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15 July 2021
Fleming County Magistrate Sentenced to 66 Months for Crop Insurance Fraud and Tax FraudRead the Press Release
FRANKFORT, Ky. – Christopher G. Hickerson, 47, a Fleming County Magistrate and farmer, was sentenced to 66 months in federal prison Wednesday, by U.S. District Judge Gregory Van Tatenhove, for conspiracy to commit crop insurance fraud and tax fraud.
The evidence presented established that, from 2009 until 2016, Hickerson filed false claims of loss on his Multi-Peril Crop Insurance (“MPCI”) policies. MPCI policies are federally sponsored crop insurance policies, which are funded through taxpayer money. In his plea agreement, Hickerson admitted to committing crop insurance fraud with the assistance of coconspirators Roger Wilson, former owner of Clay’s Tobacco Warehouse, and Debra Muse, former employee at Clay’s Tobacco Warehouse, by obtaining fake Clay’s Tobacco Warehouse sales receipts and grading reports that made it appear as though he produced and sold poor quality tobacco, and then submitting those on his claims of loss. Testimony during a sentencing hearing revealed that Hickerson employed other schemes to defraud the federal crop insurance program, including by placing crop insurance policies in his family member and friends’ names covering his own crop. As a result, Hickerson fraudulently caused a loss of nearly $1 million to the taxpayer-funded insurance program.
Hickerson further admitted that he underreported his crop sales income in 2012, 2013, and 2015. This caused a second loss to the federal government – this time to the IRS – of more than $150,000 in unpaid taxes.
Under federal law, Hickerson must serve 85 percent of his sentence. Upon his release from prison, he will be under the supervision of the United States Probation Office for a period of three years. Hickerson must also pay restitution that will be determined later by the Court.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky;
Jason M. Williams, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance, Fraud Investigation Division, jointly announced the sentence.
The investigation was conducted by the USDA, FBI, IRS, and the Kentucky Department of Insurance. The United States was represented by Assistant U.S. Attorneys Kathryn Anderson and Erin Roth.
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Felon Sentenced to over Four Years in Prison for Unlawfully Possessing a Gun and Leading Police on a Car ChaseRead the Press Release
A convicted felon who unlawfully possessed a gun and led the police on a car chase was sentenced today to more than four years in federal prison.
Dennis Lawson, age 23, from Sioux City, Iowa, received the prison term after a December 23, 2020 guilty plea to one count of being felon in possession of a firearm.
Evidence at the plea and sentencing hearings showed that, on February 23, 2020, Lawson was the driver of a car parked in a parking lot in Cedar Rapids. A woman was in the car with him. Both were seen using a needle to ingest drugs. Officers approached Lawson’s car and he took off out of the parking lot. Officers chased Lawson, who eventually crashed his car into two trees. During the chase, Lawson forced his passenger to throw a gun out the window, which officers immediately recovered. After the crash, Lawson tried to run, but slipped and fell.
Lawson has multiple prior felony convictions, including a conviction for burglary and two prior convictions in state court for being a felon in possession of a firearm.
Additional evidence showed that, on May 16, 2021, Lawson was incarcerated in the Bremer County jail while awaiting sentencing. On that day, Lawson used a sock with a bar of soap in it to assault another inmate. Lawson also insulted and shoved a jail employee who was attempting to stop the assault. As a result of this conduct, Lawson lost credit for accepting responsibility and received an increased sentence.
Lawson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lawson was sentenced to 51 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lawson 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 Anthony Morfitt and investigated by the Cedar Rapids Police Department and the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, the Marion Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-63.
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Federal Jury Convicts Man of Sexually Abusing a Minor Aboard Flight to MinneapolisRead the Press Release
MINNEAPOLIS – A federal jury convicted a Minneapolis man for engaging in abusive sexual contact on an airplane, announced Acting U.S. Attorney W. Anders Folk.
Following a three-day trial before Judge Nancy E. Brasel, Neeraj Chopra, 40, was convicted on one count of abusive sexual contact.
According to the evidence presented at trial, in April 2019, Chopra knowingly engaged in abusive sexual contact with a 16-year-old victim who was seated next to him aboard a Jet Blue flight from Boston to Minneapolis. During the flight, Chopra retrieved a blanket from his backpack and draped it over his lap, with a portion of the blanket also covering the victim’s right leg. Chopra put his hand under the blanket and began inappropriately touching the victim. Chopra ignored the victim’s multiple requests to stop and continued to inappropriately touch the victim.
Chopra faces up to two years in prison and a fine up to $250,000. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the Federal Bureau of Investigation, with assistance from the Minneapolis-St. Paul Airport Police.
This case was tried by Assistant U.S. Attorneys Lauren O. Roso and Michelle E. Jones.
Federal Jury Convicts California Man of Methamphetamine, Heroin Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a California man for participating in a methamphetamine and heroin trafficking conspiracy, announced Acting U.S. Attorney W. Anders Folk.
Following a three-day trial before Judge Eric C. Tostrud, Joel Llamas Garcia, 49, was convicted of a single count of conspiracy to distribute methamphetamine and heroin.
According to the evidence presented at trial, on September 21, 2020, law enforcement received information that three California men, Garcia and two co-conspirators, had traveled to Minnesota for a narcotics transaction and were staying at a motel in Maplewood, Minnesota. Since arriving in Minnesota, the men had taken possession of the narcotics and arranged for another individual, who turned out to be an undercover law enforcement officer, to take possession of the narcotics for safekeeping. Later that same day, the undercover officer arrived at the motel and received from Garcia a duffel bag containing 19.46 pounds of methamphetamine that was divided into 20 small plastic containers, and six bricks of heroin that weighed a total of 13.11 pounds.
The following day, law enforcement officers executed a search warrant on the motel room and the vehicle Garcia and his co-conspirators drove from California. Officers arrested Garcia and found .277 grams of methamphetamine on his person.
Garcia faces up to life in prison. At sentencing, a federal district court judge will determine the sentence accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the Drug Enforcement Administration (DEA), the Minnesota Bureau of Criminal Apprehension, IRS-CI, Minneapolis-St. Paul Airport Police Department, Minnesota State Patrol and the Ramsey County Sherriff’s Office.
This case was tried by Assistant U.S. Attorneys LeeAnn K. Bell and Jordan L. Sing.
Federal Drug and Gun Charges Brought Against Fresno Man Accused of Dealing FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Andres Nunez, 23, of Fresno, charging him with distribution of fentanyl to a person under 21 years old and possession of a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 9, 2021, Nunez delivered a substance containing fentanyl to a person under 21 years of age. In June 2021, agents executed a search warrant at Nunez’s residence. In his bedroom, they found approximately 13 firearms, including a “ghost gun,” a Glock-style handgun with no serial number. Attached to the gun was an “auto-sear,” a device that attaches to a firearm enabling it function as a machine gun. Agents also found two additional “auto-sears,” a digital scale, packaging materials, a vacuum sealer, and four clear plastic bags, each containing approximately 1 pound of processed marijuana.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Nunez faces a maximum statutory penalty of life in prison and a $2 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fall River Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
BOSTON – A Fall River man was sentenced today in connection with a cocaine distribution conspiracy.
Alexander Santiago Medina, a/k/a “Flaco,” 33, was sentenced by U.S. Senior District Court Judge Douglas L. Woodlock to five years in prison and four years of supervised release. On March 9, 2021, Santiago Medina pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine.
From at least February 2019 through December 2019, Santiago Medina was involved in a cocaine distribution conspiracy. Investigators intercepted a number of communications between Santiago Medina and co-conspirators in furtherance of the conspiracy, including communications on June 17, 2019, in which Santiago Medina and various co-conspirators agreed to distribute two kilograms of cocaine or more. Later that day, investigators seized approximately two kilograms of cocaine from one of Santiago Medina’s co-conspirators. After Santiago Medina was arrested on Dec. 5, 2019, investigators searched a storage unit used by Santiago Medina and found a firearm and approximately 40 grams of a mixture and substance containing fentanyl.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joshua McCallister, Acting Inspector in Charge of the United States Postal Inspector Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Exotic Cat Keeper Sentenced for Gun CrimeRead the Press Release
A Canadian national who overstayed his visa to work as a keeper of exotic cats has been sentenced to 28 months in federal prison for a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following two days of trial, in March, a federal jury convicted Paul Michael Malagerio, 65, of unlawful alien in possession of firearms. He was sentenced today by U.S. District Judge James Wesley Hendrix.
At trial, agents testified that they arrested Mr. Malagerio based on an administrative warrant for visa overstay at the Whitley Acres Exotic Ranch in Levelland, Texas in November 2020. Inside his RV, they found an AR-15, a shotgun, and a 9 mm pistol. Mr. Malagerio also had a mountain lion on the property.
(Mr. Malagerio’s unlawful presence in the country prevented him from possessing firearms.)
In jailhouse phone calls, Mr. Malagerio indicated that he knew he was in the United States illegally: “So I’m guilty of it, but can we plead where I can go and pack my stuff, my animals… and leave with my tail between my legs?” he asked. [Audio available to credentialed media upon request.]
During a court proceeding in February, Mr. Malagerio testified that he worked for James Garretson, the exotic cat enthusiast turned FBI informant featured in Netflix's “Tiger King.”
In another jailhouse call, Mr. Malagerio claimed that Mr. Garretson had reported him to immigration authorities, telling a friend, “see, James [Garretson] is the only one that knows where I am and he threatened to do this about a month ago.”
Homeland Security Investigations, Immigration & Customs Enforcement’s Enforcement and Removal Operations, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Texas Game Wardens. Assistant U.S. Attorneys Ryan Redd and Jeffrey Haag prosecuted the case.
Enforcer of Violent Narcotics Trafficking Organization Sentenced to 35 Years in Prison for His Role in 7 MurdersRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JASON DONES-GONZALEZ, an enforcer for La Organización de Narcotraficantes Unidos (“La ONU”), was sentenced by U.S. District Judge Jesse M. Furman to 35 years in prison. DONES-GONZALEZ previously pled guilty to participating in a racketeering conspiracy, participating in a conspiracy to commit murder, and unlawfully possessing a machine gun.
U.S. Attorney Audrey Strauss said: “Jason Dones-Gonzalez was a ruthless murderer who carried out numerous acts of wanton and depraved violence as an enforcer for La ONU. As just one example, Dones-Gonzalez and an accomplice beat a man until he appeared to be dead, but just to be sure, he and the accomplice stuffed the victim’s body into a suitcase, transported it elsewhere, shot it, and lit it on fire. This degree of cold-blooded indifference to – indeed, apparent pleasure at – taking another human life merits a firm reckoning. Today Jason Dones-Gonzalez was rightly sentenced to 35 years in prison for his horrific crimes.”
According to the Indictment, other filings in this case, and statements during court proceedings:
From at least in or about 2004 until 2016, DONES-GONZALEZ was a member and enforcer of La ONU, a criminal enterprise involved in shipping thousands of kilograms of cocaine from Puerto Rico to New York. Cocaine supplied by La ONU was then distributed in New York City, including out of a daycare center in the Bronx, New York. Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations. In particular, members of the enterprise were ordered to shoot and kill suspected rival drug trafficking members.
As an enforcer for La ONU, DONES-GONZALEZ participated in the murder of at least seven people between approximately 2006 and 2010. Those murders involved heinous and brazen acts of violence, including, for example, kidnapping and killing individuals, strangling two individuals believed to be spies, interrogating them for information, and then shooting them, choking and shooting an individual believed to be cooperating with law enforcement, and assaulting an individual, placing that individual’s body in a suitcase, and shooting and lighting the suitcase on fire. Specifically:
In approximately 2006 or 2007, members of La ONU kidnapped and killed Freddy Mendez-Rivera after learning from corrupt law enforcement officers working for La ONU that Mendez-Rivera had complained to law enforcement about drug dealing occurring in his neighborhood. DONES-GONZALEZ and two other individuals put Mendez-Rivera into a van and killed him.
In 2007, DONES-GONZALEZ and three other individuals strangled two men alleged to be spies with twisted-up t-shirts while interrogating them for information. DONES-GONZALEZ and the others then shot the men, one of whom died.
In approximately 2008 or 2009, DONES-GONZALEZ and four other individuals dressed up as police officers and kidnapped an individual known as “Gabi,” a leader of a rival drug trafficking organization, from his home and killed him.
In 2009, DONES-GONZALEZ and another individual killed an individual known as “Sacca Grippe,” because they thought that he was cooperating with law enforcement. They choked and shot him.
On March 20, 2009, DONES-GONZALEZ and other members of La ONU murdered Carlos Barbosa on the orders of a leader of La ONU because Barbosa was threatening to take control of certain drug territory from that leader. DONES-GONZALEZ used a FN pistol, which is designed to fire multiple rounds upon a single pull of the trigger, and which fires ammunition that can penetrate body armor.
On November 27, 2009, DONES-GONZALEZ and other La ONU members assaulted Emanuel Correa Romero until he appeared dead. The leadership of a local housing project gang, after consulting with other leaders of La ONU, had decided that Correa Romero should be killed because he had murdered the friend of a leader of a component of La ONU. After the assault, DONES-GONZALEZ and another individual placed Correa Romero’s body into a suitcase, removed it from the housing project, and later reported back that they shot the suitcase and then lit it on fire.
On July 1, 2010, a leader of La ONU ordered the murder of Victor Alexis Rivera Santiago, a reggaeton singer who participated in narcotics trafficking, for stealing a kilogram of cocaine from the son of the leader’s friend and killing the son in the process. DONES-GONZALEZ and others tied Rivera Santiago up in the leader’s presence, transported him to an apartment, questioned him, and killed him.
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In addition to the prison term, Judge Furman sentenced DONES-GONZALEZ, 41, of Puerto Rico, to three years of supervised release.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department. Ms. Strauss also thanked the United States Attorney’s Office in the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lara Pomerantz, Justin Rodriguez, and Andrew Thomas are in charge of the prosecution.
Emanuel County woman sentenced after admitting to defrauding program for COVID-19 small business reliefRead the Press Release
STATESBORO, GA: An Emanuel County woman who admitted creating a fake business and using it to receive funding from a federal COVID-19 small business relief program has been sentenced in federal court.
Tracy Kirkland, 41, of Swainsboro, was sentenced to 33 months in prison after pleading guilty to an Information charging her with Wire Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hal also ordered Kirkland to pay restitution of $66,400, forfeit a 2019 Dodge Charger and $16,250, and serve three years of supervised release after completion of her prison sentence. There is no parole in the federal system.
“Tracy Kirkland has a disturbing history of two decades as a petty thief, and was on state probation when she stepped her crimes up another notch by defrauding the COVID-19 relief program,” said Acting U.S. Attorney Estes. “She is once again being held accountable for her criminal activity.”
As described in court documents and testimony, in August 2020 Kirkland received a federally guaranteed loan for $66,400 under the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program comprised of funds appropriated by the CARES Act. In applying for the funding, Kirkland falsely claimed to own “Kirklands Hair N Beauty,” a fictitious business with three employees in Swainsboro, that had suffered economic harm because of the COVID-19 pandemic.
Soon after receiving the SBA loan proceeds into her personal account, Kirkland, a previously convicted felon who was on state probation, used the funds to purchase a 2019 Dodge Charger R/T; made large cash withdrawals from her bank account; and made other non-business-related purchases.
“Lying to gain access to economic stimulus funds will be met with justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The U.S. Small Business Administration Office of Inspector General investigated the case with assistance from the Swainsboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Ammunition, with prosecution for the United States by Assistant U.S. Attorneys Steven H. Lee and Asset Recovery Unit Chief Xavier A. Cunningham.
El Departamento de Justicia llega a un acuerdo con una compañía de servicios de reparto que resuelve una acusación de represaliasRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Around the Clock Dispatch Inc., una compañía de servicios de flete y reparto en Queens Village, New York. La conciliación resuelve la acusación del Departamento de que Around the Clock vulneró la disposición antidiscriminatoria de la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al tomar represalias contra un trabajador porque pidió la ayuda del Departamento para abordar sus preocupaciones acerca de una práctica de empleo relacionada con la inmigración.
El Departamento inició su investigación después de que el trabajador presentó una denuncia y determinó que Around the Clock suspendió al trabajador por tres días sin sueldo porque él había llamado a la Sección de Derechos Civiles de la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) para pedir ayuda para abordar una preocupación relacionada con el proceso que la compañía usa para verificar su autorización para trabajar. El programa de líneas directas de la IER ofrece información y ayuda a trabajadores y empleadores para prevenir la discriminación y resolver, de manera informal, posibles controversias laborales relacionadas con la inmigración, en el caso de que un trabajador pida tal intervención. La INA prohíbe la intimidación o la toma de represalias contra individuos que se oponen a lo que ellos creen, razonablemente, que son infracciones de la ley que la IER hace cumplir, incluyendo llamar a la línea directa de la IER. Las personas que presentan una denuncia ante la IER, cooperan con una investigación de la IER o que de otra forma hacen valer sus derechos o los de otras personas también están protegidos al amparo de esta ley.
«Los trabajadores no deben enfrentarse a consecuencias negativas por comentar sus preocupaciones acerca de medidas que podrían constituir una vulneración de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Animamos a los trabajadores y empleadores a comunicarse con la línea directa de la Sección de Derechos de Inmigrantes y Empleados para información sobre sus derechos y responsabilidades, para ayudar a resolver controversias lo más antes posible. La protección de aquellos que se comunican con la línea directa por motivos relacionados con represalias es esencial para garantizar su éxito».
Conforme la conciliación, Around the Clock pagará una sanción civil de 3.600 $ a los Estados Unidos y casi 900 $ por concepto de pagos retroactivos al individuo afectado. Por otra parte, la conciliación requiere que Around the Clock capacite sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y que se someta a los requisitos de supervisión y declaración del Departamento.
La IER, una sección que forma parte de la División de Derechos Civiles, es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Drug Trafficker Pleads Guilty to Role in 2011 Reston MurderRead the Press Release
ALEXANDRIA, Va. – A Beltsville, Maryland man and long-time fugitive pleaded guilty today to aiding and abetting a drug-related murder nearly a decade ago.
According to court documents, Saul Pacheco Mejia, 55, arranged to sell cocaine to individuals in Reston on December 12, 2011. On that date, Mejia and two associates arrived at an apartment in Reston in anticipation of the cocaine transaction. Instead of purchasing the cocaine, the intended customer attempted to steal the cocaine and flee. Mejia’s associates chased, shot, and killed the man. Mejia did not have a firearm, but knew the two other individuals did have firearms. Mejia and the others fled to Honduras shortly after the crime. In late 2019, Mejia was located in the United States and arrested in Texas.
Mejia pleaded guilty to aiding and abetting the use of a firearm in furtherance of a drug trafficking conspiracy, causing death. Mejia pleaded guilty to aiding and abetting the use of a firearm in connection with a drug conspiracy resulting in death. Mejia is scheduled to be sentenced on November 10. Under the plea agreement entered today, the parties have agreed that the Court will not sentence the defendant to more than 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorney Michael P. Ben’Ary is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-2.
Drug Supplier for D.C. and Prince George’s County Drug Conspiracy—Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Thomas Parker III, a/k/a “June,” age 53, of Washington, D.C., to 90 months in federal prison, followed by three years of supervised release, for his participation in a conspiracy to distribute fentanyl, heroin, and powder and crack cocaine. Eight co-defendants previously pleaded guilty to their roles in the drug conspiracy.
The sentence 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; Chief Malik Azziz of the Prince George’s County Police Department; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Charles County Sheriff Troy Berry.
According to Parker’s guilty plea, from September 2017 to July 2018, Parker and his co-conspirators distributed heroin, fentanyl, and powder and crack cocaine to drug users and distributors in the Maryland and D.C. area. Specifically, Parker supplied heroin and cocaine to co-defendants Arsenio Cleckley (a major narcotics trafficker in Maryland and Washington, D.C), and Diamante Hailey.
As detailed in his plea agreement, on March 9, 2018, Parker and Cleckley spoke over the phone and Parker told Cleckley that he was serving time in a halfway house, but that a co-conspirator could supply drugs to Cleckley until Parker was released. Shortly thereafter, the co-conspirator sold heroin to Cleckley. Cleckley later complained to Parker that the heroin he got from the co-conspirator was diluted too much. On March 12, 2018, Parker arranged to supply Cleckley with 28 grams of heroin and 31 grams of cocaine. The next day, Cleckley told Parker he wanted to purchase “28 plus 10,” which meant he wanted 28 grams of heroin for himself and 10 grams of heroin for one of his associates. During the conversation, Cleckley again complained about the quality of the heroin he had previously obtained from the co-conspirator. Later on March 13, 2018, Cleckley called Hailey and told him that Cleckley had obtained 10 grams of heroin on Hailey’s behalf from Parker.
Parker also admitted that on March 15, 2018, he distributed 28 grams of heroin to Cleckley in exchange for $1,800. Cleckley then contacted Hailey to let him know that Cleckley was going to direct heroin users to Hailey’s location so that the users could purchase heroin from Hailey. Later the same day, Cleckley told Hailey that Cleckley intended to purchase an additional 28 to 30 grams of heroin from Parker that Cleckley could split with Hailey.
Between March 20 and May 25, 2018, Parker and Cleckley continued to negotiate drug transactions, including a conversation where Cleckley asked Parker to lower the price he was charging for a gram of heroin, and conversations in which Parker advised Cleckley that Hailey and Cleckly owed him money. During one such call on May 25, 2018, Cleckley told Parker that he recently “fell in a hole” when one of Cleckley’s distributors, James Belt, was arrested in Accokeek, Maryland on May 18, 2018, with 32.5 grams of crack cocaine.
Co-defendants Arsenio Cleckley, a/k/a Bund, age 32 of Accokeek, Maryland; Diamante Lacelle Hailey, a/k/a Tay, age 27 of Clinton, Maryland; James Belt, a/k/a JB, age 32, of Lanham, Maryland; Alphonso Leroy Anthony Black, a/k/a Kobe, age 25 of Temple Hills, Maryland; Terri Bordeaux, a/k/a CeCe and Auntie, age 50, of Washington, D.C.; Christina Marshall, a/k/a Chrissy, age 32, of Accokeek; Devin Simmons, age 42, of Marbury, Maryland; and William Stewart, a/k/a Lil’ Will, age 24, also of Marbury, all previously pleaded guilty. Simmons, Belt, Hailey, Stewart, and Black were sentenced to between five years in federal prison and time served—approximately 22 months, each followed by three years of supervised release. The remaining defendants are scheduled to be sentenced in the next two months.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Prince George County Police Department, the DEA, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who are prosecuting the case.
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DaVita Inc. and Former CEO Indicted in Ongoing Investigation of Labor Market Collusion in Health Care IndustryRead the Press Release
Note: The defendants in this case, DaVita Inc. and Kent Thiry, were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in Denver returned a two-count indictment charging DaVita Inc. and its former CEO, Kent Thiry, for conspiring with competing employers not to solicit certain employees. DaVita owns and operates outpatient medical care centers across the country, focusing on dialysis and kidney care. These charges are the result of the Antitrust Division’s ongoing investigation into employee allocation agreements in the health care industry. DaVita’s co-conspirator Surgical Care Affiliates LLC and its related entity (collectively SCA) were charged in January, and that case is pending in the Northern District of Texas.
The indictment alleges that DaVita and Thiry both participated in two separate conspiracies to suppress competition for the services of certain employees. Count One charges DaVita and Thiry for conspiring with SCA to allocate senior-level employees by agreeing not to solicit each other’s senior-level employees from as early as February 2012 until as late as July 2017. Count Two charges DaVita and Thiry for conspiring with another health care company from as early as April 2017 until as late as June 2019 to allocate employees by agreeing that the other health care company would not solicit DaVita’s employees.
“Those who conspire to deprive workers of free-market opportunities and mobility are committing serious crimes that we will prosecute to the full extent of the law,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “We are grateful for our partnership with the FBI and our shared commitment to rooting out illegal collusion targeting labor markets.”
“These charges show a disturbing pattern of behavior among health care company executives to conspire to limit the opportunities of workers,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “The FBI is dedicated to working with our partners to hold those accountable who would engage in labor market collusion to the detriment of their employees.”
DaVita and Thiry are charged with two counts of violating the Sherman Act. The defendants are scheduled for their initial court appearance on July 20 before U.S. Magistrate Judge Kristen L. Mix of the U.S. District Court for the District of Colorado. If convicted, DaVita faces a maximum penalty of a $100 million fine per count, and Thiry faces a maximum penalty of 10 years in prison and a $1 million fine per count. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Today’s announcement is the result of an ongoing federal investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the Washington Field Office of the FBI.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ and Clark County Jail resolve alleged violations of Americans with Disabilities ActRead the Press Release
Seattle – The Clark County Jail in Vancouver, Washington and the U.S. Department of Justice today reached a settlement agreement to ensure equal access to services at the jail for persons who are deaf or hard of hearing. The investigation and settlement resulted from the complaint of a Clark County woman who is deaf and was denied auxiliary aids or services while incarcerated at the jail for two days. The settlement agreement calls for substantial updates to the policies and procedures at the jail. The complainant will be paid $25,000 by the Clark County Jail.
“When a person with communication disabilities has their liberty restrained by incarceration, the ability to effectively communicate is of critical importance. They must be able to provide and receive information about medical care, legal rights, and their basic human needs,” said Acting U.S. Attorney Tessa M. Gorman. “This settlement will help ensure that every person who is deaf or hard of hearing has the ability to effectively communicate and have equal access to services in their encounter with the Clark County corrections system.”
Following earlier lawsuits regarding services for persons who are deaf and hard of hearing, the Clark County Jail obtained assistive devices and services to ensure compliance with the Americans with Disabilities Act (ADA). Nevertheless, over the two days that the complainant, who is deaf, was in custody, the jail failed to provide any of those devices or other interpreter services to the complainant. Instead, during the complainant’s booking into CCJ on December 10, 2019, jail booking staff attempted to communicate using written notes, gestures, and typing on a computer screen. These less effective forms of communication were used during such critical information gathering as taking medical history and informing complainant about her basic rights, rules, and resources at the jail. The assistive devices that were purchased after prior lawsuits were never offered or provided.
The investigation also determined that jail staff are not trained in how to assess an inmate’s communication needs, despite the fact that the jail deals with many detainees who have hearing impairments. Since 2014 there have been multiple lawsuits against the Clark County Jail alleging discrimination against detainees with hearing impairments.
Under the terms of the settlement, within 60 days the jail will provide the U.S. Attorney’s Office with policies to improve effective communication with persons who are deaf and hard of hearing. Such policies will include the appointment of an Effective Communication Coordinator (ECC) who will be responsible for ensuring that the jail meets the requirements of the ADA. The policies will also require jail staff to use a communications assessment tool at the time of booking to ensure an inmate’s needs are met and require staff to take steps to ensure that inmate communication needs are reassessed throughout their incarceration. Under the terms of the settlement, the jail will log all requests for communication assistive devices and how the jail met those requests.
The settlement calls for the Clark County Jail to provide interpreter services in person or via video link for a variety of important interactions including but not limited to: medical appointments; educational classes; classification reviews; and religious services. The jail will also ensure that any emergency alerts at the facility are communicated in an effective visual form for inmates who are deaf and hard of hearing.
Additionally, the jail will prominently display information on assistive services for those who are deaf or hard of hearing. The jail will provide a video orientation with closed captioning for deaf and hard of hearing inmates. Finally, the jail will ensure inmates who are deaf or hard of hearing have access to videophones to communicate with legal counsel or family members.
The settlement also calls for the jail to modify its restraint and handcuffing policy so that inmates who are deaf or hard of hearing can communicate using American Sign Language or in writing by having their hands in front of their bodies, when safety permits.
The U.S. Attorney’s Office will monitor the Clark County Jail’s compliance with the settlement for the next three years. The jail will report to the U.S. Attorney’s Office on training of jail staff, the logs regarding request and use of assistive services and any complaints regarding compliance with the ADA. The reports are due every six months.
The matter is being handled by Assistant United States Attorney Christina Fogg. Ms. Fogg serves as the Civil Rights Coordinator for the U.S. Attorney’s Office, Western District of Washington. Learn more about our civil rights program here.
Columbus man who led online car sales scam sentenced to more than 14 years in prisonRead the Press Release
COLUMBUS, Ohio – The leader of an online car sales scam that cheated hundreds of victims around the country out of more than $10.6 million total was sentenced in federal court today to 170 months in prison.
Terry J. Boutwell, 38, of Columbus, and others, pretended to part of an eBay program in order steal money through fake car sales.
Boutwell pleaded guilty in July 2019 to conspiring to commit money laundering. As part of his sentencing, he is ordered to pay $10,639,225.91 in restitution.
Court documents outline that Boutwell and others operated the scheme from 2015 until October 2018. He and the other co-conspirators were part of a network that attracted online customers through fraudulent postings for vehicle sales.
Defendants communicated with victims through email and phone, posing as employees of eBay, and used third parties to open bank accounts in the names of shell corporations that appeared to be affiliated with eBay. They instructed victims to wire funds to various third-party bank accounts they set up. They claimed to be affiliated with eBay’s Buyer Protection Program, when in fact, no such relationship existed.
Accounts in Boutwell’s control received more than $10.6 million from more than 850 victims around the country.
“Boutwell and his co-conspirators may have been dedicated to carrying out this sophisticated scheme, but our law enforcement partners on all levels throughout the country were just as dedicated to getting justice for the hundreds of victims who lost hard-earned money to this criminal conspiracy,” said Acting U.S. Attorney Vipal J. Patel. “Now, through restitution, we hope to get that money back to them. In the meantime, Boutwell will be serving a lengthy stay in federal prison.”
“This case serves as an unfortunate reminder that scammers will find new and sinister ways to relieve you of your hard-earned dollars,” Patel added. “Any attempt to communicate or make payment outside of an online merchant’s existing system should be met with extreme skepticism and caution.”
Two co-conspirators have also been sentenced in this case. Tiffany A. Strobl, 41, of Columbus, was sentenced to five months in prison and ordered to pay more than $2 million in restitution. Shalitha R. Schexnayder, 41, of Miami, Florida, was sentenced to six months of home confinement as part of five years of federal probation.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the sentence imposed by U.S. District Court Judge Edmund A Sargus, Jr. Assistant United States Attorney Noah Litton is representing the United States in this case.
Acting U.S. Attorney Patel recognized the assistance of United States Secret Service in Toledo, Ohio and Miami, Florida; the FBI’s Baltimore field office; United States Postal Inspection Service in Detroit; New York State Police; the Canton, Ohio, Butler Village, Ohio, Mayfield Heights, Ohio, Bloomfield Township, Michigan, Marlboro Township, New Jersey and Janesville, Wisconsin police departments; and the Walworth County, Wisconsin and Clarke County, Alabama sheriff’s offices.
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Clairton Man Arrested for Violating Federal Drug and Gun Laws following Investigation Led by the Allegheny County Police DepartmentRead the Press Release
PITTSBURGH, Pennsylvania - A resident of Clairton, Pennsylvania, has been arrested in Clairton on charges of violating federal firearm and narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The criminal complaint named Darryl Craig, 41, of Clairton, Pennsylvania, as the sole defendant. Craig made an initial appearance today in U.S. District Court. A preliminary examination and detention hearing are scheduled for Monday, July 19, 2021, at 11:30 a.m. before Chief U.S. Magistrate Judge Cynthia Reed Eddy.
According to the complaint, investigators obtained a search warrant for Craig’s Mitchell Avenue residence. When they were executing the search warrant, they encountered Craig leaving the residence from a basement stairwell. They took Craig into custody for an active bench warrant from the Allegheny County Court of Common Pleas. In the course of their search, investigators found two semi-automatic handguns, several live rounds of ammunition for various different calibers, magazines, boxes for both a weapon mounted light and optic, body armor, approximately thirteen ounces of mixtures and substances the field-tested positive for cocaine some of which is suspected to be powder cocaine and some of which is suspected to be cocaine base in the form commonly known as crack, approximately twelve ounces of suspected marijuana, approximately six grams of suspected ecstasy pills, several pieces of indicia addressed to Darryl Craig at this residence, $58,351 in US currency, eight cellular telephones, keys to a Mercedes Benz belonging to Darryl Craig, and copious amounts of drug paraphernalia associated with processing, manufacturing, and packaging of both cocaine and crack cocaine for sale. Craig has prior felony convictions in the Allegheny County Court of Common Pleas for carrying a firearm without a license and for the manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance.
For the drug charge, the law provides for a maximum total sentence of 20 years in prison, a fine of $1 million or both if Mr. Craig is convicted. For the firearm charge, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, if Mr. Craig is convicted. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Mr. Craig is being detained pending a detention hearing.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department is leading the investigation and has been assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosive, the Clairton Police Department, and the Elizabeth Township Police Department in conducting the investigation, leading to the arrest of Mr. Craig.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cherokee Citizen Charged for Robbing a Sand Springs Gas Station and Assaulting the OwnerRead the Press Release
A Cherokee citizen was charged by Criminal Complaint today for robbing a gas station owner in Sand Springs, announced Acting U.S. Attorney Clint Johnson.
Camaran Blake Breazeale, 29, of Sand Springs, was charged with first degree robbery in Indian Country.
On July 13, the Sand Springs Police Department responded to a male loitering at a gas station. An officer arrived and notified Breazeale to leave the property’s premises.
Approximately twenty minutes later, the defendant returned to the gas station and said to the owner, “This is my store. Give me everything now.” According to the affidavit, video footage showed Breazeale striking the defendant with his fist multiple times and knocking him down. Then, he allegedly grabbed a shotgun and used the butt of the firearm to strike the victim repeatedly in the head saying, “Stop don’t move, or I will shoot you.” Breazeale then took cash from the register and exited the station.
The same police officer who responded to the initial loitering call was in the area when he heard a driver in a parked car yell at Breazeale on the north side of the store. As he approached Breazeale, a customer came running out to the store saying a man was on the floor covered in blood.
Breazeale then allegedly walked up to the officer and handed over the money saying “he gave me that.” His right hand appeared to have blood on it. The officer secured the defendant and rendered aid to the victim who was unconscious in the store with multiple injuries. The victim was transported by ambulance to an area hospital.
The crime occurred on the Muscogee Nation Reservation.
This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The FBI and Sand Springs Police Department are the investigative agencies. Assistant U.S. Attorneys Thomas E. Buscemi and Victor A.S. Régal are prosecuting the case.
California Man Sentenced to Four Years Imprisonment for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mexican national who had been living in southern California, who pleaded guilty to Conspiracy to Distribute a Controlled Substance in South Dakota was sentenced on July 9, 2021 by U.S. District Court Judge Jeffrey L. Viken.
Uzziel Alejandro Carillo-Rojas, age 34, was sentenced to four years in federal prison, followed by three years supervised release, and a $100 special assessment to the Federal Crime Victims Fund, restitution.
Uzziel Alejandro Carillo-Rojas was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 8, 2020. He pleaded guilty on February 19, 2021.
From approximately June 2019 to December 2020, Carillo-Rojas obtained methamphetamine in California and transported it to South Dakota for further distribution. Carillo-Rojas was to receive compensation for transporting the methamphetamine. On November 11, 2020, Carillo-Rojas and a codefendant arrived in South Dakota to deliver 10 pounds of methamphetamine and were subsequently stopped and arrested by law enforcement.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Administration, and Homeland Security Investigations. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Uzziel Alejandro Carillo-Rojas was immediately returned to the custody of the U.S. Marshals Service.
Buffalo Man Arrested Following Traffic Accident on Drug and Gun Charge Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jarmaine Dunbar, 44, of Buffalo, NY, who was convicted of possessing a firearm in furtherance of a drug trafficking crime, was sentenced to serve 72 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Douglas A. C. Penrose and David J. Rudroff, who handled the case, stated that on October 10, 2020, the defendant was involved in a traffic accident at Leroy Avenue and Holden Street in Buffalo. When officers arrived on the scene, they observed a loaded, semi-automatic pistol on the front passenger seat of Dunbar’s car. When patting down the defendant, officers also retrieved a plastic bag containing cocaine.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Box Elder Man Sentenced to Federal Prison for Receiving and Possessing Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography was sentenced on July 8, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
As to the charge of Receipt of Child Pornography, Christopher Lee Golden, age 51, was sentenced to just over 8 years in federal prison, 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Golden was likewise sentenced to just over 8 years in federal prison, 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for the charge of Possession of Child Pornography. The time to be served in federal prison and supervised release are to run concurrently.
Golden was indicted for the charges by a federal grand jury in October 2018. He was found guilty of the charges following a bench trial in Rapid City on January 19, 2021.
The charges related to Golden knowingly receiving and possessing sexually explicit images of minor females between June 2014 and September 2018. Golden was arrested in Rapid City in 2018 on a Colorado fugitive warrant for sexual exploitation of a child. At the time of his arrest, Golden had five devices containing child pornography and multiple devices on which he had installed data shredding applications and other anonymizing software.
This case was investigated by the South Dakota Internet Crimes Against Children Task Force, the Pennington County Sheriff’s Office, the Meade County Sheriff’s Office, and members of the Black Hills Fugitive Task Force. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Golden was immediately turned over to the custody of the U.S. Marshals Service.
Berkeley County man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Maxwell Edward Sanderlin, of Martinsburg, West Virginia, has admitted to his role in a drug distribution enterprise, Acting United States Attorney Randolph J. Bernard announced.
Sanderlin, 33, pled guilty to one count of “Aiding and Abetting Distribution of Heroin and Fentanyl.” Sanderlin admitted to working with others to sell heroin and fentanyl in February 2020 in Berkeley County.
Sanderin faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Berea Man Sentenced to 214 Months for Production of Child PornographyRead the Press Release
FRANKFORT, Ky. — A Berea, Ky., man, Bradley Scott Helton, 33, was sentenced on Thursday to 214 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for using a minor to produce child pornography.
According to Helton’s plea agreement, on May 16, 2020, he communicated with a 7-year-old victim, via an app called “Kiss Kiss: Spin the Bottle.” Helton admitted to chatting with the victim, sending the victim sexual videos and pictures, and requesting the victim send sexual videos in return. Helton admitted that he persuaded and used the 7-year-old victim to engage in sexually explicit conduct, for the purpose of producing a visual depiction of that conduct. He further admitted that the images traveled in interstate commerce when the victim, who was in Texas, sent them to him, in Kentucky, via the app.
Helton pleaded guilty in March 2021.
Under federal law, Helton must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 25 years, following his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police, announced the sentence.
The investigation was conducted by DHS-HSI and the KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Albuquerque couple sentenced to federal prison in Ayudando Guardians caseRead the Press Release
ALBUQUERQUE, N.M. – Susan K. Harris, 74, and William S. Harris, 60, both of Albuquerque, were sentenced today in federal court for conspiracy to defraud the United States and other financial crimes committed in connection with the operation of Ayudando Guardians, Inc., a non-profit corporation that previously provided guardianship, conservatorship and financial management to hundreds of people with special needs.
Susan Harris was sentenced to 47 years in prison, followed by three years of supervised release. William Harris was sentenced to 15 years in prison, followed by three years of supervised release. Both will be required to pay the entire amount of stolen funds as restitution to the victims.
A superseding indictment filed on Dec. 5, 2017, charged Susan Harris, William Harris, Sharon A. Moore, 64, and Susan Harris’ son, Craig M. Young, 53, with various financial crimes, including conspiracy to defraud the United States, mail fraud, aggravated identity theft and money laundering.
Susan Harris pleaded guilty on July 11, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering and conspiracy to commit money laundering. William Harris pleaded guilty on June 25, 2019, to conspiracy to defraud the United States and to commit money laundering. Both Susan Harris and William Harris were originally scheduled to be sentenced on March 2, 2020, but failed to appear for their sentencing hearing. A bench warrant was issued for their arrest and the U.S. Marshals Service arrested them in Shawnee, Oklahoma, on April 15, 2020, after they fled New Mexico.
According to their plea agreements and other court records, Susan Harris acted as president and was the 95-percent owner of Ayudando, while Moore acted as chief financial officer and was a five-percent owner. They engaged in a pattern of criminal conduct from November 2006 to July 2017 that included unlawfully transferring money from client accounts to a comingled account without any client-based justification. They wrote and endorsed numerous checks, often of more than $10,000, from these comingled accounts to themselves, family members, cash and other parties where payment would benefit their families.
Susan Harris took steps to maintain Ayudando’s appearance of legitimacy, including submitting a proposal to the New Mexico Office of Guardianship that contained numerous false representations, including a false claim that Young was a nationally certified guardian at the time of the submission.
William Harris, who worked as a guardian, admitted that he knew that Moore was siphoning payments to clients from the Department of Veterans Affairs and Social Security Administration and using the money to benefit herself, Harris, and their co-conspirators. Harris specifically admitted receiving, endorsing, and depositing dozens of checks drawn on Ayudando accounts for his own personal benefit. Harris admitted to his involvement in a money laundering scheme, using an Ayudando corporate credit card for personal expenses, knowing that it would be paid for with client money. He also admitted his role in a loan application for the stated purpose of expanding the Ayudando business with the actual intent of using the money to “pay back” clients whose money had been taken without authorization.
The stolen funds were used to fund an extravagant lifestyle, including the purchases of homes, vehicles, luxury RVs and cruises, as well as a private box at “the Pit” at the University of New Mexico. The stolen funds were also used to pay for more than $4.4 million in American Express charges incurred by the defendants and their families.
“The sentences that the defendants have received today are just, and the defendants are fully deserving of them,” said Fred J. Federici, Acting U.S. Attorney for the District of New Mexico. “The defendants’ conduct in preying upon individuals with special needs, who they were entrusted to protect, was both loathsome and contemptible. We hope that these sentences serve as a warning to others that we will seek to hold accountable anyone who chooses to violate federal law by abusing any similar position of trust for personal enrichment.”
“Taking advantage of disabled veterans and other vulnerable Americans deserves a harsh penalty, especially when those entrusted with their finances instead use the money for vacations and other expensive perks,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “The FBI will never stop trying to hold such criminals accountable and making sure their victims get justice.”
“This final phase of the investigation will hopefully give some closure to the many victims who have suffered as a result of the selfish acts of the defendants,” said Sonya K. Chavez, United States Marshal for the District of New Mexico. “We at the United States Marshals Service will continue to work diligently with our partners to protect the citizens of New Mexico, particularly those who are most vulnerable.”
“The criminal actions by these defendants were truly brazen and egregious,” stated IRS - Criminal Investigation Special Agent in Charge Albert Childress. “Instead of helping people who placed their trust in them, the defendants were greedy and helped themselves to their clients’ money. They must now pay the consequences for their bad deeds.”
“Today's sentencing reflects the egregious crimes committed by the defendants, who not only violated the public’s trust but also the trust of a vulnerable population who relied upon them to manage their benefits. We will continue to join our law enforcement partners in investigating organizations and individuals who misuse Social Security benefits that they agreed to manage on behalf of beneficiaries,” said Adam Schneider, Special Agent-in-Charge of the Social Security Administration Office of the Inspector General, Dallas Field Division. “I thank our law enforcement partners for their outstanding investigative work and the District of New Mexico U.S. Attorney’s Office for their efforts in bringing these individuals to justice.”
“Criminal acts by would-be fiduciaries are most heinous because they violate veterans’ trust and put in jeopardy the benefits on which they are dependent,” said Special Agent in Charge Rebeccalynn Staples, Veterans Affairs, Office of Inspector General. “This sentence should send a clear message that the VA OIG will continue to work with our law enforcement partners to ferret out those who would defraud VA and steal the benefits of deserving veterans.”
Young pleaded guilty on Nov. 12, 2019, and was sentenced on June 11, 2020, to five years and 11 months in prison, followed by three years of supervised release. Young was ordered to pay approximately $6.8 million in restitution to the victims of the fraud scheme.
Moore pleaded guilty on July 11, 2019, and was sentenced on March 2, 2020, to 20 years in prison, followed by three years of supervised release. Moore was ordered to pay the entire amount of stolen funds as restitution to the victims.
The Albuquerque Field Office of the FBI and the Phoenix Field Office of IRS Criminal Investigation conducted the investigation with the assistance of the Complex Assets Unit and the U.S. Marshals Service, the Criminal Investigations Division of the Department of Veterans Affairs Office of Inspector General, and the Dallas Field Division of the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe prosecuted the case.
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20-Year Prison Sentence for Agency Village Man Convicted of Sex Offense Involving ChildrenRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Agency Village, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Kevin Lee Farmer, age 58, was sentenced to 240 months in federal prison, life of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Farmer was indicted by a federal grand jury on July 20, 2020. He pled guilty on April 12, 2021.
The conviction stemmed from incidents between on or about June 1, 2016, and on or about December 31, 2016, when Farmer knowingly engaged in, and attempted to engage in, sexual contacts with a young female victim. Farmer, using force, intentional touched, either directly or through the clothing, the victim’s genitalia, anus, groin, breast, inner thigh, and buttocks.
At the time of the sexual contact, Farmer was approximately 54 years old and the victim was under 12 years of age. The sentencing judge also found that he sexually abused other children. He is an enrolled member of the Sisseton-Wahpeton Oyate Sioux Tribe. Farmer and the victim resided together in the same household.
This case was investigated by the Sisseton Wahpeton Tribal Law Enforcement Criminal Investigations Division and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
10th Century Statue Looted from Cambodian Temple Is Subject of Forfeiture Action Filed in Manhattan Federal CourtRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today the filing of a civil complaint seeking forfeiture of a 10th Century Khmer sandstone statue – Skanda on a Peacock – for the purpose of returning it to the Kingdom of Cambodia. The statue was stolen from the Prasat Krachap temple at Koh Ker in Cambodia, and sold by antiquities dealer Douglas Latchford into the international art market. Skanda on a Peacock is considered to be a masterpiece of artistic achievement and a valuable part of the Cambodian cultural heritage. The owner of Skanda on a Peacock has voluntarily relinquished possession of the statue to the custody of HSI.
Manhattan U.S. Attorney Audrey Strauss said: “Skanda on a Peacock is a work of great historical, religious, and artistic significance to the people of Cambodia. With this action, we reaffirm our commitment to ending the sale of illegally trafficked antiquities in the United States, and begin the process of returning Skanda on a Peacock to its rightful home.”
According to the Complaint filed in Manhattan Federal Court on July 15, 2021:
From 928 to 944 A.D., Koh Ker was the capital of the ancient Khmer empire in Cambodia. The Cambodian state under King Jayavarman IV constructed a vast complex of sacred monuments at Koh Ker, including the Prasat Krachap temple and its statuary. Koh Ker statuary was revolutionary for its time. Many of the statues, including Skanda on a Peacock, were huge, often shown in movement, and were free-standing or in high-relief. Skanda on a Peacock depicts the Hindu god of war, Skanda, riding on the back of a peacock. The body and tail of the peacock are decorated with intricate engraved patterns. Khmer cultural experts believe that the face of the Skanda on the statue may in fact be a portrait of a royal family member, such as Harshavarman II, the son of King Jayavarman IV.
During the civil conflicts of late 20th century, statues and other artifacts were stolen from Koh Ker and entered the international art market through an organized looting network. Local teams of looters would first remove the statues from the original location at Koh Ker. The statues would then be transported to the Cambodia-Thailand border, and transferred to brokers, who would in turn transport them to dealers in Khmer artifacts located in Thailand, particularly Bangkok. These dealers would sell the artifacts to local or international customers, who would either retain the pieces or sell them on the international art market.
Skanda on a Peacock, along with several other significant statues, was stolen from Prasat Krachap in or about 1997 by a former member of the Khmer Rouge leading a team of looters (“Looter-1”). Looter-1 transported Skanda on a Peacock by oxcart to the house of a broker near the Thai border. Looter-1 was aware that the broker sold antiquities to a foreign national called “Sia” (which means “lord” in Thai) “Ford” – the British/Thai antiquities dealer Douglas Latchford, a/k/a “Pakpong Kriangsak.” In 2019, Latchford was charged by the Office with wire fraud conspiracy and other crimes related to a many-year scheme to sell looted Cambodian antiquities on the international art market, primarily by creating false provenance documents and falsifying invoices and shipping documents. The indictment was ultimately dismissed due to the death of Latchford.
On or about April 10, 2000, Latchford sold Skanda on a Peacock and, thereafter, it was imported into the United States. After the most recent owner was contacted by the United States regarding Skanda on a Peacock, the owner agreed to relinquish possession of the statue and to waive all claims of right, title, and interest in it. Skanda on a Peacock is currently in the possession of the United States Department of Homeland Security.
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Ms. Strauss thanked HSI for its outstanding work on this investigation, which she noted is ongoing, and praised its ongoing efforts to find and repatriate stolen and looted cultural property. Ms. Strauss also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its assistance with this investigation.
This announcement supports the Memorandum of Understanding first signed between the U.S. and Cambodia in 2003, and last renewed in 2018.
This matter is being handled by the Office’s Money Laundering and International Criminal Enterprises Unit. Assistant U. S. Attorney Jessica Feinstein is in charge of the case.
The allegations contained in the Complaint are merely accusations.
14 July 2021
Worden man sentenced to more than 15 years in prison for trafficking methamphetamineRead the Press Release
BILLINGS – A Worden man who admitted to trafficking methamphetamine after investigators found 10 pounds of the drug in his vehicle was sentenced today to 15 years and eight months in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Bo Bryan Fish, 40, pleaded guilty on Jan. 27 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided. Fish was detained.
The government alleged in court documents that between January and March 2020, the Eastern Montana High Intensity Drug Trafficking Area Task Force began investigating Fish for involvement in drug trafficking. Cooperating witnesses told investigators that Fish took trips to Colorado to acquire bulk quantities of meth, ranging from five to 20 pounds per trip.
The investigation led to a traffic stop of a truck occupied by Fish, who told investigators there were about 10 pounds of meth in the back seat and admitted to acquiring the meth that day in Wyoming. He said he had been acquiring bulk meth from the source for about eight months. Investigators served a search warrant on the truck and Fish’s property and seized 10 pounds of meth from the vehicle and about seven ounces of meth from the property. Ten pounds of meth is the equivalent of about 36,240 doses.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI Western Transnational Organized Crime 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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Woman Arrested for Fake COVID-19 Immunization and Vaccination Card SchemeRead the Press Release
A California-licensed naturopathic doctor was arrested today for her alleged scheme to sell homeoprophylaxis immunization pellets and to falsify COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA) authorized Moderna vaccine.
Juli A. Mazi, 41, of Napa, is charged with one count of wire fraud and one count of false statements related to health care matters. The case is the first federal criminal fraud prosecution related to homeoprophylaxis immunizations and fraudulent Centers for Disease Control and Prevention (CDC) COVID-19 vaccination record cards.
“This defendant allegedly defrauded and endangered the public by preying on fears and spreading misinformation about FDA-authorized vaccinations, while also peddling fake treatments that put people’s lives at risk. Even worse, the defendant allegedly created counterfeit COVID-19 vaccination cards and instructed her customers to falsely mark that they had received a vaccine, allowing them to circumvent efforts to contain the spread of the disease,” said Deputy Attorney General Lisa O. Monaco. “The Department of Justice and its law enforcement partners are committed to protecting the American people from fraudsters during this national emergency. This commitment is evident in this prosecution as well as in the ongoing work of the Department and our agency partners in the COVID-19 Fraud Enforcement Task Force established by the Attorney General earlier this year.”
According to court documents, in April 2021, an individual submitted a complaint to the Department of Health and Human Services Office of Inspector General (HHS-OIG) hotline stating that family members purchased from Mazi COVID-19 homeoprophylaxis immunization pellets. The complainant stated that the family members had told her/him that Mazi stated that the pellets contained the COVID-19 virus and would create an antibody response in the immune system. The complainant reported that her/his family did not receive injections of any of the three FDA-authorized COVID-19 vaccines. However, in connection with the delivery of the homeoprophylaxis immunization pellets, Mazi sent COVID-19 Vaccination Record cards, with Moderna listed, to the complainant family. Mazi allegedly instructed the complainant family to mark the cards to falsely state that they received the Moderna vaccine on the date that they ingested the COVID-19 homeoprophylaxis immunization pellets.
“Steering through the challenges presented by COVID-19 requires trust and reliance on our medical professionals to provide sage information and guidance,” said Acting U.S. Attorney Stephanie Hinds for the Northern District of California. “According to the complaint, instead of disseminating valid remedies and information, Juli Mazi profited from unlawfully peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. We will act to protect trust in the medical developments that are enabling us to emerge from the problems presented by the pandemic.”
According to court documents, Mazi offered homeoprophylaxis immunizations for childhood illnesses that she falsely claimed would satisfy the immunization requirements for California schools, and falsified immunization cards that were submitted by parents to California schools. Homeoprophylaxis involves the exposure of an individual to dilute amounts of a disease, purportedly to stimulate the immune system and confer immunity. Mazi is alleged to have falsely claimed that orally ingesting pellets with small amounts of COVID-19 would result in full lifelong immunity from COVID-19.
“This doctor violated the all-important trust the public extends to healthcare professionals — at a time when integrity is needed the most,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, our agency will continue to investigate such fraudsters who recklessly endanger the public’s health during the unprecedented COVID-19 crisis.”
The affidavit alleges that Mazi used the COVID-19 pandemic to expand the pre-existing immunization scheme by selling immunization pellets that she fraudulently claimed, in written documents and consensually monitored recordings, would provide “lifelong immunity to COVID-19.” Mazi explained that the pellets contained a “very minute amount of this [COVID-19] disease” that can result in “infectious symptoms” of COVID-19 or “automatically flag[] the immune system’s attention, inducing immunity.” To encourage customers to purchase the pellets, Mazi allegedly exploited disinformation and fear by falsely claiming that the FDA-authorized COVID-19 vaccines contain “toxic ingredients.” Mazi further stated that her customers could provide the pellets to children for COVID-19 immunity, and that the “dose is actually the same for babies.”
“Spreading inaccurate or false medical information about COVID-19 for personal gain, as the complaint alleges, is dangerous and only seeds skepticism among the public,” said Special Agent in Charge Craig D. Fair of the FBI's San Francisco Field Office. “As the government continues to work to provide current and accurate information to help slow the spread of COVID-19, the FBI will continue to pursue those who attempt to fraudulently profit from spreading misinformation and providing false documentation.”
Mazi also provided CDC COVID-19 vaccination record cards to her customers with instructions on how to fraudulently complete the cards to falsely make it appear as if a customer had received two doses of the Moderna vaccine. As part of her scheme, Mazi provided customers with specific Moderna vaccine lot numbers to enter onto the cards and with instruction on how to select the purported dates on which they had received the Moderna vaccines to evade suspicion.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Trial Attorney Sridhar Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Assistant U.S. Attorney Christiaan Highsmith of the U.S. Attorney’s Office for the Northern District of California are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wilkes-Barre Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Hughes, age 38, of Wilkes-Barre, Pennsylvania, was indicted on July 13, 2021, by a federal grand jury on drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Hughes possessed with the intent to distribute over 50 grams of methamphetamine on May 12, 2021, in Wilkes-Barre, Pennsylvania. The indictment also alleges that Hughes possessed a .40 caliber Smith and Wesson handgun in furtherance of his drug trafficking activities and he is prohibited from possessing a firearm.
The case was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police and the Wilkes-Barre City Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Virginia Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Southampton County man was sentenced today to 40 years in prison for producing and possessing images of child sexual abuse.
James William Thomas, III, 36, was found guilty by a jury on February 13, 2020, of seven counts of production of child pornography and three counts of possession of child pornography. According to court records, Thomas’s crimes were discovered in 2014 after he was caught burglarizing a coin shop in Franklin. Southampton County investigators obtained a search warrant for Thomas’s residence and seized evidence related to over 25 unsolved burglaries in Virginia and North Carolina. Part of this seizure included computers and other digital storage devices.
The evidence presented at trial showed that a review of these electronic devices revealed the presence of child pornography. Moreover, investigators found detailed folders on the devices with names of child victims and saved chat sessions. Over multiple years, Thomas, then in his late 20s, posed as a 17-year-old teen and befriended female victims on social media who were generally between the ages of 12-16. Thomas then groomed these victims and convinced them to produce naked images of themselves to send to him. In some instances, he convinced them to masturbate over a webcam, which Thomas recorded and saved. Thomas saved these chat sessions and the images in the folders on the electronic devices.
The evidence adduced at trial further demonstrated that Thomas chatted online with dozens of minor victims. To keep track of them, he employed a “cheat sheet” at the top of the saved chat sessions for each victim, which contained information including their name, age, phone number, and other facts, such as how easily they provided him with naked images. In one instance, he convinced a 14-year-old girl to meet him for sex on three separate occasions. Each time, Thomas had the victim pose naked for photographs and then recorded their sexual encounters.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-58.
Upton Man Arrested on Possession of Child Pornography ChargeRead the Press Release
BOSTON – An Upton man was arrested and charged today in federal court in Worcester for possessing child pornography.
Matthew Stefanelli, 31, was charged with one count of possession of child pornography. Following an initial appearance before U.S. Magistrate Judge David H. Hennessey this afternoon, Stefanelli was detained pending a detention hearing set for July 19, 2021.
According to the charging documents, on Jan. 6, 2021, agents seized several electronic devices from Stefanelli’s residence. A forensic review of the devices revealed images of child pornography saved in an encrypted application designed to appear as a calculator.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Upton Police Chief Michael J. Bradley Jr. made the announcement today. Assistant U.S. Attorney Kristen Noto of Mendell’s Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office, Joined by State and Local Agencies, to Host One-Stop Reentry Resource Fair at the War Memorial in Baltimore Tomorrow, July 15, 2021Read the Press Release
Baltimore, Maryland – TOMORROW, THURSDAY, JULY 15, the U.S. Attorney’s Office for the District of Maryland, along with the Maryland Division of Parole and Probation, Office of the State’s Attorney for Baltimore City, and the Mayor’s Office of Neighborhood Safety and Engagement, will sponsor a one-stop reentry resource fair that will be held FROM 10:00 A.M. TO 2:00 P.M. at the War Memorial, 101 N. Gay Street, Baltimore, MD. More than 50 organizations, including at least 20 employers, will be on-site offering assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing, and legal assistance, among other areas of support and assistance. The Baltimore City Health Department will also be on hand offering free COVID-19 vaccinations.
The event is FREE and OPEN TO THE PUBLIC.
This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair and the I Care Baltimore campaign.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two Louisiana Men Sentenced in Federal Court for Excavating Arrowheads in Kisatchie National ForestRead the Press Release
LAFAYETTE, La. – Tony Fee, 49, and James Carroll, 35, both of Pitkin, Louisiana, have been sentenced by United States District Judge James D. Cain, Jr. to three (3) years of probation, with mandatory and special conditions, for unlawfully removing and damaging archeological resources at Kisatchie National Forest, announced Acting United States Attorney Alexander C. Van Hook. A special condition imposed by Judge Cain prohibited Fee and Carroll from entering or using the Kisatchie National Forest during their term of probation. The defendants were also ordered to pay $5,676.56 in restitution to the United States Department of Agriculture Forestry Service.
Evidence presented in court revealed that from October 2017 through June 2018, Fee and Carroll conducted unauthorized excavation on public land in the Kisatchie National Forest, doing so in an effort to uncover Native American artifacts, such as arrowheads. On June 1, 2018, Fee and Carroll traveled to their established dig-site, and conducted further excavation and uncovered various Native American artifacts, including arrowheads and some chips of Native American tools or utensils. The excavation site in question was designated by the United States government as a known Archeological Site, and, at all times, Carroll and Fee lacked the necessary permits to conduct the excavation activities. The cost of restoration and repair to the site totaled $5,676.56.
The United States Forest Service conducted the investigation and Assistant U.S. Attorneys John W. Nickel and T. Forrest Phillips prosecuted the case.
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Tulsa Man Pleads Guilty for Causing an Infant's Head injuryRead the Press Release
A man who caused an infant's head injury during a domestic violence incident pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Clint Johnson.
Chadwick Andre Young, 34, of Tulsa, admitted to child abuse in Indian Country. Sentencing is set for November 10, 2021.
On Aug. 3, 2019, Young's girlfriend and four children walked to a nearby grocery store. Young was angry at the woman for leaving the apartment and met her as she returned. He approached her, while she was holding an infant, and began punching the woman. She fell to the ground and dropped the child as a result of the assault. The infant's head struck the pavement, and he was rushed to an emergency room via ambulance. The infant suffered a depressed skull fracture, requiring surgery. The doctor determined the injury was from blunt force trauma. The infant has since recovered.
The child is a citizen of the Muscogee Nation, and the crime occurred within the Muscogee Nation reservation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger is prosecuting the case.
Three Defendants Charged in Organized Crime Money Laundering SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Aaron C. Rouse, Special Agent in Charge of the Las Vegas Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging YOSEF COHEN, a/k/a “Joe,” VAGUE SHAGENOVICH TERGALSTANYAN, a/k/a “Vahe,” a/k/a “Vic,” and IGAL BEN HANAN with conspiracy to commit money laundering.
TERGALSTANYAN and COHEN were arrested and presented in California on July 9, 2021, and July 12, 2021, respectively, and will be arraigned in Manhattan federal court at a later date. BEN HANAN was arrested on July 12, 2021, and will be presented later today in Nevada. The case is assigned to U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the defendants conspired to launder millions of dollars of illicit proceeds. Thanks to the hard work of the FBI, the defendants face serious federal charges.”
FBI Special Agent-in-Charge Aaron C. Rouse said: “This case is an outstanding example that demonstrates the strength of the FBI’s partnerships with national and international law enforcement. The FBI takes pride in combating the most dangerous crime organizations in the world. This should be a wake-up call to criminals that regardless of where they think they can hide, the FBI and our partners will find them and bring them to justice.”
According to the allegations in the Indictment:[1]
COHEN, TERGALSTANYAN, and BEN HANAN worked on behalf of organized criminal enterprises operating in several countries around the world. In recorded conversations with undercover law enforcement officers (the “UCs”) who represented themselves to be members of an international organized criminal enterprise that distributed narcotics and laundered money, the defendants planned money laundering transactions of narcotics proceeds and discussed moving tens of millions of dollars of illicit money on behalf of international criminal organizations. The defendants conspired to execute, and did execute, money laundering transactions with the UCs and others known and unknown.
On several occasions, the defendants arranged for the UCs to pick up narcotics proceeds, in cash, from locations in the United States and then deliver the cash to the defendants, minus a percentage-based fee paid to the UCs for laundering the proceeds. For example, as arranged by the defendants, the UCs picked up approximately $208,000 in cash in Medford, New York, and delivered the cash, minus an arranged fee, to TERGALSTANYAN in California. In addition to discussing money laundering transactions with a UC who was in New York, New York, TERGALSTANYAN later proposed that the UCs pick up and launder one to two million dollars of marijuana proceeds in cash every week in Manhattan.
In another scheme, for example, the defendants conspired to fraudulently obtain a business visa for BEN HANAN so that BEN HANAN could move to the United States. In order for BEN HANAN to obtain a business visa, BEN HANAN’s purported business needed funds on deposit that appeared to be legitimate investments. COHEN proposed that the UCs provide COHEN with $150,000 in cash, and COHEN would use COHEN’s purported businesses to provide funds to BEN HANAN’s purported business. The UCs provided the cash to COHEN, which was represented to be narcotics proceeds that had not yet been laundered. Subsequent wire transfers sent by the defendants to the UCs as repayment were falsely described by the defendants as accounting for a particular month or time period, so as to appear like legitimate business transactions.
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YOSEF COHEN, 58, of Calabasas, California, VAGUE SHAGENOVICH TERGALSTANYAN, 38, of Glendale, California, and IGAL BEN HANAN, 43, of Las Vegas, Nevada, were each charged with one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h), which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the FBI. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Micah F. Fergenson is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Taney County Man Pleads Guilty to Sexually Assaulting Children, Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Merriam Village, Missouri, man pleaded guilty in federal court today to sexually assaulting two young children to produce child pornography, and to receiving and distributing child pornography, after his wife pleaded guilty to the same charges last month.
Mark John Millman, 37, a citizen of Great Britain and a legal alien resident, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of the sexual exploitation of minors and one count of receiving and distributing child pornography.
Millman’s wife and co-defendant, Tara Sau Millman, 41, pleaded guilty to the same charges on June 30, 2021. Both Mark and Tara Millman have been in federal custody since their arrest and remain detained without bail.
The Millmans admitted that Mark used Tara’s iPhone to record video of her performing a sexual act on a 2-year-old child, identified in court documents as John Doe. Mark Millman admitted that he sexually assaulted a 4-year-old child victim, identified in court documents as Jane Doe, which was also recorded on video. Investigators found images and videos of child pornography on the Millmans’ iPhones, including files that depicted the Millmans sexually assaulting both child victims.
Mark and Tara Millman each admitted they used a social media application to share child pornography over the internet, and that they viewed child pornography together.
The investigation began when agents with Homeland Security Investigations in San Diego, California, began investigating users of a cloud storage platform (identified in court documents as “Cloud Platform A”). The cloud platform provides encrypted, cloud-based services that enable private, secure online storage, communication, and collaboration for business and individuals. During the investigation, the agents accessed a weblink to an encrypted chat room with approximately 145 registered users. Files containing child pornography were uploaded/posted by participants in the chat room. Many users were actively involved in the distribution of child pornography. The child pornography distributed within the chat included 129 video files, 324 image files, and 43 cloud-storage weblinks which contained files of child pornography.
Mark Millman’s email was identified among the registered users of the chat room, and a search warrant was executed at the Millmans’ residence in Taney County, Mo., on Jan. 28, 2021.
Under federal statutes, Mark and Tara Millman each are subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled upon the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
St. Louis man pleads guilty to armed robbery and brandishing a firearmRead the Press Release
ST. LOUIS – Dominick Anderson, 31, of St. Louis, Missouri, appeared before United States District Court Judge Henry E. Autrey on today’s date and pleaded guilty to armed robbery and brandishing a firearm in furtherance of that crime.
On August 25, 2019, as part of a prearranged drug deal, Anderson and a male accomplice arrived at the victim’s residence in a vehicle driven by a female accomplice. Anderson and his male accomplice entered the victim’s residence to buy methamphetamine from the victim. When the victim showed Anderson the methamphetamine, Anderson pulled a gun on the victim and demanded that the victim handover the methamphetamine. The victim refused. The victim told Anderson and his male accomplice to leave the victim’s residence. Anderson shot the victim in the stomach and stole the victim’s methamphetamine. Anderson and his male accomplice exited the residence and entered the vehicle of their female accomplice and fled the scene. The victim called 911 and was taken to the hospital for his gunshot wound. An investigation led to the arrest of Anderson.
Anderson’s sentencing hearing is set for October 6, 2021.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Szczucinski is handling this matter.
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St. John, Indiana Man Ordered to Pay over $5.3 Million in RestitutionRead the Press Release
HAMMOND- Richard E. Gearhart, age 71, of St. John, Indiana was sentenced before U.S. District Court Judge Philip P. Simon upon his plea of guilty to conspiracy to commit securities fraud, announced United States Attorney Tina L. Nommay.
Gearhart was sentenced to 60 months in prison, 3 years of supervised release, and ordered to pay over $5.3 million dollars in restitution that is owed to the victims of his securities fraud scheme.
According to documents in this case, between 2008 and 2013, Gearhart was a licensed insurance agent doing business as Gearhart & Associates in Schererville. He represented himself as experienced in investments and financial services. He was also CEO of Asset Preservation Specialists, Inc. Gearhart and others devised a scheme where they promoted and sold unregistered securities to Gearhart’s insurance clients. He promised them no risk to their initial deposit and a return of 6% to 8% on their investment. He also told them that upon request, their initial investment would be returned within thirty days. Neither Gearhart nor his co-conspirators were licensed to promote or sell the securities.
The victims of Gearhart’s scheme were between 50 and 90 years old when they trusted him with their savings. Instead of investing the money, they used it to repay other investors and for their own personal use. The money was wired from Gearhart’s bank accounts to other investors and to businesses in which Gearhart and co-conspirators held an interest.
To keep the scheme afloat, Gearhart directly or indirectly sent fraudulent financial statements to investors showing gains when none existed. The victims learned that they had lost their savings when Gearhart filed for bankruptcy listing them as creditors rather than investors.
The case was the result of a joint investigation by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division in collaboration with the Northern Indiana Region 10 Office of the United States Trustee, Nancy J. Gargula. This case was prosecuted by Assistant United States Attorneys Toi Denise Houston and Thomas McGrath.
Second defendant sentenced to federal prison for operating illegal pill factoryRead the Press Release
AUGUSTA, GA: A second Burke County man has been sentenced to federal prison after admitting to operating an illegal pill factory from a residence.
U.S. District Court Chief Judge J. Randal Hall sentenced Cedrick Gabriel Brown, a/k/a “Pop,” 47, of Midville, Ga., to 60 months in prison after Brown pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Brown also will be required to serve three years of supervised release. There is no parole in the federal system.
Brown’s codefendant, Telly Savalas Carswell, 47, also of Midville, is serving a sentence of 168 months in prison after also pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Methamphetamine.
“This sentence finalizes the investigation and prosecution of two men who profited from spreading poison in a rural community,” said Acting U.S. Attorney Estes. “We will continue to work closely with our law enforcement partners to hold accountable those who would make money from misery.”
The investigation of Carswell and Brown began in January 2020 when U.S. Drug Enforcement Administration (DEA) agents tracked the delivery of a commercial pill press to their Midville residence. With assistance from the Burke County Sheriff’s Office, DEA agents searched the home on May 7, 2020, and found the pill press, along with methamphetamine, heroin and other drugs; nearly $9,000 in cash; and paraphernalia related to drug manufacturing and trafficking.
Both men have extensive criminal records, including state convictions for drug trafficking offenses.
“’Garage manufacturers’ like this defendant continue to use pill presses which ultimately hurt and kill unsuspecting users,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners are committed to keeping our communities safe by removing drug pushers like this defendant. He will spend well-deserved time in federal prison.”
The case was investigated by the DEA and the Burke County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Matthew Josephson.
Rocky Mount Gang Leader and Others Indicted on Drug and Fraud ChargesRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment yesterday charging three Rocky Mount individuals and one Wendell woman with various narcotics distribution and fraud-related charges.
Tyrone Foreman, also known as “Ty Nitty”, 33, is alleged to be the leader of a set of the United Blood Nation operating a heroin and fentanyl distribution ring in Nash and Edgecombe counties. Over the past three years, local, state, and federal authorities conducted an extensive investigation into Foreman’s organization, including the importation and distribution of various narcotics and several gang-related shootings in Rocky Mount.
According to the complaint, filed in June of 2021, Investigators identified a New York City man supplying Foreman with heroin and fentanyl mixtures for distribution in Rocky Mount. After Investigators discovered this individual bringing large quantities of heroin and fentanyl mixtures to Foreman, Investigators tracked Foreman travelling to New York City to pick up another heroin and fentanyl mixture supply. On December 11, 2020, during Foreman’s return trip to Rocky Mount, Maryland authorities stopped Foreman’s car for failure to wear a seat belt. Inside the car, authorities found over 3,500 bags of a heroin and fentanyl mixture.
The indictment, charging Foreman and Vernisha Marie Suggs, 34, of Rocky Mount, with narcotics-related violations, also alleges Foreman and two others conspired to commit wire and mail fraud related to federal unemployment benefits created in response to the COVID-19 pandemic.
According to the indictment, Foreman, Undia Fenne Sharpe, 39, of Rocky Mount, and Minnie Marie Edwards, 36, of Wendell, fraudulently filed claims using the information of individuals incarcerated in federal and state prisons. After filing the fraudulent claims, the co-conspirators distributed the unemployment benefits amongst themselves and other co-conspirators.
Foreman is charged with one count of conspiring to distribute and possess with intent to distribute 1,000 grams or more of heroin, 400 grams or more of fentanyl, and a quantity of marijuana; one count of possessing with intent to distribute heroin and fentanyl; one count of possessing with intent to distribute heroin and marijuana; and one count of conspiring to commit mail and wire fraud. If convicted, Foreman faces a mandatory minimum of ten years in prison and a maximum of life in prison.
Suggs is charged with one count of conspiring to distribute and possess with intent to distribute heroin and one count of possessing with intent to distribute a quantity of heroin. If convicted, Suggs faces a maximum of forty years in prison.
Sharpe is charged with one count of conspiring to commit mail and wire fraud. If convicted, Sharpe faces a maximum of twenty years in prison.
Edwards is charged with one count of possessing with intent to distribute a quantity of cocaine base (crack) and one count of conspiring to commit mail and wire fraud. If convicted, Edwards faces a maximum of forty years in prison.
This investigation and indictment are the result of a coordinated effort on the part of a coalition of local, state, and federal agencies over the span of three years. These agencies include Nash County Sheriff’s Office, Rocky Mount Police Department, Edgecombe County Sheriff’s Office, Nashville Police Department, Halifax County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the North Carolina Department of Commerce - Division of Employment Security, and the Office of the 8th Prosecutorial District of North Carolina.
Acting U.S. Attorney Acker commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing violent drug traffickers and this case targeted an organization who evaded justice and spread deadly narcotics in the community for years. This indictment represents another step in a coordinated effort to “Take Back North Carolina” from those who wish to bring harm to the citizens of the Eastern District of North Carolina.”
“The level of law enforcement cooperation to investigate the crimes committed by this violent organization was incredible. This case is yet another example of law enforcement partners working together to effectively dismantle criminal organizations which threaten the citizens of Nash and Edgecombe Counties,” said Nash County Sheriff Keith Stone.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-mj-1577-RN.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Registered Sex Offender Arrested on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Bald, 40, of Lockport, NY, was arrested and charged by criminal complaint with possession of child pornography involving a prepubescent minor. The charge carries a minimum sentence of 10 years in prison, a maximum of 20 years, lifetime supervised release, and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in November 2020, the National Center for Missing and Exploited Children (NCMEC) contacted the New York State Police (NYSP) after receiving a Cybertipline Report involving an image of a suspected sexual performance by a child. The NYSP contacted Homeland Security Investigations (HSI) and the image was traced to the residence of the defendant, who is a registered Level 2 sex offender following his March 2011 conviction for Sexual Abuse in the First Degree.
On December 15, 2020, the NYSP, Niagara County Probation, and HSI executed a state search warrant at the defendant’s Lockport residence. During the execution of the search warrant, several digital items were located and seized, including a laptop computer and hard drive. Analysis of those items revealed numerous files of suspected child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
The complaint is the result of an investigation by Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly, the New York State Police, under the direction of Major James Hall, the Niagara County Probation Department, under the direction of Director John Cicchetti, and the National Center for Missing and Exploited Children.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pittsburgh Man Sentenced in Mystery Shopper Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 4 years of probation and ordered to pay $28,461 in restitution on his conviction for fraud conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Mark R. Hornak imposed the sentence on Robert Shon Jackson, 45, of Pittsburgh, PA 15221, as the sole defendant.
Previously, in connection with Jackson’s guilty plea, the court was advised that that from around June 2013 to around October 31, 2013, Jackson participated in a Nigerian “mystery shopper” fraud scheme in which victims were falsely led to believe that they were being employed to anonymously evaluate products and services. After being recruited by the fraudsters, the victims unwittingly received counterfeit U.S. Postal Service money orders and checks, which they believed were provided to fund their evaluation purchases. The victims were told to deposit the instruments, keep a small portion of the funds for themselves, and wire the remainder to another individual who they believed was another mystery shopper, but was in actuality a co-conspirator. The counterfeit instruments were later returned to the bank, and the victims were charged for the funds they had deposited and additional fees.
The court was further advised that Jackson was mailed bulk shipments of counterfeit USPS money orders sent from overseas, approximately 1,820 money orders in total, valued at approximately $1,787,771.40, along with counterfeit checks. Jackson also received mailing labels with the names and addresses of victims to whom he was to send the counterfeit instruments. Jackson would mail counterfeit money orders and checks to the victims along with “mystery shopper” instructions directing them to check their email accounts for additional instructions. The victims would be emailed instructions to wire funds to Jackson, his wife, and other accomplices. Jackson used false return names and addresses on the mailings of counterfeit instruments. Jackson would then receive funds from the victims by wire, then himself wire a portion of the proceeds to co-conspirators in Nigeria. Jackson kept a portion of the funds as his payment. The losses associated with Jackson’s offense totaled $28,461.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the Department of Homeland Security conducted the investigation leading to the successful prosecution of Jackson.
Perryton Police Officer Pleads Guilty to Sharing Child Pornography on KikRead the Press Release
A former Perryton police officer pleaded guilty today to child pornography charges, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Aaron Bennett Daugherty, 36, pleaded guilty on Wednesday to one count of transportation of child pornography. He was charged via criminal complaint in February.
According to plea papers, Mr. Daugherty was nabbed in an undercover FBI investigation into individuals using Kik, a social media app popular among teenagers, to share explicit images of children.
On June 9 2020, a Kik user with an obscene screenname – later identified as Mr. Daugherty – shared a video file depicting an adult male engaged in sexual acts with a blindfolded prepubescent child.
“I’m here to look at CP, everybody,” the user posted two weeks later. “Go on with the CP content!”
Law enforcement later contacted Mr. Daugherty at the Perryton Police Department. He admitted that he used Kik to view and share child pornography, adding that child porn did not “bother” him.
The defendant now faces up to 20 years in federal prison. A sentencing hearing has not yet been set.
The Federal Bureau of Investigation’s Dallas Field Office – Amarillo Resident Agency, the Texas Rangers, and the Winnebago County Sheriff’s Office conducted the investigation with the full cooperation of the Perryton Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Pennsylvania man who mailed deadly fentanyl to Seattle area woman sentenced to more than 4 years in prisonRead the Press Release
Seattle – A 35-year-old Pennsylvania man was sentenced today in U.S. District Court in Seattle t0 54 months in prison for distributing fentanyl and acetyl fentanyl in the Western District of Washington, announced Acting U.S. Attorney Tessa M. Gorman. Jesse S. Dittmar sent multiple envelopes containing the drug to his former girlfriend who had moved to her brother’s home in Seattle. The former girlfriend was found dead on January 29, 2019, less than 24 hours after she texted Dittmar that she had done some of the drugs that arrived in the mail, and that she was feeling unwell. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez noted the “recklessness” of sending powerful fentanyl through the mail. Chief Judge Martinez told Dittmar “This is a sad case from every possible aspect…. You are responsible for the direct actions you took that led to the victim’s death.”
“Sending deadly fentanyl through the mail, disguised in colorful greeting cards, was incredibly dangerous – for postal workers and for the children and adults who may have opened the cards in their Seattle home,” said Acting U.S. Attorney Gorman. “Fentanyl is claiming far too many lives in our area with overdose deaths up 38% in 2021 compared to the first six months of 2020.”
According to records filed in the case, the 32-year-old victim broke up with Dittmar and moved to her brother’s home in Seattle in the fall of 2018. Despite Dittmar’s repeated attempts to text the victim, the victim cut off contact with Dittmar until December 2018. During December 2018 and January 2019, Dittmar and the victim were in contact and the texts make clear he was sending her drugs enclosed in greeting cards. Dittmar repeatedly threatened suicide or exposure of the victim’s drug use if she did not continue the relationship. On the day she died, the victim texted Dittmar that she had taken some of the drugs and did not feel well. Dittmar texted the victim 25 times over the next few hours but did not get any response. He did not call her family or alert 9-1-1 that she might have overdosed. She was discovered dead the next day. Following the victim’s death, multiple greeting cards and packaging materials for drugs were found in the victim’s bedroom. The King County Medical Examiner determined the victim died from acute drug intoxication including fentanyl.
The case was investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Seattle Police Department and Seattle Fire Department.
The case was prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Parkersburg Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Reese Inman, 39, of Parkersburg, pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, law enforcement officers executed a search warrant on October 16, 2019 at a residence on Dempsie Avenue in Parkersburg. Inman was located in the living room and a loaded .22 Rohm revolver and a quantity of heroin were nearby. In their search, officers located a total of between 14 and 15 grams of heroin, a Chiappa .22 revolver and ammunition, an iPad that was payment for heroin Inman had sold, a black digital scale, $384 in U.S. currency and some marijuana. Inman was advised of his Miranda rights and agreed to be interviewed. In that interview, Inman admitted that he had been selling heroin in Wood County and that he intended to distribute the heroin in his possession to others.
Inman pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on October 28, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Drug Enforcement Administration (DEA), the Parkersburg Narcotics Task Force and the Wood County Sheriff’s Department.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00090.
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Operation X-Nation: New York Man Sentenced to More Than 15 Years in Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A New York man was sentenced today to 186 months in federal prison for his participation in a drug trafficking organization (DTO) in Mercer County. James Walker, 43, previously pleaded guilty to conspiracy to distribute cocaine, oxymorphone, oxycodone and hydromorphone. Walker was charged as a result of a long-term, multi-state investigation known as Operation X-Nation. Walker also forfeited $150,000 in proceeds generated from his drug trafficking activity.
Between August 2017 and August 31, 2019, Walker worked with other members of a DTO to distribute prescription pills and cocaine in and around Mercer County. More specifically, Walker facilitated drug transactions with confidential informants working with law enforcement. Walker would then direct the informants to one of several trailers he owned in different trailer parks in Mercer County. Once the informants arrived at the trailer park, Walker would then direct them to meet with a particular member of the DTO to purchase the drugs. Walker and other members of the DTO also had telephone calls intercepted by law enforcement. In these calls Walker and others were discussing drug transactions including the pricing and quantities of different substances. Walker further admitted that he was arrested in New York after having calls intercepted by law enforcement. At the time of his arrest, Walker was in possession of approximately 1,500 prescription pills that he intended to distribute. Walker also was arrested in Princeton on January 10, 2020. and at that time, he was driving a car that had a hidden mechanical trap that was used to transport controlled substances.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Southern Regional Drug and Violent Crime Task Force, which is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Princeton Police Department and the Bluefield Police Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:19-cr-00307.
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Odessa Attorney Sentenced to Federal Prison for Being a Drug User in Possession of a FirearmRead the Press Release
MIDLAND – Yesterday in Midland, a federal judge sentenced 52-year-old Adrian Antonio Chavez, an attorney practicing in Odessa, to 24 months imprisonment for being a drug user in possession of a firearm.
In addition to the prison term, U.S. District Judge David Counts ordered Chavez to pay a $10,000 fine. Judge Counts also ordered that Chavez be placed on supervised release for a period of three years after his prison term.
According to court records, after receiving information from several sources that Chavez received quantities of methamphetamine, officers from the Odessa Police Department executed a search warrant at Chavez’ residence on February 19, 2021. During the search, officers recovered a Springfield Armory Hellcat 9mm; a Taurus Brasil 357 Magnum; a Rossi RS22 .22 caliber rifle; a Remington Wingmaster 870TB 12-guage shotgun; and a Remington 770 .30-06 caliber rifle. Officers also confiscated a quantity of methamphetamine and drug paraphernalia.
On April 15, 2021, Chavez entered a plea of guilty to one count of being a drug user in possession of a firearm before U.S. Magistrate Judge Ronald C. Griffin.
This case was investigated by the Odessa Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorney Glenn Harwood prosecuted this case.
Norwalk Felon Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DAVID BURDEN, 40, of Norwalk, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for illegal possession of a firearm.
According to court documents and statements made in court, on September 30, 2020, Bridgeport Police officers arrested Burden after he fired a gun in the area of Kossuth Street and Nichols Street in Bridgeport. Investigators seized a loaded 9mm Smith and Wesson semi-automatic pistol from Burden.
Burden’s criminal history includes multiple state felony convictions and federal convictions in 2003 for crack cocaine distribution, racketeering, racketeering conspiracy and committing a violent crime in aid of racketeering offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Burden has been detained since is arrest. On April 21, 2021, he pleaded guilty to possession of a firearm by a felon.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New York Man Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
CONCORD - Kizito Chukwujekwu, 37, of Brooklyn, New York pleaded guilty in federal court on Tuesday to participating in a conspiracy to commit bank fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between June of 2016 and August of 2017, Chukwujekwu and others opened at least ten bank accounts at banks in New Hampshire, Massachusetts, and Georgia using other persons’ identification information. Chukwujekwu or his co-conspirators then deposited fraudulent checks into those accounts. After the money was credited to the account but before the bank determined the check was false, one of Chukwujekwu’s co-conspirators withdrew money from the bank accounts. During the scheme, the conspirators deposited fraudulent checks worth more than $119,000 and withdrew more than $69,000.
Chukwujekwu is scheduled to be sentenced on October 25, 2021.
“Those who travel to New Hampshire to commit crimes should understand that they will be caught and held accountable for their actions,” said Acting U.S. Attorney Farley. “In order to protect the citizens of the Granite State, we work closely with our law enforcement partners to identify and prosecute the criminals who use stolen identities to commit fraud.”
“Postal Inspectors investigate and seek prosecution of those individuals who steal personal identifiable information to illegally obtain funds by defrauding financial institutions,” said Joshua W. McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “The U.S. Postal Inspection Service is committed to protecting our citizens and working hard to prevent more people from becoming victimized by these types of schemes.”
This matter was investigated by the United States Postal Inspection Service and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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Napa Woman Arrested for Fake Covid-19 Immunization and Vaccine Card SchemeRead the Press Release
SAN FRANCISCO – A California licensed naturopathic doctor was arrested today for her alleged scheme to sell homeoprophylaxis immunization pellets and falsify COVID-19 vaccination cards by making it appear that customers received the U.S. Food and Drug Administration (FDA) authorized Moderna vaccine. The announcement was made by Deputy Attorney General Lisa O. Monaco; Acting U.S. Attorney Stephanie M. Hinds; Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and FBI Special Agent in Charge of the San Francisco Division, Craig D. Fair.
Juli A. Mazi, 41, of Napa, is charged with one count of wire fraud and one count of false statements related to health care matters. The case is the first federal criminal fraud prosecution related to homeoprophylaxis immunizations and fraudulent Centers for Disease Control and Prevention (CDC) COVID-19 vaccination record cards.
“This defendant allegedly defrauded and endangered the public by preying on fears and spreading misinformation about FDA-authorized vaccinations, while also peddling fake treatments that put people’s lives at risk. Even worse, the defendant allegedly created counterfeit COVID-19 vaccination cards and instructed her customers to falsely mark that they had received a vaccine, allowing them to circumvent efforts to contain the spread of the disease,” said Deputy Attorney General Lisa O. Monaco. “The Department of Justice and its law enforcement partners are committed to protecting the American people from fraudsters during this national emergency. This commitment is evident in this prosecution as well as in the ongoing work of the Department and our agency partners in the COVID-19 Fraud Enforcement Task Force established by the Attorney General earlier this year.”
“Steering through the challenges presented by COVID-19 requires trust and reliance on our medical professionals to provide sage information and guidance,” said Acting U.S. Attorney Hinds. “According to the complaint, instead of disseminating valid remedies and information, Juli Mazi profited from unlawfully peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. We will act to protect trust in the medical developments that are enabling us to emerge from the problems presented by the pandemic.”
According to court documents, in April 2021, an individual submitted a complaint to the Department of Health and Human Services Office of Inspector General (HHS-OIG) hotline stating that family members purchased from Mazi. The complainant stated that the family members had told her/him that Mazi stated that the pellets contained the COVID-19 virus and would create an antibody response in the immune system. The complainant reported that her/his family did not receive injections of any of the three FDA-authorized COVID-19 vaccines. However, in connection with the delivery of the homeoprophylaxis immunization pellets, Mazi sent COVID-19 Vaccination Record cards, with Moderna listed, to the complainant family. Mazi allegedly instructed the complainant family to mark the cards to falsely state that they received the Moderna vaccine on the date that they ingested the COVID-19 homeoprophylaxis immunization pellets.
According to court documents, Mazi offered homeoprophylaxis immunizations for childhood illnesses that she falsely claimed would satisfy the immunization requirements for California schools, and falsified immunization cards that were submitted by parents to California schools. Homeoprophylaxis involves the exposure of an individual to dilute amounts of a disease, purportedly to stimulate the immune system and confer immunity. Mazi is alleged to have falsely claimed that orally ingesting pellets with small amounts of COVID-19 would result in full lifelong immunity from COVID-19.
“This doctor violated the all-important trust the public extends to healthcare professionals — at a time when integrity is needed the most,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, our agency will continue to investigate such fraudsters who recklessly endanger the public’s health during the unprecedented COVID-19 crisis.”
The affidavit alleges that Mazi used the COVID-19 pandemic to expand the pre-existing immunization scheme by selling immunization pellets that she fraudulently claimed, in written documents and consensually monitored recordings, would provide “lifelong immunity to COVID-19.” Mazi explained that the pellets contained a “very minute amount of this [COVID-19] disease” that can result in “infectious symptoms” of COVID-19 or “automatically flag[] the immune system’s attention, inducing immunity.” To encourage customers to purchase the pellets, Mazi allegedly exploited disinformation and fear by falsely claiming that the FDA-authorized COVID-19 vaccines contain “toxic ingredients.” Mazi further stated that her customers could provide the pellets to children for COVID-19 immunity, and that the “dose is actually the same for babies.”
“Spreading inaccurate or false medical information about COVID-19 for personal gain, as the complaint alleges, is dangerous and only seeds skepticism among the public,” said Special Agent in Charge Craig D. Fair of the FBI's San Francisco Field Office. “As the government continues to work to provide current and accurate information to help slow the spread of COVID-19, the FBI will continue to pursue those who attempt to fraudulently profit from spreading misinformation and providing false documentation.”
Mazi also provided CDC COVID-19 vaccination record cards to her customers with instructions on how to fraudulently complete the cards to falsely make it appear as if a customer had received two doses of the Moderna vaccine. As part of her scheme, Mazi provided customers with specific Moderna vaccine lot numbers to enter onto the cards and with instruction on how to select the purported dates on which they had received the Moderna vaccines to evade suspicion.
Mazi is charged with wire fraud, in violation of 18 U.S.C. § 1343, and making false statements related to health case, in violation of 18 U.S.C. § 1035. If convicted, Mazi faces a maximum statutory prison sentence of 20 years for the wire fraud charge and 5 years for the false statements charge. In addition, each charge carries a maximum $250,000 fine and 3 years of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Assistant U.S. Attorney Christiaan Highsmith of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Sridhar Babu Kaza of the Department of Justice Criminal Division Fraud Section’s National Rapid Response Strike Force are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Milwaukee Man Sentenced for his Role in COVID-19 Relief Fraud SchemeRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that July 14, 2021 Stephen Smith, (42), of Milwaukee, WI was sentenced today to 36 months in prison for fraudulently seeking over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Smith, 42, of Milwaukee, pleaded guilty on April 12. According to court documents, Smith admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
In addition to the prison sentence, Smith was ordered to pay $397,500 in restitution.
The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases.
The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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