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13 July 2021
Convicted Felon Sentenced to 10 Years in Prison on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a convicted felon on gun and drug charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Court Judge Karon O. Bowdre sentenced Brenton Damond Sims, 41, of Birmingham, to 120 months in prison on one count of possession with intent to distribute crack cocaine and one count of being a felon in possession of a firearm. Sims pleaded guilty to the charges in April.
According to the plea agreement, on July 3, 2019, the Birmingham Police Department conducted a traffic safety checkpoint at the intersection of South Park Road and Fulton Avenue in the western part of Birmingham. Sims, driving a 2004 BMW, refused to stop and proceeded through the checkpoint, nearly hitting an officer. Officers pursued Sims to the 500 block of 23rd Place, SW, where he turned down an alley, abandoned his car, and fled on foot. Officers chased Sims down the alley, and a detective observed a handgun in Sim’s right hand. Sims was found hiding under the back deck of a residence on 23rd Place, SW. A pistol was found lying in the grass just to the right of where Sims was hiding under the deck. The pistol was a Glock 23 .40 caliber semiautomatic with an extended magazine. There were 20 rounds in the magazine and one round in the chamber. Sims was also searched, and officers found three bags of marijuana, four bags of crack cocaine, and $2,045 cash on his person.
“It is a priority of my office to prosecute felons who carry firearms while possessing and dealing illegal drugs,” U.S. Attorney Escalona said. “We value the work of our Birmingham law enforcement partners to keep this community safe.”
“ATF’s partnerships with the Birmingham PD and the U.S. Attorney’s Office focuses on the devastating impact of firearms and narcotics, and works with the entire community to deter poor choices and provide alternatives,” ATF Special Agent in Charge, Mickey French said.
The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
Cedar Rapids Man Sentenced to Two Years in Prison for Possessing Mechanically Shortened WeaponRead the Press Release
A Cedar Rapids man was sentenced July 12, 2021, to two years in federal prison for possessing a mechanically shortened weapon.
Philip Maccani, age 50, from Cedar Rapids, Iowa, received the prison term after a guilty plea to possessing an unregistered National Firearms Act firearm, specifically a weapon made from a shotgun with an overall length of less than 26 inches. Evidence at sentencing demonstrated that the stock had been altered to shorten the weapon’s overall length.
The judge noted that weapons like the one Maccani possessed were more dangerous than other weapons because they are both easier to conceal and more difficult to aim and control. The judge also noted the bravery of one of the deputies from the Linn County Sheriff’s Office, who tried to de-escalate a dangerous situation by giving his rifle to another officer before approaching Maccani without knowing whether Maccani was then armed.
Maccani was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Maccani was sentenced to 24 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. Maccani is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Linn County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00090-CJW-MAR.
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Butte meth trafficker sentenced to 10 years in prisonRead the Press Release
MISSOULA – A Butte man who admitted trafficking drugs, including methamphetamine, in Montana and to receiving meth through the mail in Butte, was sentenced today to 10 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Charles Joshua Petty, 31, pleaded guilty on March 15 to possession with intent to distribute controlled substances. Petty also was ordered to forfeit $8,500 seized in the case.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that Petty received meth from individuals in California and elsewhere, including through the mail in Butte, for distribution. The investigation determined that Petty and others would wire money back to California and to Sinaloa, Mexico, to pay for the meth. The government further alleged that investigators learned from cooperators that Petty received approximately 10 pounds of meth in January 2019. Ten pounds of meth is the equivalent of approximately 36,240 doses. A co-defendant, Shawn Miller, was sentenced to five years in prison for his role in the case.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation and the Butte Police Department.
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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Buffalo Man First Defendant to Be Sentenced in Fentanyl Trafficking RingRead 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 Christopher Cook, 30, of Buffalo, NY, who was convicted of conspiracy to distribute fentanyl, was sentenced to serve 30 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that in October 2019, law enforcement began an investigation into the drug trafficking activities of the defendant and co-defendants Mark Greaman, Damone McNamee, Sr. and Brian Ray, in the area of Broadway Avenue and Strauss Street in Buffalo. Investigators made 40 controlled purchases of fentanyl, heroin, butyryl fentanyl, acetyl fentanyl, and furanyl fentanyl from all four defendants, including five controlled purchases from defendant Cook.
Co-defendants Mark Greaman, Damone McNamee, Sr. and Brian Ray were previously convicted and are awaiting sentencing.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major James Hall, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Brockton Man Sentenced for Drug TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for his role in a drug trafficking conspiracy.
Carlos Antunes, 36, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 65 months in prison and four years of supervised release. On March 11, 2021, Antunes pleaded guilty to two counts of a multi-count indictment charging him with conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone, and marijuana, and one count of possession with intent to distribute fentanyl.
According to court documents, in the fall of 2018, law enforcement agents began investigating a Brockton drug crew headed by Djuna Goncalves. The investigation revealed that Goncalves worked with Antunes and others to distribute large quantities of fentanyl, cocaine, cocaine base, heroin and marijuana throughout southeastern Massachusetts. Agents intercepted telephone calls and observed meetings between Goncalves and Antunes where Antunes ordered fentanyl from Goncalves. On Oct. 12, 2018, agents seized fentanyl from a customer of Antunes shortly after Goncalves and Antunes delivered the fentanyl to him.
Antunes and Goncalves were indicted along with 15 others in a wide-ranging drug conspiracy that included members of Goncalves’s Brockton crew and several Boston-based drug traffickers who supplied Goncalves with controlled substances. Of the 17 defendants named in the indictment, 11, including Antunes, have pleaded guilty. Antunes is the ninth defendant to be sentenced in the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brockton Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Brockton man pleaded guilty today to his role in a conspiracy to distribute fentanyl throughout southeastern Massachusetts.
Filomeno Monteiro, 31, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. U.S. District Court Judge Patti B. Saris scheduled sentencing for Oct. 28, 2021.
According to court records, in 2019 and 2020, law enforcement conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. In December 2019, Monteiro worked with co-defendant Christian Collins to distribute 20 grams of fentanyl to a cooperating witness and undercover police officer at a location in Plympton. At the time of the offense, Monteiro was on probation for a prior Plymouth Superior Court conviction for kidnapping and aggravated assault and battery. Monteiro was previously convicted twice in state court of possession with intent to distribute cocaine and heroin and possession with intent to distribute marijuana.
Collins pleaded guilty on June 23, 2021 and is scheduled to be sentenced on Sept. 28, 2021.
The charge of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl provides for a sentence of up to 40 years in prison, a minimum of four years of supervised release and a fine of up to $5 million. The charge of distribution of fentanyl provides for a sentence of up to 30 years in prison, up to six years of supervised release and a fine of up to $2 million. Sentences are imposed by a federal district court judge based on the U.S. 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; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; East Bridgewater Police Chief Paul O’Brien; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Bergen County Man Sentenced to 16 Months in Prison for Using Online Web Forums to Engage in CyberstalkingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 16 months in prison for using Facebook and other online web forums to cyberstalk victims, Acting U.S. Attorney Rachael A. Honig announced.
Rino Diamante, 26, of Bergenfield, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of cyberstalking. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Diamante admitted that from January 2016 through August 2019 he engaged in continued online harassment of known and unknown adult victims, including Victims 1-23, by posting semi-nude or nude pictures purporting to be the victims on online web forums such as 4Chan.com and volafile. Diamante also admitted to contacting the victims, their friends and their family members to direct those individuals to the online web forums that contained the purported nude or semi-nude photographs of the victims.
In addition to the prison term, Judge Martini sentenced Diamante to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
Bank CEO Stephen M. Calk Convicted of Corruptly Soliciting A Presidential Administration Position in Exchange for Approving $16 Million in LoansRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that STEPHEN M. CALK was convicted of financial institution bribery and conspiracy to commit financial institution bribery, for corruptly using his position as the head of a federally-insured bank to issue millions of dollars in high-risk loans to Paul Manafort in exchange for a personal benefit: CALK’s placement on a 2016 presidential campaign and assistance from Manafort in trying to obtain a senior position with the incoming presidential administration. CALK was convicted following a three-week trial before U.S. District Judge Lorna G. Schofield.
Manhattan U.S. Attorney Audrey Strauss said: “A unanimous jury convicted Stephen M. Calk of approving millions of dollars in high-risk loans to Paul Manafort in an effort to secure a personal benefit, namely a high-profile spot on the presidential campaign and appointment as Secretary of the Army or another similarly high-level position in the incoming presidential administration. Calk used the federally-insured bank he ran as his personal piggybank to try and buy himself prestige and power. Today’s verdict sends the message that corruption at the highest levels of federally regulated financial institutions will be prosecuted by this Office.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
CALK, The Federal Savings Bank, and Paul Manafort
STEPHEN M. CALK was the chairman and chief executive officer of The Federal Savings Bank, a federal savings association headquartered in Chicago, Illinois, with an office in New York, New York (the “Bank”). The Bank was owned in its entirety by National Bancorp Holdings, a Chicago-based bank holding company (the “Holding Company”), and CALK was the chairman, chief executive officer, and owner of approximately 67% of the Holding Company.
Paul Manafort was a lobbyist and political consultant. Beginning in or about March 2016, Manafort held a senior role with a 2016 presidential campaign (the “Presidential Campaign”), and from June 2016 through August 2016, he served as chairman of the Presidential Campaign. After Manafort’s formal role with the Presidential Campaign concluded in or about August 2016, Manafort continued to be informally involved in the campaign. Beginning in or about November 2016, when the candidate was elected President of the United States, Manafort provided informal input to the presidential transition team (the “Presidential Transition Team”).
The Corrupt Scheme
Between in or about July 2016 and January 2017, CALK engaged in a corrupt scheme to exploit his position as the head of the Bank and the Holding Company in an effort to secure a valuable personal benefit for himself, namely, Manafort’s assistance in obtaining for CALK a senior position in the presidential administration. During this time period, Manafort sought millions of dollars in loans from the Bank. CALK understood that Manafort urgently needed these loans in order to terminate or avoid foreclosure proceedings on multiple properties owned by Manafort and Manafort’s family. Further, CALK believed that Manafort could use his influence with the Presidential Transition Team to assist CALK in obtaining a senior administration position.
CALK thus sought to leverage his control over the Bank and the loans sought by Manafort to his personal advantage. Specifically, CALK offered to, and did, cause the Bank and Holding Company to extend $16 million in loans to Manafort in exchange for Manafort’s requested assistance in obtaining a high-level position in the presidential administration. For example, and while Manafort’s loans were pending approval, CALK provided Manafort with a ranked list of the governmental positions he desired, which started with Secretary of the Treasury, and was followed by Deputy Secretary of the Treasury, Secretary of Commerce, and Secretary of Defense, as well as 19 ambassadorships similarly ranked and starting with the United Kingdom, France, Germany, and Italy.
In approving these loans to Manafort, CALK was aware of significant red flags regarding Manafort’s ability to repay the loans, such as his history of defaulting on prior loans. Moreover, given the size of the loans, Manafort’s debt became the single largest lending relationship at the Bank. In order to enable the Bank to issue these loans without violating the Bank’s legal limit on loans to a single borrower, CALK authorized a maneuver never before performed by the Bank, in which the Holding Company—which CALK also controlled—acquired a portion of the loans from the Bank.
During the same time period, Manafort provided CALK with valuable personal benefits. First, in or about the summer of 2016, during the Presidential Campaign—and just days after CALK and the rest of the Bank’s credit committee conditionally approved a proposed $9.5 million loan to Manafort — Manafort appointed CALK to a prestigious economic advisory committee affiliated with the campaign. And second, in or about late November and early December 2016—after the candidate had been elected President, after Manafort’s first loan from the Bank had been issued, and while a second set of loans worth $6.5 million sought by Manafort was pending approval by the Bank— Manafort used his influence with the Presidential Transition Team to assist Calk, recommending CALK for an administration position. Due to Manafort’s efforts, CALK was formally interviewed for the position of Under Secretary of the Army on January 10, 2017 at the Presidential Transition Team’s principal offices in New York, New York. CALK was not ultimately hired.
To conceal the unlawful nature of his scheme, CALK made false and misleading statements to the OCC regarding the loans to Manafort. For example, CALK falsely stated to the OCC regulators that he had not known that the Manafort’s properties had been in foreclosure prior to issuing the loans. CALK also stated that he had never desired a position in the presidential administration.
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CALK, 56, was found guilty of one count of financial institution bribery, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit financial institution bribery, which carries a maximum sentence of 5 years in prison. CALK is scheduled to be sentenced on January 10, 2022.
Ms. Strauss praised the outstanding investigative work of the FBI and FDIC OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Monteleoni, Hagan Scotten, and Alexandra N. Rothman are in charge of the prosecution.
Baltimore Man Sentenced to Five Years in Federal Prison for Participating in a Conspiracy to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Victor Davis, age 41, of Baltimore, Maryland, to five years in federal prison, followed by four years of supervised release, for conspiracy to distribute and posses with the intent to distribute crack cocaine base. As part of his plea agreement, Davis admitted that during his participation in the conspiracy the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from December 2019 through September 29, 2020, Davis conspired with at least two others to distribute crack cocaine in the area of the 2600 block of Greenmount Avenue and the 400 block of East Lorraine Avenue in Baltimore, Maryland, where Davis’s drug trafficking organization (DTO) operated a “drug shop.” Members of the DTO, including Davis, conducted multiple hand-to-hand sales of drugs to confidential informants.
Davis admitted that he sold crack cocaine to confidential informants on four different occasions. For example, on January 30, 2020, Davis sold two clear bags of crack cocaine to a confidential informant in exchange for $300. In February 2020, a witness observed Davis in a home in the 400 block of East Lorraine Avenue preparing crack cocaine for street-level distribution and discussed future purchases of narcotics. The witness also saw several guns in the home. Davis admitted that the firearms were used to protect the DTO business and, therefore, were possessed in furtherance of the drug conspiracy.
As detailed in the plea agreement, Davis sold a confidential informant two bags of crack cocaine base $600 on February 26, 2020 and again March 4, 2020. On March 18, 2020, the confidential informant purchased four bags of crack cocaine from Davis for $650 and discussed a potential firearm transaction. Davis told the confidential informant that he possessed a “joint,” which is a slang term for a firearm.
Davis admitted that it is reasonably foreseeable to him that the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lindsey McCulley and Zachary B. Stendig, and Special Assistant U.S. Attorney Lindsay DeFrancesco who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Acting U.S. Attorney Kaufman Announces Drug Summit Agenda, Invites Participation in Person or via ZoomRead the Press Release
PITTSBURGH – The 2021 Western Pennsylvania Drug Summit will take place on Wednesday, July 14. 2021, from 6:15 p.m. to 8:15 p.m. at the Fred Rogers Center on the campus of St. Vincent College in Latrobe, PA, Acting United States Attorney Stephen R. Kaufman announced today. This event is a free in-person public forum. People may also attend via Zoom at https://stvincent-edu.zoom.us/j/98611228340?pwd=Sk5PszRoMFMwN1ArMGVcU5WRDFDZz09 with the passcode aUaC3K. The agenda follows:
6:15 p.m. Welcome
Acting U.S. Attorney Stephen R. Kaufman
Westmoreland County District Attorney John Peck
Prof. Bruce Antkowiak J.D., Saint Vincent College6:20 p.m. Keynote Address (Pre-recorded)
Regina LaBelle, Acting Director, White House Office of National Drug Control Policy6:40 p.m. Emerging Drug Trafficking Trends
Moderator: Troy Rivetti, Criminal Division Chief, U.S. Attorney’s Office
Panelists: Emily Lockhart, Senior Forensic Chemist, DEA
Steve Denhup, Intelligence Group Supervisor, DEA
Josh Yohannon, Criminal Analyst, Homeland Security Investigations
Ken Bacha, Westmoreland County Coroner7:00 p.m. Best Practices in Treating Addiction
Moderator: Ira Karoll, Assistant U.S. Attorney, U.S. Attorney’s Office
Panelists: Eric Kocian, Ph.D., Associate Professor, St. Vincent College
Tim Phillips, Director, Westmoreland Co. Drug Overdose Task Force
Judge Meagan Bilik-DeFazio, Westmoreland County Court of Common Pleas, Drug Diversion Court
Stephanie T., Westmoreland County Drug Diversion Court GraduateThe Summit is sponsored by the U.S. Attorney’s Office for the Western District of Pennsylvania, the Westmoreland County District Attorney’s Office, St. Vincent College, and the Westmoreland County Overdose Task Force.
12 July 2021
Whittier Man Sentenced to Nearly 20 Years in Child Pornography CaseRead the Press Release
LOS ANGELES – A federal judge today imposed a prison sentence of nearly 20 years on a Whittier man who admitted exchanging child pornography – some of which involved infants and toddlers – with others on the internet.
Fred Joseph Stecher Jr., 29, was sentenced to serve 235 months in a federal prison for distribution of child pornography. Once he completes his sentence, Stecher will be placed on supervised release for the rest of his life. United States District Judge R. Gary Klausner also ordered Stecher to pay a total of $55,000 in restitution to 11 victims.
Stecher – who used several online aliases, including “smellyguy1991” and “little_tyke1991” – pleaded guilty in March to one count of distributing child pornography, which followed a prior conviction for possession of child pornography. “Despite multiple search warrants executed at his home, his probationary sentence, jail time, and completion of a sex offender treatment program, [Stecher] still committed the [latest] child exploitation offenses, demonstrating his lack of impulse control and his lack of respect for the law,” prosecutors argued in a sentencing memorandum.
During the investigation into Stecher, authorities executed a search warrant on his Yahoo! email account and found 1,263 unique images and 65 unique videos containing child pornography.
“Some of the videos and images depicted minor victims under the age of 12 being used for sexual acts, including infants and toddlers,” Stecher admitted in his plea agreement. “Some of the videos and images portrayed sadistic or masochistic sexual conduct, specifically bondage, involving minor children.”
Stecher used his Yahoo! email account to distribute the child pornography he obtained on the internet. The sentencing memo notes how Stecher engaged in online chats with other individuals interested in child pornography, discussing the types of children he liked in lurid detail and at times pretending that the children pictured were his own.
The case against Stecher was investigated by the FBI, Homeland Security Investigations, and the Los Angeles Police Department as part of the Los Angeles Internet Crimes Against Children Task Force.
Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
Waldorf Air Force Lieutenant Facing Federal Charges for Using a Hidden Camera to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging U.S. Air Force Lieutenant Jason Daniel Ort, age 36, of Waldorf, Maryland, with possession and production of child pornography. The criminal complaint was filed on June 16, 2021 and unsealed on July 7, 2021 after Ort’s arrest and initial appearance in U.S District Court in Greenbelt, Maryland. Ort is detained pending trial.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Brigadier General Terry Bullard, Commander Air Force Office of Special Investigations.
According to the criminal complaint, Ort was arrested in Syracuse, New York on October 2, 2020 for unlawful surveillance after an adult complainant informed law enforcement that they noticed a small camera placed in their bedroom on October 1, 2020. Upon further inspection, the complainant located an SD card which the complainant removed from the camera and reviewed. The complainant advised law enforcement that there was video content on the SD card allegedly depicting a minor female victim between the ages of five and eight-years-old using the restroom and showing Ort entering the bathroom and adjusting the camera.
As detailed in the criminal complaint affidavit, on October 6, 2020 an Onondaga County Court Judge issued a warrant to search Ort’s personal laptop and SD card. Onondaga County Sheriff’s Office detectives allegedly observed a video on the SD card that depicted a minor female victim between the ages of eight and ten years of age undressing and showering. Additionally, a forensic review of Ort’s laptop allegedly revealed hundreds of images of minor females in various sexual poses, child sexual abuse material, and several videos of child pornography depicting prepubescent children. A review of Ort’s SD card allegedly contained six videos of child pornography, including a ten-minute video that depicted two minor victims bathing in the shower with the assistance of an adult female.
On November 16, 2020, the Charles County Sheriff’s Office and OSI executed a search warrant at Ort’s Waldorf, Maryland residence. During the execution of the search warrant, law enforcement allegedly recovered multiple devices including two external hard drives and a laptop. A federal search warrant was subsequently executed on Ort’s seized devices. The affidavit alleges that law enforcement recovered several videos of minor victims recorded on a hidden bathroom camera as well as a compilation video comprised of adult females using the restroom. A review of the second external hard drive allegedly revealed key word searches of the terms related to child pornography. Lastly, investigators allegedly discovered a web history event for a website titled “Citizen’s Guide to U.S. Federal Law on Child Pornography”.
If convicted, Ort faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of 30 years for production of child pornography as well as a maximum sentence of 20 years in federal prison for possession of child pornography. 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.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Air Force Office of Special Investigations for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Jessica Collins who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Virginia Return Preparer Convicted of Tax FraudRead the Press Release
A federal jury in Newport News, Virginia, convicted Karl Burden-El Bey (aka Carl L. Burden) Friday of aiding and assisting in the preparation of false tax returns, theft of government funds and failing to file federal income tax returns.
According to court documents and evidence presented at trial, Burden-El Bey, of Hampton, prepared false tax returns for clients from at least 2013 through 2019. On his clients’ returns, Burden-El Bey claimed false dependents, residential energy credits, gifts to charity, deductions, and child and dependent care expenses in order to inflate refunds obtained from the IRS. Burden-El Bey also stole $5,000 by directing a portion of his client’s refund into his personal bank account. As to his own taxes, Burden-El Bey did not file individual tax returns for 2013 through 2017 with the IRS, despite being legally obligated to do so.
Sentencing is scheduled for Dec. 7 before U.S. District Judge David J. Novak.
Burden-El Bey faces a statutory maximum sentence of 10 years in prison for theft of government funds, three years in prison for each count of aiding and assisting in the preparation of a false tax return, and one year in prison for each count of failing to file a tax return. He also faces substantial monetary penalties, supervised release and restitution at sentencing.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division and Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Grace Albinson and Francesca Bartolomey of the Tax Division and Assistant U.S. Attorneys Brian Samuels and Lisa McKeel of the Eastern District of Virginia prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Vice President of Investment Firm Pleads Guilty to Running Multimillion-Dollar Ponzi SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced the guilty plea today of NAIM ISMAIL relating to his participation in various investment schemes that defrauded victims of over $15 million. ISMAIL pled guilty before U.S. District Judge Analisa Torres.
Manhattan U.S. Attorney Audrey Strauss said: “In spinning a web of lies, Naim Ismail and his co-conspirators gained, and took advantage of, the confidence of vulnerable individual investors as well as a Manhattan-based business, bilking them of millions of dollars in the process. With today’s guilty plea, Ismail has admitted to his scheme and now faces a prison term for his conduct.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings:
From February 2007 through July 2016, ISMAIL fraudulently induced individual and corporate victims – including the New York-based subsidiary of an Afghanistan-based bank – to loan large sums of money to entities operated by ISMAIL and others. ISMAIL did so by claiming that these funds would be used in a particular investment strategy as well as several real estate development projects. ISMAIL promised investors a generous fixed annual rate of return and promised to return the investors’ principal on a specified timeline. In fact, ISMAIL and his companies did not invest these funds as promised, nor did ISMAIL repay many of his victims. Instead, ISMAIL used investor funds to pay the so-called interest payments due to earlier investors in the scheme, as well as for his own personal expenses and investments.
During the course of the fraudulent scheme, ISMAIL deprived the scheme’s victims of over $15 million.
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ISMAIL, 60, formerly of Irvine, California, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing before Judge Torres is scheduled for November 17, 2021, at 11:00 a.m.
Ms. Strauss praised the outstanding work of the Special Inspector General for Afghan Reconstruction and Homeland Security Investigations on this investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher and Jonathan E. Rebold are in charge of the prosecution.
Upshur County woman sentenced to 10 years for meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ashley Nichole Bennett, of Buckhannon, West Virginia, was sentenced today to 121 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Bennett, 35, pleaded guilty in February 2021 to one count of “Distribution of Five Grams or More of Methamphetamine.” Bennett admitted to selling more than five grams of methamphetamine, also known as “crystal” and “ice,” in January 2020 in Harrison County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
United States Files Complaint and Reaches Agreement on Stipulation with Limetree Bay Terminals LLC and Limetree Bay Refining LLC Relating to Petroleum Refinery in St. Croix, U.S. Virgin IslandsRead the Press Release
Today, the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), filed a complaint in federal court in the U.S. Virgin Islands against Limetree Bay Terminals LLC and Limetree Bay Refining LLC (jointly Limetree Bay) alleging that the companies’ St. Croix petroleum refinery presents an imminent and substantial danger to public health and the environment. In a stipulation filed simultaneously with the complaint that acknowledges that the refinery is not currently operating and that Limetree Bay does not intend to restart the refinery at the present time, Limetree Bay has agreed to a number of requirements, including the following:
- Complete all corrective measures that are necessary to eliminate any imminent and substantial endangerment to public health or welfare or the environment posed by the refinery or refinery process units before the refinery or any refinery process unit restarts;
- Notify the United States and the court no fewer than 90 days before restarting the refinery or any refinery process unit;
- Install hydrogen sulfide (H2S) and sulfur dioxide (S02) monitors at nine monitoring sites prior to restart of the refinery or any refinery process unit; and
- Submit a plan for EPA approval to purge hydrocarbons from refinery process units and other equipment at the refinery as part of the process of indefinite shutdown. The hydrocarbon purging plan will include the operation of ambient air monitoring.
“Today’s action shows the Department of Justice’s commitment to enforcing the Clean Air Act and protecting American communities from harmful air pollution,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division.
“EPA is committed to ensuring that Limetree Bay’s activities and operations comply with laws that protect public health,” said Acting Regional Administrator Walter Mugdan for the EPA. “Today’s action and stipulation further strengthen our work to protect communities near this refinery by securing a binding commitment from the company that any restart of operations or initiation of long-term shutdown activities, such as purging gases, must receive EPA’s prior approval. These actions advance EPA’s commitment to environmental justice and to protect clean air for those living in vulnerable and overburdened communities.”
Since February of this year, the refinery experienced multiple major incidents resulting in significant air pollutant and oil releases. Many residents in the surrounding St. Croix community reported becoming sickened by some of the releases.
Following four incidents at the refinery, EPA issued an administrative order (EPA Order) to Limetree Bay Terminals LLC and Limetree Bay Refining LLC on May 14. The EPA Order issued under Section 303 of the Clean Air Act required Limetree Bay to cease refinery operations; conduct an environmental compliance audit and process area audits of the refinery’s flare system, delayed coking unit, and sulfur recovery unit; and submit a corrective measures plan to address the audits’ findings.
Under Section 303 of the Clean Air Act, the EPA Order remains effective for 60 days unless the United States files a complaint seeking longer-term relief. By filing today’s complaint, the EPA order is automatically extended by 14 days. The complaint seeks an injunction requiring Limetree Bay to comply with the requirements of the EPA order, to take all measures necessary to eliminate the imminent and substantial endangerment before restarting refinery operations including complying with the corrective measures plan, and other appropriate relief.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://www.epa.gov/enforcement/report-environmental-violation-general-information.
Two Sentenced to over 5 Years in Prison for COVID-19 Unemployment Benefit Fraud SchemeRead the Press Release
FRESNO, Calif. — Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, were each sentenced today by U.S. District Judge Dale A. Drozd to five years and one month in prison for conspiracy to commit mail fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to the California Employment Development Department (EDD). Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $74,000 as a result of the fraud.
This case was the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two San Fernando Valley Men Who Ran Large-Scale Counterfeit Identification Document Ring Receive Federal Prison SentencesRead the Press Release
LOS ANGELES – Two San Fernando Valley men who participated in an extensive scheme that produced and sold counterfeit identity documents – including United States passport cards, Social Security cards and driver’s licenses – each received federal prison sentences today.
Carlos Ayala Hernandez, a.k.a. “Juan Juarez,” 45, of Granada Hills, was sentenced today to 30 months in federal prison by United States District Judge John F. Walter. Also today, Judge Walter sentenced Miguel Juarez Guerrero, 24, of Van Nuys, to 20 months in federal prison.
Hernandez pleaded guilty on April 27 to one count of conspiracy to produce, transfer and possess false identification documents, and one count of being an illegal alien in possession of firearms. Guerrero pleaded guilty on May 3 to one count of conspiracy to produce, transfer and possess false identification documents, and one count of producing false identification documents.
From January 2016 to January 2021, Hernandez, Guerrero and Nestor Perez, a.k.a. “Daniel Perez,” 32, of Van Nuys, operated an illegal business in which they manufactured and sold false identification documents. These counterfeit documents included U.S. passport cards, lawful permanent resident cards (more commonly known as “Green Cards”), employment authorization document cards, Social Security cards, and driver’s licenses purporting to be from multiple states.
At the direction of – and in exchange for payment from – Hernandez and Guerrero, Perez manufactured the counterfeit identification documents at a Van Nuys apartment. Perez made the bogus documents using personal identifying information – including names, dates of birth and Social Security numbers – of real persons After manufacturing the phony documents, Perez provided them to Hernandez and Guerrero, who then sold the documents to others.
In January 2021, law enforcement executed search warrants on Hernandez’s residence and the Van Nuys apartment. In Hernandez’s residence – where Guerrero also lived – law enforcement found firearms, assorted ammunition and $40,483 generated from the false identification document scheme.
At the Van Nuys apartment, officers also found a robust counterfeit document lab, including approximately 243 completed false identification documents, approximately 1,000 fraudulent authentication seals, 14 printers, a scanner and an ultraviolet light used to test the security features on counterfeit ID documents.
Hernandez, a Mexican national, admitted in his plea agreement that he knew he was an illegal alien in the United States, including during the times he possessed the firearms.
Perez pleaded guilty on April 12 to one count of conspiracy to produce, transfer and possess false identification documents, and one count of producing false identification documents. His sentencing hearing is scheduled for July 19.
Homeland Security Investigations and the Ventura County Sheriff’s Office investigated this matter.
Special Assistant United States Attorney Matthew C. Chan and Assistant United States Attorney Gregory D. Bernstein, both of the General Crimes Section, are prosecuting this case.
Two Men Sentenced to Federal Prison for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced to federal prison today for federal gun crimes.
Jalen Chapman, 28, of Charleston, was sentenced to 84 months in federal prison for being a felon in possession of a firearm. According to the plea agreement and statements made in court, officers with the Charleston Police Department arrested Chapman on an outstanding warrant at a residence on Barber Drive in Charleston on or about September 29, 2018. Officers later searched the residence and seized two firearms, a .45 caliber Sig Sauer 1911 pistol and a .38 Special Taurus revolver. Chapman admitted that the firearms belonged to him and that he knew he was prohibited from possessing the firearms because he was previously convicted of a felony drug trafficking offense in Kanawha County Circuit Court. Officers also seized approximately 368 grams of methamphetamine and over 20 grams of cocaine base from a grill located outside the home. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
In a separate case, Jamaile Huey, 43, of Detroit, Michigan was sentenced to 80 months in prison for being a felon in possession of a firearm. Huey will serve 3 years of supervised release upon completion of his federal prison sentence. According to court documents and statements made in court, on or about January 8, 2021, members of the Huntington Police Department SWAT Team executed a search warrant for the person of Jamaile Huey at an apartment on Bridge Street in Huntington. During the execution of the warrant, Huey was located in the apartment and placed into custody. During a search of the apartment, a loaded Glock, model 17, 9mm pistol, was located in the nightstand in the room that Huey had been observed coming from when apprehended by the SWAT team. A loaded high-capacity magazine for the Glock pistol was also located in the same room. At the time he possessed the firearm, Huey had three previous felony convictions. The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney Cremeans and Greg McVey handled the prosecution.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Huntington Police Department.
These cases were prosecuted as part of the 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:19-cr-00058 (Chapman) and . 3:21-cr-00030 (Huey).
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Texas man suspected of sexually assaulting minor girl on flight to Bozeman appears in courtRead the Press Release
MISSOULA – A Texas man suspected of sexually assaulting a minor girl while on a flight from Austin, Texas, to Bozeman had an initial appearance on a criminal complaint today, Acting U.S. Attorney Leif M. Johnson said.
The criminal complaint accuses Vincent Harry Kopacek, 76, of Fredericksburg, Texas, of three federal crimes: attempted sexual abuse of a minor, abusive sexual contact and assault within maritime and territorial jurisdiction. If convicted of the most serious crime, Kopacek faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Kopacek was detained pending further proceedings.
According to the criminal complaint and documents filed in support of the complaint, on July 9, the FBI was contacted by an officer with the Bozeman Yellowstone International Airport Public Safety Office that the previous night, on July 8, a 15-year-old girl had been assaulted while on an aircraft from Austin to Bozeman. Upon departing the airport, the girl reported the incident to her family, who then contacted law enforcement.
The court documents allege that the girl was seated in a window seat, which was fully upright during the flight, and that Kopacek was sitting directly behind the girl’s seat. Kopacek allegedly reached his hand around the girl’s seat between her seat and the interior wall of the aircraft and touched the girl’s body. The girl documented the alleged activity with her cell phone. The activity took place from prior to takeoff in Austin to before landing in Bozeman.
FBI agents arrested Kopacek in Bozeman on July 11 when he checked in for his flight departing the airport.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the FBI, Gallatin County Sheriff’s Office and the Bozeman Yellowstone International Airport Public Safety Office.
PACER case reference. 21-072.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Tangipahoa Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
NEW ORLEANS, LOUISIANA – A Ponchatoula man pleaded guilty on July 7, 2021, to distributing methamphetamine.
According to court documents, AARON NAKEENEN WOMACK, 24, distributed methamphetamine from a residence in Ponchatoula, Louisiana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B), on February 22 and February 26, 2020. Execution of a federal search warrant on a residence resulted in the seizure of methamphetamine, heroin, and cocaine.
WOMACK is scheduled to be sentenced on October 6, 2021, and faces a mandatory minimum of five years, up to a maximum of 40 years in federal prison, up to a $5,000,000.00 fine, at least 4 years of supervised release following incarceration, and a $100 mandatory special assessment fee. Federal U.S. District Court Judge Ivan L.R. Lemelle will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Duane A. Evans of the Eastern District of Louisiana praised the work of Homeland Security Investigations Border Enforcement Security Task Force, which is an initiative of the Gulf Coast High Intensity Drug Trafficking Area Task Force, with assistance from Customs and Border Protection Air and Marine Operations, Drug Enforcement Administration, Louisiana State Police, Hammond Police Department, Ponchatoula Police Department, St. Helena Parish Sheriff’s Office, Livingston Parish Sheriff’s Office, St. Tammany Parish Sheriff’s Office, and Tangipahoa Parish Sheriff’s Office.
Assistant United States Attorney Paige O’Hale is prosecuting the case.
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Southwest Georgia Resident Criminally Charged with CARES Act PPP FraudRead the Press Release
ALBANY, Ga. – A federal grand jury has returned a 12-count indictment charging a Sycamore, Georgia, resident with bank fraud, money laundering and making false statements related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Anthony C. Boncimino, 46, of Sycamore, was indicted on July 8, 2021 with four counts of bank fraud, four counts of money laundering and four counts of making false statements. If convicted, the defendant faces a maximum penalty of 30 years in prison and a $1,000,000 fine for bank fraud, a maximum penalty of 10 years in prison and a $250,000 fine for money laundering and a maximum penalty of 5 years in prison and a $250,000 fine for making false statements. The defendant was released on bond.
According to the filed indictment, Boncimino allegedly submitted at least four fraudulent loan applications to the Small Business Administration (SBA) and third-party banks for Paycheck Protection Program (PPP) loans on behalf of shell companies, although these companies suffered no losses. The Government alleges that these businesses either did not exist, did not conduct business or only existed on paper. As a result of the fraud, Boncimino obtained approximately $2,600,000 in PPP loans, conducting numerous transactions with the money. This indictment is merely an allegation, and the Defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Fraudsters who attempt to capitalize during a global pandemic will face the possibility of federal prosecution for their crimes,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “Federal investigators will persist in unraveling the often-complex CARES Act fraud schemes and bring criminals to justice.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG, in coordination with its law enforcement partners, will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
"The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act," said J. Russell George, the Treasury Inspector General for Tax Administration. "We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort."
“While businesses were suffering and trying their best to make it through the pandemic, others chose greed. IRS-CI will continue to use its financial expertise to track and recommend prosecution of criminals taking advantage of a crisis,” stated James E. Dorsey, Special Agent in Charge IRS-Criminal Investigation.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Small Business Administration-OIG Eastern Region, the Treasury Inspector General for Tax Administration and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney Jim Crane is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Solon Man Sentenced to Prison for Child Pornography OffensesRead the Press Release
DAVENPORT, IOWA – A Solon man, Alfredo Alexander Lujan, was sentenced on June 30, 2021, by United States District Court Judge Stephanie M. Rose to 144 months in prison for Receipt and Possession of Child Pornography. Lujan was ordered to serve a five-year term of supervised release to follow his prison sentence, pay $200.00 to the Crime Victims’ Fund, and pay a $5,000.00 special assessment in accordance with the Justice for Victims of Trafficking Act.
According to court documents, Alfredo Alexander Lujan, age 43, was identified by the Federal Bureau of Investigation as having traded child pornography with an individual in North Carolina. Further investigation revealed they had sent links containing child pornography via the KIK application to one other. Law enforcement executed a search warrant at Lujan’s residence and seized multiple electronic devices. Lujan admitted receiving and possessing child pornography. In total, Lujan possessed nearly 200 images and videos depicting child pornography. On February 19, 2021, Lujan pleaded guilty to the charges brought against him.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The FBI investigated the case. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Sixth Defendant Sentenced for Marijuana Grow in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — Pedro Alvarez-Alcazar, 28, a citizen of Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for conspiracy to manufacture marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, after a nearly three-month investigation on Aug. 21, 2018, law enforcement agents raided a marijuana-cultivation site in the Shiell Gulch area of the Shasta-Trinity National Forest. Officers apprehended Alcazar-Alvarez at the site after he tried to draw a sheathed knife while struggling with the officer attempting to detain him. Co-defendants Fidencio Palacios-Riano, 22, and Romualdo Palacios-Hernandez, 38, both citizens of Mexico, were also apprehended at the site. Co-defendants Jesus Manzo Canela, 28, a citizen of Mexico; Jose Jesus Suarez Villa, 35, a citizen of Mexico; Joseph William Manzo, 32, of Sacramento; and Francisco Jesus Maldonado, 25, of Denair, were apprehended in a vehicle that had just visited the site. While at the site, officers observed bags being loaded into the trunk of the vehicle, and later found the trunk contained garbage bags holding 84 one-pound bags of processed marijuana. Agents eradicated 6,544 growing marijuana plants and seized another 500 pounds of processed marijuana at the site.
Alvarez-Alcazar is the sixth of seven defendants to be sentenced in connection with the marijuana grow. Romualdo Palacios-Hernandez was sentenced on Jan. 6, 2020 to two years and six months in prison; Jesus Manzo Canela was sentenced on Feb. 3, 2020 to three years and 10 months in prison; Fidencio Palacios-Riano was sentenced on Feb. 10, 2020 to two years and six months in prison; Jose Jesus Suarez Villa was sentenced on Feb. 10, 2020 to 17 months and 21 days in prison; and Joseph William Manzo was sentenced on March 2, 2020 to five years in prison. Francisco Jesus Maldonado is scheduled to be sentenced on Nov. 8, 2021.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the Campaign Against Marijuana Planting (CAMP). Assistant U.S. Attorney Shelley Weger is prosecuting the case.
Ringleader of Extensive Sinaloa Cartel-Linked Fentanyl and Heroin Trafficking Network SentencedRead the Press Release
NEWPORT NEWS, Va. – The ringleader behind an extensive drug trafficking ring was sentenced today to 33 years in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.
“This defendant served in a significant leadership role as the regional distributor of heroin, fentanyl, and cocaine for the Sinaloa Cartel, one of the most prolific and violent cartels in the world,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue working with our law enforcement partners to combat these transnational criminal organizations in order to protect the health and safety of our communities.”
According to court documents, Ramiro Ramirez-Barreto, 44, from the Mexican State of Morelos, operated a continuing criminal enterprise with ties to Virginia, North Carolina, and California. Ramirez-Barreto was linked to the Sinaloa Cartel in Mexico, as were his drug sources, and his operation supplied cocaine, heroin, and fentanyl to numerous drug trafficking organizations in Newport News, Virginia, and in Henderson and Greensboro, North Carolina. According to one of Ramirez-Barreto’s many North Carolina customers, Ramirez-Barreto supplied him with 60 kilograms of heroin from early 2018 to mid-2019. Another one of Ramirez-Barreto’s customers was an inmate in federal prison operating a drug trafficking organization in Henderson, North Carolina, using a bootleg mobile phone.
In addition to his sentence, Ramirez-Barreto was ordered to pay a forfeiture money judgment of $4,200,000 and forfeit his house in Lawrenceville.
Barreto was arrested in 2019 as a result of Operation Cookout.
Background on Operation Cookout
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina, and Texas executed a major operation, known as Operation Cookout, which resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
To date, 45 total defendants have been charged in Operation Cookout. All 45 defendants have admitted their criminal conduct and pleaded guilty. Thus far, 41 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and five defendants sentenced between 15 to 25 years in prison.
These prosecutions are part of an Organized Crime Drug Enforcement Task Force’s (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Mark Talbot, Chief of Hampton Police; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Kevin Hudson and Peter G. Osyf and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals Service, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina, and Texas.
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. 4:19-cr-47.
Rantoul Man Sentenced to 150 Months in Prison for Child Pornography CrimesRead the Press Release
URBANA, Ill. –Dwayne White, 56, of the 1300 block of Briarcliff Dr., in Rantoul, Ill., was sentenced today to 150 months (12 1/2 years) in federal prison for distribution and possession of child pornography.
On March 8, 2021, White entered a plea of guilty to the indictment. The indictment charged White with two counts of distribution of child pornography and one count of possession of child pornography between April 2, 2020, and June 18, 2020. White has been in the custody of the U.S. Marshals since his arrest on June 18, 2020.
Following White’s release from prison, he will be on federal supervised release for 10 years and will be required to register as a sex offender.
The charges were investigated by the Department of Homeland Security, Immigration and Customs Enforcement; the Champaign County Sherriff’s Office; and the Internet Crimes Against Children Task Force led by the Illinois Attorney General. Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. 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.
Pueblo Man Sentenced for Being a Prior Felon in Possession of a FirearmRead the Press Release
DENVER — The U.S. Attorney’s Office for the District of Colorado announces that Angel Castro of Pueblo, CO, was sentenced by U.S. District Court Judge Raymond Moore to serve 120 months in prison for possessing a firearm after previously being convicted of a felony. Castro pled guilty to the present charge on April 22, 2021.
After threatening another individual on social media over the course of several days, Castro shot the person in the back of the head. The shooting occurred on July 10, 2020, while the victim was driving his car in Pueblo. Because he was able to quickly obtain medical treatment, the victim survived. When officers arrested Castro on August 31, 2020, they found a loaded firearm. Forensic examination connected the recovered firearm to a shell casing recovered from the shooting. Castro had previously been convicted of a felony offense.
“Angel Castro’s callous willingness to shoot another person made him an obvious danger to the community,” said Acting U.S. Attorney Matt Kirsch. “The U.S. Attorney’s Office will pursue any available federal charges to get dangerous criminals like him off the streets.”
“Part of law enforcement’s efforts to reduce violent crime is removing weapons from convicted felons like Angel Castro, who have demonstrated a propensity for violence against others," said FBI Denver Special Agent in Charge Michael Schneider. "The ten-year sentence in this case should serve notice of the FBI’s commitment to the Pueblo community and to our continued work with the Pueblo Police Department, the Pueblo County Sheriff’s Office, and the U.S. Attorney’s Office to make our community safer for everyone.”
This matter was investigated by the Federal Bureau of Investigation and the Pueblo Police Department and prosecuted by the Violent Crime and Immigration Section of the U.S. Attorney’s office.
Case No. 20-cr-00323-RM
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Pleasantville, PA Man Sentenced to 16 Years for Producing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Pleasantville, Pennsylvania, has been sentenced in federal court to 16 years in jail, 5 years supervised release, and ordered to pay $30,162.96 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Scott A. Anthony, 50.
According to information presented to the court, the evidence presented at trial established that Anthony produced sexually explicit videos depicting two minors. Anthony surreptitiously recorded the two minor victims, without their knowledge, while they were using a bathroom.
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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prior to imposing sentence, Judge Cercone noted that Anthony’s conduct was extremely disturbing and occurred over a lengthy period.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Millcreek Police Department for the investigation leading to the successful prosecution of Anthony.
Pittsburgh Man Pleads Guilty in String of Armed Robberies across Allegheny CountyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit robbery, robbery, and brandishing a firearm during a crime of violence, Acting United States Attorney Stephen R. Kaufman announced today.
True Kinnon, age 22, pleaded guilty to nine counts before United States District Judge William S. Stickman IV.
In connection with the guilty plea, the court was advised that Mr. Kinnon and his coconspirators committed seven armed robberies in Allegheny County from November 2018 through February 2019. All of these robberies were of businesses located throughout the City of Pittsburgh, and in Penn Hills, Turtle Creek, Oakmont, and Monroeville. During many of these robberies, Mr. Kinnon and his coconspirators brandished firearms, including an assault-style rifle and a revolver, at employees and customers of the businesses, and took money and personal property from both employees and customers.
Judge Stickman scheduled sentencing for November 16, 2021 at 1:30 p.m. Under the terms of the plea agreement, the parties agreed to a sentence of 14 years of incarceration, followed by three years of supervised release. Judge Stickman may either accept or reject this plea agreement.
Pending sentencing, Mr. Kinnon will remain incarcerated.
Assistant United States Attorney Doug Maloney is prosecuting this case on behalf of the government.
The successful investigation and prosecution of Mr. Kinnon was the result of the collaborative work of the Pittsburgh Bureau of Police, the Monroeville Police Department, the Penn Hills Police Department, the Wilkins Township Police Department, the Oakmont Police Department, the Allegheny County District Attorney’s Office, and the Federal Bureau of Investigation.
Pembroke Township Man Sentenced to 10 Years in Prison for Selling FirearmsRead the Press Release
URBANA, Ill. –Jeremiah Hill, 32, of the 14100 block of East Central, Pembroke Township, in rural Kankakee County, Ill., was sentenced today to 120 months (10 years) in federal prison for possession of firearms by a felon.
On March 25, 2021, Hill entered a plea of guilty to the indictment. The indictment charged Hill with five counts of possession of a firearm by a felon between March 24, 2019, and July 1, 2019. Hill has remained in the custody of the U.S. Marshals since his arrest on July 17, 2019. According to court documents, Hill sold a total of eleven firearms to an undercover agent.
Hill will be required to complete three years of supervised release following his release from the Bureau of Prisons.
The charges were investigated by Bureau of Alcohol, Tobacco, and Firearms and the Kankakee Police Department. Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution.
North Highlands Man Sentenced to 5 Years in Prison for Fentanyl DistributionRead the Press Release
SACRAMENTO, Calif. — Sergey Tkachuk, 28, of North Highlands, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for distribution of fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2016, Tkachuk obtained 40 pills bearing the mark “M367,” which indicated that the pill was a Lortab 10 or Norco. The pills were in fact counterfeit versions and contained fentanyl. Tkachuk then sold 16 of the pills to another person for $6 per pill, and that person subsequently died of an overdose.
On April 19, 2021, Tkachuk pleaded guilty to distribution of fentanyl. The plea agreement indicates that Tkachuk did not know that the pills were counterfeit.
“This case is another example of the extreme danger posed by pills that appear to be legitimate pharmaceutical products but actually contain fentanyl,” Acting U.S. Attorney Talbert said. “The public should be aware than any pill that did not come directly from a pharmacy as a result of a valid prescription could contain deadly quantities of fentanyl or other drugs. Counterfeit pills often look exactly like legitimate pills, but they have caused untold numbers of deaths as a result of what they actually contain. This sentence should be a message to anyone buying or selling illicitly obtained pills—not knowing that pills contain fentanyl is not an excuse from criminal liability and taking them could result in death.”
This case was the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Paul Hemesath prosecuted the case.
New York Business Owner Pleads Guilty to Payroll Tax FraudRead the Press Release
The owner of a Brooklyn construction business, AD Custom Interiors Inc., pleaded guilty on July 9 to not paying payroll taxes to the IRS.
According to court documents, as the sole owner and operator of AD Custom, Anthony Riccio had a duty to truthfully account for and pay over to the IRS payroll taxes owed by his employees. From approximately January 2011 through January 2016, Riccio cashed over $3.1 million in checks paid to AD Custom. Riccio used some of that cash to pay wages to his employees. Riccio concealed these cash payments from AD Custom’s return preparer, causing the accountant to prepare employment tax returns that underreported wages and payroll taxes owed. Over five years, Riccio failed to pay $255,433 in federal payroll taxes, including income, Social Security and Medicare taxes, owed by AD Custom and its employees.
Riccio is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of five years in prison. Riccio also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Shawn T. Noud and Mark W. Kotila of the Justice Department’s Tax Division are prosecuting the case.
New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that MATTHEW BARRA, 33, from Orleans Parish, pled guilty on July 8, 2021 to a one-count superseding indictment. The superseding indictment charged BARRA with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
Between May 8 – 29, 2019, BARRA possessed four firearms. Before May 2019, he was convicted of various felonies stemming from several incidents in Orleans Parish and East Baton Rouge Parish, which precluded him from possessing firearms.
At sentencing, BARRA faces up to a maximum term of imprisonment of up to ten (10) years, a maximum fine of up to $250,000, up to 3 years of supervised release following any term of imprisonment, and a $100 mandatory special assessment.
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.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Melissa Bücher of the U.S. Attorney’s Office.
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Nebraska Railcar Cleaning Company and its Owners Plead Guilty to Violating Environmental and Worker Safety Laws Related to Workers’ 2015 DeathsRead the Press Release
Nebraska Railcar Cleaning Services LLC (NRCS), its president and owner, Steven Michael Braithwaite, and its vice president and co-owner, Adam Thomas Braithwaite, pleaded guilty today in federal court in Omaha to charges stemming from an investigation into a 2015 fatal railcar explosion that killed two workers. The charges include conspiracy, violating worker safety standards resulting in worker deaths, violating the Resource Conservation and Recovery Act (RCRA), and submitting false documents to the Occupational Safety and Health Administration (OSHA).
“The Department of Justice is dedicated to protecting the health and safety of American workers and to protecting our environment,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “The defendants in this case put their employees at risk and falsified documents to evade worker safety requirements. Tragically, two of their employees died while working with hazardous waste under unsafe conditions. Guided by its managers, NRCS failed to appropriately dispose of hazardous wastes removed during the cleaning process — wastes that are ignitable and can cause human cancer and other health effects. Today’s guilty pleas show that the Department of Justice will prosecute those who thwart federal laws created to protect American workers and the environment.”
“Worker safety standards and environmental regulations are not just meaningless rules made up by faceless bureaucrats,” said Acting U.S. Attorney Jan Sharp of the District of Nebraska. “They address real-world safety issues, and failure to abide by them can cost lives. Today’s guilty pleas emphasize the grave consequences of cutting corners, not only for the workers who are meant to be protected, but also for the employers who fail to live up to their responsibilities.”
“The Occupational Safety and Health Administration (OSHA) has regulations that companies must follow to ensure worker safety,” said Special Agent-in-Charge Steven Grell of the U.S. Department of Labor, Office of Inspector General, Dallas Region. “Steven and Adam Braithwaite disregarded OSHA regulations and provided false documentation to OSHA to make it appear as if all safety requirements were being followed, when in fact, they were not. Their lack of adherence to OSHA regulations and indifference to their employees’ safety resulted in tragic consequences which impacted several families. We will continue to work with our law enforcement partners and OSHA to hold accountable those who jeopardize workers ’ safety and obstruct DOL agencies in carrying out their important missions.”
“The defendants in this case ignored health and safety protocols and knowingly put their employees and the public at risk by disregarding federal regulations,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “Today’s guilty pleas send a clear message that individuals who intentionally violate these laws will be held accountable.”
NRCS was in the business of cleaning railcars, including rail tanker cars. Tanker car cleaning often involved NRCS sending workers inside the cars’ tanks to scrape and remove various commodities, including gasoline, ethanol, petroleum by-products, pesticides, herbicides and food-grade products.
According to court documents, NRCS failed to implement worker safety standards and then tried to cover that up during an inspection by OSHA. In addition, the company mishandled hazardous wastes removed from rail tanker cars during the cleaning process. On April 14, 2015, two NRCS workers who were sent into a tanker car containing severely flammable residue were killed and another injured when the contents of the railcar they were cleaning ignited and exploded.
On various occasions prior to the explosion, OSHA officials conducted regulatory inspections during which they notified the principals of NRCS that NRCS was in violation of OSHA safety regulations concerning confined space entries. Rail tanker cars are “confined spaces” under the Occupational Safety and Health Act. After an inspection of NRCS, Steven Braithwaite entered into a written agreement on Feb. 5, 2015, where he represented that NRCS had been testing for benzene since July 2014. After OSHA returned to NRCS in March 2015 to conduct a follow-up inspection and was turned away by Steven Braithwaite, Adam Braithwaite submitted falsified documents to OSHA purporting to show that NRCS had been purchasing equipment to test the contents of railcars for benzene and had taken other required safety precautions. Adam Braithwaite also falsely testified under oath in an OSHA hearing that NRCS had been purchasing the benzene testing equipment.
Meanwhile, NRCS had been engaged to clean the railcar that ultimately exploded. On or about Jan. 27, 2015, NRCS received an inquiry from one of its customers about receiving and cleaning product residue from a rail tanker car. The inquiry included a Safety Data Sheet (SDS) for the product in the railcar, describing it as “natural gasoline,” also known as “petrol, casing head gasoline, CS ’s.” The SDS also stated that the flammability rating was “severe” at class “4” (the highest rating), that the natural gasoline would ignite at zero degrees Fahrenheit, and that it contained benzene, a “cancer hazard.” NRCS responded that it could handle the material in the railcar.
The tanker car was not tested for benzene levels. Nonetheless, NRCS sent two of its employees into the tanker car. Continuous monitoring for explosive levels of gases was not conducted. The two employees sent into tanker car began removing the remaining contents, which were hazardous for toxicity (benzene) and ignitability. On April 14, 2015, approximately one hour after the two employees were sent into the tanker car, its contents ignited and exploded, killing those two employees and injuring a third.
Stephen Michael Braithwaite was the President and majority owner of NRCS and was responsible for all phases of the business, including both environmental and worker safety issues. He pleaded guilty to two counts of violating worker safety standards that resulted in the workers’ deaths, and knowingly endangering others by violating RCRA. Adam Thomas Braithwaite was the Vice President and a minority owner of NRCS and also handled both environmental and worker safety issues, among others. He also pleaded guilty to two counts of violating worker safety standards that resulted in the workers’ deaths, to two counts of falsification of records in a federal investigation, and to committing perjury. NRCS pleaded guilty to all 21 of the counts it was charged with in the indictment.
The defendants are scheduled to be sentenced on Oct.25. Steven Braithwaite faces a maximum penalty of 15 years in prison and a fine of the greater of $750,000 or twice the gain or profit caused by the offense. Adam Braithwaite faces a maximum penalty of 20 years in prison and a fine of the greater of $1,250,000 or twice the gain or profit caused by the offense and NRCS faces a maximum penalty of five years’ probation and a fine of the greater of $9,500,000 or twice the gain or profit caused by the offense. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by U.S. EPA’s Criminal Investigation Division and the U.S. Department of Labor’s Office of Inspector General. Senior Counsel Krishna S. Dighe of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska are prosecuting the case.
Michigan Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Rafael Starks, 36, of Michigan, was sentenced today to 21 months in prison for aiding and abetting the distribution of heroin.
According to court documents and statements made in court, Starks admitted that on August 1, 2018, he and another individual sold heroin to a confidential informant in the 1100 block of 9th Avenue in Huntington.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:18-cr-00249.
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Member of 36th Street Bang Squad Gang Sentenced for Attempted Murder and Multiple ShootingsRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced on Friday to 30 years in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.
According to court documents and evidence presented at trial, Ryan Taybron, 24, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On June 5, 2015, Taybron and four of his fellow gang members gathered at his Hampton home and discussed killing a rival gang member who was suspected of murdering a 36th Street Bang Squad member two days prior. Taybron provided a handgun to one of the gang members when the gang member left to find the rival. Once at the location, other 36th Street members and associates joined the group and followed a Hampton City school bus in two vehicles, waiting for their target to get off at a stop. When the target exited the bus, the co-defendants and associated gang members chased him into an apartment complex. With Taybron’s encouragement, the gang members carried loaded firearms and planned to kill the target if he was found, which he was not.
Throughout the conspiracy, Taybron actively used social media to taunt rival gangs and make threats of violence towards anyone who would disrespect the 36th Street Bang Squad. On September 1, 2015, Taybron provided a pistol-grip shotgun to a fellow gang member and had two gang members shoot a residence in Newport News because the female resident had disrespected the gang. The house was struck by multiple gun shots. After the shooting, the gang members returned the firearm to Taybron. On January 2, 2017, alongside a fellow gang member, Taybron verbally provoked and engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News.
On December 10, 2019, after a seven-week jury trial, Taybron was convicted of racketeering conspiracy, attempted murder in aid of racketeering activity, discharge of a firearm in furtherance of a crime of violence, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28. Co-defendant Xavier Greene, 26, of Newport News, was sentenced to four life sentences for his role in the conspiracy on July 2.
Two additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing through August 2.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Mark Talbot, Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Brian Samuels, former Assistant U.S. Attorney Howard J. Zlotnick, and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted 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. 4:17-cr-52.
Long Island Resident Pleads Guilty to Multimillion-Dollar Elder Fraud SchemeRead the Press Release
A Long Island woman pleaded guilty today to participating in a scheme to mail fraudulent prize notices that led recipients, many of whom were elderly and vulnerable, to believe that they could claim large cash prizes in exchange for a modest fee. None of the victims who submitted fees, which in total exceeded $30 million, received a substantial cash prize.
According to court documents, Lorraine Chalavoutis, 64, of Greenlawn, New York, conspired to mail fraudulent prize notices to thousands of victims throughout the United States between December 2010 and July 2016. The mailings appeared to be personally addressed to thousands of individuals whose names were on consumer lists obtained by Chalavoutis and her primary co-conspirators, Shaun Sullivan and Tully Lovisa. Chalavoutis created various shell companies for the purported senders of the mailings, and hid her co-conspirators’ involvement in the business by using straw owners. Lovisa and Sullivan both pleaded guilty to conspiracy to commit mail fraud and are awaiting sentencing. In separate cases, several other defendants have also pleaded guilty to conspiracy to commit mail fraud in connection with the scheme.
“Those who knowingly facilitate fraud schemes, including individuals who play administrative roles in setting up and maintaining the criminal operations, bear responsibility for the harm caused to victims,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to protecting elderly and vulnerable Americans and to prosecuting individuals who perpetrate and knowingly enable such schemes.”
“With today’s plea, Chalavoutis has admitted her role in a nefarious and fraudulent scheme to enrich herself by tricking elderly and vulnerable victims into believing they had won a cash prize that they could collect after paying her modest fees,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “Protecting the community from those who commit fraud to deliberately prey on the false hopes of the vulnerable remains a priority of this office and the Department of Justice.”
“Today’s plea is an example of the coordinated efforts of law enforcement to bring those to justice who prey on vulnerable adults through the distribution of bogus solicitations, luring the unsuspecting ‘prize winner’ to send money in an effort to steal not only their money, but in many cases their independence,” said Inspector-in-Charge Philip R. Bartlett of the U.S. Postal Inspection Service, New York Division.
Chalavoutis pleaded guilty to conspiracy to commit mail fraud before U.S. District Judge Joanna Seybert. She is scheduled to be sentenced on Jan. 18, 2022, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case. Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Long Island Defendant Pleads Guilty to Multi-Million Dollar Elder Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Lorraine Chalavoutis pleaded guilty before United States District Judge Joanna Seybert to conspiracy to commit mail fraud by participating in a scheme to mail fraudulent prize notices that induced recipients, many of whom were elderly and vulnerable, to believe that they could claim large cash prizes in exchange for a modest fee. None of the victims who submitted fees, which in total exceeded $30 million, received a substantial cash prize. When sentenced, Chalavoutis faces up to 20 years in prison, as well as forfeiture and a fine.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney General for the Justice Department’s Civil Division, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“With today’s plea, Chalavoutis has admitted her role in a nefarious and fraudulent scheme to enrich herself by tricking elderly and vulnerable victims into believing they had won a cash prize that they could collect after paying her modest fees,” stated Acting United States Attorney Kasulis. “Protecting the community from those who commit fraud to deliberately prey on the false hopes of the vulnerable remains a priority of this Office and the Department of Justice.”
“Chalavoutis set up and ran the administrative and financial operations that allowed this fraud scheme to work,” stated Acting Assistant Attorney General Boynton. “The Department of Justice is committed to protecting elderly and vulnerable Americans and to prosecuting those who defraud them.”
“Today’s plea is an example of the coordinated efforts of law enforcement to bring those to justice who prey on vulnerable adults through the distribution of bogus solicitations, luring the unsuspecting ‘prize winner’ to send money in an effort to steal not only their money, but in many cases their independence,” stated USPIS Inspector-in-Charge Bartlett.
Between December 2010 and July 2016, Chalavoutis conspired to mail fraudulent prize notices to thousands of victims throughout the United States. The mailings appeared to be personally addressed to thousands of individuals whose names were on consumer lists obtained by Chalavoutis and her primary co-conspirators, Shaun Sullivan and Tully Lovisa. Chalavoutis created various shell companies for the purported senders of the mailings and hid her co-conspirators’ involvement in the business by using straw owners. Lovisa and Sullivan previously pleaded guilty to conspiracy to commit mail fraud and are awaiting sentencing. In separate cases, several other defendants have also pleaded guilty to conspiracy to commit mail fraud in connection with the scheme.
The government’s case is being prosecuted by Assistant United States Attorney Charles P. Kelly and Trial Attorneys Daniel Zytnick and Timothy Finley of the Justice Department’s Consumer Protection Branch. Assistant United States Attorney Tanisha R. Payne of the Office’s Civil Division is in charge of forfeiture matters.
The Defendant:
LORRAINE CHALAVOUTIS
Age: 64
Greenlawn, New YorkE.D.N.Y. Docket No. 18-CR-349 (JS)
Leicester Woman and Man Charged in Superseding Indictment in COVID-19 Pandemic SchemeRead the Press Release
BOSTON – A Leicester woman and man were charged in a superseding indictment by a federal grand jury in Worcester in connection with their alleged involvement in a pandemic unemployment fraud scheme.
The superseding indictment added one count of conspiracy to commit wire fraud against Destinee Snay, 19, who was arrested today. In April 2021 co-defendant William Cordor, 26, was indicted on one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft. Cordor was previously arrested by criminal complaint.
According to the indictment, from about June 2020 to about October 2020, Cordor and Snay conspired with others to file false and fraudulent claims for unemployment assistance in multiple states, including Nevada, using stolen identities and transfer the payments into prepaid debit card accounts they obtained. It is alleged that on Aug. 18, 2020, Cordor was encountered by police in connection with a domestic violence incident and found in possession of approximately 21 prepaid debit cards in approximately 13 different names. In addition, evidence related to this scheme was allegedly found on Cordor’s computer and cell phone.
Cordor also allegedly engaged with others in a second wire fraud scheme that involved using stolen identities to fraudulently apply for COVID-19 Economic Injury Disaster loans from the SBA and similarly deposited the loans into prepaid debit card accounts.
Charging documents allege that in May 2020 Cordor admitted to federal agents that he had fraudulently obtained unemployment benefits from the Commonwealth of Massachusetts. That same day, Cordor agreed to surrender to federal authorities the balance of $79,000 in his bank account that were proceeds of his unemployment fraud scheme in Massachusetts. This occurred before Cordor is alleged to have filed the fraudulent unemployment claim with Nevada in July 2020.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison in addition to any other sentenced imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; and Frederick J. Regan, Special Agent in Charge of U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance in the case was provided by the Leicester and Marlboro Police Departments. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department and Federal Maritime Commission Sign Memorandum of Understanding to Support Interagency CollaborationRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Maritime Commission (FMC) have signed the first interagency Memorandum of Understanding (MOU) to foster cooperation and communication between the agencies to enhance competition in the maritime industry. Acting Assistant Attorney General Richard A. Powers and FMC Chairman Daniel Maffei signed the MOU between the Antitrust Division and the FMC effective this afternoon following Friday’s announcement of the Executive Order on Promoting Competition in the American Economy.
“Collaboration between the Antitrust Division and the FMC is important to ensuring healthy competition in the maritime industry,” said Acting Assistant Attorney General Powers. “Our partnership with the FMC is one of the many ways in which the Antitrust Division is prepared to play its role in achieving the competition objectives of the President’s Competition Executive Order.”
“The Federal Maritime Commission has an important enforcement role as an economic regulator of a vital industry,” said Chairman Maffei. “As such, we will continually assess how the agency can improve its capacity to protect the integrity of the marketplace. This memorandum between the Commission and the Department of Justice supplements and strengthens the FMC’s ability to detect, address, and pursue violations of the law or anticompetitive behavior by those we regulate.”
Key provisions of the MOU facilitate communication and cooperation between the agencies. In particular, the MOU establishes a framework for the Antitrust Division and the FMC to continue regular discussions and review law enforcement and regulatory matters affecting competition in the maritime industry. The MOU includes provisions to establish periodic meetings among the respective agencies’ officials. The MOU also provides for the exchange of information and expertise that may be relevant and useful to the agencies’ oversight and enforcement responsibilities, as appropriate and consistent with applicable legal and confidentiality restrictions.
Justice Department and Board of Elections of Oneida County, New York, Reach Agreement under National Voter Registration Act and Help America Vote ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the Board of Elections of Oneida County, New York.
The proposed consent decree was filed in the U.S. District Court for the Northern District of New York in conjunction with a lawsuit brought by the Justice Department. The Justice Department’s complaint alleges that, before the November 2020 federal general election, the Oneida County Board of Elections failed to process approximately 2,400 timely-submitted voter registration applications completed through state motor vehicle offices and failed to ensure that voter registration applicants received timely notice of the disposition of their applications, in violation of Section 8 of the National Voter Registration Act (NVRA). The complaint also alleges that the State violated Section 302 of the Help America Vote Act (HAVA) by summarily rejecting nearly 1,800 provisional ballots cast by Oneida County voters in the November 2020 federal election without verifying the voters’ eligibility and without counting those provisional ballots cast by eligible voters.
The Justice Department gave notice to the Oneida County Board of Elections of its intent to bring suit under the NVRA and HAVA on March 23, and the parties worked collaboratively to achieve this agreement. The parties’ consent decree, which must still be approved by the court, provides that the Oneida County Board of Elections will develop and implement uniform and nondiscriminatory policies and procedures to ensure that election officials review and process all timely submitted voter registration applications in accordance with the NVRA. In addition, the board will train all poll officials and other election personnel regarding the provisional balloting requirements of HAVA. Finally, the board will provide periodic reports to the Justice Department regarding compliance with the proposed consent decree.
“We will continue using critical federal voting rights laws to help ensure that eligible voters enjoy access to the ballot box,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The National Voter Registration Act requires states to ensure that voter registration applications submitted before the deadline for federal elections are timely processed, and that qualified voters are promptly included on voter rolls for federal elections. The Help America Voter Act ensures that registered voters who have been left off voting lists can cast provisional ballots that will be promptly verified and counted if the voters are found to be eligible. I am pleased that the Oneida County Board of Elections has worked with the Department of Justice and agreed to measures that will protect these vital rights and establish safeguards to ensure compliance with the law in future federal elections.”
“We join the Civil Rights Division in bringing this important lawsuit under the National Voter Registration Act and the Help America Vote Act, and appreciate that Oneida County has worked with the Justice Department to ensure that all Oneida County residents enjoy the voting rights and protections afforded to them,” said Acting U.S. Attorney Antoinette T. Bacon of the Northern District of New York.
More information about the National Voter Registration Act, the Help America Vote Act and other federal voting rights laws is available on the Department of Justice website at https:www.justice.gov/crt/voting-section.
Justice Department Statement on Law Enforcement Assistance to the Haitian GovernmentRead the Press Release
The U.S. Department of Justice today released the following statement from spokesman Anthony Coley on department efforts to provide law enforcement assistance to the people and Government of Haiti:
“At the request of the Haitian government, the Department of Justice, along with its U.S. government partners, is assisting the Haitian National Police in the investigation of the assassination of Haitian President Jovenel Moïse.
“An initial assessment has been conducted in Haiti by senior U.S. officials. The department will continue to support the Haitian government in its review of the facts and circumstances surrounding this heinous attack.
“The department will also investigate whether there were any violations of U.S. criminal law in connection with this matter.”
Jury Convicts Hampton Return Preparer of Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man Friday of aiding and assisting in the preparation of false tax returns, theft of government funds, and failing to file federal income tax returns.
According to court records and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey prepared false tax returns for clients. On his clients’ returns, Burden-El Bey claimed false dependents, residential energy credits, gifts to charity, deductions, and child and dependent care expenses in order to inflate refunds obtained from the Internal Revenue Service (IRS). Burden-El Bey also stole $5,000 by directing a portion of his client’s refunds into his personal bank account. As to his own taxes, Burden-El Bey did not file individual tax returns for 2013 through 2017 with the IRS, despite being legally obligated to do so.
“The evidence at trial demonstrated that the defendant’s criminal conduct in this case spanned several years and included assisting in the preparation of false tax returns, stealing government funds, and failing to file personal federal income tax returns even though he held a trusted position as a tax preparer,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its appreciation to the trial team, and we are grateful for the jury’s verdict, which holds the defendant accountable for betraying the public’s trust and unlawfully enriching himself through this multi-year fraud scheme.”
Burden-El Bey faces a statutory maximum sentence of ten years in prison for theft of government funds, three years in prison for each count of aiding and assisting in the preparation of a false tax return, and one year in prison for each count of failing to file a tax return when sentenced on December 7. 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; General Stuart M. Goldberg, Acting Deputy Assistant Attorney of the Department of Justice’s Tax Division; and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Lisa McKeel and Brian Samuels and Trial Attorneys Grace Albinson and Francesca Bartolomey of the Tax Division are 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. 4:20-cr-17.
Jamestown Man Pleads Guilty to Enticement of MinorRead 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 Richard LaFrance, 35, of Jamestown, NY, pleaded guilty, before U.S. District Judge John L. Sinatra, Jr., to enticement of a minor, which carries a minimum penalty of 10 years in prison, a maximum of life, and a $250,000.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that the defendant, who was 34 years-old at the time, met a 14-year-old minor victim in April of 2019, and began communicating with her via email and text message. The communications between LaFrance and the Minor Victim were sexually explicit and included the defendant requesting that the Minor Victim send him naked pictures. In addition, LaFrance met up with the Minor Victim on at least two occasions and engaged in sexual intercourse.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James B. Quattrone.
Sentencing is scheduled for November 9, 2021, at 4:00 p.m. before Judge Sinatra.
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Jackson Man Sentenced to Ten Years in Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 120 months in federal prison for possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Travaris Devon Bishop, 36, was arrested by the Jackson Police Department on January 9, 2020, with a firearm in his possession. The arrest was made during an investigation into criminal activity in a local neighborhood. Bishop had two previous convictions for house burglary and was prohibited from possessing a firearm.
On August 11, 2021, Bishop was charged in a federal criminal indictment with being a convicted felon in possession of a firearm. He pled guilty on July 12, 2021.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Huntington Man Sentenced for Federal Crack Cocaine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with crack cocaine last year in his residence was sentenced today to 78 months in federal prison. Daniel Legette, 45, previously pleaded guilty to possession with intent to distribute cocaine base, also known as “crack.” Legette was on supervised release at the time of the offense for a prior federal drug conviction and was sentenced to an additional 12 months and one day in federal prison after his release was revoked. The sentences were ordered to run consecutively for a total sentence of 90 months and one day.
According to court documents, officers with the Huntington Police Department executed a search warrant on November 12, 2020 at Legette’s residence located on Oakland Avenue in Huntington. During the search, officers seized approximately 100 individually wrapped bags of crack cocaine totaling approximately 23 grams. Officers also seized additional quantities of methamphetamine, heroin and a rifle. Legette admitted that he possessed and intended to distribute all of the drugs seized by police.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00007.
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Huntington Man Sentenced for Child Pornography OffenseRead the Press Release
The United States Attorney’s Office for the District of Vermont stated that Louis Hamlin II, 77, of Huntington, Vermont, was sentenced on July 12, 2021, in United States District Court in Rutland, Vermont, to serve 72 months in prison after his guilty plea to one count of knowingly producing with intent to distribute child pornography that is an adapted or morphed depiction of an identifiable minor. Chief U.S. District Judge Geoffrey W. Crawford also ordered Hamlin to serve a five (5) year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in February 2019, the National Center for Missing and Exploited Children (NCMEC) received a Cybertip that someone at a specific IP address in Vermont had uploaded or viewed an image of child pornography. NCMEC referred the Cybertip to the Vermont Internet Crimes Against Children Task Force (ICAC) for investigation. Thereafter, the ICAC and special agents with Homeland Security Investigations identified the user of the IP address to be Louis Hamlin II. Law enforcement obtained and executed a search warrant at Hamlin’s residence in Huntington, Vermont and discovered images of child pornography on his computer.
As part of his plea agreement, Hamlin admitted that he used a computer that was connected to the Internet, a facility of interstate and foreign commerce, to upload and distribute an image file depicting an identifiable minor that had been modified to make it appear that the child was engaging in sexually explicit conduct. Specifically, Hamlin admitted to taking an image of an identifiable child and cropping and modifying it so particular aspects of the image were highlighted. In doing so, the image created by Hamlin appeared to show the child engaged in sexually explicit conduct.
Acting United States Attorney Jonathan A. Ophardt commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations in the investigation and prosecution of Hamlin. Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Hamlin. Assistant Federal Public Defender David L. McColgin represented Hamlin.
Acting U.S. Attorney Ophardt noted that this case was brought 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 Child Exploitation Obscenity Section, Criminal Division (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.
Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. -- Frederick Coleman, 32, of Huntington, pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, law enforcement officers executed a search warrant at a residence in Huntington on February 13, 2020. Inside one of the bedrooms, officers recovered approximately 2.31 grams of heroin and approximately 20.99 grams of cocaine. Coleman admitted that he possessed the heroin and intended to distribute it.
Coleman pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on October 18, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Nick Miller 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. 3:20-cr-00171.
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Huntington Man Pleads Guilty to Escape ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to an escape charge. Jeremy Midkiff, 39, pleaded guilty to walking away from a halfway house last year.
Midkiff admitted that in October 2020, he left Dismas Charities, Inc., a Bureau of Prisons residential reentry facility, without permission and did not return. He had been confined at Dismas because of a previous federal drug trafficking conviction.
Midkiff faces up to five years imprisonment when sentenced on November 10, 2020.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Marshals Service.
Senior United States District Robert C. Chambers presided over the hearing. Assistant United States Attorney Negar Kordestani 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. 2:21-cr-00083.
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Gates Mills Man Pleads Guilty to Role in Bookmaking ConspiracyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that William Mangelluzzi, 48, of Gates Mills, Ohio, pleaded guilty in federal court today to a Bill of Information charging him for his role in a conspiracy to operate an illegal gambling business and attempted income tax evasion.
According to court documents, Mangelluzzi, together with Thomas Reed, 48, of Kirtland Hills, Ohio, and others, owned and operated an illegal gambling business in the Northern District of Ohio. Court records state that Mangelluzzi, a former gambling client of Reed, conspired together with Reed and others in order to conceal the proceeds of the gambling business and make them appear legitimate. In addition, Mangelluzzi deposited large sums of cash into bank accounts and conducted other transactions with Reed and others in order to evade income tax liability.
Reed previously pleaded guilty to a Bill of Information for his role in the conspiracy.
Mangelluzzi’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the United States Secret Service and the Internal Revenue Service Criminal Investigations. This case is being prosecuted by Criminal Chief Robert Bulford and Assistant U.S. Attorney Alejandro Abreu.