacturer to sell this equipment, Yang falsely represented that her customer was an entity called United Vision Limited in Hong Kong, rather than Shanghai Breeze Technology Co. in Shanghai. One of Yang’s Chinese co-workers had told her that American manufacturers would be more likely to sell to an entity in Hong Kong rather than one in mainland China. By misrepresenting what company was buying the equipment, and where it was located, Yang caused the entry of false information in the Department of Commerce’s Automated Export System in violation of federal law.
To facilitate the purchase of the raiding craft and engines, Ge Songtao arranged for wire transfers to a separate company in Hong Kong, Belt Consulting Company Limited, which in turn wired $114,834.27 to the U.S. manufacturer. He also coordinated plans to send an employee to Hong Kong to receive the raiding craft and engines and transship them to mainland China. The plot failed and authorities arrested Ge Songtao and his co-defendants before the raiding craft and engines were shipped overseas.
On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge Songtao has pleaded guilty, and on December 9, 2020, was sentenced to a time-served sentence or the equivalent of approximately 14 months’ imprisonment. On August 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention. The trial of remaining co-defendant, Fan Yang, is scheduled to begin on August 2, 2021.
"The illegal exportation of sensitive technology poses a clear, significant threat to our national security,” said Brian Dugan, Special Agent in Charge of the FBI Norfolk Division. “This case proves that the FBI and our law enforcement partners are fully dedicated to preventing the theft of vital technologies, no matter how challenging the work. We will continue to stand up for innovators who create products that protect American lives, and bring to justice anyone who attempts to circumvent the laws that protect these technologies.”
“Ge Songtao deserves to be held fully accountable for his attempts to illegally acquire sensitive U.S. technology that ultimately threatened the operational readiness and safety of our nation’s military,” said Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office. “This sentencing should serve as a warning that NCIS and our law enforcement partners remain committed to rooting out any and all criminal attempts to compromise our nation’s critical technologies and infrastructure. We sincerely thank our partners for their substantial efforts during this investigation to preserve U.S. warfighter superiority.”
“Special Agents of the Bureau of Industry and Security’s Office of Export Enforcement (OEE) are dedicated to ensuring that individuals and companies of concern do not attempt to unlawfully undermine our military’s qualitative technological edge by circumventing applicable export controls,” said Ariel Joshua Leinwand, Special Agent in Charge of OEE’s Miami Field Office. “This significant sentencing represents the results of an intensive and collaborative approach with our law enforcement partners to vigorously enforce our nation’s export control laws.”
“ATF will continue to support our federal partners and provide our firearms expertise in order to protect national security,” said ATF Special Agent in Charge Craig W. Saier.
This case was investigated by the FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican and Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.
Chesterland Man Charged with COVID-19 Relief FraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a four-count indictment charging Robert Bearden, 49, of Chesterland, Ohio, with three counts of wire fraud and one count of theft of government funds.
According to the indictment, in July of 2020, the Defendant allegedly devised a scheme to fraudulently obtain Economic Injury Disaster Loans (EIDL) guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including approximately $60,000 in loans identified in the indictment.
The indictment states that the Defendant allegedly carried out the scheme in a number of ways including, submitting EIDL applications through the SBA’s online application portal that contained false information about existing and non-existing businesses; submitting fraudulent EIDL applications in the name of third parties in return for a kickback of a portion of the funds received and by using the personal identifying information of persons interested in obtaining government pandemic assistance to submit loan applications on their behalf that ultimately went into accounts controlled by the Defendant.
Furthermore, the indictment identifies three fraudulent EIDL loans for a total of approximately $60,000 that the Defendant applied for in July of 2020. After receiving a fraudulent loan in his own name, the Defendant recruited a purported third-party borrower only to use the third party’s information to obtain a $12,300 loan issued not to the third party’s account but to the Defendant’s own account. In another instance, the Defendant obtained a $34,800 loan for another third party in exchange for a $6,000 kickback.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the FBI and the IRS – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorneys Elliot Morrison and Brian M. McDonough.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Centreville Man Pleads Guilty to Coercion and Enticement of a MinorRead the Press Release
Baltimore, Maryland – William Tyler Beck, age 30, of Centreville, Maryland, pleaded guilty today to coercion and enticement of a minor.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his guilty plea, between 2014 and August 2018, Beck used internet-based communication services to coerce at least six minor females into creating and sending him sexually explicit images and videos of themselves. As part of his scheme to exploit the minors, Beck created fictitious accounts and represented himself as a 16-year old minor.
Specifically, on March 5, 2017, Beck used a cell phone and video streaming application to communicate with Jane Doe, a 9-year-old victim. Beck instructed the victim to perform sexual acts on a live stream video and threatened to call the police if she did not cooperate with his demands. As a result of Beck’s threats, Jane Doe exposed her breast, genitalia, and performed other sexual acts on an open live stream video. The live stream video was viewed by over 100 users, some users immediately reported the conduct to law enforcement. After Jane Doe was banned from the live stream site, Beck instructed Jane Doe to change her username to “Lil Sexy Chica” to stream another video where she performed additional sexual acts. Beck also live streamed a video of himself masturbating during his communication with Jane Doe.
According to Beck’s plea agreement, from approximately 2014 to August 2017, Beck used two social media applications to communicate with minor females who identified themselves as ages 9 to 16 years of age. Beck communicated with more than 24 self-identifying minors during that time. All communications related to sex or requests for photos. During most of the conversations, Beck falsely posed as a 16-year-old or 13-year-old minor.
In at least three instances, Beck threatened to expose the victims by posting pictures, stating that he already posted pictures, or threatening to tell the victims’ parents that they were using the applications.
Beck admits that he caused or attempted to cause at least five minor females between the ages of 13 and 16 years of age to produce images, videos, or live stream videos of their exposed genitalia.
As stated in his plea agreement, investigators executed a search warrant at Beck’s Centerville residence on August 22, 2018. During the execution of the search warrant, agents seized two of Beck’s cell phones. As a result of a forensic analysis, investigators found the communication applications Beck used to communicate with female minors and well as hundreds of pornographic images. On August 22, 2018, Beck admitted to using applications to communicate with minors and admitted to having a sexual interest in children.
Beck faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for coercion and enticement of a minor. U.S. District Judge Stephanie A. Gallagher has not scheduled the sentencing hearing at this time.
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 HSI, the Maryland State Police, the Maryland Department of Natural Resources Police, Kent County Sheriff’s Office, the Madisonville Police Department of Kentucky, and the Queen Anne’s County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Brown County, Ohio man sentenced to 17 years in prison for distributing images of child sexual abuseRead the Press Release
CINCINNATI – Wayne Cusimano, 55, of Hamersville, Ohio, was sentenced in U.S. District Court to 204 months in prison for distributing child pornography through Kik messenger chat groups.
According to court documents, from January through September 2018, Cusimano belonged to online chat groups dedicated to the trading of child pornography. Cusimano posted images and videos to the groups depicting adults sexually abusing minor children.
In one chat group, Cusimano served as the group’s administrator. He promoted others in the group, banned users, and vetted individuals who sought to join the group.
Cusimano pleaded guilty in January 2021 to two counts of distributing child pornography.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Vance Callendar, Special Agent in Charge, Homeland Security Investigations (HSI), announced the sentence handed down July 15 by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorneys Kyle J. Healey and Matthew Singer are representing the United States in this case.
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Bristol Man Sentenced to 5 Years in Prison for Trafficking Cocaine from Puerto Rico to ConnecticutRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that MIGUEL FREYTES, 42, of Bristol, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service developed evidence regarding a drug trafficking organization that was sending USPS parcels containing kilograms of cocaine from Puerto Rico to Connecticut and Massachusetts. Between July and December 2018, law enforcement intercepted and seized five suspect parcels that were being mailed to addresses in Bristol, Meriden and Burlington, Connecticut, and in Worcester, Massachusetts. All five of the suspect parcels contained multiple kilogram-sized bricks of cocaine. On several occasions, investigators conducted surveillance of the delivery of suspect parcels and the scheduled delivery of seized parcels. During surveillance, investigators observed Freytes, Marcos Mendez, Omar Mendez and others picking up or attempting to pick up parcels that had been seized. The investigation revealed that the cocaine was being sent from Puerto Rico by Roberto Muniz and others.
On January 9, 2019, investigators arrested Freytes and other members of this drug trafficking organization and seized approximately 2.5 kilograms of cocaine, items used to process and package narcotics, and more than $150,000 in cash. Approximately one kilogram of cocaine was found in Freytes’ residence.
On January 23, 2019, a federal grand jury returned an indictment charging, Freytes, Marcos Mendez, Omar Mendez, Muniz and two others with conspiracy to distribute cocaine and related offenses.
On February 27, 2020, Freytes pleaded guilty to conspiracy to distribute 500 grams or more of cocaine.
Marcos Mendez, 31, of Bristol; Omar Mendez, 43, of Bristol; and Muniz, 37, of Puerto Rico, also have pleaded guilty. Two defendants are awaiting trial.
Freytes, who had been released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
This case is being investigated by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service. The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Baton Rouge Concert Promoter and Restaurateur Sent to Federal Prison for Violations of Supervised Release Stemming from Federal Fraud and Tax ConvictionsRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Adrian C. Hammond, Jr., age 41, of Baton Rouge, Louisiana, to 24 months in federal prison following the Court’s determination that Hammond violated the terms of his federal supervised release. The Court also ordered the defendant to pay his outstanding restitution balance of approximately $250,000.
Previously, in 2017, Hammond was convicted of bank fraud, money laundering, and obstructing the due administration of the Internal Revenue Code. Hammond’s convictions arose from two separate, but related, criminal schemes. First, as Hammond admitted in connection with his guilty plea, he defrauded a local bank by submitting false documents in support of a loan application for a new restaurant that Hammond was attempting to open at the time, and after obtaining the bank’s money, Hammond caused a series of financial transactions intended to conceal and disguise the funds. Meanwhile, Hammond had a significant unpaid tax liability with the Department of the Treasury—Internal Revenue Service, and the IRS was taking steps to collect what Hammond owed. As Hammond admitted, he engaged in a series of acts intended to obstruct the IRS, including allowing a fictitious document to be filed in the 19th Judicial District Court that purported to withdraw a tax lien that the IRS had properly filed against Hammond, and then engaging in a series of transactions that circumvented an IRS levy and enabled Hammond to obtain funds for promoting a concert on the campus of Southern University, which funds should have been paid to the IRS.
In August 2018, Hammond was sentenced to serve 12 months and one day in federal prison. Hammond was ordered to pay approximately $258,000 in restitution and to forfeit an additional $213,656.12. Significantly, the Court ordered Hammond to serve a three-year term of supervised release following his release from prison. After serving his prison sentence, Hammond began serving his term of supervised release in August 2019.
At yesterday’s hearing, the Court found that Hammond had violated the conditions of his supervised release. Specifically, the Court found that Hammond failed to timely report to his supervising probation officer his March 2021 arrest by the Baton Rouge Police Department, during which Hammond was stopped while allegedly driving more than 100 miles an hour, and which led to his arrest for DWI (second offense), reckless driving, and several other offenses. The Court also found that Hammond had failed to comply with court-ordered substance abuse testing and treatment – that Hammond had failed to submit to court-ordered drug tests and that he had taken other steps intended to circumvent his required testing.
The original investigation was led by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the Federal Bureau of Investigation, which received valuable assistance from the Internal Revenue Service’s Examination and Collection Divisions, and was prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office.
Baltimore County Man Sentenced to over Four Years in Prison Related to His Impersonation of a U.S. Secret Service Agent and the Commission of Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Court Judge Ellen L. Hollander sentenced Igor Cooper Rosensteel, age 30, of Middle River, Maryland to 50 months in federal prison for device fraud and aggravated identity theft, related to a scheme in which he held himself out as a federal law enforcement officer or federal employee in order to defraud a total of at least 15 victims.
Rosensteel previously admitted that he posed as a Secret Service Agent to gain the trust of his victims, then he exploited them, stealing bank checks and credit cards, among other things. The guilty plea was entered on September 1, 2020. Rosenteel also pled guilty to additional charges of identity theft that he committed while he was on pre-trial release status in June and July of 2020.
The sentence was announced by Acting United States Attorney Jonathan F. Lenzner; Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office; and Lieutenant Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police.
According to his guilty plea, on August 3, 2018, Rosensteel was driving in Baltimore when he was pulled over by Maryland Transportation Authority Police for driving with a suspended license. When the patrol officer requested Rosensteel’s license and registration, Rosensteel instead pulled a law enforcement badge from his pocket, placed it on his lap and told the officer that he was a Secret Service Agent. The officer detected the odor of alcohol emanating from the vehicle and believed that Rosensteel was attempting to use his law enforcement badge to get out of a traffic ticket. Rosensteel was transported to the police station and continued to maintain that he was a law enforcement officer. Local police contacted the U.S. Secret Service in Washington, D.C. Investigation revealed that Rosensteel had never worked as an officer or employee of the U.S. government. After real Secret Service agents traveled to the police station in Baltimore, Rosensteel finally admitted that he had lied about being an agent and that the badge was fake.
As detailed in his plea agreement, additional investigation revealed that from approximately January 2018 through February 2019, Rosensteel falsely held himself out to be a federal law enforcement officer and he used this law enforcement status to defraud at least eight victims. Specifically, Rosensteel used his law enforcement status to get everything from free parking and food in restaurants, to gaining the trust of women he met online. Using his phony law enforcement persona to create a sense of security and trust, Rosensteel then exploited his victims by cashing out bank loans in the victims’ names, saddling the victims with the resulting debt and fees. After being invited into victims’ homes, Rosensteel admitted that he surreptitiously searched their belongings, stealing keys, bank checks, and credit cards, then used those items to go on lavish spending sprees, with resulting losses of more than $20,000.
According to his second plea agreement, Rosensteel was placed on pretrial release on January 30, 2020, related to his pending federal charges. While on pretrial release status, Rosensteel employed his previous strategy of deceptive online relationships and began a romantic relationship with person A under the false name of “Cooper Kent.” In this relationship, Rosensteel falsely claimed he was an employee of the Central Intelligence Agency. After an argument with his third-party custodian on June 3, 2020, Rosensteel removed his ankle monitoring bracelet, and he absconded from Maryland.
On July 7, 2020, the United States Marshal’s Service apprehended Rosensteel in another state, and it was discovered that he possessed at least seven debit and credit cards in the names of at least six additional victims. Law enforcement also discovered that Rosensteel possessed the banking information of another victim, which had been handwritten in a note inside of his wallet.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Secret Service, the Maryland Transportation Authority Police for their work in the investigation, and recognized the Anne Arundel County Police Department, and the Baltimore County Police Department for their assistance. Mr. Lenzner also thanked Assistant U.S. Attorney Christine Duey, who prosecuted the case.
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Athens, Georgia Resident Sentenced to Prison in Elder Fraud InvestigationRead the Press Release
ATHENS, Ga. – An Athens, Georgia, resident was sentenced to federal prison and ordered to pay restitution and a fine for illegally operating an unlicensed money transmitting business targeting elderly victims.
Colin Moore, 24, of Athens, was sentenced to serve 18 months in federal prison to be followed by three years of supervised release, $65,450 in restitution and a $95,000 fine by U.S. District Judge C. Ashley Royal on Thursday, July 15, after Moore previously pleaded guilty to operating an unlicensed money transmitting business. There is no parole in the federal system.
“Consumers must remain vigilant when it comes to solicitations for money in exchange for the illusion of a grand prize,” said Acting U.S. Attorney Peter D. Leary. “Our office will protect the consumer and prosecute those who concoct schemes that illegally prey on the false hope of vulnerable people.”
“This defendant took advantage of our elderly population who are the most susceptible victims of financial fraud exploitation,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to protect the nation’s mail system and the American public from individuals who commit crimes against the U.S. Postal Service for illicit financial gain.”
“Criminals like Moore help fraudsters systematically target the elderly and vulnerable offering various services and opportunities for prizes,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “We all have a shared responsibility to protect and safeguard the elderly and vulnerable among us from individuals like Moore and his co-conspirators. The Special Agents of IRS-CI are proud of the work we have done in this investigation and will continue our efforts toward maintaining the integrity of the country’s financial markets, while also protecting our elderly.”
According to court documents, Moore was operating an unlicensed money transmitting business, having never registered such a business with either the State of Georgia or U.S. Government. Moore was under investigation by the U.S. Postal Inspection Service for multiple offenses related to a fraudulent sweepstakes scheme. The investigation revealed that unidentified co-conspirators contacted victims and directed the victims to send money to Moore. Moore would purchase money orders with the victims’ money, buy bitcoin and sell bitcoin to a third party, thereby operating an unlicensed money transmitting business. Moore received approximately $65,450 from seven elderly victims in seven different states. The total amount that unidentified co-conspirators received from the scheme was $545,050. The victims did not have knowledge of bitcoin and did not send money to Moore or another third party for any bitcoin transaction. The IRS discovered Moore used 14 different accounts with six different financial institutions to receive large sums of cash and money orders from victims that he used to purchase virtual currency.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
The case was investigated by the U.S. Postal Inspection Service and the IRS.
Assistant U.S. Attorney Shanelle Booker prosecuted the case for the Government.
Aaron Shamo’s Co-Defendants Sentenced in Dark Web Narcotics Distribution CaseRead the Press Release
SALT LAKE CITY – All eight of the co-defendants in the case against Aaron Michael Shamo have been sentenced after a series of sentencing hearings took place this week in a Utah federal court. Seven co-defendants were sentenced throughout the week, including Jonathon “Luke” Paz, Drew Wilson Crandall, Alexandrya Marie Tonge, Katherine Lauren Anne Bustin, Mario Anthony Noble, Sean Michael Gygi, and Ana “Gabby” Noriega, while Christopher Sean Kenny was sentenced last month in a separate hearing. All defendants previously plead guilty to charges related to their involvement in Shamo’s multi-million dollar nationwide dark net drug trafficking organization that distributed more than a half million counterfeit pills throughout the country.
During a trial in federal court in August of 2019, a jury found Shamo guilty of organizing and directing a drug trafficking organization that imported fentanyl and alprazolam from China and used the drugs to manufacture fake oxycodone pills made with fentanyl and counterfeit Xanax tablets. The evidence at trial showed that more than 90 of Shamo’s customers died of drug overdoses. However, the total number of victims could not be calculated since Shamo sold many of his fentanyl laced fake oxycodone pills in bulk to redistributors and their customers could not always be located by investigators. Shamo was sentenced to life in prison by U.S. District Court Judge Dale A. Kimball in October of 2020.
The sentences handed down in federal court for Shamo’s co-defendants are as follows:
Jonathon “Luke” Paz, 33, now of Fort Walton Beach, Florida, was sentenced to 60 months in federal prison for his role in helping to run the dark web drug distribution empire founded by Aaron Shamo. Paz was convicted of conspiracy to manufacture a controlled substance containing fentanyl, two counts of knowingly adulterating drugs while holding them for sale, and conspiracy to commit money laundering. In the plea agreement, Paz admitted to operating pill presses for Aaron Shamo and pressing counterfeit Xanax containing alprazolam and counterfeit oxycodone pills containing fentanyl. Paz admitted that he developed the process and recipe to create the counterfeit fentanyl-laced oxycodone pills, and that he pressed almost 500,000 of these counterfeit pills. Paz turned over $800,000 in U.S. currency and 32.8 bitcoins to federal investigators upon his arrest that were proceeds from his involvement in the drug distribution with Shamo.
Drew Wilson Crandall, 35, of Draper, was sentenced to 54 months in federal prison for his role in helping to run the dark web drug distribution empire founded by Aaron Shamo. Crandall was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, and conspiracy to commit money laundering. In the plea agreement, Crandall admitted that he and Aaron Shamo imported and distributed controlled substances in Utah and around the country using the Pharma-Master dark web site developed by Shamo. Crandall also admitted that he helped Shamo mix the illegal narcotics in mason jars and used pill presses to turn the mixture into pill form. After having his own misgivings about the scheme, Crandall sold his stake in the company to Shamo for $40,000 and moved to New Zealand in November of 2015, but was later lured back into the scheme by Shamo and continued to work in customer service and handled complaints and inquiries from Shamo’s customers. Crandall was arrested in 2017 by federal law enforcement when he returned to Hawaii to get married to his fiancé.
Alexandrya Marie Tonge 29, of South Jordan, was sentenced to 36 months in federal prison for her role in Shamo’s drug trafficking network. Tonge was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, possession of fentanyl with the intent to distribute, using the U.S. mail to commit drug trafficking, and conspiracy to commit money laundering. In the plea agreement, Tonge admitted to being paid to ship and receive packages containing illegal narcotics on behalf of Aaron Shamo and Drew Crandall, and to using their bitcoin wallets to pay for expenses related to the drug trafficking organization.
Katherine Lauren Anne Bustin, 31, of South Jordan, was sentenced to 36 months in federal prison for her role in Shamo’s dark web drug trafficking network. Bustin was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, possession of fentanyl with the intent to distribute, using the U.S. mail to commit drug trafficking, and conspiracy to commit money laundering. In the plea agreement, Ms. Tonge admitted to being paid to ship and receive packages containing illegal narcotics on behalf of Aaron Shamo and Drew Crandall, and to using their bitcoin wallets to pay for expenses related to the drug trafficking organization. Bustin also admitted that Shamo paid her and Tonge $7,000 per month to package thousands of shipments of narcotics to Shamo’s customers, including placing the correct number of pills in the customers’ orders and writing false return addresses on the packages.
Mario Anthony Noble, 32, of Midvale, was sentenced to 30 months in federal prison for his role in Shamo’s dark web drug trafficking network. Noble was convicted of conspiracy to distribute fentanyl and conspiracy to distribute alprazolam. In his plea agreement, Noble admitted to being recruited by Shamo to be the “backbone” of Shamo’s dark web store and to manage customer service along with processing orders of various controlled substances. These controlled substances included alprazolam tablets and pills marked like oxycodone, but which contained fentanyl. Noble admitted that when he worked for Shamo, part of his daily duties included pulling together a list of customers, their mailing addresses, and the types and quantities of drugs they ordered. Once he created these lists, he would send them in an encrypted form, through an email account Aaron Shamo created, to co-conspirators who were responsible for packaging the orders and affixing mailing labels and postage. Noble admitted that he processed thousands of tablets containing alprazolam and pills containing fentanyl.
Sean Michael Gygi, 31 of Midvale, was sentenced to 24 months in federal prison for his role in Shamo’s dark web drug trafficking network. Gygi was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, importing fentanyl into the United States, and using the U.S. mail to commit drug trafficking. In his plea agreement, Gygi admitted to accepting shipments of illegal narcotics from China at his home on behalf of Aaron Shamo. Gygi also admitted that he also served as a runner for Shamo and picked up packages from co-defendants Tonge and Bustin five nights a week and delivered them to multiple post offices around the Salt Lake Valley to avoid detection.
Ana “Gabby” Noriega, 30, of West Jordan, was sentenced to 36 months of probation for her role in assisting Aaron Shamo’s drug trafficking operation. Noriega was convicted of conspiracy to commit money laundering, and in her plea agreement, admitted to working for Shamo for six months in 2016 in a role that was equivalent to an Executive Assistant. Noriega admitted that she bought supplies and other items for Shamo to use in furtherance of his drug trafficking operation and that she used money to purchase items that she knew was obtained from the sale of illegal narcotics.
Christopher Sean Kenny, 46, of Midvale, was sentenced to 120 months of imprisonment in June of 2021. Kenny was convicted of conspiracy to distribute fentanyl and engaging in money laundering. In the plea agreement, Kenny admitted that he worked as a middleman for Aaron Shamo and helped Shamo sale fentanyl laced oxycodone pills to other drug dealers in Utah, who would then sell Shamo’s pills to their customers. Kenny admitted that he was paid approximately one dollar per pill for this service and that he distributed approximately 140,000 pills. Kenny then bought a Ford F150 in August of 2016 using cash that he obtained from selling narcotics for Shamo.
“Aaron Shamo’s life sentence, and the sentences imposed on his co-defendants, send a clear message to anyone involved in the distribution of illegal narcotics. Law enforcement will catch you, and you will be punished for your role in the death and destruction that you cause in our communities,” said Acting United States Attorney Andrea Martinez. “As the opioid epidemic continues to take its destructive toll, we will remain vigilant and continue to aggressively prosecute those who violate the controlled substance laws of the United States. I send my deepest condolences to the families of our victims. We know you will never be made whole, but we hope that this will provide some measure of closure and allow you to heal.”
“There is no way to overstate the deadly severity of the crimes these defendants committed. They assisted one of the most prolific opioid dealers this state has ever encountered, and they are complicit in the destructive and too often-fatal consequences that resulted,” said Utah Attorney General Sean D. Reyes. “Regardless of the length of their sentence, they must live with the fact that they profited from crimes that ruined countless lives. I would like to express my sincere condolences to the families around the world who lost loved ones and whose lives were devastated by these crimes. I am grateful to the fine DEA agents and prosecutors of the DEA, the U.S. Attorney’s Office, and the Utah AG Office in this case. I also appreciate Judge Kimball’s careful handling and thoughtful decisions in this case.”
“The amount of Fentanyl distributed throughout the U.S. as a result of the operations these criminals supported devastated communities throughout the country,” said Steven Cagen Special Agent in Charge, Homeland Security Investigations Denver. “We will continue to investigate those that put personal profits above the lives of people in their communities and bring deadly drugs into the U.S. for distribution. Justice was served and we’re gratified these co-conspirators will be behind bars for the foreseeable future.”
“The dismantlement of this organization, which was responsible for multiple overdose related deaths, highlights the success of cooperative efforts between law enforcement agencies within the state of Utah,” said Michael J. Tinkler, Utah DEA Assistant Special Agent in Charge.
“It’s another example of the strength of our partnerships and unified approach in confronting criminal organizations targeting our communities.”
“The opioid crisis is still with us and continues to expand. Those who contribute to the breadth and depth of this crisis carry the burden of the devastation they impose on families and communities across the nation,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who facilitate illicit access to opioids.”
“Mr. Shamo and his associates put at risk countless individuals addicted to opioids, through the sale of dangerous counterfeit fentanyl laced pills. This drug empire affected the entire nation, and today marks a final step in justice for those who caused this great tragedy for so many,” said IRS Criminal Investigation Special Agent in Charge, Albert Childress. “We will continue to work together with our law-enforcement partners to dismantle criminal enterprises like this, who intend to financially profit from the exploitation and suffering of the American people.”
“Battling and keeping illegal narcotics - especially synthetic opioids - out of the U.S. Mail is one of the highest priorities of the U.S. Postal Inspection Service,” said Utah Postal Inspection Service Team Leader Jared Bingham. “In today’s world of Dark Web and cyber crimes, drug dealers don’t always fit the stereotypical image of years past where the danger and effect of their crimes was confined to local jurisdictions. The Dark Web allowed the defendants in this case to operate their criminal organization from the safety and comfort of their own homes. However, the danger and lethal effects of their drug dealing enterprise was not limited to individual cities and towns. Rather, it touched virtually every corner of our nation, and it’s wake of death and pain is just as wide. In cases like this, it is important that justice not only be served, but that it send the right message to would be Dark Web criminals. The Postal Inspection Service is grateful to the U.S. Attorney’s Office and our federal law enforcement partners for their diligence in investigating and prosecuting this important case.”
Assistant U.S. Attorneys and Special Assistant U.S. Attorney’s from the Utah Attorney General’s Office prosecuted the cases. Special Agents from the DEA’s Metro Narcotics Task Force, Homeland Security Investigations, IRS Criminal Investigations, Food and Drug Administrations Office of Criminal Investigations, and Inspectors from the United States Postal Inspection Service conducted the investigation.
15 July 2021
Woodsboro Man Sentenced to More Than 11 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Jeffrey John White, age 53, of Woodsboro, Maryland, to 133 months in federal prison, followed by 20 years of supervised release, for possession of child pornography. At the time of his federal offense, White was on supervised probation for a previous conviction for similar conduct in Montgomery County Circuit Court. Judge Gallagher ordered White to pay a $5,000 special assessment and $3,000 in restitution. Judge Gallagher also ordered that White 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; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith III.
According to his guilty plea, White was previously convicted of two counts of possession of child pornography in the Circuit Court of Montgomery County on September 25, 2014. The conviction arose from White’s possession of almost 10,000 files of child sex abuse material. For that conviction, White was sentenced to five years imprisonment, suspended, and five years of supervised release. On September 30, 2015, White was found to have violated his probation and was sentenced to five years in prison with all but 18 months suspended, followed by four years of supervised probation.
From April 14, 2020 through July 2020, while on supervised probation for his previous child pornography conviction, White began to use a peer-to-peer file sharing network to access, distribute and possess child pornography. On three separate occasions in April 2020, investigators with the Frederick County Sheriff’s Office were able to establish twenty direct connections with a device, later determined to be White’s laptop and SD card, to view and download known files of child pornography, including a one hour and thirty-nine second video depicting a prepubescent 12-year-old victim.
On July 6, 2020 law enforcement executed a search warrant at White’s Woodsboro residence and seized White’s laptop and SD card. White told law enforcement that it was his laptop, however he claimed he did not know how to access the encrypted laptop. White also claimed to have no knowledge of child pornography activity on the file sharing network. Additionally, a child-sized sex-doll with an anal and vaginal opening was located during the execution of the search warrant.
Federal agents were able to decrypt White’s laptop and forensically examine its hard drive, recovering 7,000 images and more than 240 videos of child pornography. Child pornography found on White’s laptop was similar to the images investigators initially downloaded from White’s IP address. In addition, thousands of child erotica files were also discovered on White’s laptop and SD card.
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, Frederick State’s Attorney’s Office, the Frederick Sheriff’s Office, and the Frederick County Cyber Crimes Task Force for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland, Jr. and Special Assistant U.S. Attorney Joyce King, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Wise County Man Sentenced in Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Wise County, Virginia man, who conspired with others to file for fraudulent pandemic unemployment benefits, was sentenced today to 87 months in prison for conspiring to defraud the United States and conspiring to commit mail fraud.
According to court documents, Travis Kilgore, 34, defrauded the government of more than $182,474 in pandemic unemployment benefits beginning in May 2020. Kilgore was also ordered to pay $164,470 in restitution. The government previously recouped $18,004.
“When Kilgore filed numerous false claims for pandemic insurance benefits, he committed a serious crime and stole funds designed to help those truly in need because of the international pandemic,” Acting U.S. Attorney Bubar stated today. “We are thankful for the good work of the investigative team, including the Department of Labor, IRS and our state and local partners, and will continue to closely work together to bring all who stole from these important programs to justice.”
“Travis Kilgore conspired with others to commit fraud against the Pandemic Unemployment Assistance Program by filing for and receiving benefits that he and others were not entitled to receive. The U.S. Department of Labor Office of Inspector General will continue to work closely with the Virginia Employment Commission and our law enforcement partners, to safeguard the integrity of all unemployment assistance programs,” stated Syreeta Scott, Acting Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“Fraud involving falsely receiving pandemic relief funds is particularly cold-hearted. Those dishonestly taking advantage of programs meant to help people in need during a global crisis need to be held accountable for their criminal actions. Today, another individual who stole pandemic unemployment benefits received the consequences of their actions,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington D.C. Field Office.
Kilgore admitted that he and his wife developed a scheme beginning in May 2020 to defraud the United States and the Virginia Employment Commission (VEC) through the filing of fraudulent claims for pandemic unemployment benefits.
According to court documents, Kilgore, his wife, and others filed claims for pandemic unemployment benefits through the VEC website. The scheme involved submitting claims for various individuals, including Kilgore and his wife, who were not eligible to receive pandemic unemployment benefits. Kilgore falsified the filings as part of the scheme to appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, Kilgore reverified and re-certified the false statements on numerous occasions throughout the scheme.
In all, Kilgore and his wife filed claims for approximately 21 other individuals, causing at least $182,474 in false claims to be paid.
The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
Waubay Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Waubay, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Levi Ambrose Locke, age 29, was sentenced to 36 months in federal prison, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Locke was indicted by a federal grand jury on January 12, 2021. He pled guilty on April 12, 2021.
The conviction stemmed from an incident on or about October 2, 2020, when Locke, who had previously been convicted of a crime punishable by imprisonment for a term exceeding one year and was also an unlawful user of a controlled substance, possessed a Sturm Ruger .22 long rifle, semi-automatic rifle, which had been shipped and transported in interstate and foreign commerce.
Locke knew he was prohibited from owning firearms due to his previous conviction.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Locke was immediately turned over to the custody of the U.S. Marshals Service.
Watertown Man Sentenced for Making and Subscribing a False Tax ReturnRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Watertown, South Dakota, man convicted of Making and Subscribing a False Tax Return was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Dean Minnerath, age 70, was sentenced to 30 months in federal prison, one year of supervised release, $50,000 fine, restitution in the amount of $1,358, 990, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
An Information was filed on December 30, 2020 and Minnerath pled guilty to that information on January 8, 2021.
The conviction resulted from the filing of his 2014 Individual Income Tax Return. Minnerath, who owned and operated Discount Seeds, Inc., understated his income by claiming personal expenses as business expenses. Investigation of his financial records indicated Minnerath failed to include over $1,000,000 in income he received and therefore owed additional income tax of $404,445. As part of a plea agreement with the government, Minnerath agreed to pay additional income tax he owed for tax years 2009 through 2013. By the time of the sentencing hearing, Minnerath paid $1,358,990 in income tax.
This case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Minnerath has been allowed to self-surrender to the U.S. Marshals Service by August 3, 2021.
U.S. Government Launches First One-Stop Ransomware Resource at StopRansomware.govRead the Press Release
Today, as part of the ongoing response, agencies across the U.S. government announced new resources and initiatives to protect American businesses and communities from ransomware attacks. The U.S. Department of Justice (DOJ) and the U.S. Department of Homeland Security (DHS), together with federal partners, have launched a new website to combat the threat of ransomware. StopRansomware.gov establishes a one-stop hub for ransomware resources for individuals, businesses and other organizations. The new StopRansomware.gov is a collaborative effort across the federal government and is the first joint website created to help private and public organizations mitigate their ransomware risk.
“The Department of Justice is committed to protecting Americans from the rise in ransomware attacks that we have seen in recent years,” said Attorney General Merrick B. Garland of the Justice Department. “Along with our partners in and outside of government, and through our Ransomware and Digital Extortion Task Force, the Department is working to bring all our tools to bear against these threats. But we cannot do it alone. It is critical for business leaders across industries to recognize the threat, prioritize efforts to harden their systems and work with law enforcement by reporting these attacks promptly.”
“As ransomware attacks continue to rise around the world, businesses and other organizations must prioritize their cybersecurity,” said Secretary Alejandro Mayorkas for the Department of Homeland Security. “Cyber criminals have targeted critical infrastructure, small businesses, hospitals, police departments, schools and more. These attacks directly impact Americans’ daily lives and the security of our nation. I urge every organization across our country to use this new resource to learn how to protect themselves from ransomware and reduce their cybersecurity risk.”
StopRansomware.gov is the first central hub consolidating ransomware resources from all federal government agencies. Before today, individuals and organizations had to visit a variety of websites to find guidance, latest alerts, updates and resources, increasing the likelihood of missing important information. StopRansomware.gov reduces the fragmentation of resources, which is especially detrimental for those who have become victims of an attack, by integrating federal ransomware resources into a single platform that includes clear guidance on how to report attacks, and the latest ransomware-related alerts and threats from all participating agencies. StopRansomware.gov includes resources and content from DHS’s Cybersecurity and Infrastructure Security Agency (CISA) and the U.S. Secret Service, the DOJ’s FBI, the Department of Commerce’s National Institute of Standards and Technology (NIST), and the Departments of the Treasury and Health and Human Services.
Ransomware is a long-standing problem and a growing national security threat. Tackling this challenge requires collaboration across every level of government, the private sector and our communities. Roughly $350 million in ransom was paid to malicious cyber actors in 2020, a more than 300% increase from the previous year. Further, there have already been multiple notable ransomware attacks in 2021, and despite making up roughly 75% of all ransomware cases, attacks on small businesses often go unnoticed. Like most cyber attacks, ransomware exploits the weakest link. Many small businesses have yet to adequately protect their networks, and StopRansomware.gov will help these organizations and many more to take simple steps to protect their networks and respond to ransomware incidents, while providing enterprise-level information technology (IT) teams the technical resources to reduce their ransomware risk.
DHS, DOJ, the White House and our federal partners encourage all individuals and organizations to take the first step in protecting their cybersecurity by visiting StopRansomware.gov.
U.S. Attorney’s Office Promotes 2021 Virtual Safe Surrender ProgramRead the Press Release
WASHINGTON – The Superior Court of the District of Columbia is hosting the final two days of its Virtual Safe Surrender Program this Friday, July 16, and Saturday, July 17. “Safe Surrender” is a program that allows an individual to take care of a misdemeanor bench warrant without having to visit the courthouse or a police station. Anyone wishing to surrender voluntarily can participate on their computer or smartphone.
“The U.S Attorney’s Office for the District of Columbia encourages anyone who has an outstanding bench warrant in a misdemeanor case, or who may have missed a court hearing and is unsure of what to do, to take part in DC Safe Surrender,” said Acting U.S. Attorney Channing D. Phillips. “Prosecutors will credit you for you taking responsibility and coming forward to handle the warrant without the involvement of the police. Participants will be treated respectfully, and defense attorneys will be available to represent persons who wish to have a lawyer. A participant’s warrant may even be taken care of the day that they log in to DC Safe Surrender. The U.S. Attorney’s Office for the District of Columbia urges individuals to take advantage of the final days of this program.”
The Court strongly encourages registration in advance at: http://DCCourts.gov/safesurrender.
Two South Bay Residents Plead Guilty to Securities FraudRead the Press Release
SAN FRANCISCO – Benjamin J. Wylam and Nathaniel A. Brown each pleaded guilty in federal court today to one count of securities fraud related to Wylam’s engaging in transactions in corporate securities after receiving from Brown material nonpublic information about the corporation issuing the securities, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig Fair. Wylam’s and Brown’s plea agreements were accepted by the Honorable Edward M. Chen, United States District Judge.
Brown, 49, and Wylam, 42, both of San Jose, Calif., pleaded guilty to the charge signing separate plea agreements. According to Brown’s plea agreement, Brown admitted that, between 2011 and 2017, he was employed as a Senior Revenue Manager at Infinera Corporation (“Infinera”), a Sunnyvale-based technology company. Infinera’s common shares were registered pursuant to Section 12(b) of Securities Exchange Act of 1934 and publicly traded on the NASDAQ Stock Market under the ticker symbol INFN. During Brown’s employment at Infinera, he was regularly privy to material nonpublic information about Infinera’s financial performance and financial projections. Beginning in or about April 2016 and continuing until the termination of his employment from Infinera in November 2017, Brown admitted that he regularly shared material nonpublic information that he obtained during his employment with Wylam. Brown admitted he knew Wylam intended to, and did, use the material nonpublic information to purchase Infinera securities in advance of Infinera’s quarterly public earnings announcements.
According to Wylam’s plea agreement, Wylam admitted that between April 2016 and November 2017, he obtained material nonpublic information about Infinera, and then engaged in transactions in Infinera securities. Wylam admitted that he obtained this material nonpublic information directly from Brown. As with Brown, Wylam admitted Infinera’s common shares were registered pursuant to section 12(b) of Securities Exchange Act of 1934 and publicly traded on the NASDAQ Stock Market under the ticker symbol INFN. Wylam acknowledged the gross gains he made from trading based on material nonpublic information belonging to Infinera that he received from Brown amounted to approximately $999,959.
The plea agreements further revealed the steps Brown and Wylam took to conceal their actions and relationship. Both men admitted to having begun using the messaging application WhatsApp to communicate with each other because of its encrypted communications and as an extra measure to conceal the facts that Brown was providing Wylam with material nonpublic information and that the two were friends. Both men admitted that Wylam also “unfriended” Brown on Facebook to achieve these ends.
In sum, Brown and Wylam were each charged with one count of securities fraud, in violation of 18 U.S.C. § 1348. The maximum statutory penalties for a violation of 18 U.S.C. § 1348 is 25 years in prison and the greater of either $250,000 or twice the gross gain made from the offense. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Judge Breyer scheduled the sentencing hearing for both defendants for October 28, 2021, at 10:30 a.m.
The Securities and Exchange Commission has filed a separate enforcement action against Brown and Wylam and four others. The announcement of that action can be viewed here.
Assistant U.S. Attorney Kyle Waldinger is prosecuting the case with assistance from Kathy Tat. This case was investigated by the FBI. The Department of Justice appreciates the assistance of the Securities and Exchange Commission.
Two Sentenced for PPP Loan Application Fraud Involving Trucking CompanyRead the Press Release
SALT LAKE CITY – Hubert Ivan Ugarte 52, of Draper, and Lisa Bradshaw Rowberry, 49, of Provo, have both been sentenced for their roles in unlawfully obtaining a Paycheck Protection Program (PPP) loan for Frisbu Trucking, Incorporated, where they were both employed.
Rowberry was sentenced to prison for a term of 12 months and a day last week in federal court. Her co-defendant, Hubert Ivan Ugarte, was sentenced to a term of 36 months in federal prison back in June for his role in the PPP loan fraud scheme. Ugarte’s sentence will run concurrently with a sentence that Ugarte received in a related case involving the bribery of officials at the Utah FedEx Ground Hub.
According to plea agreements in this case, Ugarte was the owner and operator of Frisbu Trucking, Inc. Ugarte hired Rowberry to work for Frisbu after she had been terminated from her role as an Assistant Vice President of U.S. Bank for engaging in financial transactions with Ugarte that violated U.S. Bank’s ethical policies. After Ugarte was indicted by a federal grand jury for his role in the FedEx bribery scheme, Ugarte’s many trucking businesses began to struggle because they were dependent on Ugarte’s ability to engage in business with the FedEx Ground Hub. In order to remain in business, Ugarte and Rowberry fraudulently applied for a PPP loan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and obtained $210,000 in loan funding. However, Rowberry and Ugarte both unlawfully failed to disclose that Ugarte was under federal indictment for his role in the FedEx bribery case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding, and Congress again authorized more than 284 billion in Additional PPP funding in 2021.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the case against Rowberry and Ugarte. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Three Men Indicted for Trafficking Cocaine and Methamphetamine in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Fresno residents David Garcia, 31; Luis Perez, 34; and Gerardo Perez, 48, charging them with conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
Garcia was charged in three additional counts: one count of distributing cocaine and methamphetamine, one count of distributing cocaine, and one count of being a felon in possession of a firearm.
According to court documents, between April 2020 and May 2021, the defendants worked together to distribute more than 500 grams of cocaine, some of which was adulterated with methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Tulare County Sheriff’s Department, the Multi-Agency Gang Enforcement Consortium, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, each defendant faces a mandatory minimum sentence of 10 years in prison and maximum statutory penalty of life in prison and a $10 million 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Man Pleads Guilty to $1.5 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Houston, Texas, man pleaded guilty in federal court today to defrauding two Kansas City-area brothers who have also been convicted in the investment fraud scheme.
Duc Nguyen, also known as “Doug,” 57, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of wire fraud.
By pleading guilty today, Nguyen admitted that he engaged in a fraud scheme from April 2018 to August 2019 in which he proposed an opportunity for high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. He told Phillip Hudnall of Lenexa, Kansas, and his brother, Brian Hudnall, of Kansas City, Missouri, that profit from these transactions would be three to five times the amount of the investment. Brian and Phillip Hudnall raised money from investors based upon these representations from Nguyen.
For example, Brian Hudnall wire transferred $415,000 to Nguyen between May 3 and Sept. 19, 2018, for the purchase, refurbishment, and shipping of the oil equipment. Brian Hudnall wire transferred an additional $80,000 to Nguyen on Feb. 26, 2019. Phillip Hudnall transferred $1,075,000 to Nguyen between April 15 and June 17, 2019, for the purchase, refurbishment, and shipping of the oil equipment.
Nguyen admitted that he did not use any of the monies for the purchase, refurbishment, and shipment of used oil equipment, but instead spent the money on personal expenses.
Phillip and Brian Hudnall pleaded guilty in June 2020, in separate but related cases, to their roles in the investment fraud scheme and await sentencing.
Phillip Hudnall told investors that his company, BirdDog Business Group, LLC, had completed two successful transactions – a $244,000 loan and a $490,000 loan, both of which had been repaid with an interest rate of 30 percent. In fact, no prior completed transactions occurred and no monies were received from the sale of any oil equipment including any principal or interest. To support the false claim, Phillip Hudnall requested that Brian Hudnall create documents as proof of the prior successfully completed transactions. Brian Hudnall wrote two checks on the bank account of his business, DonDon LLC, which was closed. Brian Hudnall also created a fraudulent memorandum to support the false claim.
Phillip Hudnall told investors their funds would be used to purchase specific pieces of oil equipment for refurbishment and resale. Persons invested approximately $3.6 million for the purpose of purchasing specific pieces of oil equipment. Phillip Hudnall and another person also obtained a loan from a bank in Pittsburgh, Pennsylvania, for approximately $1.3 million to finance the oil equipment scheme. Most of the money raised from investors, however, was spent on personal expenses.
Under federal statutes, Nguyen is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI and the Securities and Exchange Commission.
Tallahassee Man Indicted for Conspiracy to Produce, Distribute, Possess, and Receive Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Eric Matthew Lipman, 59, of Tallahassee, Florida, was arrested this morning after a federal grand jury in Tallahassee returned an indictment charging him with conspiracy to produce, distribute, possess, and receive child pornography. The indictment was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Beginning February 8, 2021, through February 11, 2021, the indictment alleges that Lipman conspired to distribute, receive, and possess material containing child pornography. The indictment alleges that as part of the conspiracy, Lipman, along with others, was a participant in Mega.NZ chat groups that distributed, received, possessed, and discussed child pornography images and videos. It is further alleged that the participants posted child pornography images and videos within Mega.NZ chat groups for the benefit of other like-minded participants. The indictment alleges that Mega.NZ was an Internet cloud storage and file hosting service based in New Zealand. Lipman is also charged with receiving, distributing, and possessing material containing child pornography. The pornographic material allegedly found in Lipman’s possession involved a prepubescent minor, as well as a minor under the age of 12.
Lipman faces a maximum penalty of 20 years in prison for conspiracy, receiving material containing child pornography, and distributing material containing child pornography, with a minimum mandatory sentence of 5 years in prison, and a maximum penalty of 10 years in prison for possession of material containing child pornography, followed by a term of 5 years to life of supervised release on all counts following his prison sentence.
This case resulted from an investigation by the Leon County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Justin M. Keen is prosecuting the case.
A jury trial for Lipman is scheduled for August 23, 2021, at 8:15am. He will be tried before the Honorable United States Chief District Judge Mark Walker at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access 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 for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Sylvania, GA man sentenced to federal prison for distributing child pornographyRead the Press Release
STATESBORO, GA: A Screven County man was sentenced to federal prison after admitting that he distributed child pornography.
Daniel Boulineau, 34, of Sylvania, Ga., was sentenced to 63 months in prison after pleading pled guilty to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S District Court Chief Judge J. Randal Hall also ordered Boulineau to pay restitution to the victims in the case, to register as a sex offender, and to serve 25 years of supervised release after completion of his prison term.
There is no parole in the federal system.
“In collaboration with our law enforcement partners, we will relentlessly pursue predators who prey upon vulnerable children,” said Acting U.S. Attorney Estes. “Daniel Boulineau’s incarceration will hold him accountable and protect other vulnerable citizens from this predator.”
As outlined in court documents and testimony, in early August 2020, Boulineau admitted that he electronically distributed images and videos of a minor engaging in sexually explicit conduct. An investigation by the FBI and the Child Exploitation Task Force into online activity led to Boulineau’s arrest on Sept. 1, 2020, after he used an online messaging service to share videos and images of child exploitation with an undercover investigator.
“This sentence demonstrates the determination of the FBI and U.S. Attorney’s Office to find those who prey on children in our communities and bring them to justice,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The trauma suffered by a child who is sexually abused is deplorable and even more so every time images of that abuse are distributed and viewed.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Subcontractor Employee Working at Cyril E. King Airport Pleads Guilty to Possessing with Intent to Distribute 4.6 Kilos of CocaineRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert announced today that Keilin Lopez Lopez, 22, a resident of St. Thomas, pleaded guilty in federal court to possession with intent to distribute approximately 4.6 kilograms of cocaine.
According to court documents, on July 31, 2020 at approximately 6:30 p.m., a Virgin Islands Port Authority employee witnessed a male tampering with a trashcan in a stall in the male restroom located inside the Cyril E. King terminal. Officers removed the trashcan from the wall, revealing an open recess in between both sides of the interior wall. One large, brick-shaped bundle and one small, brick-shaped bundle containing approximately 4.6 kilograms of cocaine was lying at the bottom of the recess where the trashcan was previously inserted.
Airport surveillance footage showed a male, later identified as Keilin Lopez Lopez, wearing a backpack enter the bathroom where the bundles were discovered. Officers located Mr. Lopez who is an employee for a company contracted to work on the airport remodel. After being advised of his constitutional rights, Mr. Lopez waived them and stated he removed the trashcan from the wall in the restroom stall and placed the bundles inside the wall.
Lopez faces up to 40 years imprisonment and a fine of up to $5,000,000.00. A sentencing date will be set by the Court.
This case is being investigated by Homeland Security Investigations and U.S. Customs and Border Patrol and is being prosecuted by Assistant United States Attorney Juan Albino. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
St. Francis Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on July 12, 2021, by U.S. District Judge Karen E. Schreier.
Darius Adrian Two Eagle, age 29, was sentenced to 360 months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Two Eagle was indicted by a federal grand jury on October 6, 2020. He pled guilty on March 29, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately October 2020, when Two Eagle, along with at least one other person reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the U.S. Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Two Eagle was immediately turned over to the custody of the U.S. Marshals Service.
South Florida Man Pleads Guilty to Multi-Million Dollar Investment Scam Targeting the Elderly, Spending Investor Money on Gambling, Jewelry, and Luxury VehiclesRead the Press Release
Miami, Florida – Isaac Grossman, 46, of Parkland, Florida, pled guilty today to wire fraud, mail fraud, and money laundering charges, for directing an elder fraud scheme in which he sold stock in his South Florida-based technology company to elderly investors across the country, and then misappropriated the investors’ funds for his own personal use.
During a hearing this morning in federal district court in Ft. Lauderdale, Grossman admitted that from September 2014 through April 2018, he raised approximately $2.4 million in investor funds for his company, Dragon-Click Corp., by soliciting investments from elderly retirees nationwide. Grossman told potential investors that Dragon-Click was developing an internet application that would revolutionize internet shopping by allowing a user to upload a photograph of any item the user wanted to purchase, identify all retailers offering that item for sale, provide price comparisons for that item across retailers, and provide a link to retailers’ websites where the user could purchase the item. Grossman admitted that he solicited funds by falsely telling potential investors they would double, triple, or quadruple their investments, and that Dragon-Click was on the verge of being sold to a large technology company, such as Google, Apple, or Amazon, for over $1 billion. He concealed from investors that, prior to raising funds for Dragon-Click, he had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker-dealer or associating with any broker-dealer firm, and that he had been permanently banned from commodities trading by the U.S. Commodity Futures Trading Commission (“CFTC”).
Grossman admitted that he falsely told investors that their investment money would be used to complete the technological development of the Dragon-Click internet application, to pay legal fees related to the patent application process, and to close the sale of the application to a large technology company. But rather than using investors’ money for any legitimate business purpose Grossman admitted that he misappropriated investors’ funds for his own personal use. Specifically, Grossman admitted that he spent $1.3 million of investors’ money on gambling, diamond jewelry, luxury cars, home mortgage payments, tuition payments for his children’s private school education, and other personal expenditures. For example, Grossman’s unlawful expenditures included a McLaren MP4-12C, a Chevrolet Corvette, and a 4.81 carat diamond ring.
Grossman is scheduled to be sentenced on September 23, at 12:00 p.m., by U.S. District Judge Raag Singhal, who sits in Ft. Lauderdale. Grossman faces up to 50 years in prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
Acting United States Gonzalez commended the investigative efforts of the FBI’s Miami Field Office and also thanked the SEC’s Miami Regional Office for their assistance, as they had filed a parallel civil enforcement action against Grossman. See SEC v. Isaac Grossman, et al., Case No. 18-61234-CV-BB (S.D. Fla.). This case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-60300.
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Sixteen Members of A White Supremacist Gang Indicted for Violent Crimes in Aid of RacketeeringRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging 16 individuals with violent crimes in aid of racketeering. The names of the individuals, their charges, and their potential penalties appear in the chart below.
According to the indictment, the defendants were members of Unforgiven, a racketeering enterprise engaged in acts of murder, violence, kidnapping, robbery, obstruction of justice, and other offenses. The indictment also alleges that Unforgiven used “corrupt law enforcement officers and state employees” to gather information about people, investigations, and prosecutions, and to smuggle contraband to incarcerated inmates. The indictment charges each of the 16 defendants with committing at least one violent act in aid of Unforgiven, including kidnappings, conspiracies to commit assault, threats of violence, and assaults with deadly weapons.
One charge accuses David Howell of assaulting protestors with a dangerous weapon at a Peace Walk for Black Lives held on June 5, 2020.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Florida Department of Law Enforcement, the St. Petersburg Police Department, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found https://www.justice.gov/OCDETF.
Defendant (Age)
Charges
Maximum Penalties
Maverick Maher, a/k/a Saxon
(39)
Pensacola
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Six: Threats of Violence in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(4) and 2 Maximum term of 5 years in prison; 3 years of supervised release; and a $250,000 fine Count Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Count Nine: Threats of Violence in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(4) Maximum term of 5 years in prison; 3 years of supervised release; and a $250,000 fineJoshua Fisher, a/k/a Hammer
(27)
Brooksville
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Three: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Five: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Levi Sharp, a/k/a Sketch
(38)
Satsuma
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Three: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineGeorge Andrews, II, a/k/a Shrek
(51)
Pensacola
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineJames Mapoles, a/k/a Matt Mapoles a/k/a Matt Criston
(40)
Panama City
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Six: Threats of Violence in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(4) and 2 Maximum term of 5 years in prison; 3 years of supervised release; and a $250,000 fineCount Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Count Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineDavid Howell
(35)
Loxahatchee
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Twelve: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Ryann Howard, a/k/a/ Auto
(39)
Orange Park
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineRyan McLaughlin, a/k/a Pretty Boy
(35)
Jacksonville
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Five: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineDarrin Terranova, a/k/a Nova
(51)
Beverly Hills
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineBrandon Welch, a/k/a Scumbag
(34)
Milton, Florida
Count One: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
- Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Joshua Williamson, a/k/a Chain Gang
36)
Live Oak
Count One: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
- Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Steve Anderson
(28)
Bristol
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Joshua Hall, a/k/a K9
(42)
Wildwood
Count Ten: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineCount Eleven: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Jarrett Arnold, a/k/a Jit
(31)
Zephyrhills
Count Ten: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Eleven: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineScott Marshall, a/k/a Solo
(45)
Port Richey
Count Ten: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Eleven: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineWilliam Walker, a/k/a The Duke
(38)
Jacksonville
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine