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8 July 2021
Harrison County man indicted on firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Chad Perkins, of Wallace, West Virginia, was indicted yesterday on a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Perkins, 31, was indicted on one count of “Unlawful Possession of Firearm.” Perkins, a person prohibited from having a firearm because of prior convictions, is accused of having a .32 caliber revolver in February 2021 in Harrison County.
Perkins faces up to 10 years of incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hardy County man indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gregory Stump, of Moorefield, West Virginia, was indicted yesterday on firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Stump, 51, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of Firearm with Obliterated Serial Number.” Stump, a person prohibited from having a firearm, is accused of having a .45 caliber pistol with an obliterated serial number in April 2020 in Monongalia County.
Stumps faces up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge and faces up to 10 years of incarceration and a fine of up to $10,000 fine for the obliterated serial number charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Morgantown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hampshire County woman admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jessica Lee Lynch, of Augusta, West Virginia, has admitted to her role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Lynch, age 38, pleaded guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin. Fentanyl, and Cocaine Base.” Lynch admitted to working with another individual to distribute the controlled substances from January 2020 through October 2020.
Lynch faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The U.S. Attorney’s Office worked closely with the Hampshire County Prosecutor’s Office to bring this case forward. In addition, the Potomac Highlands Drug & Violent Crime task Force, a HIDTA funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Gypsum Business Owner Sentenced for Tax FraudRead the Press Release
GRAND JUNCTION — The U.S. Attorney’s Office for the District of Colorado announces that Trenton Switzer, age 40, of Gypsum, CO was sentenced by U.S. District Court Judge Christine M. Arguello to serve 12 months and one day in prison and to pay restitution of $241,964.71 for submitting a false tax return to the IRS. Switzer previously pled guilty to an Information on April 26, 2021.
According to the filed information and the stipulated facts in the plea agreement, Switzer operated a sales training business that generated significant income. Switzer then attempted to avoid paying taxes on his income by falsely claiming that he had made a $250,000 charitable contribution to a fake church that he created for the purpose of evading taxes. As part of this scheme, Switzer incorporated the “Church of Divine Sovereignty” and opened a bank account in its name. Less than 24 hours after incorporating it, Switzer filed documents dissolving the fake church. Later, Switzer deposited $250,000 into the church bank account he created and then used that money to purchase Bitcoin.
When it came time to prepare his 2015 tax return, Switzer provided his tax preparer with a letter, signed by Switzer himself as the “pastor” of his fake church, purporting to memorialize the $250,000 as a charitable contribution. Switzer’s tax preparer warned him that his fake church did not qualify as a charitable organization and that the purported payment could not be deducted. Nevertheless, despite these clear warnings, Switzer signed and personally filed his 2015 U.S. Federal Tax Return, falsely claiming a $250,000 charitable contribution deduction.
“Mr. Switzer’s claim to be the pastor of a fake church he created to evade his taxes landed him in a real prison,” said Acting U.S. Attorney Matt Kirsch. “My office will continue to aggressively pursue people who cheat on their taxes.”
“Trenton Switzer’s creation of a nonprofit church to generate false charitable deductions is not only a crime but an insult to all taxpaying citizens who pay their fair share of taxes,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “IRS-CI Special Agents will always devote the necessary resources to bring to justice those who fail to uphold their civic obligation to file truthful and accurate income tax returns.”
This matter was investigated by IRS-CI and prosecuted by Assistant United States Attorney Jeremy Chaffin.
Case number. 21-cr-00093-CMA-GPG
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Ghanaian National Sentenced for Lying on Naturalization Application and Fleeing Country After ArraignmentRead the Press Release
BOSTON – A Ghanaian national was sentenced today in federal court in Boston for making a false statement on an application for naturalization and fleeing the United States after being released on conditions from pretrial custody.
Richard Kyeremeh, 46, previously of Worcester, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and three years years of supervised release. Earlier in the hearing, Kyeremeh pleaded guilty to one count of making a false statement relating to naturalization and one count of committing contempt.
In February 2019, a federal grand jury indicted Kyeremeh on one count of making a false statement relating to naturalization and one count of aggravated identity theft. After his arraignment, Kyeremeh was released from pretrial custody on certain conditions, including that he not travel outside New England without permission from Pretrial Services.
In August 2019, Pretrial Services was unable to locate Kyeremeh. His roommate discovered a letter and sent it to Pretrial Services. The letter was an attempt to mislead authorities about Kyeremeh’s whereabouts. It said, “I am going back to Ghana because I can’t bear what is going on. I have not been myself after my arrest and I have decided to go back to Ghana to start at fresh.” In fact, Kyeremeh had fled on foot into Quebec from Champlain, N.Y.
In January 2020, Kyeremeh was located living and working in Ontario by Canadian authorities and was later extradited to the United States. In January 2021, the grand jury returned a superseding indictment adding a charge of contempt based on Kyeremeh’s flight to Canada.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement today. Assistance with the investigation was also provided by U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, the U.S. Marshals Service and the Royal Canadian Mounted Police. Assistant U.S. Attorney Christine Wichers of Mendell’s Criminal Division prosecuted the case.
Fresno Man Indicted for Assaulting a Court Security OfficerRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Carlos Perez, 45, of Fresno, charging him with assault on a federal contractor, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2021, Perez assaulted a Court Security Officer inside the U.S. Federal Courthouse in Fresno by striking the officer in the face.
This case is the product of an investigation by the Federal Protective Services, the U.S. Marshals Service, and the Fresno Police Department. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Perez faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fraudster Who Stole Protected Health Information to Fund Spending Spree Sentenced to PrisonRead the Press Release
PLANO, Texas – A McKinney man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Demetrius Cervantes, 46, pleaded guilty on Dec. 4, 2020, to conspiracy to obtain information from a protected computer on Dec. 4, 2020, and was sentenced to 48 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Today’s sentence sends the message that the theft of protected health information, the fabrication of physicians’ orders, and the sale of prescriptions will not be tolerated in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “This office will continue to pursue those who place profits over patients and manipulate the healthcare system for their personal gain.”
According to information presented in court, Cervantes, Amanda Lowry, and Lydia Henslee, were named in a federal indictment on Sept. 11, 2019 charging them with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification. They are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients. This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors. The defendants obtained more than $1.4 million in proceeds from the sale of the stolen information. The defendants used those proceeds to purchase items such as sport utility vehicles, off-road vehicles and jet skis.
Lowry pleaded guilty to conspiracy to obtain information from a protected computer and is set to be sentenced on July 22, 2021.
On Nov. 18, 2020, Henslee was charged in a ten-count superseding indictment with one count of conspiracy to unlawfully transfer, possess, and use a means of identification, and nine counts of unlawfully transferring, possessing, and using a means of identification.
Henslee was also charged in a separate superseding indictment along with Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 23, of West Palm Beach, Florida, David Warren, 50, of Boca Raton, Florida, and Daniel Stadtman, 67, of Allen, Texas, with one count of conspiracy to commit illegal remunerations.
According to the superseding indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for orders from physicians that were subsequently used to obtain payments from federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physician orders. The conspirators then sold the physicians’ orders to each other and to other DME providers. Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs, including Medicare, Medicaid, and TRICARE. If convicted, the defendants each face up to five years in federal prison.
Henslee pleaded guilty to conspiring to possess and use means of identification in connection with various offenses on March 25, 2021. A sentencing date has not been set.
These cases were investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia and Special Assistant U.S. Attorney Bethany Pickett.
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Four Women Leaders in Law Enforcement in Philadelphia Talk with Girls About Careers, Mentorship, and Breaking the Glass CeilingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Girls Inc. of Greater Philadelphia & Southern New Jersey, in partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania, hosted a virtual panel discussion for Girls Inc. program participants with women leaders in law enforcement in Philadelphia. The women leader panelists were Acting U.S. Attorney Jennifer Arbittier Williams, City of Philadelphia Police Commissioner Danielle Outlaw, City of Philadelphia Controller Rebecca Rhynhart, and City of Philadelphia Solicitor Diana Cortes. Dena Herrin, Executive Director of Girls Inc. of Greater Phila. & Southern New Jersey, provided welcoming remarks, and the discussion was moderated by Girls Inc. Eureka! Coordinator Sarah Kane.
The meeting marks a moment when, for the first time in Philadelphia history, four major law enforcement agencies – the United States Attorney’s Office for the Eastern District of PA, the Philadelphia Police Department, the City Controller’s Office and the City’s Law Department – are being led by women, two by women of color. The goal of the discussion, which was attended by approximately 60 participants ranging in age from 11 to 18, was to engage directly with girls who may be beginning to think about their own education and career paths, and to share the message that they can become leaders in any field, even fields like law enforcement that are traditionally dominated by men. The panelists spoke candidly about a wide variety of topics including their personal and professional backgrounds, typical duties of their current jobs, mentors and inspiration, professional challenges and rewarding moments, and even misconceptions about women in the field.
“Representation matters; seeing and engaging directly with women role models matters,” said Acting U.S. Attorney Williams. “Girls in middle school and high school are laying the groundwork for their futures. I enthusiastically participated in this event because, as a mother of four students, I know how important it is for youth to see diverse examples of people pursuing different careers and interests, especially people serving in leadership roles. As the late Justice Ginsburg said: ‘Women belong in all places where decisions are being made.’ And if we can do it, you can, too.”
“Blazing a new path can be challenging but is not impossible,” said Police Commissioner Outlaw. “It is important that young women know that what traditionally has been seen as weaknesses in us are, in fact, strengths. Women have long deserved many seats at the table due to our skill sets, lived experiences, perspectives and qualifications. It is crucial we develop our young women early to prepare them to not only take their seats at the table or to recognize when a seat at the table is not enough , but to ensure they are equipped to address any inequities or other challenges they may experience as they blaze trails for others behind them.”
“I’m thrilled to participate in this event with Girls, Inc. to encourage today’s young women – the leaders of tomorrow – to consider fields long-believed to be ‘men’s work,’ like government, law enforcement or STEM,” said Controller Rhynhart. “I am the first woman to be elected City Controller and while women are in positions of power across the city, Philadelphia has never had a woman mayor. Pennsylvania has never had a woman senator or governor. Girls need to know that they can, and should, hold positions of power, no matter the field, whether in the public or private sector. Events like this give girls the opportunity to see women creating change and leading, opening their minds to endless possibilities.”
“This program was a great opportunity to share with tomorrow’s women leaders the importance of public service work and how the City of Philadelphia Law Department plays a role in our community by defending the work of our City Council, our affirmative litigation program, or working to ensure the health and safety of our residents are protected,” said Solicitor Cortes.
Girls Inc. is a nonprofit organization with roots dating to 1864 and national status since 1945. The local affiliate was founded in 1961 as Teen Aid, and became affiliated with the national organization in 2002. Its mission is to inspire all girls to be strong, smart, and bold, through direct service and advocacy. Girls Inc. serves girls in K-12th grades at local schools, community partner sites, Philadelphia Juvenile Justice Service Center, and the Girls Inc. center. Girls Inc. programs focus on leadership and community action, STEM, early grade literacy, financial literacy, healthy decision making, and media literacy. The combination of long-lasting mentoring relationships, a pro-girl environment, and research-based programming equips girls to navigate gender, economic, and social barriers, and grow up healthy, educated, and independent. A Girls Inc. participant learns to value herself, take risks, and discover and develop her inherent strengths. The mission and the proven, holistic approach the organization employs to fulfill its mission is making a meaningful impact on thousands of girls in the region.
Former Sales Representative Admits Role in $7.89 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative for several compounding pharmacies and marketing companies today admitted his role in a scheme to defraud public and private health benefits programs of $7.89 million for the billing of medically unnecessary compounded prescriptions, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Cuffari, 55, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and September 2017, Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Cuffari exploited this opportunity through working as a sales representative for several compounding pharmacies. To profit as a sales representative, Cuffari targeted individuals who had insurance plans that covered compounded medications and then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. To obtain prescriptions for compounded medications for some of the recruited individuals, Cuffari caused payments to be made to a New Jersey-based physician.
Once the prescriptions were written, they were filled by the compounding pharmacies with which Cuffari worked. The compounding pharmacies would then receive reimbursement from the insurance plans and would pay Cuffari a percentage of the reimbursement amount.
As part of his plea agreement, Cuffari must forfeit $995,328 in criminal proceeds he received for his role in the scheme and pay restitution of at least $7.89 million. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 9, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit, in Newark.
Former Rochester CEO Pleads Guilty to Defrauding His Own CompanyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Margiotta, 50, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to wire fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant was employed as the Chief Executive Officer of eHealth Global Technologies. In May 2011, as eHealth CEO, Margiotta entered into a contract with Healthcare Network Alliance, LLC (HCNA) for employment recruiting services. HCNA was owned by the defendant’s wife. The agreement provided that HCNA would be compensated if candidates referred to eHealth were hired. Between June 2011, and January 2014, Margiotta caused HCNA to submit invoices for recruiting services to eHealth that he knew that HCNA had not provided. For instance, on April 19, 2013, HCNA submitted an invoice to eHealth requesting payment of $44,000 for recruiting an employee. HCNA had not recruited the employee, and defendant knew that HCNA was not entitled to be paid a recruiting fee for the employee. In total, Margiotta caused HCNA to prepare and submit fraudulent invoices for approximately 23 employees of eHealth that HCNA had not recruited totaling $380,960.
In addition, the defendant filed a false tax return for the year 2013, claiming income of $260,334, in actuality, his taxable income was $611,195.00, resulting in a tax loss to the IRS of $137,067.
The plea is the culmination of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for October 28, 2021, at 9:30 a.m. before Judge Siragusa.
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Federal Jury Convicts Department of Defense Contractor of Attempted Child EnticementRead the Press Release
SAN ANTONIO – A federal jury today convicted Rick A. Benavides, a 48-year-old Department of Defense information technology contractor, of attempting to entice a child to engage in sexual activity.
According to evidence presented during the three-day trial, in February 2019 Benavides repeatedly requested that the minor send him a photograph of her full body while she showered through multiple online chats, including while at work. During his chat conversations, Benavides described the sexual acts he wanted to engage in with the minor. He also made plans to pick up the minor on Joint Base San Antonio (JBSA)-Lackland, take her to his off-base residence to engage in sexual activity, then return her.
On February 20, 2019, Benavides arrived at Lyons Park on JBSA-Lackland to meet the minor only to discover that the individual he believed he was communicating with was in fact an undercover U.S. Air Force Office of Investigations agent.
U.S. Attorney Ashley C. Hoff made today’s announcement.
Benavides remains in federal custody pending sentencing scheduled for October 20, 2021, before U.S. District Judge Xavier Rodriguez. He faces from 10 years to life in federal prison.
The U.S. Air Force Office of Special Investigations conducted this investigation. Assistant U.S. Attorney Bettina Richardson is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
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Federal Grand Jury A Indictments Announced for JulyRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the July 2021 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
John Jacob Ahrens. Threat Against the President of the United States (Count 1). Interstate Communication with a Threat to Injure (Counts 2 and 3). Ahrens, 58, of Tulsa, is charged in Count 1 with threatening to kill the President of the United States. In Count 2, he is charged with generating a threatening email sent to KOTV Channel 6 on June 10, 2021, stating “America is going to get to see a sitting President get his head blown off right in front of them. A kill contract went out on one Joseph Biden, President of the United States of America. America is going to watch him die right in front of them.” In Count 3, he is charged with sending a threatening email on May 10, 2021, stating “I tried to contact you earlier but the Feds shut me down they got a little up tight because I informed the men of the United States Congress if they didn’t hand my money over in less than 48 hours. I will have their children killed. If that doesn’t get the message across. Then I start on their women....” See the initial press release announcing charges by criminal complaint. The U.S. Secret Service, FBI, and Oklahoma State Bureau of Investigation are the investigative agencies. 21-CR-00318
Jeremy Quenton Bell. Conveying False and Misleading Information Concerning an Explosive Device (Count 1 and 2). Bell, 41, of Broken Arrow, allegedly sent false information regarding explosive devices to U.S. Senator Jim Inhofe (R-OK) on April 6, 2021. In the email he stated, “Might want to check your Tulsa office for explosives.” He is also charged with conveying false and misleading information concerning an explosive device to U.S. Congresswoman Rashida Tlaib (D-MI) on May 16, 2021. He reportedly sent the statement, "So now that you have identified as a supporter of Nazism I would advise to check your Michigan offices for explosives. As well as your homes. Also, for the staff it might be best if you distance yourself." The U.S. Capital Police Threat Assessment Section, Tulsa Police Department’s Bomb Squad, and the FBI are the investigative agencies. 21-CR-00319
Dylan Boyd. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (superseding Indictment). Boyd, 28, of Tulsa, faces charges after using a vehicle to strike a male victim on March 20, 2020. Boyd is a citizen of the Muscogee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The Tulsa Police Department and FBI are the investigative agencies. 21-CR-00307
Madelyn Abigail Brown. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1 and 2) (superseding indictment). Brown, 27, of Tulsa, reportedly use a knife to stab two male victims in the arm, back, shoulder, and eyebrow on May 10, 2020. Brown is a citizen of the Cherokee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The Tulsa Police Department and FBI are the investigative agencies. 20-CR-00213
Megan Renee Carney. Possession of Methamphetamine with Intent to Distribute. Carney, 36, of Tulsa, is charged with possessing with intent to distribute more than 50 grams of methamphetamine on May 20, 2021. The Tulsa Police Department, Oklahoma Bureau of Narcotics and Dangerous Drugs, Drug Enforcement Agency, and FBI are the investigative agencies. (21-CR-320)
Brock Deckard. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1) and Child Abuse in Indian Country (Count 2). Deckard, 29, of Twin Oaks, allegedly threatened to harm his girlfriend and her children who were under 18 years of age with a loaded firearm on June 3, 2021. He further endangered the welfare of the children by threatening to harm their safety. The victims are citizens of the Cherokee Nation, and the alleged crime occurred within the Cherokee Nation Reservation. The Delaware County Sheriff’s Office and FBI are the investigative agencies. 21-CR-00310
Josiah Gammill; Hailey Micaela Mace. First Degree Murder in Indian Country (Count 1); Carrying, Using, Brandishin, and Discharging a Firearm During and in Relation to a Crime of Violence (Count 2) Accessory After the Fact to First Degree Murder in Indian Country (Count 3) and False Statement to a Federal Agency (Count 4 and 5) (superseding). Gammill, 18, of Tulsa, is charged with shooting and killing Hunter Allen Majors on March 21, 2021. He is further charged with carrying and brandishing a firearm during the crime. See the initial press release announcing charges by criminal complaint. Gammill’s girlfriend, Hailey Mace, 24, of Tulsa, allegedly had knowledge of the crime occurring and failed to notify authorities. She later allegedly made false statements to the investigative agencies regarding Gammill’s alleged involvement in crime. Gammill is a citizen of the Quapaw Nation, and the crimes occurred in the Cherokee Nation Reservation. The victim was a citizen of the Choctaw Nation. The Craig County Sheriff’s Office, Oklahoma State Bureau of Investigation, Tulsa Police Department and FBI are the investigative agencies. 21-CR-00140
Audrey Hop. Possession of Fentanyl with Intent to Distribute. Hop, 35, of Tulsa, is charged with possessing fentanyl with intent to distribute 40 grams or more. According to court documents, federal officials discovered more than 270 grams of suspected fentanyl and $30,000 allegedly in her possession on a plane at Jones Riverside Airport on June 23, 2021. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, and FBI are the investigative agencies. 21-CR-00321
Kelton Jeffrey Pair. Assault of an Intimate/Dating Partner by Strangling in Indian Country (Count 1), Assault of an Intimate/Dating Partner in Indian Country resulting in Substantial Bodily Injury (Count 2), and Kidnapping in Indian Country (Count 3). Pair, 22, of Grove, reportedly assaulted his girlfriend by strangling her, headbutting her in the nose, and threatening to harm her on September 22, 2018. Pair further attempted to confine her to a bedroom before allowing her to seek medical attention. Pair is a citizen of the Cherokee Nation, and the alleged crimes occurred within the Cherokee Nation reservation. The Delaware County Sherriff’s Office and FBI are the investigative agencies. 21-CR-00311
Satch Williams. Kidnapping in Indian Country (Count 1) and Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 2.) Satch Williams, 31, of Grove, is charged with assaulting a female victim in a trailer home located outside of Jay. Williams entered the trailer home and began assaulting the victim with a gold-colored bar. He further used a glass object to strike the victim resulting in significant blood loss. Williams knocked the victim to the ground and began kicking her in the head. He also allegedly placed a metal bar over the victim’s neck when she tried to escape. Williams is a citizen of the United Keetoowah Band of Cherokees, and the alleged crimes occurred within the Cherokee Nation Reservation. The FBI and Delaware County Sheriff’s Office are the investigative agencies. 21-CR-00312
Ted Roosevelt Yargee. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1 and 3) and Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country (Count 2) Yargee, 59, of Tulsa, is charged with assault with a dangerous weapon after using a pole to strike his girlfriend on April 4, 2018, and after forcefully strangling and suffocating her on Aug. 13, 2018. Further, Yargee also used his automobile to rear end the woman’s vehicle on Oct. 20, 2018. At the time of the third incident, the victim and Yargee were no longer dating. Yargee is a citizen of the Muscogee Nation, and all alleged crimes occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.21-CR-00313
Federal Charges Filed Against Man in Killing of Terre Haute Police OfficerRead the Press Release
TERRE HAUTE – Criminal charges were filed today against a Terre Haute man who was taken into custody yesterday for killing Terre Haute Police Detective and FBI Task Force Officer, Gregory Ferency, outside the FBI Resident Agency office on July 7, 2021.
According to court documents, Shane Meehan, 44, drove his pickup truck to the gate of the FBI Resident Agency building. Meehan exited his truck and threw a Molotov Cocktail toward the building. Detective Ferency walked out of the building shortly after Meehan threw the incendiary device and was confronted by Meehan who was holding a firearm. Meehan raised the firearm and shot Detective Ferency. Detective Ferency was able to return fire to defend himself but later died.
Shortly thereafter, an FBI Special Agent ran out of the building and engaged Meehan in a gun battle. Despite being shot twice, Meehan got into his truck and fled the scene. Meehan was located at the Vigo County Regional Hospital where he was treated for his gunshot wounds. A firearm was recovered from Meehan’s pickup truck along with three Molotov Cocktails and additional ammunition.
“An attack on law enforcement is an attack on us all, said Acting U.S. Attorney John E. Childress. “As citizens of this county, we enjoy on a daily basis the security and protection provided by the men and women of law enforcement. That security and protection is all the more precious because it is at times paid for with the lives of those who have chosen to protect us. The selfless dedication exhibited by Detective Ferency throughout his career and his tragic death yesterday is yet another example of why we all owe our respect and gratitude to the members of law enforcement. On behalf of the Department of Justice I would like to extend my deepest sympathies to Detective Ferency’s family and his many colleagues.”
“I want to offer the deepest sympathy of the FBI to the family, friends and colleagues of Detective Ferency. Greg was a valued member of our FBI family and had worked side by side with us as a Task Force Officer since 2010 in our Terre Haute office,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will work day and night to carefully examine the circumstances of the shooting and we are dedicated to honoring Greg’s memory through a meticulous investigation.”
Meehan is charged with the murder of a federal agent. If convicted, Meehan faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case.
Assistant United States Attorneys Kate Oliver and Barry Glickman are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Cajon Resident Pleads Guilty to Selling Counterfeit Pills that Caused Death of Nineteen-Year-OldRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong and Adam Gordon (619) 546-9290
NEWS RELEASE SUMMARY—July 8, 2021
SAN DIEGO—Olatunde James Temitope Akintonde of El Cajon pleaded guilty in federal court today, admitting that he sold fentanyl-laced pills that caused the death of a nineteen-year-old Santee man, identified in court records as S.J.G., in March of 2019.
According to his plea agreement, Akintonde admitted that he sent messages to S.J.G. through social media on February 28, 2019, to coordinate the sale of what the victim believed to be oxycodone pills. Later that evening, Akintonde delivered two counterfeit oxycodone pills laced with fentanyl to S.J.G. After the meeting, Akintonde sent additional messages to S.J.G. through social media warning that he should only take one of the pills because they were “strong.” Akintonde further admitted in his plea agreement that the pills he gave to S.J.G. caused his death. According to other filings in the case, S.J.G. died in his home sometime in the evening of February 28, 2019 or the early morning hours of March 1, 2019.
“The epidemic of counterfeit fentanyl-laced pills poisoning our community has raised the stakes of drug dealing considerably,” said Acting U.S. Attorney Randy Grossman. “Dealers who ignore these risks and carry on with their deadly trade will be pursued and prosecuted.” Grossman praised prosecutors Michael Deshong and Adam Gordon as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10, officials from the San Diego Sheriff’s Department and the San Diego County District Attorney’s Office for their excellent work on this case.
“As fentanyl-related overdose deaths continue to rise at an alarming rate in San Diego County and throughout the United States, DEA is determined to track down these drug dealers and bring them to justice,” said DEA Special Agent in Charge John W. Callery.
Akintonde is scheduled to be sentenced on September 24, 2021 at 10 a.m. before U.S. District Judge Janis L. Sammartino.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl, in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into S.J.G.’s death.
DEFENDANTS Case Number 21cr1178-JLS
Olatunde James Temitope Akintonde Age: 23 El Cajon, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
San Diego Sheriff’s Department
San Diego County District Attorney’s Office
Drug Trafficker with Firearms Sentenced to 15 Years in Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that defendant Anthony Eli Lucero, a/k/a “Blade,” age 42, of Denver, was sentenced to 15 years in federal prison after pleading guilty to possession of methamphetamine with intent to distribute in violation of 21 U.S.C. § 841. The sentence will be followed by 10 years of federal supervised release. The Court also ordered the forfeiture of approximately $35,873 in seized U.S. currency as well as 9 firearms, high-capacity magazines, and over 100 rounds of assorted ammunition
According to the plea agreement, on May 4, 2018, state and federal narcotics investigators were preparing to execute a search warrant at a residence located on Lowell Blvd., in Denver. Inside, Anthony Lucero sold methamphetamine and heroin to a man later identified as Christopher Chavez. Denver Police stopped Chavez and other individuals in a Cadillac a short distance from the residence. The police recovered approximately two pounds of methamphetamine from the backseat of the Cadillac and approximately 14 grams of heroin and 27 grams of methamphetamine from Chavez himself. All the drugs had come from defendant Lucero.
A few minutes later, the Denver Police Department’s SWAT team executed the search warrant. After breaking through a barricaded front door, the officers found Lucero inside. Investigators also found and seized distribution amounts of narcotics, 9 firearms (including AK-47 style rifles with high capacity magazines), ammunition, body armor, and scales. In total, investigators recovered over 2 kilograms of methamphetamine, 196 grams of heroin, 576 grams of cocaine, and 249 grams of crack cocaine.
Lucero is the last of several individual to be sentenced in connection with this case. Last month, co-defendant Christopher Chavez was sentenced to 102 months’ imprisonment (8.5 years) for his role. The Court previously sentenced additional co-defendants in relation to this investigation and prosecution, including Donovan Roybal, who was sentenced to a total term of 70 months’ imprisonment, and Jonathan James Lovato, who was sentenced to serve 72 months’ imprisonment.
“The U.S. Attorney’s Office will continue to work with our law enforcement partners to aggressively prosecute drug dealers, especially those, like Mr. Lucero, who possess guns in connection with their drug trade,” said Acting U.S. Attorney Matt Kirsch
“The DEA is very pleased with this sentencing,” said DEA Denver Field Division Special Agent in Charge Deanne Reuter. “Lucero is another example of a heavily armed criminal, distributing poison in our communities who is being held accountable.”
“This case demonstrates the commitment that ATF has to work in partnership with our law enforcement partners. We will continue to actively pursue any individuals that bring violence into our neighborhoods,” said ATF Special Agent in Charge David Booth.
United States District Court Judge Raymond P. Moore sentenced Anthony Lucero on July 6, 2021.
The Denver Police Department, the Lakewood Police Department, West Metro Drug Task Force, U.S. Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives all participated in this investigation and prosecution. Assistant United States Attorneys Cyrus Chung and Bradley Giles handled the prosecution of the case.
Case number: 18-cr-00236-RM
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Disbarred Attorney Pleads Guilty to Securities Fraud in Connection with Fraudulent Opinion Letter SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that RICHARD RUBIN, a disbarred attorney, pled guilty in Manhattan federal court to securities fraud. RUBIN’s guilty plea results from his involvement in a fraudulent scheme in which he falsely represented that he was a licensed attorney in signing certain attorney opinion letters, which enabled the relevant securities to be sold to the investing public. In addition, RUBIN engaged in the fraudulent scheme with Thomas Craft, a licensed attorney, who falsely represented that he had undertaken certain legal work in connection with other attorney opinion letters, when in truth and in fact, RUBIN, despite his disbarment, had undertaken all of the legal work attested to in the letters.
RUBIN was arrested on December 2, 2020, and pled guilty today before U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Audrey Strauss said: “As he admitted today, Richard Rubin falsely represented in attorney opinion letters that he was a licensed attorney, giving false comfort to the investing public that an attorney, acting as a gatekeeper, had performed certain work in connection with securities. Now he stands guilty of securities fraud and awaits sentencing for his crime.”
As alleged in the Indictment filed against RUBIN, as well as his co-conspirator Craft,[1] and other statements made in open court:
Securities Registration Requirements and SEC Rule 144
Under the Securities Act of 1933 (the “Securities Act”), anyone seeking to sell a security must first register that security unless an exemption applies. See 15 U.S.C. § 77e. This registration requirement protects investors by promoting disclosure of information pertinent to informed investment decisions.
A company registering new securities must complete a registration statement known as U.S. Securities and Exchange Commission (“SEC”) Form S-1 before the securities can be listed on a national exchange and publicly traded. SEC Form S-1 contains information pertinent to informed investment decisions, including, among other things, information on the company’s business operations, the company’s financial condition, and a description of the company’s management. In connection with SEC Form S-1, the company is required to file an opinion letter (the “Form S-1 Opinion Letter”) from a licensed attorney attesting that the statements in the SEC Form S-1 are true and correct. A company’s SEC Form S-1 and the Form S-1 Opinion Letter are available to the public on the SEC’s Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”).
“Restricted securities” refers to securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer, with “affiliate” meaning a person who directly or indirectly controls, or is controlled by, or is under common control with, an issuer. Affiliates can also include an executive officer or a director or large shareholder who is in a relationship of control with respect to the issuing company. Restricted securities bear a legend indicating that the securities may not be resold in the marketplace unless they are registered with the SEC or are exempt from such registration requirements.
Securities Act Rule 144 (“Rule 144”), codified at 17 C.F.R. § 230.144, provides a registration exemption for restricted securities. Specifically, it permits the public resale of restricted securities if a number of conditions are met, including conditions relating to how long the securities are held, the way in which they are sold, the public information available to investors about the securities, and the amount that can be sold at any one time. Pursuant to Rule 144, however, even if these conditions are met, the sale of restricted securities to the public is still not permitted until a transfer agent removes the “restricted” legend from the security.
The term “transfer agent” refers to a company that keeps track of individuals and entities that own the stocks and bonds of a given company that has publicly traded securities. Among other things, transfer agents issue and cancel certificates to reflect changes in ownership, serve as the company’s intermediary for payouts, exchanges, or mailings, and handle lost, destroyed, or stolen certificates. Transfer agents also, when appropriate, remove the “restricted” legend from securities.
A Rule 144 Seller’s Representation Letter, or “Seller’s Representation Letter,” is a letter from an affiliate seller (that is, a seller in a relationship of control with the issuer, such as an executive officer, a director, or a large shareholder) of restricted securities to a transfer agent to establish certain facts underlying a legal opinion that the securities at issue can be sold publicly pursuant to Rule 144. The issuer’s consent to the removal of a legend typically comes in the form of an opinion letter from the issuing company’s attorney, the Seller’s Representation Letter, indicating that the securities at issue satisfy the conditions of Rule 144. Seller’s Representation Letters contain multiple attestations that are required by law prior to the restricted legend being removed. The transfer agent relies on the Seller’s Representation Letter in determining whether to remove the restricted legend from a security.
Over-the-Counter Securities and OTC Markets Group
Over-the-counter (“OTC”) securities are securities that are traded between two counterparties outside of a formal securities exchange. OTC Markets Group (“OTC Markets”) is a securities market headquartered in New York, New York, that provides price and liquidity information for OTC securities.
OTC Markets requires issuers seeking to be listed on OTC Markets to hire a licensed attorney to review company records and submit a letter to OTC Markets (an “OTC Markets Attorney Letter”) regarding whether information publicly disclosed by the issuer is in compliance with the condition in SEC Rule 144 governing the public information available to investors about the issuer. OTC Markets relies on the OTC Markets Attorney Letter to determine whether an issuer’s security may be listed on OTC Markets. OTC Markets Attorney Letters are available to the public on the OTC Markets website.
The Scheme to Defraud
From at least in or about 2011 through at least in or about September 2018, RUBIN and Craft participated in a fraudulent scheme in which Craft falsely represented that he had undertaken certain legal work in connection with Seller’s Representation Letters, OTC Markets Attorney Letters, and S-1 Opinion Letters, all of which enabled the relevant securities to be sold to the investing public. In addition, in connection with the securities of certain issuers, Rubin, the defendant, falsely represented that he was an attorney in Seller’s Representation Letters and OTC Markets Attorney Letters, all of which enabled the relevant securities to be sold to the investing public. The false representations were in letters pertaining to over a dozen companies.
RUBIN, 79, of Brooklyn, New York, pled guilty to one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
RUBIN will be sentenced on November 2, 2021.
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Ms. Strauss praised the investigative work of the Office of Inspector General of the SEC and also thanked the SEC Division of Enforcement for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jordan Estes is in charge of the prosecution.
The charges against Craft are pending, and he is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Delano Drug Suppliers Indicted for Methamphetamine, Fentanyl DistributionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Jesus Manuel Morfin Villa, 27, of Delano, charging him with distribution of methamphetamine and distribution of fentanyl, charging Omar Vayas Duran, 41, of Delano, with distribution of fentanyl, and charging both Villa and Duran with conspiracy to distribute and to possess with intent to distribute methamphetamine and fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents over the course of 11 months, Villa distributed methamphetamine on one occasion, distributed fentanyl with Duran on another occasion, and distributed both methamphetamine and fentanyl on yet another occasion.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Villa and Duran face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Darkweb Drug Trafficker Arrested in Operation DisrupTor Sentenced to 6.5 Years in PrisonRead the Press Release
A darkweb cocaine and heroin trafficker has been sentenced to 6 ½ years in federal prison for drug conspiracy, announced U.S. Attorney for the Northern District of Texas.
Aaron Brewer – a 39-year-old charged under Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet – pleaded guilty in December to conspiracy to possess with intent to distribute a controlled substance. He was sentenced Thursday to 78 months by Chief U.S. District Judge Barbara M.G. Lynn, who also ordered the defendant to forfeit $50,000 in drug proceeds.
According to plea papers, Mr. Brewer admitted he created darkweb market vendor accounts in order to sell cocaine, heroin, and other controlled substances online.
Mr. Brewer’s customers paid him in cryptocurrency, typically bitcoin, and frequently used aliases for shipping. After receiving payment, Mr. Brewer used the U.S. Mail and other shipping services to transmit controlled substances to customers in North Texas and across the country.
In March 2020, law enforcement discovered a ledger linking controlled substances orders with tracking numbers inside his apartment.
Mr. Brewer later admitted that over an 11-monthe period, he dealt more than 4,000 grams of cocaine and more than 80 grams of black tar heroin, then used the more than $50,000 in proceeds of the illegal activity to pay his mortgage.
The U.S. Postal Inspection Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Operation DisrupTor actions have resulted in the arrest of 179 Darknet drug traffickers and fraudulent criminals who engaged in tens of thousands of sales of illicit goods and services across the United States and Europe. The operation also resulted in the seizure of over $6.5 million; approximately 500 kilograms of drugs worldwide (including approximately 275 kilograms of drugs in the U.S.); and 63 firearms.
Cryptocurrency Fraudster Sentenced for Money Laundering and Securities Fraud in Multi-Million Dollar Investment SchemeRead the Press Release
A Swedish man was sentenced today to 15 years in prison for securities fraud, wire fraud and money laundering charges that defrauded thousands of victims of more than $16 million.
Roger Nils-Jonas Karlsson, 47, pleaded guilty on March 4. According to court documents, Karlsson ran an investment fraud scheme from 2011 until his arrest in Thailand in June 2019. Karlsson induced victims to purchase shares in the scheme called “Eastern Metal Securities” using cryptocurrency such as Bitcoin and other online payment platforms. Karlsson promised victims astronomical returns tied to the price of gold. Instead, the funds provided by victims were transferred to Karlsson’s personal bank accounts, and he then used proceeds to purchase expensive homes, a racehorse and a resort in Thailand. Karlsson’s fraud targeted financially insecure investors, causing severe financial hardship for many of them. Meanwhile, Karlsson went to great lengths to prolong his scheme, including rebranding, offering updates and account statements that provided assurances to the victims of the states of their assets, and offering explanations for the payout delays – including falsely claiming to be working with the Securities and Exchange Commission (SEC).
As part of the sentence, Karlsson was also ordered to forfeit a Thai resort and various other properties and accounts, and issued a money judgment in the amount of $16,263,820. The United States is seeking restitution on behalf of Karlsson’s victims. A restitution order is expected to be entered by the court within 90 days. Victims of Roger Karlsson and Eastern Metal Securities who have not been in contact with the U.S. Attorney’s Office for the Northern District of California are encouraged to submit information as soon as possible. Additional information for victims and a victim form are available at https://www.justice.gov/usao-ndca/united-states-vs-roger-karlsson-and-eastern-metal-securities.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie Hinds of the Northern District of California; and Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation (IRS-CI) Washington, D.C., Field Office made the announcement.
IRS-CI Washington, D.C. Cyber Crimes Unit investigated the case. The Justice Department’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS-CI Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance. The SEC’s New York Regional Office also provided substantial support.
Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Frentzen of the U.S. Attorney's Office for the Northern District of California prosecuted the case. Assistant U.S. Attorney Karen Beausey of the Asset Forfeiture Unit of the U.S. Attorney’s Office handled the forfeiture proceedings, and Victim Specialist Maria Sunga provided support. Law clerks and interns Seamus Lynch, John Paul, Kate Kaplan and Edward Percarpio also provided essential assistance in support of the sentencing.
Cryptocurrency Fraudster Sentenced to 15 Years for Money Laundering and Securities Fraud in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, citizen of Sweden, was sentenced today to 15 years in prison for securities fraud, wire fraud, and money laundering charges that defrauded thousands of victims. The court also ordered the defendant to forfeit several properties in Thailand, including a resort, and a forfeiture money judgment of more than $16 million. The sentence was handed down by the Hon. Charles R. Breyer, U.S. District Judge.
Karlsson, 47, pleaded guilty to the charges on March 4, 2021, without a written plea agreement. According to court documents, Karlsson ran an investment fraud scheme from 2011 until his arrest in Thailand in June 2019. Karlsson induced victims to use cryptocurrency such a Bitcoin and other online payment platforms to purchase shares in a scheme he called “Eastern Metal Securities.” Karlsson promised victims astronomical returns tied to the price of gold. Instead, the funds provided by victims were transferred to Karlsson’s personal bank accounts, and he then used proceeds to purchase personal items including expensive homes, a racehorse, and a resort in Thailand. Karlsson’s fraud targeted financially insecure investors, causing severe financial hardship for many of them. Meanwhile, Karlsson went to great lengths to prolong his scheme, including rebranding, offering updates and account statements that provided assurances to the victims that their assets were secure, and offering explanations for the payout delays – including falsely claiming to be working with the Securities and Exchange Commission. In addition, the government’s filings in the case describe Karlsson’s attempt to launder the proceeds of his fraud by using multiple aliases and shell companies, layering transactions through cryptocurrency wallets and exchanges, and using offshore accounts and properties. The government argued in its sentencing memorandum that Karlsson’s cryptocurrency Ponzi scheme is one of the largest such schemes the government knows to have been sentenced.
“The investigation into Roger Karlsson’s fraud uncovered a frighteningly callous scheme that lasted more than a decade during which Karlsson targeted thousands of victims, including financially vulnerable seniors, to callously rob them of their assets and all to fuel an extravagant lifestyle surrounded by luxury condominiums and lavish international vacations,” said Acting U.S. Attorney Hinds. “The court’s decision to order a 180-month prison term reflects the fact that Karlsson’s cryptocurrency Ponzi scheme is one of the largest to be sentenced to date and ensures that Karlsson now will have plenty of time to think about the harm he has caused to his victims.”
The judge ordered forfeited various Thai resort properties and accounts and issued a money judgment in the amount of $16,263,820. The United States is seeking restitution on behalf of Karlsson’s victims. A restitution order is expected to be entered by the Court within 90 days. Victims of Roger Karlsson and Eastern Metal Securities who have not been in contact with the U.S. Attorney’s Office for the Northern District of California are encouraged to submit information as soon as possible. Additional information for victims and a victim form are available at https://www.justice.gov/usao-ndca/united-states-vs-roger-karlsson-and-eastern-metal-securities.
Acting U.S. Attorney Stephanie Hinds of the Northern District of California; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.
IRS-CI Washington, D.C. Cyber Crimes Unit investigated the case. The Justice Department’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS-CI Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.The Securities and Exchange Commission has filed a separate enforcement action against Karlsson. The announcement of that action can be viewed here.
Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Frentzen prosecuted this case. Assistant U.S. Attorney Karen Beausey of the Asset Forfeiture Unit of the U.S. Attorney’s Office for the Northern District of California (USAO) handled the forfeiture proceedings and Victim Specialist Maria Sunga provided support. Seamus Lynch, John Paul, Kate Kaplan, and Edward Percarpio also provided essential assistance in support of the sentencing. The Department of Justice also appreciates the assistance of the Securities and Exchange Commission.
The Securities and Exchange Commission's Office of Investor Education and Advocacy warns investors to scrutinize investment “opportunities” offered through websites purporting to operate advisory and trading businesses related to digital assets. Additional information is available in the SEC’s Investor Alert on the topic. Victims of investment fraud schemes, including those involving cryptocurrency, are encouraged to report their loss to law enforcement.
Corvallis ex-lawyer admits wire fraud, money laundering and tax evasion in real estate investment schemeRead the Press Release
MISSOULA –A former lawyer who also was a licensed realtor and ran a construction company today admitted charges in which he defrauded investors, losing more than $1 million in the futures market, and filed false income tax returns, Acting U.S. Attorney Leif M. Johnson said.
Ronald Dean Lords, 53, of Corvallis, pleaded guilty to wire fraud, money laundering and filing false tax returns. Lords faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud charge; 10 years in prison, a $250,00 fine and three years of supervised release on the money laundering charge and three years in prison, a $100,000 fine and one year of supervised release on the false tax returns charge.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Nov. 10 before U.S. District Judge Donald W. Molloy. Lords was released pending further proceedings.
The government alleged in court documents that Lords was a lawyer, who operated Eagles Landing Legal Services, PC, as well as a licensed realtor and general contractor, who operated Eagles Landing Construction, Inc. The construction company purported to develop real property and build homes. From June 2011 and September 2018, in Ravalli County, Lords defrauded several victims by convincing them to invest money in his construction company. Lords told them he would make monthly interest payments, use the money to build homes and repay the money after the homes were sold. Lords said he would return the victims’ money within 30 days of any request.
The government further alleged that instead of using the money to fund construction projects as promised, Lords used a portion of the new money to make interest payments to prior investors and lost the majority of the funds in the futures market. When some victims demanded their principal back, Lords admitted he lost more than $1 million in the futures market and did not have their money.
The government also alleged that Lords failed to declare $432,608 he received from several victims in 2015 as “other income” on his taxes, resulting in unpaid taxes of $152,734 for that year.
Assistant U.S. Attorney Timothy J. Racicot is prosecuting the case, which was investigated by the FBI and IRS, Criminal Investigation Division.
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Cooke County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
PLANO, Texas – A Gainesville convicted felon has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
William Randall Brannan, 39, was convicted by a jury on Feb. 21, 2020, of being a felon in possession of a firearm and two counts of possession of a firearm in furtherance of a drug trafficking crime. Brannan was sentenced to 272 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Getting firearms out of the hands of prohibited persons is a critical part of the Department’s efforts to reduce violent crime in our neighborhoods,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s sentence sends a strong message that violent criminals who utilize firearms to deal narcotics will be aggressively prosecuted and held accountable to fullest extent of the law.”
According to information presented in court, in January 2019, Brannan, while delivering methamphetamine, discharged a firearm in a Gainesville residence, and again outside the home, while attempting to intimidate others into returning methamphetamine which he believed had been stolen from him. On Feb. 28, 2019, Brannan was located in Arlington, Texas and fled as law enforcement officers attempted to arrest him. He then led police on a high-speed chase before crashing the vehicle. The gun used in the Gainesville shooting was found in the vehicle. Further investigation revealed Brannan was a convicted felon and prohibited from owning or possessing firearms or ammunition. Brannan was indicted by a federal grand jury on March 14, 2019.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Cooke County Sheriff’s Office, the Arlington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Matthew Johnson and Chris Eason.
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Convicted Felon Sentenced to More Than 17 Years in Prison on Gun and Drug ChargesRead the Press Release
HUNTSVILLE, Ala. – A federal judge yesterday sentenced Norman David Ray Fischer, 41, of Owens Cross Roads, to 211 months in prison on gun and drug charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
In March, Fischer pleaded guilty before U.S. District Court Judge Abdul K. Kallon to one count of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm.
“As this sentence demonstrates, drug-dealing felons with guns face stiff penalties under federal law,” U.S. Attorney Escalona said. “It is a priority of my office to work with our law enforcement partners to prosecute these crimes.”
“ATF’s Crime Gun Intelligence partnerships with the Madison County Sheriff’s Office and the U.S. Attorney’s Office focuses on the devastating impact of firearms violence and works with the entire community to reduce the potential for violent crime,” ATF SAC French stated.
The ATF investigated the case along with the Madison County Sheriff’s Department Narcotics Unit and SWAT Team. Assistant U.S. Attorney Robert J. Becher prosecuted the case.
Clay County Woman Pleads Guilty to Defrauding FEMARead the Press Release
HUNTINGTON, W.Va. – Rebecca F. Bragg, 37, pleaded guilty to fraud in connection with major disaster or emergency benefits.
According to court documents, in June 2016, at the time of a major flood, Bragg resided in a home in Procious, Clay County, that was owned by her husband’s parents. On June 26, 2016, Bragg applied to the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) for both personal and rental assistance for the Procious residence. As a result of her application for rental assistance, Bragg received $2,472 from FEMA. FEMA initially deemed Bragg ineligible for home repair assistance because she had not proven she owned the home at the time of the flood. On July 20, 2016, through her previous employer, Bragg applied for and obtained home insurance for the Procious residence, wherein she falsely claimed she was the home owner. On August 9, 2016, from her previous employer’s office in Spencer, Roane County, Bragg faxed to FEMA the home insurance policy that listed her as the property owner. As a result of Bragg’s false statements and misrepresentations, she received $4,900.85 in home repair benefits from FEMA.
Bragg faces up to 30 years in prison when she is sentenced on October 28, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Department of Homeland Security, Office of Inspector General and the West Virginia Commission on Special Investigations. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
United States District Judge Irene C. Berger presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00103.
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Charleston Rioter Sentenced to 18 Months in Federal PrisonRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Abraham Jenkins, 26, of Charleston, was sentenced to 18 months in federal prison after pleading guilty to civil disorders related to the violence and destruction in downtown Charleston on May 30, 2020.
Jenkins is the second of six defendants to be sentenced on federal charges stemming from participation of actions including arson, inciting riots, and other civil disorder in Columbia and Charleston on May 30 and 31, 2020.
“The United States Attorney’s Office will always protect the First Amendment rights of South Carolinians,” said Acting U.S. Attorney DeHart. “However, when peaceful protests turn into violence and destruction, the violent agitators committing crimes will be brought to justice.”
“To protect our right to peacefully protest, the FBI will continue to investigate individuals that engage in criminal conduct that causes personal injury and property destruction as part of a riot,” said FBI Special Agent in Charge Susan Ferensic. “We are grateful for the work done by the ATF, Charleston Police Department and South Carolina Law Enforcement Division that helped bring this offender to justice.”
“The Charleston Police Department applauds the successful resolution of this criminal case and the support the displayed by the United States Attorney’s Office regarding this incident,” said Charleston Police Chief Luther Reynolds. “While the Charleston Police Department will always support our citizen’s right to peaceful protest, we will never condone violent or destructive acts that endanger our citizens or damage property. More work remains to be accomplished as we continue investigating and prosecuting those violent offenders responsible for the significant destruction of property, assault on our citizens and attack on our officers. We will not rest until justice is accomplished for all impacted by those criminal acts.”
“The Mount Pleasant Police Department appreciates the investigation in this matter and feels the process worked out in the interest of justice,” read in part a statement from the Mount Pleasant Police Department. “We will continue to work with our law enforcement and community partners to ensure our citizens rights, safety, and property are protected.”
Evidence presented in court showed that Jenkins stood on top of a Town of Mount Pleasant Police vehicle, damaging it; sprayed a fire extinguisher at police officers who were patrolling Charleston on two separate occasions; and threw a water bottle at a patrolling officer. Jenkins also took a burning t-shirt and threw it through a broken back window of a Charleston Police cruiser, causing damage to the cruiser.
United States District Judge Richard M. Gergel sentenced Jenkins to 18 imprisonment to be followed by 36 months of supervised release. There is no parole in the federal system.
The case was investigated by the FBI, ATF, Charleston Police Department, and South Carolina Law Enforcement Division (SLED). Numerous other local police departments and Solicitors’ Offices across the states have also assisted in the investigations of civil unrest in May 2020.
Assistant United States Attorneys Emily Limehouse and Nathan Williams prosecuted the case.
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California Men Pleads Guilty to Drug TraffickingRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on July 7, 2021 ALLEN EDGERSON, age 43, of Moreno Valley, California, pled guilty today to charges relating to methamphetamine trafficking.
EDGERSON pled guilty to conspiring to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846. According to court documents, EDGERSON sold methamphetamine in large quantities, quoting customers prices for up to 20 pounds of methamphetamine at a time. Law enforcement agents caught EDGERSON and his codefendant, Rachel Cesario, sending packages with multiple pounds of methamphetamine at a time to codefendant Sheon Copprue in New Orleans.
EDGERSON faces a term of imprisonment of at least ten years and up to life in prison, a fine of up to $10,000,000, at least five years of supervised release, following any term of imprisonment, and a mandatory special assessment of $100. Two of EDGERSON’s codefendants, Sheon Copprue and Tonya Calvin, have already pled guilty in this case. Judge Sarah S. Vance set EDGERSON’s sentencing for November 10, 2021.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
California Man Sentenced in Erie for Possessing Fentanyl, Cocaine, Heroin and PillsRead the Press Release
ERIE, Pa. - A former resident of California has been sentenced in federal court to 70 months in jail on his conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Victor Daniel Guttierez, 48.
According to information presented to the court, between May 28, 2020 and June 8, 2020, Gutierrez conspired to possess with intent to distribute and distribute forty grams or more of a mixture and substance containing a detectable amount of fentanyl. The charge was based on an intercepted United States Mail parcel that Gutierrez shipped to Pennsylvania from California containing approximately 340 grams of fentanyl pills. As part of the plea, Gutierrez had also acknowledged his responsibility for attempting to possess with intent to distribute 2.125 kilograms of cocaine and 1.535 kilograms of heroin in and around September of 2019 and Gutierrez was sentenced on these amounts as well.
Prior to imposing sentence, Judge Baxter stated that despite Mr. Gutierrez’s claims of mitigating circumstances, his actions in trafficking these substantial quantities of controlled substances had only served to “further addiction and heartbreak” for those suffering from drug use and addiction in the Western District of Pennsylvania.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Gutierrez.
California Man Sentenced in Erie for Possessing Fentanyl, Cocaine, Heroin and PillsRead the Press Release
ERIE, Pa. - A former resident of California has been sentenced in federal court to 70 months in jail on his conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Victor Daniel Guttierez, 48.
According to information presented to the court, between May 28, 2020 and June 8, 2020, Gutierrez conspired to possess with intent to distribute and distribute forty grams or more of a mixture and substance containing a detectable amount of fentanyl. The charge was based on an intercepted United States Mail parcel that Gutierrez shipped to Pennsylvania from California containing approximately 340 grams of fentanyl pills. As part of the plea, Gutierrez had also acknowledged his responsibility for attempting to possess with intent to distribute 2.125 kilograms of cocaine and 1.535 kilograms of heroin in and around September of 2019 and Gutierrez was sentenced on these amounts as well.
Prior to imposing sentence, Judge Baxter stated that despite Mr. Gutierrez’s claims of mitigating circumstances, his actions in trafficking these substantial quantities of controlled substances had only served to “further addiction and heartbreak” for those suffering from drug use and addiction in the Western District of Pennsylvania.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Gutierrez.
Convicted Felon Sentenced to over 9 Years in Federal Prison for Firearms PossessionRead the Press Release
FAYETTEVILLE – A Fayetteville man was sentenced today to 110 months in federal prison followed by three years of supervised release on one count of being a Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on February 7, 2021, the 4th Judicial District Drug Task Force obtained a search warrant for the residence of Marcellius Ricardio Phillips, 38, for drug trafficking offenses in the Western District of Arkansas. Prior to executing the search warrant, Detectives made contact with Phillips outside his residence. After Phillips was placed under arrest for an outstanding warrant, Detectives searched his pants pocket and located a loaded handgun. Phillips is a convicted felon and is prohibited from possessing any firearms.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 4th Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case was prosecuted as 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.
Bridgeton Police Officer Charged with Civil Rights Violation and Filing False Police ReportRead the Press Release
CAMDEN, N.J. – A City of Bridgeton police officer has been indicted for offenses arising from an assault on the streets of Bridgeton, Acting U.S. Attorney Rachael A. Honig announced today.
John Grier III, 49, of Cedarville, New Jersey, is charged in an indictment unsealed today with one count of violating an individual’s civil rights and one count of falsifying a record for submitting a false police report about the assault. A federal grand jury returned the sealed indictment on June 30, 2021. Grier surrendered this morning and was arraigned by videoconference before U.S. Magistrate Judge Ann Marie Donio. He was released on $50,000 bond.
“One of the most important responsibilities we hold at the Department of Justice is the responsibility to investigate and prosecute police officers who abuse their power and deprive our citizens of their civil rights,” Acting U.S. Attorney Honig said. “This Office will continue to charge officers, like this defendant, who dishonor their badges by using force when it is neither reasonable nor necessary and thereby fail to live up to their duty to protect the public they serve.”
“Civil Rights violations are of great concern, particularly when the allegations involve a member of law enforcement,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “The public has an absolute right to trust that law enforcement will protect those they serve and keep them safe. When that trust is violated, it makes it more difficult for our fellow police officers and federal agents to maintain the community's confidence.”
According to documents filed in this case and statements made in court:
On June 18, 2017, Bridgeton Police Department (BPD) officers were dispatched to a Bridgeton gas station following a report of two males sitting at the gas station yelling at passersby. When an officer arrived, he found the victim in the driver seat of a car parked by the gas pumps, and another man was sitting in the passenger seat. In response to the radio call, Grier arrived as a back-up officer.
Eventually, the driver and passenger were issued summonses, and Grier departed the gas station. Within minutes, an officer who remained at the gas station radioed for assistance because the driver and passenger had gotten out of the car and approached him before he could drive off. As Grier drove back to the gas station, he grabbed a large can of OC spray and pulled out the pin allowing its use.
Upon Grier’s arrival, the driver was yelling at officers. Grier ordered the driver to get back into his vehicle and warned him that if he approached the officers again that he would be arrested. The driver and passenger returned to their car and drove to the side of the gas station. At that point the police officers had probable cause to arrest the victim for driving while intoxicated.
The officers approached the car in order to arrest the victim. Grier got out of his car with the large can of OC spray in his hand and told another officer to “step back,” despite the fact that the officer had nearly finished handcuffing the victim. While holding the OC spray, Grier asked the victim “do you want to feel pain, sir?” Other officers were able to handcuff the victim without incident.
As an officer attempted to the place the handcuffed victim into the rear of a patrol vehicle, Grier sprayed the victim in the face. The victim doubled over. An officer helped the victim up and sat him on the edge of the rear seat of the police SUV. Grier then sprayed the victim for a second time. After the second burst of OC spray to the face, Grier asked the driver “there, how do you like it now? Now get in the goddamn car.”
Grier returned to the police station to prepare his report in connection with the victim’s arrest. Grier prepared and submitted a false and fraudulent police report in which Grier falsely stated that the victim “refused [to enter the police vehicle] and continued to forcefully remain outside the vehicle,” and, in an effort to falsely justify the use of the OC spray a second time, stated that the “spray did not strike [the victim] in the face and that it did not take immediate effect[.]”
The violation of civil rights count carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each charge is $250,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Honig credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Crouch in Newark, with the investigation leading to today’s indictment. Acting U.S. Attorney Honig also thanked the Internal Affairs Unit of the Bridgeton Police Department, under the direction of Chief Michael A. Gaimari Sr.; investigators and detectives of the New Jersey Attorney General’s Office, under the direction of Attorney General Gurbir Grewal; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McCray.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Avanos Medical to Pay $22 Million to Resolve Criminal Charge Related to Fraudulent Misbranding of MicroCool Surgical GownsRead the Press Release
Avanos Medical Inc., a U.S.-based multinational medical device corporation, has agreed to pay more than $22 million to resolve a criminal charge relating to the company’s fraudulent misbranding of its MicroCool surgical gowns.
A criminal information filed yesterday in the U.S. District Court for the Northern District of Texas charges Avanos with one count of introducing misbranded surgical gowns into interstate commerce with the intent to defraud and mislead. According to court filings, Avanos falsely labeled the gowns as providing the highest level of protection against fluid and virus penetration.
Under the terms of a deferred prosecution agreement filed with the criminal information, Avanos will pay $22,228,000, composed of a victim compensation payment of $8,939,000, a criminal monetary penalty in the amount of $12,600,000, and a disgorgement payment of $689,000. The deferred prosecution agreement resolves a criminal investigation into Avanos’s misbranding of its MicroCool surgical gowns under the Federal Food, Drug, and Cosmetic Act (FDCA) and the company’s obstruction of a 2016 for-cause inspection conducted by the U.S. Food and Drug Administration (FDA) into Avanos’s surgical gown business.
“The last thing health care workers should have to worry about is whether their personal protective equipment lives up to manufacturers’ claims,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “Misbranded PPE can pose serious risks to medical professionals and patients alike. All companies that do business in Texas, health care or otherwise, will be held accountable for the promises they make about their products.”
“Companies that sell medical products put their customers at risk when they misrepresent the quality of those products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its law enforcement partners to prosecute companies that put profits over safety, especially when they provide products meant to protect medical professionals in potentially high-risk situations involving infectious diseases.”
“Customers of Avanos trusted the company to deliver on the promises it made about the safety of its surgical gowns,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Avanos betrayed that trust. This resolution emphasizes that the department will hold companies in the medical device industry accountable.”
“Medical devices, such as surgical gowns, must have truthful and accurate labeling,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA. “Surgical gowns with false or misleading labeling can put health care practitioners and patients at risk. The FDA’s Office of Criminal Investigations protects the American public by aggressively investigating allegations involving FDA-regulated products.”
According to court documents, surgical gowns sold in the United States are subject to regulation by the FDA, which recognizes a system of classification set forth by the American National Standards Institute (ANSI) and the Association for the Advancement of Medical Instrumentation (AAMI) — known as the ANSI/AAMI PB70 standard. The ANSI/AAMI PB70 standard was first established in 2003 and revised to be more rigorous in 2012. Under the standard, the highest protection level for surgical gowns — AAMI Level 4 — is reserved for gowns intended to be used in surgeries and other high-risk medical procedures on patients suspected of having infectious diseases.
As part of the deferred prosecution agreement, Avanos admitted that between late 2014 and early 2015, it sold hundreds of thousands of MicroCool surgical gowns that were labeled as AAMI Level 4 under the 2012 ANSI/AAMI PB70 standard but did not actually meet that standard. In addition, Avanos made direct misrepresentations to customers about the MicroCool gowns’ compliance with the 2012 ANSI/AAMI PB70 standard. For example, in November 2014, Avanos sent letters to certain hospitals and other potential purchasers that falsely claimed that the MicroCool gowns met the revised and more rigorous 2012 ANSI/AAMI PB70 standard for classification as AAMI Level 4 — a standard that Avanos’s employees knew the gowns had never met. At least one of these letters was sent in response to a request for assurances made by a health care provider seeking to obtain surgical gowns for use in responding to the 2014 Ebola outbreak. In total, Avanos sold approximately $8,939,000 worth of misbranded MicroCool gowns to customers in the United States and abroad.
In addition, according to court documents, an employee and an agent of Avanos obstructed a July 2016 FDA for-cause inspection of the company’s surgical gown business by making numerous false entries in four documents requested by FDA investigators.
As part of the criminal resolution, Avanos has agreed to continue to cooperate with the Justice Department and to report any evidence or allegation of a violation of the FDCA or U.S. obstruction or fraud laws committed by Avanos’s employees or agents upon any domestic government agency (including the FDA), regulator or any of Avanos’s customers. Avanos has further agreed to strengthen its compliance program and abide by specific reporting requirements, which require the company to submit yearly reports to the government regarding the status of Avanos’s enhancements to its compliance program and internal controls, policies and procedures aimed at deterring and detecting violations of the FDCA and U.S. obstruction and fraud laws, and the status of its remediation efforts.
The government reached this resolution with Avanos based on a number of factors, including the nature and seriousness of the offense conduct and Avanos’s failure to timely and voluntarily self‑disclose the offense conduct to the department. In addition, Avanos fully cooperated with the investigation conducted by the government, including conducting a thorough internal investigation, meeting requests from the government promptly, making factual presentations to the government, assisting in making a key foreign-based employee available for interview, and producing extensive documentation to the government, including documents located in a foreign jurisdiction.
The government also considered that Avanos engaged in remedial measures after the offense conduct, including: (i) changing the manufacturing process for the MicroCool surgical gowns to improve the quality of their sleeve seams; (ii) reorganizing its quality and regulatory departments so that they report directly to the CEO; (iii) substantially increasing the budget and headcount of its compliance and quality departments; (iv) creating a stand-alone Compliance Committee of the Board of Directors; (v) enhancing the independence, autonomy and resources of its compliance function by creating a stand-alone compliance department and appointing a full-time Chief Ethics and Compliance Officer who reports directly to the CEO and presents compliance reports to the Compliance Committee at least five times per year; (vi) enhancing compliance training for its employees; and (vii) implementing revised procedures for the review and approval of all medical device marketing material.
The criminal case was investigated by the FDA’s Office of Criminal Investigations.
Senior Litigation Counsel Allan Gordus and Trial Attorneys David Gunn and Max Goldman of the Civil Division’s Consumer Protection Branch, Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Miller of the Northern District of Texas prosecuted the case.
Avanos Medical Inc. to Pay $22 Million to Resolve Criminal Charge Related to the Fraudulent Misbranding of Its MicroCool Surgical GownsRead the Press Release
Avanos Medical Inc., a U.S.-based multinational medical device corporation, has agreed to pay more than $22 million to resolve a criminal charge relating to the company’s fraudulent misbranding of its MicroCool surgical gowns.
A criminal information filed yesterday in the U.S. District Court for the Northern District of Texas charges Avanos with one count of introducing misbranded surgical gowns into interstate commerce with the intent to defraud and mislead. According to court filings, Avanos falsely labeled the gowns as providing the highest level of protection against fluid and virus penetration. Under the terms of a deferred prosecution agreement filed with the criminal information, Avanos will pay $22,228,000, composed of a victim compensation payment of $8,939,000, a criminal monetary penalty in the amount of $12,600,000 and a disgorgement payment of $689,000. The deferred prosecution agreement resolves a criminal investigation into Avanos’s misbranding of its MicroCool surgical gowns under the Federal Food, Drug, and Cosmetic Act (FDCA) and the company’s obstruction of a 2016 for-cause inspection conducted by the U.S. Food and Drug Administration (FDA) into Avanos’s surgical gown business.
“Companies that sell medical products put their customers at risk when they misrepresent the quality of those products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its law enforcement partners to prosecute companies that put profits over safety, especially when they provide products meant to protect medical professionals in potentially high-risk situations involving infectious diseases.”
“Customers of Avanos trusted the company to deliver on the promises it made about the safety of its surgical gowns,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Avanos betrayed that trust. This resolution emphasizes that the department will hold companies in the medical device industry accountable and shows the Criminal Division’s dedication to partnering with the Civil Division’s Consumer Protection Branch to root out fraud.”
“The last thing health care workers should have to worry about is whether their personal protective equipment lives up to manufacturers’ claims,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “Misbranded PPE can pose serious risks to medical professionals and patients alike. All companies that do business in Texas, health care or otherwise, will be held accountable for the promises they make about their products.”
“Medical devices, such as surgical gowns, must have truthful and accurate labeling,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA. “Surgical gowns with false or misleading labeling can put health care practitioners and patients at risk. The FDA’s Office of Criminal Investigations protects the American public by aggressively investigating allegations involving FDA-regulated products and violations of the FDCA. In this case, OCI worked with the Department of Justice to ensure a just resolution, and we applaud the exceptional work done by the team.”
According to court documents, surgical gowns sold in the United States are subject to regulation by the FDA, which recognizes a system of classification set forth by the American National Standards Institute (ANSI) and the Association for the Advancement of Medical Instrumentation (AAMI) — known as the ANSI/AAMI PB70 standard. The ANSI/AAMI PB70 standard was first established in 2003 and revised to be more rigorous in 2012. Under the standard, the highest protection level for surgical gowns — AAMI Level 4 — is reserved for gowns intended to be used in surgeries and other high-risk medical procedures on patients suspected of having infectious diseases.
As part of the deferred prosecution agreement, Avanos admitted that between late 2014 and early 2015, it sold hundreds of thousands of MicroCool surgical gowns that were labeled as AAMI Level 4 under the 2012 ANSI/AAMI PB70 standard but did not actually meet that standard. In addition, Avanos made direct misrepresentations to customers about the MicroCool gowns’ compliance with the 2012 ANSI/AAMI PB70 standard. For example, in November 2014, Avanos sent letters to certain hospitals and other potential purchasers that falsely claimed that the MicroCool gowns met the revised and more rigorous 2012 ANSI/AAMI PB70 standard for classification as AAMI Level 4 — a standard that Avanos’s employees knew the gowns had never met. At least one of these letters was sent in response to a request for assurances made by a health care provider seeking to obtain surgical gowns for use in responding to the 2014 Ebola outbreak. In total, Avanos sold approximately $8,939,000 worth of misbranded MicroCool gowns to customers in the United States and abroad.
In addition, according to court documents, an employee and an agent of Avanos obstructed a July 2016 FDA for-cause inspection of the company’s surgical gown business by making numerous false entries in four documents requested by FDA investigators.
As part of the criminal resolution, Avanos has agreed to continue to cooperate with the Justice Department and to report any evidence or allegation of a violation of the FDCA or U.S. obstruction or fraud laws committed by Avanos’s employees or agents upon any domestic government agency (including the FDA), regulator or any of Avanos’s customers. Avanos has further agreed to strengthen its compliance program and abide by specific reporting requirements, which require the company to submit yearly reports to the government regarding the status of Avanos’s enhancements to its compliance program and internal controls, policies and procedures aimed at deterring and detecting violations of the FDCA and U.S. obstruction and fraud laws, and the status of its remediation efforts.
The government reached this resolution with Avanos based on a number of factors, including the nature and seriousness of the offense conduct and Avanos’s failure to timely and voluntarily self‑disclose the offense conduct to the department. In addition, Avanos fully cooperated with the investigation conducted by the government, including conducting a thorough internal investigation, meeting requests from the government promptly, making factual presentations to the government, assisting in making a key foreign-based employee available for interview, and producing extensive documentation to the government, including documents located in a foreign jurisdiction.
The government also considered that Avanos engaged in remedial measures after the offense conduct, including: (i) changing the manufacturing process for the MicroCool surgical gowns to improve the quality of their sleeve seams; (ii) reorganizing its quality and regulatory departments so that they report directly to the CEO; (iii) substantially increasing the budget and headcount of its compliance and quality departments; (iv) creating a stand-alone Compliance Committee of the Board of Directors; (v) enhancing the independence, autonomy and resources of its compliance function by creating a stand-alone compliance department and appointing a full-time Chief Ethics and Compliance Officer who reports directly to the CEO and presents compliance reports to the Compliance Committee at least five times per year; (vi) enhancing compliance training for its employees; and (vii) implementing revised procedures for the review and approval of all medical device marketing material.
The criminal case was investigated by the FDA’s Office of Criminal Investigations.
Senior Litigation Counsel Allan Gordus and Trial Attorneys David Gunn and Max Goldman of the Civil Division’s Consumer Protection Branch, Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Miller of the Northern District of Texas prosecuted the case.
Armed Career Criminal Receives 20 Years in Prison for Gun and Drug ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Keith A. Penn, 41, of Tallahassee, Florida, has been sentenced to 20 years in federal prison after pleading guilty to drug trafficking and firearm charges. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentence.
“This case is another example of the success that can be achieved through collaboration between our local and federal law enforcement agencies,” stated Acting U.S. Attorney Coody. “As a result of the excellent relationship between the Leon County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, this armed drug trafficker has been held accountable for his criminal conduct, and the community is safer as a result.”
In July 2020, the Leon County Sheriff’s Office made two controlled purchases of cocaine from Penn, leading to a search warrant for his apartment. During the execution of the warrant on August 11, 2020, LCSO recovered six firearms, over fifty grams of cocaine, drug paraphernalia associated with the sale of narcotics such as scales and baggies, and approximately $5925 in cash. Penn was arrested on state charges and was placed on pretrial release. LCSO conducted another controlled purchase of cocaine from Penn on October 13, 2020 and obtained a second search warrant for his apartment. During the execution of the second warrant on October 30, 2020, LCSO found various calibers of firearm ammunition, a small amount of cocaine, and drug paraphernalia (scales and baggies). LCSO also found approximately six grams of cocaine individually packaged into 25 baggies in Penn’s car, and over $900 in his pants pocket.
Penn pled guilty to possession of a firearm by a convicted felon, possession of ammunition by a convicted felon, possession of a firearm in furtherance of a drug-trafficking offense, and two counts of possession of cocaine with intent to distribute. Penn qualified for enhanced penalties as an Armed Career Criminal because of prior convictions for armed robbery with a deadly weapon and two counts of sale of cocaine. The Court also ordered 6 years of supervised release following Penn’s prison term.
“ATF takes possession of a firearm and ammunition by a convicted felon serious,” said Special Agent in Charge Craig W. Saier, “We will continue to work with our law enforcement partners to combat these crimes that endanger our communities.”
This sentence resulted from an investigation conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Leon County Sheriff’s Office. Assistant United States Attorney James A. McCain prosecuted the case.
This case falls within the purview of the Project Safe Neighborhoods initiative, which brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to combat violent crime in the community. Here in Tallahassee, the Sheriff’s ALLinLEON initiative has focused on enforcement, but also engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills and substance abuse treatment.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Albion Man Indicted on Charges of Distribution and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a four count indictment charging Spencer Hart, 37, of Albion, NY, with three counts of distribution of child pornography and one count of possession of child pornography. The charges carry a minimum penalty of 15 years in prison, a maximum of 40 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeffrey T. Fiut and Assistant U.S. Attorney Aaron J. Mango, who are handling the case, stated that according to the indictment, the distributed child pornography on March 17, June 21, and June 22, 2020. In addition, on July 16, 2020, Hart possessed a hard drive containing an image of child pornography involving a prepubescent minor under the age of 12. The defendant was previously convicted on a state charge involving possession of child pornography.
The defendant was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 14, 2021, at 10:00 a.m.
The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Federal Bureau of Investigation, Buffalo and Rochester Offices, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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20-year prison sentence for Cincinnati man who sold fentanyl-laced heroinRead the Press Release
CINCINNATI - A 46-year old Cincinnati man has been sentenced to 20 years in prison for selling heroin laced with fentanyl to three people who overdosed on it.
Darrell R. Seay was sentenced yesterday. He pleaded guilty on March 25 to one count of distribution of a controlled substance resulting in serious bodily injury.
Court documents reveal that Seay came under investigation by the Hamilton County Heroin Coalition (now known as the Hamilton County Addiction Response Coalition) after Cincinnati Police responded to triple, non-fatal overdoses on January 14, 2020 and learned that Seay had sold one of the victims the fentanyl-laced heroin just before all three victims ingested the substance and overdosed. The three victims overdosed at the residence where he sold it (two in the house and one in the front yard). All three victims were administered Narcan at the scene, were transported to a nearby hospital and survived.
After further investigation, agents obtained a search warrant for the Seay’s residence. When searched on February 21, 2020, law enforcement seized more than half a kilogram of cocaine, approximately 65 grams of fentanyl, more than $75,000 in U.S. currency, two semi-automatic pistols, and paraphernalia indicative of drug trafficking, including digital scales. The guns were found in the wardrobe in the second-floor bedroom where the defendant and his wife sleep. In that wardrobe agents also found baggies of white powder individually wrapped into approximately 10-20 different bags of equal weight, indicative of further drug distribution to customers. Although the guns were not loaded, there were two loaded magazines in that same wardrobe that could properly attach to the firearms seized.
"Drug dealers prey on the addicted and we will hold dealers accountable," said Acting U.S. Attorney Vipal J. Patel in reminding people of the Fentanyl in Narcotic Drugs (FIND) Awareness project launched last December. “Street drugs are laced with fentanyl, which makes addiction even more deadly and peddling such drugs all the more dangerous.”
“This sentencing is the result of great police work in Hamilton County and individuals, like Mr. Seay, who choose to deal drugs in this community will have to answer for their crimes,” said Drug Enforcement Administration Detroit Field Division Special Agent in Charge Keith Martin. “Fentanyl is a very dangerous drug and the three victims in this case could have easily joined the tens of thousands who have already lost their lives to this public health crisis.”
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA), and Cincinnati Police Chief Eliot K. Isaac announced the sentence handed down today by U.S. District Court Judge Douglas R. Cole. Assistant United States Attorney Jennifer K. Weinhold prosecuted the case on behalf of the United States.
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7 July 2021
Wilmington Man Sentenced to 11 Years in Federal Prison for Drug and Firearms OffensesRead the Press Release
WILMINGTON, Del. – A Wilmington man was sentenced yesterday to 11 years in federal prison by the Honorable Colm F. Connolly, for possession with intent to distribute crack and powder cocaine and possession of a firearm by a prohibited person.
According to court documents, Troy Alexander, 42, admitted that for four to five months he obtained approximately a kilogram of cocaine each week for sale. On the day of his arrest, DEA Agents seized approximately 160 grams of crack cocaine, 280 grams of powder cocaine, cutting agents, and a kilogram press with molds from a residence affiliated with Mr. Alexander in Wilmington, Delaware. A loaded handgun was also found at Mr. Alexander’s home. Mr. Alexander is not legally allowed to possess a firearm due to a prior federal drug conviction.
U.S. Attorney David C. Weiss stated, “All too often, drugs and guns lead to violence in Wilmington and the surrounding communities. My office will continue to partner with the DEA to target, arrest, and prosecute drug and gun offenders and attempt to stem the violence before it occurs.”
The case was investigated by the Drug Enforcement Administration Group 41 is a member of the New Castle County High Intensity Drug Trafficking Area (“HIDTA”) and is comprised of officers from the Delaware State Police, New Castle County Police Department, Wilmington Police Department, Delaware Probation and Parole, Homeland Security Investigations, and Newark Police Department. Additional assistance was provided from by the Wilmington Police Department Drug Organized Crime & Vice Unit. The case was prosecuted by Assistant U.S. Attorneys Carly Hudson, Jennifer K. Welsh, and Christopher L. de Barrena-Sarobe.
Wheeling woman admits to role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Kristen Hoffler, of Wheeling, West Virginia, has admitted to her role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Hoffler, age 25, pleaded guilty to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Methamphetamine, Heroin, and Fentanyl,” one count of “Aiding and Abetting Possession with Intent to Distribute Heroin within 1000 feet of a Protected Location,” one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Base within 1000 feet of a Protected Location,” and one count of “Maintaining Drug-Involved Premises within 1000 Feet of a Protected Location.” Hoffler admitted to working with other individuals to distribute heroin and cocaine base, also known as crack, near Luau Manor, a housing facility owned by a public housing authority, in April 2020.
Hoffler faces at up to 40 years of incarceration and a fine of up to $1,000,000 on the conspiracy charge and she faces up to 40 years of incarceration and a fine of up to $2,000,000 for each additional count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting 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. Magistrate Judge James P. Mazzone presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Wausau Woman Pleads Guilty to Distribution of Child PornographyRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on July 7, 2021, Natalie J. Ticho (age: 25) of Wausau, Wisconsin, appeared in federal court in Green Bay and pled guilty to a single-count information charging her with distribution of child pornography.
As detailed in a plea agreement filed in the case, Ticho distributed sexually explicit images of a 7-year-old child and engaged in conversations online about child pornography. Unbeknownst to Ticho, she was communicating with an undercover law enforcement officer. Her arrest and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney’s Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).
Ticho will be sentenced on October 12, 2021, at 1:30 p.m. before Senior United States District Judge William C. Griesbach. Pursuant to the terms of the plea agreement, Ticho will receive a 90-month federal prison sentence. She will also be required to register as a sexual offender.
This case was investigated by the Winnebago County Sheriff’s Office and the FBI’s Milwaukee and Green Bay Offices, with the assistance of the Wausau Police Department and the Marathon County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was also 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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Warden Man Sentenced to 23 Years for Child Sex Trafficking and Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Carlos Salgado Velasquez, age 30, of Warden, Washington, was sentenced today after pleading guilty on April 1, 2021, to one count of Production of Child Pornography and one count of Child Sex Trafficking. Senior United States District Judge Nielsen sentenced Velasquez to a 23-year term of imprisonment, to be followed by a life term of court supervision after Velasquez is released from federal prison.
According to information disclosed during court proceedings, beginning in September 2016 and continuing through September 2018, Velasquez engaged in conduct with four minor female victims within the Eastern District of Washington that constituted both the production of child pornography and child sex trafficking, in violation of federal law. Velasquez admitted that he knowingly took part in sexually explicit conduct with the four minor victims for the purpose of producing visual depictions of the sexually explicit conduct. Velasquez also admitted that he engaged in commercial sex acts with the four minor victims by soliciting them to engage in sexual intercourse with him in exchange for things of value. Velasquez solicited the four victims to engage in commercial sex acts with him by arranging to meet them using various internet communications platforms.
Acting United States Attorney Harrington said “This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to
identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Spokane Resident Office of the United States Department of Homeland Security, the Southeast Regional Internet Crimes Against Children Task Force, which includes detectives from the Kennewick and Richland Police Departments, and the Moses Lake Police Department. The case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
Vinita Veterinarian Sentenced for Failing to Report ArsonRead the Press Release
A Vinita veterinarian was sentenced in federal court for failing to report an arson and will pay more than $300,000 in restitution to the victims of the crime, announced Acting U.S. Attorney Clint Johnson.
On Oct. 2, 2016, John Marcotte, 57, accompanied a friend, Thomas Craig Shelton, 40, who set fire to the Yazel Land & Cattle Company building in Vinita. On April 1, 2021, Marcotte pleaded guilty to misprision of a felony, admitting that he knowingly concealed the arson and failed to report the crime to law enforcement.
In his plea agreement, Marcotte stated he was with Shelton, who set the company building on fire. He further stated that in May 2020, Shelton told him that he (Shelton) was under federal investigation concerning the fire and that the two discussed details of the arson and finding legal representation. Marcotte admitted that he failed to contact authorities as soon as possible at the time of the crime and after learning about the federal investigation in 2020. Finally, Marcotte stated that when he learned of the investigation, he tried to conceal the crime by attempting to coordinate details with Shelton about events leading up to the setting of the fire.
Chief U.S. District Judge John F. Heil III sentenced Marcotte to three years of probation. He further ordered the defendant to pay $311,220.43 in restitution to the victims and a fine of $5,000. Judge Heil found that restitution was mandatory, stating that Marcotte pleaded guilty to misprision of a felony and that his failure to report the arson resulted in the victims’ losses. The restitution will be paid by both defendants in the case.
Co-defendant Shelton pleaded guilty on April 22, 2021. In his plea agreement, Shelton admitted that on Oct. 2, 2016, he conspired with John Marcotte to set the Yazel Land & Cattle Company building on fire. Shelton further stated that he and Marcotte retrieved an accelerant, drove together to the building and used the accelerant to start the fire. Shelton stated he knew his actions were wrong and expressed feeling terrible about committing the crime. Shelton will be sentenced on Aug. 31, 2021.
The FBI and the Craig County District Attorney’s Office (District 12) conducted the investigation. Assistant U.S. Attorneys Robert T. Raley and David D. Whipple are prosecuting the case.
United States Attorney's Office for the Eastern District of Oklahoma Obtains Thirty-Five Indictments from Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced federal grand juries sitting in Muskogee recently completed two separate June sessions and returned thirty-five felony indictments, including five superseding indictments.
The Eastern District of Oklahoma has experienced a dramatic increase in Indian Country cases for federal prosecution due to the U.S. Supreme Court decision of McGirt v. Oklahoma and recent Oklahoma Court of Criminal Appeals rulings. These opinions determined the reservations of the Five Civilized Tribes were never disestablished by Congress and, therefore, the United States has primary federal jurisdiction to prosecute major crimes committed by—or against—Native Americans occurring within the 26 counties of the Eastern District of Oklahoma. In response to the caseload rise, a second grand jury was empaneled in the Eastern District. This is a first for the Eastern District.
From the two grand jury sessions in June, thirty-three indictments were publicly filed and two remain sealed pending arrest of the charged defendants. All but two of the unsealed charges involve crimes arising out of Indian Country. Eleven of the unsealed indictments are for murder or involuntary manslaughter, eleven are for sex crimes, and the balance contain allegations of assault with a dangerous weapon or resulting in serious bodily injury, and robbery. The two unsealed non-Indian Country indictments involve possession with intent to distribute cocaine and rioting in a federal detention facility, assaulting a federal officer, and possessing contraband.
The following indictments were returned by the federal grand juries and filed in the United States District Court for the Eastern District of Oklahoma. The information listed in brackets is the county and reservation where the crime(s) allegedly occurred.
Murder:
United States v. Michael Lee Wolfe and Carlos Allen Locust – Count 1: Murder in Perpetration of Kidnapping in Indian Country – 18 U.S.C. §§ 2, 1111(a), 1151 & 1153; Count 2: Kidnapping in Indian Country Resulting in Death – 18 U.S.C. §§ 2, 1201(a)(2), 1151 & 1153 [Adair County – Cherokee Nation Reservation]
United States v. David Deval Martin – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153 [McIntosh County – Muscogee (Creek) Nation Reservation]
United States v. Robert Wayne Mitchell (superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Murder in Perpetration of Burglary in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153 [Seminole County – Seminole Nation Reservation]
United States v. Bernard Richard Poulin – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1152; Count 2: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 3: Arson in Indian Country – 18 U.S.C. §§ 81, 1151 & 1152 [Okmulgee County – Muscogee (Creek) Nation Reservation]
United States v. William Clayton Brown – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151, & 1153 [Pittsburg County – Choctaw Nation Reservation]
United States v. David Glen Thompson & Keith Bruno Titsworth (superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 2, 1151 & 1153 [Pontotoc County – Chickasaw Nation Reservation]
United States v. William Shirley – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 2, 1151 & 1153; Count 2: Use of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A), 1111(a), 1151 & 1153; Count 3: Causing the Death of a Person in the Course of a Violation of Title 18, United States Code, Section 924(c) – 18 U.S.C. §§ 924(j)(1), 1111(a), 1151 & 1153 [Okmulgee County – Muscogee (Creek) Nation Reservation]
United States v. Lonnie Leonard Swarer III – Count 1: Involuntary Manslaughter in Indian Country – 18 U.S.C. §§ 1112, 1151 & 1152 [Wagoner County – Cherokee Nation Reservation]
United States v. Brittney Nicole Schmidt, a/k/a Brittany Nicole Schmidt, a/k/a Brittney Nicole Williams – Count 1: Involuntary Manslaughter in Indian Country – 18 U.S.C. §§ 1112, 1151 & 1153 [Bryan County – Choctaw Nation Reservation]
United States v. Robert James Grass – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151 & 1153 [Cherokee County – Cherokee Nation Reservation]
United States v. Dustin Randall Bulla– Count 1: Involuntary Manslaughter in Indian Country – 18 U.S.C. §§ 1112, 1151 & 1153; Count 2: Driving Under the Influence of Alcohol Resulting in Great Bodily Injury – 18 U.S.C. §§ 13, 13(b)(2)(A), 1151 & 1152 & 47 O.S.A. § 11-904(B) [Carter County – Chickasaw Nation Reservation]
Sexual Assault:
United States v. Ashley Dawn Langford - Count 1: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. §§ 2243(a), 2246(2)(A), 1151 & 1153; Count 2: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. §§ 2243(a), 2246(2)(B), 1151 & 1153 [McIntosh County– Muscogee (Creek) Nation Reservation]
United States v. Montelito Sanchez Simpkins - Count 1: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. §§ 2243(a), 2246(2)(D), 1151 & 1152 [Pontotoc County – Chickasaw Nation Reservation]
United States v. Aaron Richard Eubanks - Count 1: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(A), 1151 & 1153; Count 2: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(C), 1151 & 1153; Count 3: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(B), 1151 & 1153 [Adair County – Cherokee Nation Reservation]
United States v. Jeffery Denton Sumka - Count 1: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. §§ 2243(a)(1), 2246(2)(A), 1151 & 1153 [Okmulgee County– Muscogee (Creek) Nation Reservation]
United States v. Boyd Weldon Gross - Count 1: Coercion and Enticement of a Minor in Indian Country – 18 U.S.C. §§ 2422(b), 1151 & 1152 [Seminole County– Seminole Nation Reservation]
United States v. Tyler James Stephens (superseding indictment) - Count 1: Stalking – 18 U.S.C. § 2261A(2)(B); Count 2: Extortionate Interstate Communications – 18 U.S.C. § 875(d); Count 3: Video Voyeurism in Indian Country (Misdemeanor) – 18 U.S.C. §§ 1151, 1152, & 1801(a); Count 4: Attempted First Degree Burglary in Indian Country – 18 U.S.C. §§ 1151, 1153, & 21 O.S.A. §§ 44 & 1431; Count 5: Attempted Sexual Abuse in Indian Country – 18 U.S.C. §§ 2242(1), 2246(2)(A), 1151 & 1153; Count 6: First Degree Burglary in Indian Country – 18 U.S.C. §§ 1151, 1153, & 21 O.S.A. § 1431 [McIntosh County– Muscogee (Creek) Nation Reservation]
United States v. Christopher Wayne Webb - Count 1: Sexual Abuse in Indian Country – 18 U.S.C. §§ 2242(2)(B), 2246(2)(C), 1151 & 1153; Count 2: Sexual Abuse in Indian Country – 18 U.S.C. §§ 2243(a), 2246(2)(C), 1151 & 1153 [Bryan County– Choctaw Nation Reservation]
United States v. Brian Douglas Nicholson (superseding indictment) - Count 1: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(B), 1151 & 1153; Count 2: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. § 2243(a), 2246(2)(B), 1151 & 1153; Count 3: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. § 2241(c), 2246(2)(D), 1151 & 1153; Count 4: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. § 2243(a), 2246(2)(D), 1151 & 1153 [McCurtain County– Choctaw Nation Reservation]
United States v. Dustin Bristow (superseding indictment) - Count 1: Aggravated Sexual Abuse of a Child Indian Country – 18 U.S.C. §§ 2241(a), 2244(a)(5), 2246(2)(A), 2246(2)(D), 2246(3), 1151 & 1153 [Pittsburg County– Choctaw Nation Reservation]
United States v. Jerry Dewayne Rogers - Count 1: Aggravated Sexual Abuse in Indian Country – 18 U.S.C. §§ 2241(c), 2246(2)(C), 1151 & 1152; Count 2: Abusive Sexual Contact in Indian Country – 18 U.S.C. §§ 2244(a)(5), 2246(3), 1151 & 1152; Count 3: Sexual Abuse of a Minor in Indian Country – 18 U.S.C. §§ 2243(a), 2246(2)(C), 1151 & 1152 [Sequoyah County– Cherokee Nation Reservation]
United States v. Joshua Michael Carter - Count 1: Lewd and Indecent Proposals to Child Under 16 in Indian Country – 18 U.S.C. §§ 1151, 1152, 13, & 21 O.S.A. § 1123(A)(1) [Sequoyah County– Cherokee Nation Reservation]
Other violent crime in Indian Country:
United States v. Tyler Cheyenne Ned – Count 1: Robbery in Indian Country – 18 U.S.C. §§ 2111, 1151 & 1153; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation a Crime of Violence – 18 U.S.C. §§ 924(C)(1)(a)(i), (ii) & (iii); Count 3: Assault With a Dangerous Weapon With Intent to do Bodily Harm in Indian Country - §§ 113(a)(3), 1151 & 1153 [Carter County – Chickasaw Nation Reservation]
United States v. Cameron Dale Bowden – Count 1: Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151, & 1153 [Haskell County– Choctaw Nation Reservation]
United States v. Charles Bradley Vinson – Count 1: Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151, & 1152; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country – 18 U.S.C. §§ 113(a)(6), 1151 & 1152 [Okmulgee County– Muscogee (Creek) Nation Reservation]
United States v. Derek Scott Frazier – Count 1: Assault Resulting in Serious Bodily Injury in Indian Country – 18 U.S.C. §§ 113(a)(6), 1151, & 1153 [Pontotoc County– Chickasaw Nation Reservation]
United States v. Hunter Ray Kelley – Count 1: Robbery in Indian Country – 18 U.S.C. §§ 2111, 1151 & 1152 [Muskogee County– Muscogee (Creek) Nation Reservation]
United States v. Darius Keshawn Seals – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 2: Use, Carry Brandish and Discharge a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i)(ii)(iii); Count 3: Use, Carry and Brandish a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i)(ii) [Marshall County – Chickasaw Nation Reservation]
United States v. Michael Wayne Pinnick – Count 1: Assault Resulting in Serious Bodily Injury in Indian Country – 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Johnston County– Chickasaw Nation Reservation]
United States v. Tyler Wilson Hediger – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 2: Possession of an Unregistered Firearm – 26 U.S.C. §§ 5845, 5861(d) & 5871; Forfeiture Allegation – 28 U.S.C. § 2461(c), 49 U.S.C. § 80303 & 26 U.S.C. § 5872 [Sequoyah County– Cherokee Nation Reservation]
United States v. Shylow Shane Young - Count 1: Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country – 18 U.S.C. §§ 113(a)(3), 1151, & 1153; Count 2: Use Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence – 18 U.S.C. §§ 924(c)(1)(A)(i)(ii)(iii); Count 3: Felon in Possession of Firearm – 18 U.S.C. §§ 922(g)(1) & 924(a)(2) [Sequoyah County– Cherokee Nation Reservation]
Non-Indian Country offenses:
United States v. Edgar Rodriguez – Count 1: Possession with Intent to Distribute Cocaine – 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(A) [Okfuskee County]
United States v. Matthew Dewayne Carter, Anthony Drake Ahaisek, Joshua Ryan Green, Jabaica Lee Tecumseh, Richard Loyd Jack, Samuel Wayne Washington, Jason Don Rowan, David Hurl Lemmon, and John Cole Haeberle – Count 1: Rioting in a Federal Detention Facility – 18 U.S.C. §§ 1792 & 2; Count 2: Conspiracy to Commit Assault on a Federal Officer – 18 U.S.C. § 371; Count 3: Assaulting a Federal Officer – 18 U.S.C. §§ 111(a), 111(b) & 2; Count 4: Possessing Contraband in Prison – 18 U.S.C. §§ 1791(a)(2), 1791(d)(1)(B), 1791(d)(1)(F) & 1791(d)(1)(G) [Okmulgee County]
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax defier found guilty on all counts of filing false liens and obstructing or impeding the administration of the IRSRead the Press Release
ATLANTA - A federal jury found Hakim Amal Archible guilty of three counts of filing or attempting to file false liens against federal officials and one count of obstructing or impeding the due administration of the Internal Revenue Service on July 2, 2021.
“In this case, the defendant filed false liens against current and former public officials to bully and harass them,” said Acting U.S. Attorney Kurt R. Erskine. “Archible learned that our office will vigorously pursue individuals who improperly weaponize the lien system in Georgia.”
“TIGTA’s statutory mission includes investigating individuals who are alleged to pose a threat to IRS employees engaged in the lawful collection of taxes,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to intimidate or retaliate against IRS employees engaged in the performance of their official duties will be aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office in working with TIGTA to protect the integrity of Federal tax administration.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: The evidence at trial showed that in October of 2014, Archible received an IRS tax penalty letter for $5,000 for filing frivolous tax returns. In retaliation, Archible filed false liens against the former Secretary of the U.S. Treasury and the former IRS Commissioner with the Fayette County Clerk of Court in 2014 and 2015. The liens were in amounts ranging from $5,000 to $100 billion and named the federal officials as debtors, and responsible parties for Archible's financial liabilities.
Archible also filed false liens against Georgia State officials. Archible targeted Henry County, Georgia officials, including the Clerk of Court, District Attorney, and Superior Court Judge, because he was being prosecuted there on unrelated charges. Archible's conduct demonstrated a pattern of harassment and retaliation.
Sentencing for Hakim Amal Archible, 29, of Hampton, Georgia, is scheduled for October 1, 2021, at 10:00 a.m. before U.S. District Judge Thomas W. Thrash.
This case is being investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Staten Island Sex Offender Pleads Guilty to Transferring Obscene Material to A MinorRead the Press Release
Earlier today, Ryan Behar pleaded guilty in federal court in Brooklyn to transferring obscene material to a minor and to committing that offense while required by state law to register as a sex offender. The proceeding took place before United States District Judge Rachel P. Kovner. When sentenced, Behar faces a statutory minimum sentence of 10 years’ imprisonment.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“The defendant, a registered sex offender, admits to victimizing a 12-year-old girl by misrepresenting himself as a teenager on social media and sending her obscene, sexually explicit material,” stated Acting U.S. Attorney Kasulis. “Protecting children from predators like the defendant will always be a priority of this Office. The defendant’s conduct should serve as a reminder to parents of the dangers that may be lurking online.” Ms. Kasulis expressed her grateful appreciation to the Federal Bureau of Investigation, New York Field Office (FBI), and the FBI’s Human Trafficking and Child Exploitation Task Force for their work on the case.
As set forth in court filings and today’s court proceeding, in October 2020, while misrepresenting himself on Instagram to be a teenage boy, Behar, then 41 years old, contacted the victim and asked her age. The victim responded that she was 12 years old, provided an image of a young girl and stated, “This is what I look like.” Behar repeatedly asked the victim to send him images of her body. When she refused, Behar sent her a graphic image of adult male genitals and wrote to the victim “that’s mine,” and continued to press the victim for “full body” images.
Behar was previously convicted in February 2018 in Richmond County Supreme Court for attempted dissemination of indecent material to a minor in the first degree after sending sexually explicit material over social media to another female minor victim. Following that conviction, Behar was required to register with the New York State Division of Criminal Justice Services as a Level 1 sex offender pursuant to the New York Sex Offender Registration Act.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, 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.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Garen S. Marshall is in charge of the prosecution.
The Defendant:
RYAN BEHAR
Age: 42
Staten Island, New YorkE.D.N.Y. Docket No. 21-CR-187 (RPK)
Six Individuals Charged Federally in Operation United FrontRead the Press Release
MACON, Ga. – The U.S. Attorney’s Office in the Middle District of Georgia has brought federal charges against six individuals taken into custody during Operation United Front, an ongoing ATF-led investigation into illegal gun possession and drug distribution centered in the Macon, Georgia, community using data gathered from the National Integrated Ballistic Information Network (NIBIN) to plot shooting incidents and determine the areas with the highest number of shootings.
A federal grand jury returned the indictments charging the following six individuals on June 10, 2021:
Jasper Blackshear, 56, of Macon, is charged with conspiracy to distribute cocaine. If convicted, Blackshear faces up to twenty years’ imprisonment;
Devon Futrell, 27, of Macon, is charged with two counts of possession of a firearm by a convicted felon. If convicted, Futrell faces up to ten years’ imprisonment on each count;
Deonta Lowe, 32, of Macon, is charged with distribution of methamphetamine. If convicted, Lowe faces up to twenty years’ imprisonment;
Logan Nettles, 23, of Macon, is charged with possession of a firearm by a convicted felon. If convicted, Nettles faces up to ten years’ imprisonment;
Chadrick Purnell, 42, of Macon, is charged with possession of a firearm by a convicted felon. If convicted, Purnell faces up ten years’ imprisonment; and,
Jermaine White, 32, of Warner Robins, Georgia, is charged with conspiracy to distribute cocaine. If convicted, White faces up to twenty years’ imprisonment.
These cases were made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
In Operation United Front, agents used NIBIN data to plot shooting incidents in the Macon area on a map. When areas of high density relating to these shootings were identified, confidential informants and undercover agents were directed to these areas of criminal activity.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Bureau of Alcohol, Tobacco, and Firearms (ATF), the Bibb County Sheriff’s Office, the Georgia Department of Community Supervision and the Bibb County District Attorney’s Office are investigating the cases.
Assistant U.S. Attorneys William Keyes and Joy Odom are prosecuting the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Serial Armed Robber Pleads Guilty in Ft. Lauderdale Federal CourtRead the Press Release
Miami, Florida – A 24-year-old Oakland Park man who stole from South Florida businesses during a one-month armed robbery spree pled guilty today to federal robbery and gun crimes.
During a hearing in federal district court in Ft. Lauderdale, Bryan David Burke admitted that from February 24 to March 31 of this year, he robbed 10 stores in Broward and Palm Beach counties at gunpoint (including convenience stores, a liquor store, and a gas station). During each robbery, Burke pointed a firearm at the store cashier while an accomplice grabbed money, lottery tickets, and other valuables. On the day of his arrest, before officers took him into custody, Burke led officers on a high-speed chase, abandoned his vehicle, ran through multiple private backyards, and broke into a home where he had a fist fight with someone inside. After taking Burke into custody, officers seized two firearms and ammunition from him. Burke had tried to discard one of the firearms while fleeing from officers.
Burke pled guilty to five counts of federal robbery (Hobbs Act) and three counts of brandishing a firearm during a crime of violence. Burke is scheduled for sentencing at 1:15 p.m. on September 15, 2021, before U.S. District Judge William P. Dimitrouleas. Burke faces a mandatory minimum sentence of 21 years’ imprisonment and a maximum of life imprisonment.
Two other South Florida residents are charged in the case: Brandon Xavier Jones and Kelvyn Lavon Cross, Jr. The charges are pending. Indictments contain mere allegations and defendants are considered innocent until found guilty.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, announced the guilty plea.
ATF Miami investigated the case, with assistance from Broward Sheriff’s Office, Fort Lauderdale Police Department, Wilton Manors Police Department, and Delray Beach Police Department. Assistant United States Attorneys Ajay Alexander and Brooke Latta are prosecuting this case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated 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.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-60144.
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San Antonio Physician’s Assistant Admits to Defrauding Medicaid and MedicareRead the Press Release
SAN ANTONIO – Christopher Felix Montoya, a licensed Physician’s Assistant and owner of TPC Family Care and Medical Clinics in San Antonio and Laredo, admitted to defrauding Medicaid, Medicare and TRICARE by fraudulent billing and receiving health care kickbacks.
Appearing before U.S. Magistrate Judge Henry Bemporad this afternoon, Montoya pleaded guilty to one count of conspiracy to defraud the U.S. and to pay and receive health care kickbacks. Montoya admitted that from September 2018 to June 2019, he enriched himself by performing nasal swabs on patients and then accepting kickbacks for submitting those swabs to a particular laboratory for testing. Montoya’s Chief Operating Officer, 41-year-old Nancy Almaguer of San Antonio, is charged with one count of conspiracy to defraud the U.S. and to pay and receive health care kickbacks and three counts of soliciting and receiving illegal health care kickbacks. Jury selection and trial for Almaguer is pending.
In a separate case, Montoya pleaded guilty on June 15, 2021, to one count of conspiracy to receive health care kickbacks. Montoya admitted that for five months beginning in February 2015, he received kickbacks to write prescriptions for compounded medication from a California-based pharmacy that had high TRICARE reimbursements. Based on the evidence, TRICARE was billed $1,884,577.86 for prescriptions Montoya wrote to which TRICARE paid out $797,262.21.
Montoya faces up to 20 years in federal prison. Sentencing is scheduled for August 23, 2021, before Senior U.S. District Judge David A. Ezra in San Antonio.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.
Agents with the FBI, together with the Texas Attorney General’s Medicaid Fraud Control Unit and Defense Criminal Investigative Service, investigated this case. Assistant U.S. Attorneys Justin Chung and William R. Harris are prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. Almaguer is presumed innocent unless proven guilty in a court of law.
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Repeat Immigration Offender and Illegal Alien Sentenced to Two Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara has sentenced German Lopez-Gomez, a/k/a Samuel Bautista-Bautista (41), to two years in federal prison for illegal re-entry into the United States after deportation.
Lopez-Gomez had pleaded guilty in March 2021.
According to court documents, on December 20, 2020, Lopez-Gomez was arrested in Polk County on state felony criminal charges (burglary of an unoccupied structure and theft) and found to be present in the United States without legal authorization. Lopez-Gomez had previously been convicted of illegal reentry to the United States after deportation in the United States District Court for the Southern District of Texas, which sentenced him to 16 months in prison followed by 3 months of supervised release on the illegal re-entry charge, as well as an additional 10 months in prison for a violation of supervised release.
This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. It was prosecuted by Assistant United States Attorney David William Alexander Chee.
Registered Sex Offender Sentenced to Serve Fifty Years in Federal Prison for Producing Child PornographyRead the Press Release
OKLAHOMA CITY – Today, William Don Dollarhide, 45, of Nardin, Oklahoma, was sentenced to serve 50 years in federal prison for producing child pornography, announced Acting U.S. Attorney Robert J. Troester.
On June 16, 2020, a federal grand jury returned an Indictment against Dollarhide, charging him with producing and possessing child pornography.
Public records reflect that, in September 2018, Dollarhide, a registered sex offender due to a prior Oklahoma state child pornography conviction, used his cell phone to film himself sexually abusing a 10-year-old girl. The child’s mother called the Grant County Sheriff’s Department on May 12, 2019, reporting that Dollarhide had sexually assaulted the girl. Officers responded to Dollarhide’s residence and arrested him. Officers later searched his electronic devices under a search warrant. They discovered photographs and videos of Dollarhide sexually abusing the girl and nude pictures and videos of the girl in the bathroom he produced using a hidden camera.
On October 7, 2020, Dollarhide pleaded guilty to producing child pornography.
Today, U.S. District Judge Scott L. Palk sentenced Dollarhide to serve 50 years in federal prison, followed by a lifetime of supervised release. In imposing the sentence, Judge Palk noted that by repeatedly victimizing a 10-year-old girl Dollarhide had given the girl a life sentence. The Judge also took into consideration the fact that Dollarhide had a collection of other child pornography images on his computer. In imposing the maximum sentence—600 months’ imprisonment—the Court ensured that Dollarhide would never endanger or exploit a child again.
This case results from an investigation by the Grant County Sheriff’s Department, with forensic analysis assistance from the Enid Police Department and the Oklahoma State Bureau of Investigation. Assistant U.S. Attorney Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
Rapper Pooh Shiesty Held without Bond in Miami on Federal Gun and Robbery ChargesRead the Press Release
Miami, FL – Yesterday, a Miami federal magistrate judge ordered that 21-year-old Tennessee rapper Lontrell D. Williams (a/k/a Pooh Shiesty) be held without bond in a federal detention center pending trial on charges that he participated in the shooting of two men during a street purchase of marijuana and high-end sneakers.
According to an indictment returned by a federal grand jury and an earlier-filed criminal complaint affidavit, on October 9, 2020, Williams, along with 21-year-old Bobby Brown of Memphis, Tennessee and 20-year-old Jayden Darosa of Pembroke Pines, Florida, drove to a Bay Harbor Islands hotel to buy marijuana and a pair of high-end sneakers from two other men. It is alleged that during the transaction, the defendants shot the sellers with semi-automatic weapons. Then, Williams, Brown, and Darosa drove away from the scene, taking with them the sneakers and marijuana they had not paid for, according to the court documents. The shooting victims survived.
The indictment charges Williams, Brown, and Darosa each with one count of conspiring to possess firearms in furtherance of a crime of violence, conspiring to commit a Hobbs Act robbery, committing a Hobbs Act robbery, and discharging a firearm in furtherance of a crime of violence.
Williams and Darosa made their initial federal court appearances on June 29, 2021. Brown was arrested in Tennessee on June 15, 2021. Brown’s first appearance in federal court in Miami is yet to be scheduled.
Yesterday, after separate hearings, Miami U.S. Magistrate Judge Edwin G. Torres ordered Williams and Darosa detained in a federal detention center without bond pending their trials (pre-trial detention).
Williams also faces state criminal charges, including charges related to the shooting of a security guard at the King of Diamonds strip club in May 2021, over the Memorial Day weekend. The Miami-Dade State Attorney’s Office is prosecuting the state charges.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case, with assistance from ATF Miami, Miami Dade Police Department, and Bay Harbor Islands Police Department. The Miami-Dade State Attorney’s Office also assisted. Assistant U.S. Attorneys Arielle Klepach and Ignacio J. Vázquez, Jr. are prosecuting the case.
Indictment and criminal complaints are merely charging document. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated 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. The case is also related to “Operation Summer Heat,” a Miami-Dade County antiviolence initiative.
Anyone with information related to possible gun crimes is asked to call Crime Stoppers at 305-471-TIPS.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20357.
Pittsburgh Man, 21, Sentenced to Prison for Possessing Heroin, Fentanyl and a Stolen FirearmRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to 46 months’ imprisonment followed by three years of supervised release on his conviction for possession with intent to distribute heroin and fentanyl, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jeremiah McDonald, 21, of Pittsburgh, Pennsylvania.
According to information presented to the court, on April 17, 2019, investigators executed a search warrant at McDonald’s residence and recovered distribution-quantities of heroin and fentanyl along with a loaded, stolen firearm. McDonald accepted responsibility for possessing with intent to distribute between 40 grams and 160 grams of heroin and fentanyl and possessing the firearm in conjunction with his drug trafficking.
While announcing McDonald’s sentence, Judge Conti referenced the seriousness of heroin and fentanyl trafficking as well as the possession of a firearm in relation to these offenses.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of McDonald.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.