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Friday 21 May 2021
Beverly Hills Man Arrested on Federal Charges of Attempting to Hire Hitman to Murder One-Time Girlfriend Who Had Rebuffed HimRead the Press Release
LOS ANGELES – A Beverly Hills man was arrested today on a murder-for-hire charge that alleges he tried to hire a hitman to kill a woman he briefly dated and who had repeated tried to break off the relationship.
Scott Quinn Berkett, 24, was arrested this afternoon without incident after being charged in a federal criminal complaint that alleges he sent thousands of dollars in bitcoin to arrange the murder and then wired another $1,000 to the “hitman,” who was actually an undercover FBI agent.
According to the affidavit in support of the complaint, Berkett met “Victim 1” online last year, and the woman flew to Los Angeles to meet Berkett in late October. Victim 1, who described Berkett’s behavior as “sexually aggressive,” tried on several occasions to break off the relationship following the October trip, the affidavit states.
In April, a family member who had learned that Berkett continued to contact Victim 1 called and sent text messages to Berkett’s father’s phone, and, on April 20, Berkett appears to have responded saying “consider this matter closed.”
But, Berkett allegedly contacted a group on the dark web that advertised murder-for-hire services. While law enforcement believes that this dark web group was a scam, the group contacted a media outlet, which provided information to the FBI, including messages from Berkett, who was using a screenname of “Ula77,” and documentation of payments by Berkett, according to the affidavit.
The media outlet provided “transaction information from an unnamed source on the Dark Web that showed that Bitcoin payments were made with an understanding that an unknown individual would murder Victim 1,” the affidavit states. “The information provided was specific about the identity and location of Victim 1, as well as social media accounts, nicknames, email, and a distinctive tattoo of Victim 1.”
Berkett allegedly submitted his order for the hit on April 28, writing to the dark web group: “I’d like it to look like an accident, but robbery gone wrong may work better. So long as she is dead. I’d also like for her phone to be retrieved and destroyed irreparably in the process.” The information provided to the FBI indicated that Berkett made Bitcoin payments totally $13,000 between April 5 and May 5.
An undercover FBI agent, posing as a hitman, made contact with Berkett on Wednesday and eventually sent a photo of Victim 1, which Berkett confirmed was the victim, according to the affidavit. During the discussions with the purported hitman, Berkett demanded a proof-of-death photo that would show the corpse and Victim 1’s distinctive tattoo.
Berkett made the final $1,000 payment via Western Union late Thursday afternoon, the affidavit states.
Berkett is expected to make his initial appearance in United States District Court on May 25.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of the murder-for-hire count, Berkett would face a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section is prosecuting the case.
Baltimore Drug Dealer Sentenced to Nine Years in Federal Prison for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Daniel Taylor, age 36, of Baltimore, Maryland to nine years in federal prison, followed by five years of supervised release, for possession of a firearm in furtherance of drug trafficking.
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 plea agreement, from June 2020 to August 2020, Taylor conspired with others to distribute quantities of cocaine in Baltimore. For example, on June 26, 2020 Taylor spoke with an inmate on a recorded line. During the conversation the inmate asked Taylor where he was located and Taylor stated, “the block,” a term used to refer to an area in which narcotics are sold. Later in the conversation, Taylor stated the “girl” was the only thing that was “moving,” meaning that Taylor was trafficking narcotics and cocaine was making the most money. The term “girl” is used to refer to cocaine.
On August 20, 2020, the ATF executed a search warrant at Taylor’s Baltimore residence where law enforcement recovered a 12-gauge shotgun, five rounds of 12-gauge ammunition, and two rounds of 12-gauge shotgun slugs. Taylor admitted that he possessed the firearm in furtherance of the cocaine distribution conspiracy.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Zachary Stendig and Lindsey McCulley who prosecuted the case.
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Atlanta-Based National Chain of Skilled Nursing Facilities to Pay $11.2 Million to Resolve Allegations of Providing Substandard Care, Medically Unnecessary Therapy ServicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that SavaSeniorCare LLC and related entities (Sava), have agreed to pay $11.2 million, plus additional amounts if certain financial contingencies occur, to resolve allegations that it violated the False Claims Act by causing its skilled nursing facilities (SNFs) to bill Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, and to resolve allegations that Sava billed Medicare and Medicaid for grossly substandard skilled nursing services. Sava, based in Atlanta, Georgia, currently owns and operates more than 160 skilled nursing facilities across the country, including three facilities in Pennsylvania.
“Nursing home residents should not be at the mercy of nursing home operators that put their own economic gain ahead of the needs of the residents, and we will continue to aggressively pursue those operators who bill Medicare and Medicaid for substandard care,” said Acting U.S. Attorney Williams. “This settlement holds Sava accountable, and the resulting Corporate Integrity Agreement should ensure that Sava provides seniors with quality care and treats its residents with dignity and respect.”
This settlement resolves four False Claims Act lawsuits, one in the United States District Court for the Eastern District of Pennsylvania and three consolidated in the United States District Court for the Middle District of Tennessee. The lawsuits allege that Sava submitted false claims for rehabilitation therapy services by engaging in a systematic effort to increase its Medicare billings. Through corporate-wide policies and practices, Sava allegedly exerted significant pressure on its SNFs designed to meet unrealistic financial goals, resulting in the provision of medically unreasonable, unnecessary and unskilled services to Medicare patients. Sava allegedly set these aggressive, prospective corporate targets for the highest Medicare reimbursement rates to significantly increase Sava’s revenues without regard for its patients’ actual clinical needs and then pressured its staff to meet those targets. Sava also allegedly delayed discharging patients from its facilities in order to increase its Medicare payments, even though the patients were medically ready to be discharged.
This settlement also resolves allegations that between Oct. 1, 2008 and Sept. 30, 2012, Sava submitted false claims to Medicaid for coinsurance amounts related to rehabilitation therapy services for beneficiaries who were eligible for both Medicare and Medicaid.
In addition, this settlement resolves allegations that between Jan. 1, 2013 and Dec. 31, 2018, Sava submitted false claims for payment to Medicare and Medicaid for grossly and materially substandard and/or worthless skilled nursing services, which were caused in large part by Sava’s failure to provide a sufficient number of skilled nursing staff to adequately care for its nursing home residents. This failure of care allegedly resulted in preventable pressure ulcers, preventable falls, and preventable medication errors.
“Nursing home operators will be held to account when they put their own financial interests ahead of the needs of their residents,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “This settlement demonstrates the Department’s continued commitment to aggressively pursue those operators who bill Medicare and Medicaid for unnecessary and grossly substandard services and who fail to adequately care for the residents entrusted to their care.”
Under the settlement with the United States, and separate settlements with participating states, Sava has agreed to pay a total of approximately $11.2 million, plus additional amounts if certain financial contingencies occur.
Contemporaneous with this settlement, Sava has also entered into a five-year, chain-wide Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent organization to annually review patient stays and associated paid claims by Medicare for those stays, including provision of rehabilitation therapy services to ensure that they are reasonable and necessary to improve, maintain, or slow deterioration of the patient’s condition, or restore the patient’s prior level of function. In addition, Sava is required to engage an independent monitor to review the quality of resident care. CIAs promote compliance and protect vulnerable nursing home residents.
The matters were handled by U.S. Attorney’s Offices for the Eastern District of Pennsylvania and Middle District of Tennessee, the Civil Division’s Commercial Litigation Branch, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices of the Southern District of Texas and the Western District of Texas and the National Association of Medicaid Fraud Control Units. In the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Assistant U.S. Attorney David A. Degnan, Assistant U.S. Attorney Gerald B. Sullivan, and Auditor George R. Niedzwicki handled the investigation and settlement.
The cases are captioned United States, et al. ex rel. Doe, et al. v. SavaSeniorCare, Inc., et al., Civil Action No. 16-CV-0840 (E.D. Pa.); United States ex rel. Hayward v. SavaSeniorCare, LLC, et al., No. 3:11-0821 (M.D. Tenn.); United States ex rel. Scott v. SavaSeniorCare Administrative Services, LLC, 3:15-0404 (M.D. Tenn.); and United States ex rel. Kukoyi v. Sava Senior Care, L.L.C., et al., No. 3:15-1102 (M.D. Tenn.). The relator in the Eastern District of Pennsylvania action is represented by David T. Marks of Marks Balette Giessel & Young, P.C., Thomas Sheridan of Sheridan & Murray, LLC, and Joseph Trautwein of Joseph Trautwein & Associates, LLC.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Aroostook County Man Sentenced on Federal Drug ChargesRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced yesterday in federal court in two separate cases for conspiring to distribute and possessing with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Taylor Lovely, 34, to 158 months in prison and five years of supervised release. Lovely pleaded guilty in December 2020.
According to court records, between approximately January 2017 and August 2018, a drug trafficking organization distributed large quantities of methamphetamine in northern Maine. The organization obtained the drugs from out-of-state sources in Colorado and Arizona. Lovely and his co-conspirators distributed the drugs in northern Maine.
Also according to court records, between approximately July 2018 and May 2019, members of a separate conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Lovely and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine.
The U.S. Drug Enforcement Administration; Homeland Security Investigations; the Bureau of Alcohol, Firearms, Tobacco and Explosives; and the Maine Drug Enforcement Agency investigated these cases with the assistance of multiple state and local law enforcement agencies.
These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Arkansas RV Salesman Indicted for Income Tax EvasionRead the Press Release
An indictment was unsealed today charging an Arkansas man with three counts of evading his individual income taxes.
According to the indictment, Joshua Wood, formerly a resident of Alma, Arkansas, was employed as a recreational vehicle and automobile salesman from 2014 through 2016. Despite earning total gross income during these three years in excess of $300,000, Wood allegedly did not file his 2014 through 2016 income tax returns as required by law. In addition Wood allegedly supplied his employers with forms W-4 falsely claiming he was exempt from federal income tax withholding. When questioned by IRS Criminal Investigations (IRS-CI) special agents about why he had failed to file his income tax returns, Wood allegedly gave a false statement.
If convicted, Wood faces a maximum penalty of five years in prison on each count of tax evasion. Each count also carries the possibility of a fine and supervised release upon completion of any sentence of incarceration. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS-CI is investigating the case.
Trial Attorney Robert Kemins of the Justice Department’s Tax Division 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.
Appleton Man Sentenced to 15 Years of Imprisonment for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Darrin S. McElhatton (age: 41) of Appleton, Wisconsin, was sentenced to 180 months in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, McElhatton received and possessed numerous digital images and videos of child pornography. A routine security check at a Grand Chute motel led to the discovery of child pornography on McElhatton’s cell phone. He was previously convicted in Wisconsin state courts for similar crimes involving child pornography.
In imposing sentence, Judge Griesbach noted the serious nature of the charge, McElhatton’s aggravated criminal record, and the need for just punishment. Following his release from prison, McElhatton will spend the remainder of his life on supervised release. He also will be required to register as a sexual offender.
This case was investigated by the Grand Chute Police Department and the Wisconsin Department of Community Corrections. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Alleged Ringleader of International Methamphetamine Trafficking Operation Extradited to the United States from FranceRead the Press Release
LOS ANGELES – The lead defendant in an indictment alleging that a drug trafficking organization shipped thousands of pounds of methamphetamine all over the world – sometimes hidden inside consumer and industrial products – arrived in the United States today after being extradited from France.
Jose Guillermo Grosso Gamez, 41, of Sinaloa, Mexico, arrived at Los Angeles International Airport early this afternoon. Grosso is expected to be arraigned Monday afternoon in United States District Court in downtown Los Angeles.
Grosso – who used various aliases, including “Greenhills” and “Martinez Asociados” – is charged with brokering and organizing methamphetamine shipments to destinations around the world. To evade law enforcement, Grosso allegedly concealed drug shipments in industrial machinery and bribed government officials in Mexico.
According to an eight-count indictment returned by a federal grand jury in 2018, Grosso attempted to ship approximately 265 pounds of methamphetamine from Mexico to Australia concealed in computer equipment. The shipment was intercepted by U.S. law enforcement in Memphis, Tennessee.
During the investigation, law enforcement in other countries also seized methamphetamine allegedly shipped by Grosso. Those seizures included approximately 725 pounds of methamphetamine hidden inside an industrial ore crusher and an asphalt roller in Manzanillo, Mexico, and approximately 185 pounds of methamphetamine found on a rooster ranch in the Philippines.
The investigation also led to the discovery of a laboratory in Pomona that converted methamphetamine into crystal form and the seizure of over 12 metric tons of amphetamine powder in Guatemala.
Grosso is the third defendant to be taken into custody pursuant to the indictment that charges 17 defendants, most of whom are believed to be in Mexico. An Inland Empire man who was previously arrested died in December. The other defendant -- Milton Eduardo Aquino Castaneda, 51, of the Harbor City neighborhood in Los Angeles – was arrested in November after he entered the United States from Mexico.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If convicted of all charges, Grosso would face a potential sentence of decades in federal prison.
This matter is being investigated by special agents with the Drug Enforcement Administration. The Organized Crime Drug Enforcement Task Force is providing support. Substantial assistance was provided by the Office of International Affairs, the Australian Federal Police, the Australian Criminal Intelligence Commission, and the governments of France and Australia.
This case is being prosecuted by Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Benedetto L. Balding of the International Narcotics, Money Laundering, and Racketeering Section.
Alleged Austin Drug Dealer Indicted for Distributing Controlled Substance Containing Fentanyl Resulting in DeathRead the Press Release
AUSTIN – Today, authorities arrested 27-year-old Jean Claude Anthony Meama-Kajue of Austin for allegedly distributing a controlled substance containing fentanyl that resulted in a person’s overdose death in December of last year.
A five-count indictment unsealed today charges Meama-Kajue with one count of distribution of a controlled substance containing fentanyl resulting in death and four counts of distribution of a controlled substance containing fentanyl. Upon conviction, Meama-Kajue faces between 20 years and life in federal prison for the drug charge resulting in death and up to 20 years in federal prison for each of the remaining drug charges.
The indictment alleges that on December 13, 2020, Meama-Kajue possessed and sold a controlled substance containing fentanyl to an individual. That individual subsequently died after consuming the narcotic. Furthermore, the indictment alleges that the defendant distributed a controlled substance containing a detectable amount of fentanyl on four separate occasions in Austin earlier this year.
U.S. Attorney Ashley C. Hoff, Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Field Office, Acting Pflugerville Police Chief Jason Smith and Cedar Park Police Chief Mike Harmon made today’s announcement.
Meama-Kajue remains in federal custody. His initial appearance is scheduled for 2:00 p.m. on Monday before U.S. Magistrate Judge Mark Lane in Austin.
The DEA Austin Tactical Diversion Squad, Pflugerville Police Department and the Cedar Park Police Department investigated this case. Assistant U.S. Attorney Mark Marshall is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Thursday 20 May 2021
Windber Man Sentenced to 5 Years’ Probation for Knowingly Selling Stolen MerchandiseRead the Press Release
JOHNSTOWN, Pa. – A resident of Windber, Pa., has been sentenced in federal court to 5 years’ probation for his convictions of conspiracy and interstate transportation of stolen property, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Kim R. Gibson imposed the sentence on Bradley J. Charlton, 38, of Windber, Pa.
According to information presented to the court, from Aug. 1, 2016, to Oct. 3, 2018, Charlton conspired with others to commit certain offenses against the United States, that is, to unlawfully transport, transmit and transfer in interstate commerce goods, wares and merchandise knowing the same to have been stolen, converted, and taken by fraud.
Assistant United States Attorney Maureen Sheehan-Balchon. prosecuted this case on behalf of the government.
Mr. Kaufman commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency, the Cambria County Detective Bureau, and the Richland Township Police Department for the investigation that led to the successful prosecution of Charlton.
Wetumpka Woman Sentenced to Prison for Embezzling Money from A Doctor’s Office and Falsifying Her Tax ReturnsRead the Press Release
Montgomery, Alabama – On Wednesday, May 19, 2021, Stephanie Hafley, also known as Stephanie A. Rooney, 53, from Wetumpka, Alabama, was sentenced to 22 months in prison for embezzling nearly $400,000.00 from her employer and failing to pay taxes, announced Acting U.S. Attorney Sandra J. Stewart. In addition to her prison sentence, Hafley was ordered to serve three years of supervised release and to pay $393,134.02 restitution to the victim, and $108,610.00 to the United States Internal Revenue Service (IRS). There is no parole in the federal system.
According to court records and statements made in open court, from at least 2012 through 2016, Hafley was the office manager of Medical Care Associates (MCA) in Prattville, Alabama where she was in charge of handling the company’s finances. These duties included paying the office’s bills, making bank deposits of revenue generated by MCA, making entries to the general ledger, preparing the business payroll ledger and making the payment of employment taxes to the Alabama Department of Revenue and the IRS. In 2015, another individual associated with MCA noticed suspicious activity in some of the office’s financial statements. The Federal Bureau of Investigation (FBI) and the IRS began to investigate and soon developed Hafley as a potential suspect. The investigation ultimately revealed that Hafley wrote checks from MCA’s bank account and deposited them into her personal account. She also wrote checks to cash from one of MCA’s accounts and used MCA funds from another bank to pay her personal credit card debt. Unsurprisingly, Hafley did not report any of this stolen income on her federal income tax returns. Over a four-year period, records indicate that Hafley embezzled approximately $393,000.00 from MCA. Hafley’s failure to report the stolen income resulted in an aggregate tax loss of over $100,000.00.
Based on the information gathered during the investigation, Hafley was charged on November 1, 2019 with two counts of bank larceny and one count of including false information on a federal tax return. An individual is guilty of bank larceny if it is proven he or she stole money or property that was in the care, custody, or control of a bank insured by the Federal Deposit Insurance Corporation (FDIC). Hafley pleaded guilty to the charges on May 26, 2020. During the plea hearing, she admitted to stealing MCA funds that were being held in accounts at two separate banks.
The Federal Bureau of Investigation (FBI) and the IRS’s Criminal Investigations Division (IRS-CI) investigated this case. Assistant United States Attorney Brett Talley prosecuted the case.
Virginia Beach Businessman Sentenced for COVID-Relief Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to two years in prison for bank fraud by submitting a fraudulent application for a Paycheck Protection Program (PPP) loan, and then using the loan proceeds for his own personal benefit.
“The defendant used fraud and deception to exploit a critical COVID-19 relief program for his own personal gain,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Defrauding the Paycheck Protection Program wastes taxpayer dollars and keeps vital assistance from reaching those who are in genuine need of these funds. EDVA will continue bringing to justice those who seek to illegally profit from the pandemic.”
According to court documents, in June 2020, Scott Suber, 39, submitted to Celtic Bank a fraudulent application for a loan under the PPP, a program designed to help businesses affected by the COVID-19 pandemic continue to pay salary or wages to their employees. In the application, it was falsely represented that Suber’s business, Debris or Not Debris Property Preservation, Inc., had eight employees and an average monthly payroll of $140,000. In support of the fraudulent application, Suber submitted a false quarterly tax return claiming that the business had quarterly wages of $420,000 and federal tax withholdings of $36,620. In addition, Suber submitted a bank statement with an altered date in support of the application.
Celtic Bank approved and funded a PPP loan for the business in the amount of $350,000 and transferred the funds to an account Suber maintained in the name of his company. The loan application stated that Suber’s company would use the loan proceeds for business-related purposes, such as the costs of payroll, lease, and utilities. Instead, Suber used the proceeds for his own personal benefit, including making large cash withdrawals, traveling to Las Vegas, and making non-business-related payments to several individuals.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration (SBA) Office of Inspector General, Eastern Region; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Alan M. Salsbury 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. 2:20-cr-110.
U.S. Government Seizes 68 Protected Big Cats and a Jaguar from Jeffrey and Lauren LoweRead the Press Release
The United States has seized 68 protected lions, tigers, lion-tiger hybrids, and a jaguar from Jeffrey and Lauren Lowe’s Tiger King Park in Thackerville, Oklahoma, pursuant to a judicially-authorized search and seizure warrant, for ongoing Endangered Species Act (ESA) violations. The Justice Department will seek civil forfeiture of these animals and any offspring pursuant to the ESA’s forfeiture provision.
Pursuant to a court-approved stipulation in United States v. Lowe, et al., No. 20-423 (E.D. Okla.), the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service has conducted three inspections of Tiger King Park since mid-December 2020. During these inspections, the Lowes received citations for failing to provide the animals with adequate or timely veterinary care, appropriate nutrition, and shelter that protects them from inclement weather and is of sufficient size to allow them to engage in normal behavior. The Lowes were recently found in contempt after months of noncompliance with court orders requiring the Lowes, in part, to employ a qualified veterinarian and establish and maintain a program of veterinary care that meets the requirements of the Animal Welfare Act. The United States alleges that these violations as to ESA-protected animals also constitute violations of the ESA.
“This seizure should send a clear message that the Justice Department takes alleged harm to captive-bred animals protected under the Endangered Species Act very seriously,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division.
“This important animal rescue operation of nearly 70 endangered and allegedly abused lions, tigers, and a jaguar shows how effective civil forfeiture can be when utilized in conjunction with statutes like the Endangered Species Act,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “We are proud to have partnered with the Environment and Natural Resources Division to protect these amazing animals, and will work to ensure that they go to responsible animal preserves where they can be safely maintained rather than exploited.”
“The U.S. Fish and Wildlife Service enforces the Endangered Species Act,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s (FWS) Office of Law Enforcement. “The law protects imperiled species, such as tigers, both in the wild and in captivity. We work jointly with our federal law enforcement partners to conserve and protect natural resources and we are pleased that we could provide our expertise to assist the U.S. Marshals and USDA officers. Together, we will ensure these animals receive proper care and rehabilitation.”
The case is being investigated by USDA and the Department of the Interior’s FWS. The U.S. Marshals were integral in executing the seizure warrant and securing the property, which allowed for the swift removal of the animals.
The case is being handled by Senior Trial Attorney Mary Hollingsworth, Trial Attorneys Briena Strippoli, and Devon Flanagan from the Environment and Natural Resources Division and Senior Policy Advisor Darrin McCullough of the Criminal Division’s Money Laundering and Asset Recovery Section. They are assisted by attorneys from the Civil Division of the U.S. Attorney’s Office for the Eastern District of Oklahoma.
U.S. Government Seeks Information About Victims of December 2017 EtherDelta HackRead the Press Release
SAN FRANCISCO – The Office of the United States Attorney and the United States Secret Service have issued a call for victims of a December 2017 hack to come forward, announced Acting United States Attorney Stephanie M. Hinds and U.S. Secret Service (USSS) Special Agent in Charge James E. Anderson Jr. The hack was perpetrated by Anthony Tyler Nashatka, a/k/a “psycho,” and a co-conspirator who were indicted in 2019 in connection with a scheme to defraud victims of at least $1.4 million in cryptocurrency; Nashatka and a codefendant were charged with conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, aggravated identity theft, and other charges. Victims of the hack may provide information to the government about their losses by clicking here and filling out the questionnaire at the website.
The call for victims follows the August 13, 2019, indictment handed down by a federal grand jury. According to the indictment, in December of 2017, Nashatka conspired with others to target cryptocurrency exchange platform EtherDelta to obtain the private keys and other information of hundreds of its users as part of a scheme to steal the users’ cryptocurrency. The indictment further describes how Nashatka and his co-conspirators unlawfully used the identity of a victim to gain access to the platform’s domain name settings, caused the transmission of a command to divert users from the actual platform to a fake website, and fraudulently induced victims to input their cryptocurrency addresses and private keys into the fake website. Between December 20 and 21, 2017, Nashatka and his co-conspirators logged the credentials of hundreds of victims, stole their cryptocurrency, and transferred approximately $600,000 in cryptocurrency to one cryptocurrency address controlled by Nashatka and his co-conspirators. In addition, using this fraud scheme, Nashatka and his co-conspirators stole and additional $800,000 from a single victim on December 26, 2017. The investigation to identify additional victims is continuing. Nashatka and his codefendant each were charged with one count of the following crimes: conspiracy to commit computer fraud and abuse, in violation of 18 U.S.C. § 1030(b); transmission of a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A), (c)(4)(B)(i) and (c)(4)(A)(i)(VI); unauthorized access to a protected computer to obtain value, in violation of 18 U.S.C. §§ 1030(a)(4) and (c)(3)(A); conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
The United States Attorney’s Office for the Northern District of California and the USSS have posted the following message seeking information about users of the EtherDelta cryptocurrency platform between December 19, 2017, and December 21, 2017, who may have later suffered losses as a result of the scheme:
Anyone with questions or concerns about their EtherDelta account, including anyone who believes they are a victim, should fill out the questionnaire at this website https://go.usa.gov/xHCP2 and email it to [email protected]. The email should have “US v Gunton, et al” in the Subject Line. All responses are voluntary, but complete responses would be useful to identify respondents as potential victims of the fraud scheme. Based on the information provided, respondents may be contacted by the U.S. Secret Service and asked to provide additional information.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendants face the following maximum statutory sentences:
CHARGE
MAXIMUM PENALTY
Conspiracy to Commit Computer Fraud and Abuse
10 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Transmission of a Program, Information, Code, and Command to Cause Damage to a Protected Computer
10 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Unauthorized Access to a Protected Computer To Obtain Value
5 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Conspiracy to Commit Wire Fraud
20 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Aggravated Identity Theft
2 years in prison (to run consecutive to any other term imposed) and a $250,000 fine or twice the gross gain or loss resulting from the scheme
The court also may order additional periods of supervised release, fines, and restitution for each violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office. The prosecution is the result of an investigation by the United States Secret Service.
U.S. Attorney's Office Settles Disability Discrimination Case with New England Orthopedic SurgeonsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with New England Orthopedic Surgeons (NEOS) in Springfield, Mass. to resolve allegations that the practice violated the Americans with Disabilities Act (ADA) by turning away patients who were also being treated for Opioid Use Disorder (OUD).
“The Americans With Disabilities Act protects healthcare access for people under medical treatment for Opioid Use Disorder,” said Acting U.S. Attorney Nathaniel R. Mendell. “Health care providers must comply with the ADA, even when doing so is inconvenient or makes them uncomfortable.”
According to multiple complaints, in 2019, two patients being treated with buprenorphine, a medication used to treat Opioid Use Disorder, sought full-joint replacement from NEOS surgeons. The government found that though NEOS surgeons could have accommodated the patients, they ultimately referred the patients elsewhere because the surgeons were not comfortable with the post-operative pain management protocol needed for patients prescribed buprenorphine, thereby violating the ADA.
Individuals receiving treatment for Opioid Use Disorder are generally considered disabled under the ADA, and denial of a medical procedure because a person is taking a medication to treat a disability, when the medical procedure is still possible for persons taking the medication, violates the ADA.
Under the terms of the agreement, NEOS will, among other things, adopt a non-discrimination policy, provide training on the ADA and Opioid Use Disorder and pay two complainants $15,000 each for pain and suffering.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce Title III of the ADA to eliminate discriminatory barriers to treatment for Opioid Use Disorder. This is the Office’s fifth settlement agreement with healthcare providers since May 2018 resolving allegations of ADA violations arising from Opioid Use Disorder treatment.
This matter was handled by Assistant U.S. Attorney Gregory Dorchak of Mendell’s Civil Rights Unit.
Two Men Charged with Carjacking in LuquilloRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a two-count indictment charging Edgar Pabón Rivera and Axel Juarides Orozco with an armed carjacking of a couple in Luquillo, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, on May 8, 2011, a couple was entering their Hyundai Sonata around 10 PM in Luquillo when two men approached them. The men forced the couple out of the car at gunpoint. Police agents responded quickly to the carjacking and pursued the Sonata, which fled. Eventually, Pabón Rivera and Juarides Orozco stopped the car and exited the vehicle, with one of them brandishing a gun in the direction of the officers. In the ensuing gunfire, both subjects were injured.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Federal Bureau of Investigation is in charge of the investigation. The case was worked in collaboration with Gabriel Redondo Miranda of the Puerto Rico Department of Justice and with the Bureau of Puerto Rico Police, who arrested the suspects. If convicted, the defendants face a sentence of up to fifteen years in prison for the carjacking and a minimum of seven years in prison for the firearm offense.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Jackson Men Charged in Multi-Million Dollar Fraud Scheme ConspiracyRead the Press Release
Jackson, Miss. – Two Jackson men have been indicted by a federal grand jury for their role in a large multi-million dollar Ponzi scheme that adversely affected hundreds of victims across multiple states over a number of years, announced Acting U.S. Attorney Darren J. LaMarca and FBI Special Agent in Charge Michelle Sutphin.
Ted Brent Alexander, 55, and Jon Darrell Seawright, 49, both of Jackson, appeared before U.S. Magistrate Judge LaKeysha G. Isaac today for their initial appearance and arraignment on the indictment. The case is currently scheduled to go to trial on July 6, 2021, before United States District Judge Carlton W. Reeves in Jackson.
Both Alexander and Seawright are charged with one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; and four counts of wire fraud involving a scheme to defraud investors, all in connection with a Ponzi scheme promising guaranteed returns to investors who thought they were lending money to a ‘broker” enterprise purchasing timber that was then marketed to multiple lumber mills.
According to the indictment, from January 2011 through December 2018, Alexander and Seawright misled their investors to believe that Alexander and Seawright were the principal actors in the venture, while downplaying and concealing from investors the true fact that the “broker” was Madison Timber Properties, LLC, a company wholly owned by Arthur Lamar Adams, and there were no real contracts for timber and lumber mills. Adams was previously convicted and sentenced for his role in the Ponzi scheme.
In addition, the indictment alleges that Alexander and Seawright represented to their investors that the two men would inspect each property underlying each investment, and they would verify that supposed lumber mill agreements were in existence and valid. Alexander and Seawright failed to do any of those things. Throughout the fraud scheme, Alexander and Seawright persuaded their investors to maintain their investments and to invest additional funds, by asserting that Alexander and Seawright had their own personal funds invested in the venture.
Alexander and Seawright represented to their investors that the investors would be first repaid all of their principal and interest before Alexander and Seawright would receive fees, and therefore Alexander and Seawright would only earn money from each investment if they performed as promised to their investors. In fact, in addition to receiving a percentage of return on the investors’ funds, Alexander and Seawright also received payments from the broker for recruiting investors into the scheme. Alexander and Seawright did not disclose to the investors (a) that they were receiving those payments, or (b) the amount of the payments, or (c) that Alexander and Seawright were getting paid before any payment was made to the investors.
The indictment alleges that, during the course of their scheme and artifice to defraud, Alexander and Seawright solicited over twenty million dollars ($20,000,000) from more than fifty (50) investors.
Following the 2018 criminal prosecution of Arthur Lamar Adams, the United States District Court appointed a receiver, who is actively seeking to recover and maximize assets for restitution to investor victims. Information regarding the Receiver’s activities can be found at the receiver’s website, madisontimberreceiver.com. Although we cannot provide further details at this time, please be assured that all those involved are working diligently to investigate this matter and to locate and preserve assets that can be used for restitution to defrauded investors.
The case is being investigated by the Federal Bureau of Investigation and the Securities and Exchange Commission. The criminal case is being prosecuted by Assistant United States Attorney Theodore Cooperstein.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Two Camden County Residents Charged with Conspiracy to Defraud Victims of More Than $1.4 Million in Coronavirus Relief Fraud SchemeRead the Press Release
CAMDEN, N.J. – Two Camden County, New Jersey, residents were charged for their role in fraudulently obtaining federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) totaling $1.4 million, Acting U.S. Attorney Rachael A. Honig announced today.
Stephen Bennett, 45, of Berlin, New Jersey, and Rhonda Thomas, 36, of Sicklerville, New Jersey, are each charged by complaint with one count of conspiracy to commit wire fraud and bank fraud, one count of bank fraud, and one count of conspiracy to commit money laundering. Bennett and Thomas are scheduled to appear by videoconference today before U.S. Magistrate Judge Karen M. Williams.
According to the criminal complaints:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
The PPP allows qualifying small businesses and other organizations to receive loans, which must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The CARES Act authorized the Small Business Administration (SBA) to provide EIDLs of up to $2 million to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. A company may use EIDL funds for payroll expenses, sick leave, production costs, and business obligations, such as debts, rent, and mortgage payments.
To obtain a PPP loan or EIDL, a qualifying business must apply and provide information on its operations, such as the number of employees, gross revenues, and cost of goods sold. Supporting documentation may also be required.
Bennett, Thomas, and their conspirators submitted 15 fraudulent PPP loan applications and six fraudulent EIDL loan applications to several lenders and the SBA on behalf of 12 purported businesses. The applications contained fraudulent representations to the participating lenders, including forged documentation of federal tax returns and altered bank statements. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the businesses between 2018 and 2020.
Based on these alleged misrepresentations, the lenders approved 13 of the PPP and EIDL applications and provided the businesses with approximately $1.4 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Bennett and Thomas used the proceeds to purchase personal items, including vehicles and jewelry.
The counts of bank fraud and conspiracy to commit wire fraud and bank fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater. The count of conspiracy to commit money laundering is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Regional Office, under the direction of Special Agent in Charge Patricia Tarasca; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Acting Special Agent in Charge Nikitas Splagounias, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s charges. She also thanked the Pennsylvania Department of Labor and Industry, under the direction of Acting Secretary Jennifer Berrier, for its assistance.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Tennessee Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that JEREMY BRANSON GARNER, age 41, of Memphis, Tennessee, pleaded guilty on May 12, 2021, before U.S. District Judge Lance Africk to a one count indictment for failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
GARNER faces a maximum term of 10 years in prison, a $250,000.00 fine, a term of supervised release between 5 years and life and a $100 mandatory special assessment fee. Judge Africk set his sentencing for August 25, 2021.
U.S. Attorney Evans praised the work of the United States Marshals Service. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Teacher's Assistant Charged with Multiple Child Pornography CrimesRead the Press Release
LITTLE ROCK— A teacher’s assistant has been arrested and charged with production of child pornography. Augustus “Gus” Shenker, 21, was charged in a criminal complaint on May 19, 2021. He was arrested today and will be arraigned this week before United States Magistrate Judge J. Thomas Ray.
On May 18, 2021, FBI agents arrested Shenker on a criminal complaint alleging transportation of child pornography and possession of child pornography. Through the course of the investigation, law enforcement learned that Shenker has been employed as a teacher’s assistant at Miss Selma’s School in Little Rock since 2017. On May 18, 2021, Shenker was released on conditions of bond, but the investigation continued, and based on new information, federal prosecutors filed a second criminal complaint charging him with production of child pornography.
The FBI is seeking to identify potential victims in this case. Anyone with additional information to report about Augustus Shenker can call the FBI at 501-221-9100.
The investigation is being conducted by the FBI and is being prosecuted by Assistant United States Attorneys Joan Shipley and Kristin Bryant.
A criminal complaint only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Statement from Attorney General Merrick B. Garland on the COVID-19 Hate Crimes ActRead the Press Release
Attorney General Merrick B. Garland made the following statement after President Biden's signing of the COVID-19 Hate Crimes Act into law:
“Today’s bill signing is an important step toward protecting everyone in our country from acts of hate and intolerance.
“We have seen a substantial rise in hate crimes and bias-related incidents against the Asian-American and Pacific Islander community since the beginning of the pandemic.
“This new law will help speed our response to hate crimes and provide resources to law enforcement to improve hate crime reporting. The law will assist law enforcement in targeting its efforts, which will help to prevent these devastating crimes and to respond efficiently and effectively to crimes, when they occur.
“The Department of Justice is proud to play a central role in implementing this legislation. Investigating and prosecuting hate crimes is a top priority, deeply rooted in the department’s founding. We will use the new law to enhance the aggressive measures we are taking to combat crime motivated by bigotry and discrimination.”
Six Indicted in Importation and Distribution of MDMA Drug CaseRead the Press Release
SALT LAKE CITY – Six members of a Utah County based drug distribution ring allegedly responsible for distributing large amounts of the drug 3,4-Methylenedioxymethamphetamine, commonly known as MDMA or Ecstasy, are now facing federal charges in a superseding indictment unsealed in federal court on Thursday.
The charges in the indictment include conspiracy to distribute MDMA, two counts of possession of MDMA with intent to distribute, and three counts of aiding and abetting the importation of MDMA.
According to a complaint filed in the case, the investigation into the defendants’ importation of MDMA began in February of 2021, when an international mail shipment was seized by U.S. Customs and Border Protection (CBP) at the port of Cincinnati DHL Hub. The seized package was manifested to CBP as containing a hair dryer with a claimed value of $36.00 and a claimed weight of two kilograms. Upon further inspection, it was revealed that the package contained vacuum sealed plastic bags containing 2.1 kilograms of gray pills pressed with skulls and the words “Reaper 350 mg” on the back. CBP agents tested the gray pills with a field test kit, which presumptively identified the gray pills as containing MDMA, a schedule I controlled substance. The package was then delivered to its intended recipient in Vineyard, Utah, by Special Agents from Homeland Security Investigations, who began the investigation into the MDMA distribution scheme in Utah. A search warrant was later executed for another residence in Vineyard that yielded 23 pounds of MDMA. After the execution of the search warrant, a package like the first was seized by CBP in Cincinnati. This packaged was destined for another address connected to the distribution ring in Salt Lake City and contained 2.3 kilograms of gray pills that also field tested positive for MDMA.
Charged in the indictment are Bryan Hernandez, 25, of Vineyard; Cindy Hurtado, 23, of Vineyard; Rodrigo Padilla, 23, of Salt Lake City; Roberto Reyes, 28, of Vineyard; Michael Ortiz, 25, of Salt Lake City; Junior Morales, 29, of Salt Lake City; and Larry Durrer, 26, of West Valley City.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office and Special Assistant United States Attorneys from the Department of Homeland Security are prosecuting the case. Special Agents from Homeland Security Investigations, the Utah State Bureau of Investigations, and Inspectors from the United States Postal Inspection Service conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Sioux City Man Pleads Guilty in Federal Court for Meth and Firearm ChargesRead the Press Release
A man who conspired to distribute methamphetamine and possessed a firearm during his drug trafficking pled guilty May 19, 2021, in federal court in Sioux City.
Jerry Powell, 32, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, one count of illegal possession of a firearm, and one count of possessing a firearm in furtherance of drug trafficking crimes. Powell was previously convicted of two felony drug offenses, namely, felony possession of a controlled substance in South Dakota in 2007, and felony possession of a controlled substance – 3rd offense in Iowa in 2018.
At the plea hearing, Powell admitted that between 2016 through about December 17, 2020, he and others conspired to distribute 50 grams or more of actual (pure) methamphetamine in the Sioux City area. On December 17, 2020, in Sioux City, Iowa, law enforcement caught Powell attempting to flee a legal traffic stop, at first by vehicle, including at speeds in excess of 100 mph on city streets, then after crashing the vehicle, on foot. Law enforcement observed Powell, while running, possess and then throw a handgun (later determined to be a loaded .357 magnum revolver) away during his attempted flight. Law enforcement later seized the firearm and six ounces of methamphetamine from the vehicle operated by Powell. Powell admitted he had acquired the methamphetamine from a source and possessed it with the intent to distribute some or all of it to another person or persons. Powell also admitted he was prohibited from the possession of the firearm due to being a previously convicted felon.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Powell was previously in the custody of the United States Marshals Service and after the guilty plea will remain in custody pending sentencing. On all of the convictions, Powell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Sioux City Police Department and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4005. Follow us on Twitter @USAO_NDIA.
Sharpsburg Felon Sentenced to 4 Years in Prison for Illegal Gun PossessionRead the Press Release
PITTSBURGH, PA - A resident of Sharpsburg, Pennsylvania, has been sentenced in federal court to four years of imprisonment followed by three years of supervised release for his conviction of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Christopher Flewellen, age 28.
According to the information presented to the court, Detectives from the Allegheny County Police Department observed Mr. Flewellen in possession of a firearm, which we was prohibited from possessing due to a prior conviction for a crime punishable by imprisonment for a term exceeding one year.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Allegheny County Police Department and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Christopher Flewellen. This case is brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rocky Mount Gang Member Receives Fourteen Years in Prison After Running from Police with a FirearmRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced today to 144 months in prison for possessing a firearm while on post-release supervision for a prior federal felony. This sentence is the result of a federal jury convicting Kalid Koron Ocean-Avent, 24, on a charge of possessing a firearm by a convicted felon on January 26, 2021.
According to court documents and other information presented in court, Ocean-Avent, a member of the 9-Trey Bloods in Rocky Mount, led Rocky Mount Police Officers on a high-speed car chase through a residential neighborhood on January 16, 2020. After Ocean-Avent wrecked the car into several parked cars, officers found a firearm and marijuana amongst Ocean-Avent’s belongings. At the time of the incident, Ocean-Avent was serving a term of post-release supervision stemming from a federal drug charge the year prior.
In issuing a 120-month sentence for the conviction and a 24-month consecutive sentence for the revocation of supervision, the Court noted the immediate lack of respect for the law and the danger posed by Ocean-Avent’s repeated criminal behavior.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated case and Assistant U.S. Attorneys J.D. Koesters and Nick Miller prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-17-D and 5:18-CR-487-D.
Richmond Man Convicted of Methamphetamine Trafficking and Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. - A Richmond, Kentucky, man was found guilty today, by a federal jury sitting in Covington, of possession with the intent to distribute 50 grams or more of methamphetamine and of being a felon in possession of a firearm.
After less than two hours of deliberation, following a four-day trial, the jury convicted 35-year old Lavone Dixon of both charges.
Dixon was indicted in January 2020. His co-defendant, Tiffany Thompson, is awaiting a separate trial. According to the testimony at trial, on September 17, 2019, Dixon traveled to Dayton, Ohio, to pick up over three ounces of crystal methamphetamine for distribution, and was arrested in Grant County, Kentucky while in route to Richmond with the methamphetamine. Agents executed a search warrant on Dixon’s residence, on September 22, 2019, and located three firearms concealed in the residence. Dixon was a convicted felon at the time of these offenses and was not permitted to legally possess firearms. The testimony also indicated that Dixon had traveled to Dayton for methamphetamine and heroin, multiple times, and distributed those drugs in the Richmond area
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, jointly announced the verdict.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the AHIDTA Richmond Task Force, the AHIDTA Mount Sterling Task Force, Miami Valley Bulk Smuggling Task Force, and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Tony Bracke.
Dixon will appear for sentencing on September 7, 2021. He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
Retired Bucks County Credit Union CEO Sentenced to over Three Years for Embezzlement from Six Philadelphia-Area Federal Credit UnionsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Joan Brown, 80, of Bristol, PA, was sentenced to three years and eight months in prison, five years of supervised release, and ordered to pay $1,016,900 in restitution by United States District Judge Joshua Wolson for her scheme to embezzle credit union funds for which she provided management services through a company which she co-founded.
In September 2020, the defendant pleaded guilty to six counts of embezzlement of credit union funds and 11 counts of making false entries in credit union records arising from her embezzlement of more than $1 million over several years from six small credit unions. Brown is the former CEO of the Bensalem-based Service Center for Credit Unions, and in that position was well-known in the credit union community in the Philadelphia area. In fact, according to court document, in the past she had been described as “the face of credit unions in Philadelphia.” As a result of her actions, six small credit unions failed and were liquidated by the National Credit Union Association.
“Credit unions, by their nature, are cooperative institutions which rely on the support of everyone involved to function and remain safe places to save and borrow money,” said Acting U.S. Attorney Williams. “In her position as the CEO of a credit union management company, Brown destroyed six such credit unions with her greed and dishonesty. Our office will continue to work with our law enforcement partners to ensure that anyone who commits this type of fraud will be held accountable for their actions.”
“The credit unions contracting with SCCU depended on the company to ably manage their financial matters,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Joan Brown took full advantage of that trust, dipping into accounts and stealing money for herself, over and over again, for years. Her criminal actions caused the insolvency and shutdown of six local financial institutions. Brown is finally being held accountable for this extensive and clear-cut fraud.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
Readout of Attorney General Merrick B. Garland’s Call with the United Kingdom’s Home Secretary Priti PatelRead the Press Release
Attorney General Merrick B. Garland spoke by phone yesterday with Priti Patel, the United Kingdom’s Home Secretary. In this inaugural conversation, the Attorney General and Home Secretary reaffirmed their shared commitment to deepening cooperation on countering common threats, including those posed by international terrorism. The two leaders also discussed their efforts to address challenges posed by technology and to combat online child sexual exploitation and abuse. They look forward to further in-depth discussions on these and other issues central to the protection of the citizens of both our countries.
Puyallup, Washington, man pleads guilty to trafficking heroin, fentanyl, and methamphetamineRead the Press Release
Tacoma – A 34-year-old resident of Puyallup, Washington, pleaded guilty today in U.S. District Court in Tacoma to possession of heroin and methamphetamine with intent to distribute, announced Acting U.S. Attorney Tessa M. Gorman. Defendant Jeremy Gongas faces a mandatory minimum of 10 years in prison when sentenced by U.S. District Judge Benjamin H. Settle on September 13, 2021.
According to the plea agreement, on June 23 and 24, 2020, Gongas sold heroin to a person who was working with law enforcement. Gongas was arrested in July 2020, and a law enforcement search of his residence turned up dealer-sized quantities of heroin, fentanyl pills, and methamphetamine, plus more than $24,000 cash. Less than a month later, investigators observed Gongas meeting with another suspected drug trafficker who was under law enforcement surveillance.
On August 20, 2020, Gongas and the suspected trafficker met at a convenience store in Des Moines, Washington. Law enforcement stopped Gongas as he drove away from the meeting. A drug-sniffing dog soon found heroin, methamphetamine, and fentanyl pills near Gongas’s stopped car. Gongas ultimately admitted that he tossed the drugs out the car window when he realized law enforcement was closing in.
Gongas was charged federally on August 21, 2020, and has been detained at the Federal Detention Center at SeaTac since then.
Due to the drug quantities involved, Gongas faces a mandatory minimum 10 years in prison and a maximum prison sentence of up to life. Both the government and the defense have agreed to recommend a 10-year prison sentence. The district court is not bound by that recommendation and can impose any sentence allowed by law.
The case was investigated by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Puyallup Police Department Crime Suppression Unit, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF).
The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Pittsburgh Man Sentenced to 10 Years for Illegally Possessing Firearms and DrugsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to ten years of imprisonment followed by four years of supervised release for his conviction for charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Kevin Clay Jr., age 27.
According to the information presented to the court, Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed a search warrant at Mr. Clay’s residence. During the execution of the search warrant, Agents recovered five firearms and a bag containing 48 grams of a substance containing a mixture of fentanyl, heroin, and tramadol.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Kevin Clay Jr.
Pink Hill Man Sentenced to 6 ½ Years After Causing More Than $600 Million in Losses from Tobacco Smuggling and Tax SchemeRead the Press Release
RALEIGH, N.C. – A Pink Hill man was sentenced today to 78 months in prison for conspiring to commit money laundering and filing a false 2014 tax return, after he pled guilty to the charges on October 7, 2020.
According to court documents and other information presented in court, Phil Caprice Howard, age 55, arranged on at least 221 different occasions for cut-rag tobacco to be transported by trucks from Wilson, North Carolina to an area on or near the Akwesasne Mohawk Nation Reservation (“Akwesasne Reservation”) as part of a conspiracy to smuggle the tobacco into Canada without paying Canadian federal excise duties and provincial taxes. The Akwesasne Reservation straddles the United States and Canada borders on both banks of the St. Lawrence River. Co-conspirators then smuggled the cut-rag tobacco over the St. Lawrence River and on to the Kahnawake Mohawk Nation Reservation in Quebec. There, the cut-rag tobacco was manufactured into contraband cigarettes. Many of the co-conspirators possessed ties to organized crime syndicates.
In all, the conspiracy smuggled more than 6 million pounds of cut-rag tobacco into Canada, resulting in a tax loss to Canada exceeding $600,000,000. Howard received payment in the form of cash and cigarettes that were driven back to the Eastern District of North Carolina, as well as in the form of wires, in all obtaining more than $2 million dollars in criminal proceeds, which he laundered through a series of financial transactions. Howard failed to file Forms 8300 for his receipt of cash. In addition, Howard failed to report his criminal profits on his tax returns, including by filing false tax returns for tax years 2014-2018. In all, the defendant’s tax crimes, which date back to tax year 2008, caused a tax loss to the United States of more than one million dollars.
“This prosecution demonstrates the far-reach of organized crime and the success of international and multi-district law enforcement cooperation in holding those individuals responsible for their criminal conduct, whether it be obstruction of justice, money laundering, or tax evasion,” said Acting U.S. Attorney G. Norman Acker III. “Our office will continue to vigorously pursue the investigation and prosecution of such crimes.”
“To build faith in our nation’s tax system, honest taxpayers need to be reassured that IRS Criminal Investigation is diligent when it comes to enforcing the tax laws, such as Howard’s attempt to underreport his income,” Acting Special Agent in Charge of the Charlotte Field Office Mona Passmore stated. “By joining forces with our law enforcement partners and the Department of Justice to investigate financial related crimes, the IRS uncovers tax crimes which are equally as important to pursue.”
Howard also provided false testimony under oath to a federal grand jury investigating federal crop insurance fraud as part of a joint investigation by the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG) and Internal Revenue Service (IRS).
“Truthful testimony to a federal grand jury is a critical part of any criminal investigation including this investigation which involved in part Federal Crop Insurance Program fraud,” said Special Agent in Charge Jason M. Williams for U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG). “The sentencing in this case emphasizes that giving false statements is an obstruction to the administration of justice and will not be tolerated.”
In addition to the term of imprisonment, U.S. District Judge James C. Dever III ordered Howard to serve three years of supervised release and to pay approximately $1,062,192 in restitution to the United States. Howard was also ordered to forfeit $2,232,814 as proceeds of his money laundering activity.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement after sentencing by U.S. District Judge James C. Dever III. USDA-Office of Inspector General and IRS-Criminal Investigation investigated the case, with assistance from Canadian Border Services Agency – Enforcement and Intelligence Operations Division, Intelligence Section; Surete du Quebec Police; the Buffalo Homeland Security Investigations (HSI) Office and HSI Massena’s Border Enforcement Security Task Force; Bureau of Alcohol, Tobacco, Firearms, and Explosives, Charlotte Field Division; and the United States Attorneys’ Offices for the Northern District of New York and the Western District of New York. Former Assistant United States Attorney Banumathi Rangarajan and Tax Division Trial Attorney Will Guappone prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:18-cr-60. Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Pender County Man Sentenced for Armed Robbery of Scotchman Convenience StoreRead the Press Release
WILMINGTON, N.C. –A Pender County man was sentenced today to 91 months in prison and five years of supervised release for robbery affecting interstate commerce and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and other evidence, Dontee Deshawn Forte, 21, and a co-defendant went to the Scotchman gas station and convenience store in Burgaw on June 4, 2019 and robbed the store. Forte’s co-defendant entered the store and held the clerk at gunpoint while he demanded money. The clerk opened the cash register and the co-defendant took the money out of the register. Forte drove the co-defendant to the store to effectuate the robbery and was going to be the get-away driver. However, the co-defendant ran the opposite direction from where the car was parked and Forte drove away from the scene without his co-conspirator.
The store clerks were able to describe the car that fled the area which enabled officers with the Burgaw Police Department to locate the car very shortly after the robbery. Forte was with the car and was detained for questioning. Forte’s co-defendant was found a short time after the robbery walking within 3 blocks of the Scotchman. The co-defendant was wearing clothing consistent with the robber’s description. Officers found money from the store on his person as well as a firearm. The firearm belonged to Forte’s sister. Both men were transported to the Burgaw Police Department. Forte was found in possession of Xanax pills that were hidden on his person and provided a statement to law enforcement. After first denying any knowledge of the robbery, he ultimately told law enforcement that he dropped off his co-defendant, who was armed with a weapon, at the Scotchman and went back home.
Forte had prior convictions for Discharging a Weapon Into an Occupied Vehicle. According to law enforcement, Forte was a validated gang member.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Burgaw Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00080-M-1.
PA Electrical Supplier Agrees to Pay over $50,000 to Resolve Claims it Failed to Adhere to ‘Buy American’ Preference on 30th Street Station Renovation ProjectRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Wescott Electric Company (“Wescott”), of Aston, PA, has agreed to pay $54,983 and implement enhanced compliance measures to resolve claims arising from its use of Chinese-made parts during a fire alarm installation and renovation project at Amtrak’s William H. Gray 30th Street Station in Philadelphia, PA.
Companies contracting with Amtrak are responsible for complying with a federal regulation which establishes a preference for using American-made parts when fulfilling those contracts. The United States alleges that Wescott neither determined that its parts were American-made nor worked through Amtrak’s process for obtaining a waiver to this rule. The renovation at William H. Gray 30th Street Station was funded by a grant from the United States Department of Transportation.
“Amtrak and the Department of Transportation have established a preference to support American jobs by using American-made parts, and taxpayers have a right to know that policy is being honored,” said Acting U.S. Attorney Williams. “If contractors believe that doing so is impossible, they have a responsibility to raise the issue with contracting officers openly and to work with government authorities on a mutually agreeable resolution.”
“The Department of Transportation Office of Inspector General (DOT-OIG), along with our prosecutorial and law enforcement partners, is committed to protecting the integrity of the Federal procurement process and ensuring that government contractors comply with all applicable laws and regulations, including the Buy American and Trade Agreements Acts,” said Brian Gallagher, DOT-OIG Acting Special Agent in Charge Northeastern Region. “Today’s resolution is a testament to that commitment.”
“The American people deserve fair and honest services from Amtrak contractors, and this includes adhering to laws which require them to use American-made products to the greatest extent reasonable, consistent with public interest,” said Michael Waters, Special Agent in Charge of Amtrak OIG’s Northeast Field Office. “This settlement underscores our commitment to protect Amtrak funds, American taxpayers, and the traveling public, and we appreciate the seamless collaboration with the U.S. Attorney's Office and the Department of Transportation OIG throughout this investigation.”
Acting United States Attorney Williams also highlighted Wescott’s agreement to enhance its compliance program: “Wescott reacted promptly to the government’s investigation and cooperated fully, taking serious steps to make sure this issue never recurs. We hope Wescott’s compliance measures will be a model for other grantees and contractors looking to meet their responsibilities to the United States.”
This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force’s procurement fraud initiative with investigators from Amtrak Office of Inspector General and the Department of Transportation Office of Inspector General. Assistant United States Attorney Paul W. Kaufman of the Eastern District of Pennsylvania handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Owner of a Tanker Truck Repair Company Pleads Guilty to Violating Safety Standards and Making False Statement to OSHA InvestigatorRead the Press Release
POCATELLO – Loren Kim Jacobson, 65, of Pocatello, and owner of a tanker testing and repair company, KCCS Inc., pleaded guilty to making an illegal repair to a cargo tanker in violation of the Hazardous Materials Transportation Act (HMTA) and lying to the Occupational Safety and Health Administration (OSHA), Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. The case arose from an explosion that occurred at KCCS during a cargo tanker repair on August 14, 2018, severely injuring a KCCS employee.
According to the plea agreement, the KCCS employee’s welder flame pierced the skin of the tanker, which contained residual flammable material, resulting in the tanker exploding. After the explosion, an OSHA investigator interviewed Jacobson about the circumstances surrounding the accident, as part of an investigation into whether Jacobson had violated OSHA safety standards for cargo tanker repair work. Jacobson made a materially false statement to the OSHA investigator during that interview, namely that his employee was merely an “observer,” not an employee, and that KCCS did not have any employees. This was an important point because OSHA requirements only apply to “employers.” Jacobson lied about not having employees to evade legal repercussions and penalties for his violation of various Occupational Safety and Health Act safety standards during the repair that resulted in the explosion.
“The terrible injuries involved this case are a stark reminder of the need for workplace safety requirements and enforcement,” said Gonzalez. “I commend the investigators at OSHA, the Department of Transportation, and the Environmental Protection Agency for uncovering the evidence in this case. Working with our partners, our office will continue to hold employers accountable for criminally endangering their employees.”
Jacobson also admits in the plea agreement that he did not possess the necessary certification to conduct cargo tanker repairs that he regularly conducted. Under the HMTA, all repairs to the skin of a cargo tanker require that the repairperson hold an “R-stamp,” which can be obtained only after meeting extensive training requirements. The purpose of this requirement is to ensure that those conducting repairs on cargo tankers (which often haul flammable materials) have adequate training and expertise to do so safely. Jacobson admitted that he had a regular practice of making repairs requiring an R-stamp, despite knowing he did not have one, and that he would send employees into the cargo tankers to weld patches from the inside of the tanker so that the illegal repairs would not be visible from the outside. Jacobson did not follow OSHA safety standards for protecting employees from such dangerous “confined space entries.” According to the plea agreement, Jacobson directed his employee to conduct a hidden repair of this type on the tanker that subsequently exploded, in violation of both OSHA safety standards and the R-stamp requirement.
“The Environmental Crimes Section’s Worker Safety Initiative is designed to make sure that employers like Loren Jacobson, who shirk safety requirements and put their employees, customers, and the public at risk, are held accountable for their actions,” said Acting Assistant Attorney General Jean Williams for the Justice Department’s Environment and Natural Resources Division. “We are committed to protecting the lives and health of those who do the important work of keeping safe cargo vehicles on the road. This prosecution makes clear to others who might be tempted to ignore these certification and safety programs that they will face felony consequences for putting their employees and the public in danger. Our thanks go out to the investigators from OSHA, the Environmental Protection Agency, and the Department of Transportation who worked diligently to bring these violations to light. And our thoughts are with the victim of this horrible accident.”
“Loren Jacobson lied to Occupational Safety and Health Administration Investigators to cover up the extreme risks he had been taking with his employees,” said Special Agent in Charge Quentin Heiden of the U.S. Department of Labor - Office of Inspector General, Los Angeles. “The Department of Labor’s Office of Inspector General will continue to work with our law enforcement partners to ensure the safety of American workers.”
“Today’s guilty plea is a sober reminder that endangering the health and safety of commercial industry workers and the public by violating federal hazardous materials transportation requirements will not be tolerated,” said Special Agent in Charge Cissy Tubbs of the Department of Transportation Office of Inspector General - Western Region Office of Investigations. “We offer our sincerest condolences to the victim of the August 2018 explosion and remain steadfast in our commitment to working with our law enforcement and prosecutorial partners to hold accountable those who flaunt federal requirements to place financial gain above public safety.”
“OSHA’s mission is to ensure that every American comes home safe and sound after the day’s work,” said Boise OSHA Director David Kearns. “When an employer lies to OSHA, he passes the buck, leaving the door open to more workplace injuries and deaths. No one should be killed or injured for a paycheck. Dishonesty is not a means to protect workers. OSHA was pleased to work with our investigative partners and the Department of Justice to hold this employer criminally liable for his deceit.”
Jacobson is scheduled to be sentenced on August 25, 2021 before U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Both the HMTA violation and the false statement offenses that Jacobson pleaded guilty to are punishable by up to five years in prison, up to three years of supervised release, and a fine of up to $250,000.
Trial Attorney Cassandra Barnum of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Josh Hurwit of the District of Idaho are prosecuting this case. The investigation was handled by the Department of Transportation, the Environmental Protection Agency, and OSHA.
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Owner of a Tanker Truck Repair Company Pleads Guilty to Lying to OSHA During Explosion InvestigationRead the Press Release
An Idaho man pleaded guilty today to lying to the Occupational Safety and Health Administration (OSHA) and to making an illegal repair to a cargo tanker in violation of the Hazardous Materials Transportation Act.
According to court documents, Loren Kim Jacobson, 66, of Pocatello, Idaho, and owner of a tanker testing and repair company, KCCS Inc., lied to OSHA during an investigation and made an illegal repair to a cargo tanker in violation of the Hazardous Materials Transportation Act. The case arose from an explosion that occurred at KCCS during a cargo tanker repair on Aug. 14, 2018, severely injuring a KCCS employee.
According to the plea agreement, the KCCS employee’s welder flame pierced the skin of the tanker, which contained residual flammable material, resulting in the tanker exploding. After the explosion, an OSHA investigator interviewed Jacobson about the circumstances surrounding the accident, as part of an investigation into whether Jacobson had violated OSHA safety standards for cargo tanker repair work. Jacobson made a materially false statement to the OSHA investigator during that interview, namely that his employee was merely an “observer,” not an employee, and that KCCS did not have any employees. This was an important point because OSHA requirements only apply to “employers.” Jacobson lied about not having employees to evade legal repercussions and penalties for his violation of various Occupational Safety and Health (OSH) Act safety standards during the repair that resulted in the explosion.
Jacobson also admits in the plea agreement that he did not possess the necessary certification to conduct cargo tanker repairs that he regularly conducted. Under the Hazardous Materials Transportation Act, all repairs to the skin of a cargo tanker require that the repairperson hold an “R-stamp,” which can be obtained only after meeting extensive training requirements. The purpose of this requirement is to ensure that those conducting repairs on cargo tankers (which often haul flammable materials) have adequate training and expertise to do so safely. Jacobson admitted that he had a regular practice of making repairs requiring an R-stamp, despite knowing he did not have one, and that he would send employees into the cargo tankers to weld patches from the inside of the tanker so that the illegal repairs would not be visible from the outside. Jacobson did not follow OSHA safety standards for protecting employees from such dangerous “confined space entries.” According to the plea agreement, Jacobson directed his employee to conduct a hidden repair of this type on the tanker that subsequently exploded, in violation of both OSHA safety standards and the R-stamp requirement.
“The Environmental Crimes Section’s Worker Safety Initiative is designed to make sure that employers like Loren Jacobson, who shirk safety requirements and put their employees, customers, and the public at risk, are held accountable for their actions,” said Acting Assistant Attorney General Jean Williams for the Justice Department’s Environment and Natural Resources Division. “We are committed to protecting the lives and health of those who do the important work of keeping safe cargo vehicles on the road. This prosecution makes clear to others who might be tempted to ignore these certification and safety programs that they will face felony consequences for putting their employees and the public in danger. Our thanks go out to the investigators from OSHA, the Environmental Protection Agency, and the Department of Transportation who worked diligently to bring these violations to light. And our thoughts are with the victim of this horrible accident.”
“Loren Jacobson lied to Occupational Safety and Health Administration Investigators to cover up the extreme risks he had been taking with his employees,” said Special Agent in Charge Quentin Heiden of the U.S. Department of Labor - Office of Inspector General, Los Angeles. “The Department of Labor’s Office of Inspector General will continue to work with our law enforcement partners to ensure the safety of American workers.”
“Today’s guilty plea is a sober reminder that endangering the health and safety of commercial industry workers and the public by violating federal hazardous materials transportation requirements will not be tolerated,” said Special Agent in Charge Cissy Tubbs of the Department of Transportation Office of Inspector General - Western Region Office of Investigations. “We offer our sincerest condolences to the victim of the August 2018 explosion and remain steadfast in our commitment to working with our law enforcement and prosecutorial partners to hold accountable those who flaunt federal requirements to place financial gain above public safety.”
“OSHA’s mission is to ensure that every American comes home safe and sound after the day’s work,” said Boise OSHA Director David Kearns. “When an employer lies to OSHA, he passes the buck, leaving the door open to more workplace injuries and deaths. No one should be killed or injured for a paycheck. Dishonesty is not a means to protect workers. OSHA was pleased to work with our investigative partners and the Department of Justice to hold this employer criminally liable for his deceit.”
“The terrible injuries involved this case are a stark reminder of the need for workplace safety requirements and enforcement,” said Acting U.S. Attorney Rafael M. Gonzalez Jr. for the District of Idaho. “I commend the investigators at OSHA, the Department of Transportation, and the EPA for uncovering the evidence in this case. Working with our partners, our office will continue to hold employers accountable for criminally endangering their employees.”
Jacobson is scheduled to be sentenced on Aug. 25 and faces a maximum penalty of five years in prison per count (10 years total). A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Trial Attorney Cassandra Barnum of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Joshua Hurwit of the District of Idaho are prosecuting this case with assistance from criminal investigators from the Environmental Protection Agency and the Department of Transportation.
Owner of Montana Construction Company Sentenced to 15 Months in Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A Montana man was sentenced today to 15 months in prison for employment tax fraud.
According to court documents and statements made in court, Trennis Baer, of Great Falls, owned and operated Baer Construction based in Great Falls. Beginning in 2010 and continuing through 2018, Baer did not file quarterly employment tax returns, nor did he pay employment taxes withheld from his employees’ wages to the IRS. Baer did not comply with these legal requirements, even though the company’s outside accountant from at least 2013 on prepared employment tax returns to be filed and calculated the taxes due. In addition to spurning his employment tax obligations, Baer willfully did not file personal income tax returns for the years 2001 to 2006, 2008, and 2010 to 2018. The total tax loss to the IRS from Baer’s conduct is more than $1.5 million.
In addition to the term of imprisonment, U.S. District Judge Brian Morris ordered Baer to serve two years of supervised release and to pay approximately $935,251 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Leif M. Johnson for the District of Montana made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Matthew Hoffman and Eric Taffet of the Justice Department’s Tax Division prosecuted the case.
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Owner of Montana Construction Company Sentenced to 15 Months in Prison for Employment Tax FraudRead the Press Release
A Montana man was sentenced today to 15 months in prison for employment tax fraud.
According to court documents and statements made in court, Trennis Baer, of Great Falls, owned and operated Baer Construction based in Great Falls. Beginning in 2010 and continuing through 2018, Baer did not file quarterly employment tax returns, nor did he pay employment taxes withheld from his employees’ wages to the IRS. Baer did not comply with these legal requirements, even though the company’s outside accountant from at least 2013 on prepared employment tax returns to be filed and calculated the taxes due. In addition to spurning his employment tax obligations, Baer willfully did not file personal income tax returns for the years 2001 to 2006, 2008, and 2010 to 2018. The total tax loss to the IRS from Baer’s conduct is more than $1.5 million.
In addition to the term of imprisonment, U.S. District Judge Brian Morris ordered Baer to serve two years of supervised release and to pay approximately $935,251 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Leif M. Johnson for the District of Montana made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Matthew Hoffman and Eric Taffet of the Justice Department’s Tax Division prosecuted the case.
Ohio man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Garth, of Bellaire, Ohio, was sentenced today to 15 months of incarceration for his role in a drug trafficking conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Garth, also known as “Nephew,” 24, pled guilty in February 2021 to one count of “Aiding and Abetting the Distribution of Cocaine Base.” Garth admitted to selling cocaine base, also known as “crack,” in May 2020 in Ohio County.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
North Suburban Businessman Guilty of Evading More Than $2.4 Million in Federal and State Income TaxesRead the Press Release
CHICAGO — A north suburban businessman pleaded guilty today to willfully evading more than $2.4 million in income taxes.
ANTHONY D. PANICO, 68, of Libertyville, pleaded guilty to one count of tax evasion. The conviction is punishable by up to five years in federal prison. U.S. District Judge John Z. Lee set sentencing for Aug. 31, 2021.
Panico owned Libertyville-based AP Capital Management LLC, and he operated, controlled, or was otherwise associated with several other business entities. From 2010 to 2017, he received more than $9.2 million of income for which he was required to file returns and pay taxes. Panico admitted in a plea agreement that he willfully failed to file federal or state income tax returns for each of those years, resulting in a total federal and state tax loss of approximately $2,462,934.
Panico admitted that he attempted to conceal his receipt of income by the creation and use of multiple entities, the use of nominees, misidentifying the use of funds he obtained from banks, paying personal expenses from corporate entities he controlled, and using various trust and nominee entities to acquire real estate and other assets. Several of the entities used by Panico also failed to file tax returns, the plea agreement states.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tamera D. Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Jay N. Lerner, Inspector General of the Federal Deposit Insurance Corp.’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Patrick J. King, Jr.
North Carolina Man Sentenced to 78 Months for Money Laundering and Filing False Tax Return in Tobacco Smuggling SchemeRead the Press Release
A North Carolina man was sentenced today to 78 months in prison for conspiring to commit money laundering and filing a false tax return.
According to court documents and other information presented in court, Phil Howard, 55, arranged on at least 221 different occasions for cut-rag tobacco to be transported by trucks from Wilson, North Carolina, to an area on or near the Akwesasne Mohawk Nation Reservation (Akwesasne Reservation) as part of a conspiracy to smuggle the tobacco into Canada without paying Canadian federal excise duties and provincial taxes. The Akwesasne Reservation straddles the U.S.-Canadian border on both banks of the St. Lawrence River. Co-conspirators then smuggled the cut-rag tobacco over the St. Lawrence River and transported it to the Kahnawake Mohawk Nation Reservation in Quebec. Ultimately, the cut-rag tobacco was manufactured into contraband cigarettes.
In all, the conspiracy smuggled more than six million pounds of cut-rag tobacco into Canada, resulting in a tax loss to Canada exceeding $600,000,000. For his role, Howard received payment in the form of cash and cigarettes, as well as in the form of wires. In total, Howard laundered more than $2 million dollars in criminal proceeds. He further failed to report his criminal profits on his tax returns, including by filing false returns for tax years 2014 to 2018. This resulted in a tax loss to the United States of more than one million dollars.
In addition to his tobacco smuggling and tax fraud schemes, the court today applied an obstruction of justice enhancement at sentencing because Howard provided false testimony under oath to a federal grand jury that was investigating federal crop insurance fraud as part of a joint investigation by the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG) and the IRS.
In addition to the term of imprisonment, U.S. District Judge James C. Dever III ordered Howard to serve three years of supervised release and to pay approximately $1,062,192 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina made the announcement.
USDA-OIG and IRS Criminal Investigation investigated the case, with assistance from Canadian Border Services Agency – Enforcement and Intelligence Operations Division, Intelligence Section; the Surete du Quebec Police; the Buffalo Homeland Security Investigations (HSI) Office and HSI Massena’s Border Enforcement Security Task Force; Bureau of Alcohol, Tobacco, Firearms, and Explosives, Charlotte Field Division; and the U.S. Attorneys’ Offices for the Northern District of New York and the Western District of New York.
Former Assistant U.S. Attorney Banumathi Rangarajan and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina, along with Trial Attorney Will Guappone of the Tax Division, prosecuted the case.
New York Couple Indicted for Romance Fraud ScamRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a New York City man and woman with wire and mail fraud as part of a social media scheme that defrauded elderly victims out of over $660,000.
“The defendants allegedly impersonated military servicemembers, diplomats, and others to deprive elderly victims of their retirement savings,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working with our law enforcement partners, EDVA will aggressively pursue the perpetrators of scams that prey on vulnerable members of our communities.”
According to the indictment, from at least September 2019 through April 2021, Linda Mbimadong, 29, and Richard Broni, 31, along with other unnamed co-conspirators, targeted elderly victims on social media and email by impersonating romantic love interests, diplomats, military personnel, and more. The pair, and other co-conspirators, tricked victims into mailing them cashier’s checks, wiring funds, and sending Apple computer products and other items of value.
According to the indictment, Victim #1 was a 78-year-old man who lost $580,000 to the scheme. He had set up an iFlirt account, an online dating application, on his cell phone for the purpose of communicating with women. A member of the conspiracy began communicating with him on the app as part of the scheme to defraud, transitioning the conversations to Google Hangouts and text messages around September 2019. Victim #2 was a 74-year-old woman who lost approximately $80,000 to the scheme from her retirement savings. A member of the conspiracy contacted Victim #2 on Facebook and transitioned the conversation with her to email and text messages around March 2021.
Posing as a young widow who had inherited gold bars, or as a diplomat assisting people in dire straits overseas, Mbimadong, Broni, and other co-conspirators allegedly tricked elderly victims into sending the conspirators large sums of money. Victims were also allegedly directed to purchase brand new Apple MacBooks and mail them to a conspirator. Mbimadong and Broni allegedly received cashier’s checks and wires directly from victims, which they allegedly deposited and shared among the co-conspirators.
Mbimadong and Broni are charged with wire fraud and conspiracy to commit mail and wire fraud. Additionally, Mbimadong is charged with making false statements to law enforcement during the investigation. If convicted of the conspiracy or fraud charges, they both face a maximum penalty of 20 years in prison. If convicted of the false statement charge, Mbimadong faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement.
Assistant U.S. Attorney Russell L. Carlberg and Special Assistant U.S. Attorney Amelia Medina 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. 1:21-cr-98.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
New Orleans Man Sentenced for Firearms and Ammunition ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on that Tuesday, May 18, 2021, that TYREET JOURNEE, age 29, a resident of New Orleans, Louisiana was sentenced following his earlier plea of guilty to a one-count indictment. In the indictment, JOURNEE is charged with possession of firearms and ammunition by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
On January 29, 2020, the New Orleans Police Department arrested JOURNEE, who was wanted by the department for aggravated assault with a firearm in violation of state law. JOURNEE fled from officers who attempted to detain him. Once detained and arrested, a search of his person revealed that JOURNEE possessed a .32 caliber Smith and Wesson revolver in his pants pocket. Also, officers recovered a backpack observed in JOURNEE’s possession. A search of the backpack revealed that JOURNEE possessed a Century International Arms, Inc. model Romarm Cugir Draco, 7.62x39mm caliber, AK-47 pistol. Ammunition for both firearms was located inside of the backpack. JOURNEE is a convicted felon and is prohibited from possessing firearms and ammunition.
United States District Court Judge Greg G. Guidry sentenced JOURNEE to serve a term of imprisonment of seventy (70) months. The sentence will run concurrent with a sentence imposed by the Orleans Parish Criminal District Court for a parole violation which JOURNEE sustained while on parole for a state drug violation. JOURNEE was placed on supervised release for a period of three (3) years. While a fine was not imposed, JOURNEE was ordered to pay a mandatory special assessment fee of $100.00.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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New Orleans Man Pleads Guilty to Multiple Firearm Violations Including Possession of Machine GunsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Thursday, May 13, 2021, LLOYD WASHINGTON, age 25, a resident of New Orleans, Louisiana pled guilty in a three-count Indictment. In Count 1, WASHINGTON is charged with Possession of Firearms and Ammunition by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). In Count 2, WASHINGTON is charged with Possession of Machine Guns in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). In Count 3, WASHINGTON is charged with Possession of Non-Registered Firearms in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
On July 20, 2020, New Orleans Police Department (“NOPD”) officers were dispatched to a call for service regarding an illegal discharge of a firearm at 4122 Eagle Street, New Orleans, Louisiana. Residents who lived next door to WASHINGTON reported a bullet entering their residence. No residents were struck by the bullet. Responding officers observed the trajectory of the points of entry and exit and concluded that the bullet likely originated from WASHINGTON’s residence.
Upon arriving at WASHINGTON’s residence, officers observed him standing inside. The officers detained WASHINGTON while they conducted their investigation.
While searching the exterior of WASHINGTON’s residence, officers discovered two firearms with loaded with magazines: a Ruger model LCP, .380 caliber pistol, bearing serial number 371320740; and a Glock model 22, .40 caliber pistol, bearing serial 00841MPD and equipped with a Glock switch converter. The firearms were located on the top of a concrete slab. Officers also observed a black bag containing a third weapon, a Zastava model PAP M92 PV, 7.62x39 caliber pistol, bearing serial number M92PV068277, loaded with two magazines taped together.
Officers elected to interview WASHINGTON. WASHINGTON admitted that he was in possession of a firearm and that the firearm accidentally discharged while in his possession. When asked about the three firearms located in the alley of his residence, WASHINGTON admitted that he owned and maintained possession of the firearms. When asked if he possessed additional firearms, WASHINGTON admitted that he was in possession of additional firearms inside of his residence.
NOPD obtained a search warrant for WASHINGTON’s residence. During the search of the residence, the following items, including firearms and ammunition, were located: (1) a .40 caliber magazine with 4 live rounds of ammunition; (2) a box of .38 special ammunition containing 9 live rounds; (3) a box of .380 caliber ammunition containing 7 live rounds; (4) one 7.62x39mm magazine with an unknown number of live rounds; (5) one clear plastic bag containing multiple caliber rounds of ammunition; (6) a red duffle bag containing a rifle scope and a pistol grip; (7) a Glock model 17, 9mm caliber pistol, bearing serial number BHBZ225; (8) a Glock switch convertor; (9) a box with live 9mm rounds; (10) a 7.62x39mm circle drum loaded with an unknown number of live rounds; (11) a box with 13 live 9mm rounds; (12) a Plainfield Machine Co., Paratrooper, .30 caliber rifle, bearing serial number 43211; (13) an Izhmash model IJ70-17A, .380 caliber pistol, bearing serial number BTK3233; (14) a Heritage Mfg. Inc. model Rough Rider, .22 caliber pistol, bearing serial number R36814; and (15) a Taurus model PT24/7 G2, .40 caliber pistol, bearing serial number SIM30213.
WASHINGTON is a convicted felon and is prohibited from possessing firearms and ammunition.
WASHINGTON faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00 for each charge.
United States District Court Jude Carl Barbier will sentence WASHINGTON on August 19, 2021.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
New Hampshire Roofing Contractor Charged with Filing a False Tax ReturnRead the Press Release
BOSTON – A New Hampshire roofing contractor was charged yesterday in federal court in Boston in connection with failing to report income from his roofing and siding business to the Internal Revenue Service (IRS).
Ronald McPhail, 53, of Windham, N.H., was charged with one count of filing a false tax return.
According to the charging documents, McPhail owed more than $700,000 in income taxes to the IRS after he failed to report more than $7.1 million in revenues and approximately $2.43 million in income from his roofing and siding business on his federal tax returns for tax years 2014 through 2019. To conceal his scheme, McPhail allegedly cashed customer checks without first depositing them and withheld information concerning these checks and other business revenues from his tax preparers.
The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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 and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Cumberland Man Indicted for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 19, 2021, Edward McCreath, age 35, of New Cumberland, Pennsylvania, was indicted by a federal grand jury with possession with the intent to distribute crack cocaine.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on or about July 17, 2018, in Dauphin County, McCreath possessed with intent to distribute 28 grams and more of a mixture and substance containing a detectable amount of cocaine base (crack).
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecution is assigned to Assistant U.S. Attorney Christian T. Haugsby.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
McCreath faces a maximum penalty of up to 40 years’ imprisonment, a fine of up to $5,000,000, and a term of supervised release of up to life. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offenses; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Bern Gang Member Receives 114-Month Sentence for Drug DistributionRead the Press Release
RALEIGH, N.C. – A New Bern man was sentenced yesterday to 114 months in prison for the distribution of cocaine, cocaine base (crack), heroin, and methamphetamine. On December 28, 2020, Jajuan Rashad Harrell pled guilty to one charge of distribution of a controlled substance.
According to court documents and other information presented in court, Harrell distributed several narcotics during operations conducted by law enforcement in Pamlico County. These controlled purchases happened over a years’ time, in which Harrell sold cocaine, cocaine base (crack), heroin, and methamphetamine. Investigators conducted these operations as part of a larger effort by state and federal authorities to root out drug activity in Pamlico County.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Pamlico County Sheriff’s Office, Homeland Security Investigations, and the District Attorney’s Office for the Prosecutorial District 4 assisted with the investigation of the case, and Assistant U.S. Attorneys J.D. Koesters and Lucy Brown prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-23-M.
Narcotics Dealer Charged in Manhattan Federal Court with Causing Overdose Death from FentanylRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment today charging MICHAEL KELLEHER with distributing fentanyl that resulted in the death of a victim (the “Victim”) on May 19, 2020, in the Bronx, New York. KELLEHER and his codefendant MARK GONZALEZ are also charged with participating in a conspiracy to distribute and possess with intent to distribute fentanyl, and using and carrying a firearm in connection with a drug trafficking offense. KELLEHER was previously charged by a criminal complaint and arrested on March 5, 2021. GONZALEZ was arrested this morning and will be presented before United States Magistrate Judge Robert W. Lehrburger tomorrow. The case is assigned to United States District Judge Victor Marrero.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Michael Kelleher and Mark Gonzalez peddled lethal fentanyl, and Kelleher sold the dose that caused the death of a victim. Working with the NYPD we will continue to combat the epidemic of lethal opioids.”
NYPD Commissioner Dermot Shea said: “Opioids have a well-known history of causing overdoses, destroying lives, and devastating communities. That’s why the NYPD and its law enforcement partners work tirelessly to rid our city of these and other deadly drugs and work tirelessly to prosecute those who sell them. I want to thank the investigators and prosecutors who worked on this investigation. It is their work that brings some measure of justice to this family who lost their loved one to a senseless overdose.”
According to the allegations in the Indictment, the underlying complaint for KELLEHER, and information in the public record[1]:
On May 19, 2020, the Victim was found dead in his home in the Bronx, New York. Following an investigation by the NYPD, law enforcement agents identified KELLEHER as the dealer who sold the Victim pure fentanyl, which resulted in his death. Following the Victim’s death, law enforcement officers acting in an undercover capacity purchased additional quantities of fentanyl from KELLEHER, and his supplier, GONZALEZ, which were packaged exactly like those found in the Victim’s residence on the day of his death. KELLEHER and GONZALEZ also sold a firearm with a defaced serial number to an undercover law enforcement agent.
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KELLEHER, 35, and GONZALEZ, 43, both of the Bronx, New York, are each charged with conspiracy to distribute and possess with intent to distribute 400 grams and more of mixtures and substances containing a detectable amount of fentanyl, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years, and with use, carrying, and possession of a firearm in connection with a drug trafficking offense, which carries a mandatory minimum consecutive sentence of five years. KELLEHER is also charged with narcotics distribution resulting in the death of the Victim, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 20 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the NYPD. This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Michael R. Herman is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Monongalia County man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Meadows, of Morgantown, West Virginia, was sentenced today for his role in a drug trafficking conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Meadows, 49, was sentenced to two years of probation, with the first eight months in home confinement. Meadows pleaded guilty in October 2020 to one count of “Unlawful Use of Communication Facility.” Meadows admitted to using a to distribute drugs in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Senior U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Modesto Woman Charged with Submitting 121 Stimulus Check Claims Using PII Obtained Through Her Imprisoned SonRead the Press Release
SAN FRANCISCO – Sheila Denise Dunlap was arraigned in federal court today on an indictment charging her with conspiracy to commit wire fraud and aggravated identity theft, announced Acting United States Attorney Stephanie M. Hinds, Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Michael Daniels, and Treasury Inspector General for Tax Administration J. Russell George.
Dunlap, 50, of Modesto, is charged with engaging in a wire fraud conspiracy from March 2020 through July 2020 involving the fraudulent filing for Economic Impact Payment (EIP) payments, commonly known as stimulus checks. EIP payments were included as one of the provisions of the CARES Act signed into law on March 27, 2020, to address the economic fallout of the COVID-19 pandemic in the United States. This provision of the CARES Act provided that individuals who made less than $99,000 on their 2019 tax returns and those whose income was sufficiently low that a tax return filing was not required (known as non-filers) were eligible to receive EIP funds. EIP payments amounted to as much as $1,200 per adult and $500 for a qualifying child.
According to the indictment, Dunlap conspired with her son to obtain the personal identifiable information (PII) of others and used that PII to apply for EIP funds. Her son is imprisoned in San Quentin State Prison. Dunlap communicated with him through telephone and text messaging. The indictment alleges Dunlap’s son sent Dunlap the PII of fellow prisoners and others and, in or around April 2020, he coordinated with an unknown third party to email Dunlap a spreadsheet containing the PII of 9,043 individuals. Dunlap and her son devised a strategy that the first applications should use the PII of the youngest adults on the list as they were more likely to be tax non-filers and thereby qualify for EIP funds. According to the indictment, Dunlap used the PII to file 121 claims for stimulus checks, with all applications directing payment to her bank account. On May 28, 2020, five EIPs in the amount of $1,200 each were electronically deposited into Dunlap’s bank account, each as a payment to a different individual. Dunlap immediately withdrew the funds and used them for personal expenses. In total, Dunlap filed claims for $145,200 in EIP payments.
Dunlap is charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1343 and 18 U.S.C. § 1349. The charge carries a maximum statutory penalty of 20 years in prison and a fine of $250,000 or not more than the greater of twice the gross gain or twice the gross loss. Dunlap is also charged with one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A, which carries a penalty of two years imprisonment and a maximum fine of $250,000. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges are merely allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Dunlap was arraigned today on the indictment before United States Magistrate Judge Thomas S. Hixson. Her next appearances are scheduled for May 27, 2021, at 10:30 a.m. for a hearing regarding release conditions before Magistrate Judge Hixson and a status hearing on May 28, 2021, at 11 a.m. before United States District Judge Susan Illston. She is out of custody on bond.
Annie Hsieh is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Llessica Chan Fierro, along with Ralph Banchstubbs and Maribel Gallegos. The prosecution is the result of an investigation by IRS-CI and TIGTA.
Mexican National Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to his role in a drug-trafficking conspiracy in which he sold more than 14 kilograms of methamphetamine and 30 firearms to an undercover federal agent.
Jose Alvarado, 28, a citizen of Mexico, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of conspiracy to distribute methamphetamine from Aug. 15 to Dec. 4, 2019, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
By pleading guilty today, Alvarado admitted that he met with an undercover federal agent on six separate occasions and sold the undercover agent a total of approximately 471 grams of methamphetamine and 30 firearms. The undercover agent offered to purchase a Springfield Armory 9mm handgun on Oct. 23, 2019, but Alvarado declined to sell the firearm. Alvarado explained that it was his personal firearm he used to defend himself and his residence.
Alvarado agreed to sell a larger quantity of methamphetamine to the undercover agent. On Dec. 4, 2019, Alvarado and the undercover agent met at Alvarado’s residence. Co-defendant Victor Gomez-Rendon, 30, a citizen of Mexico residing in Kansas City, Mo., arrived at the residence and delivered 14 kilograms of methamphetamine. Alvarado and Gomez-Rendon were arrested. The Springfield Armory 9mm handgun was found in Alvarado’s bedroom.
Gomez-Rendon has pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing.
Under federal statutes, Alvarado is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Manchester Man Arrested for Multiple Armed RobberiesRead the Press Release
CONCORD - Hector Rivera Ayala, 32, of Manchester, has been charged in federal court with robbing a bank and four gas stations, Acting United States Attorney John J. Farley announced today.
According to court documents, Rivera Ayala was arrested on Wednesday in Massachusetts. Rivera Ayala is charged by complaint with committing a series of armed robberies in Manchester. The complaint alleges that Rivera Ayala robbed four gas stations between December 2, 2019, and December 21, 2019. The complaint further alleges that he robbed a bank on December 21, 2019, where he allegedly stole over $160,000.
Rivera Ayala is scheduled to appear before a United States Magistrate Judge later today.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the Federal Bureau of Investigation and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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