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2 July 2021
36th Street Bang Squad Member Sentenced for Gang-Related Murders and ShootingsRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to four life sentences in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.
According to court documents, Xavier Greene, 26, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between March and August 2015. On March 8, 2015, Greene and two other gang members shot and killed Dwayne Parker, 18, in Newport News. On April 6, 2015, Greene and three other members of the 36th Street Bang Squad drew firearms and began shooting at people outside a residence in Newport News. Two teenagers were killed during this incident.
On August 1, 2015, Greene, who was armed with a firearm, and two other people ran to a convenience store in Newport News to help gang members who were being jumped by a rival gang. When Greene did not fire at the rival gang, another gang member grabbed the gun and fired eight rounds at the store. A customer was grazed by bullets striking the storefront. Less than a week later, Greene and three other individuals stole more than 30 firearms from a federally licensed firearms dealer outside Richmond. Greene distributed some of the firearms to members of the gang immediately upon returning to the Tidewater area.
On December 10, 2019, after a seven-week jury trial, Greene was convicted on eight counts of crimes in aid of racketeering, including racketeering conspiracy, three murders, using a firearm in each murder, and an attempted murder.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28.
Three additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Brian Samuels and Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.
1 July 2021
Woonsocket Man Sentenced for Possessing 50,000 Images of Child PornographyRead the Press Release
PROVIDENCE – A Woonsocket man found by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force to be in possession of more than 50,000 images and 200 videos of child pornography was sentenced today to three-and-a-half years in federal prison.
In November 2018, members of the ICAC Task Force conducted an online child exploitation investigation involving the use of peer-to-peer networks. Detectives observed an IP address they later determined belonged to Jason P. Muschiano, 39, sharing files of child pornography.
On February 14, 2019, members of the task force executed a court-authorized search of Muschiano’s residence. During the search, Muschiano admitted to law enforcement that he had previously downloaded and viewed child pornography depicting toddlers ages three, four, and five. A forensic audit of digital storage devices seized from Muschiano’s residence revealed more than 50,000 images and 200 videos depicting child pornography.
On February 21, 2020, Muschiano pled guilty in U.S. District Court to possession of child pornography. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 42 months in federal prison to be followed by five years of federal supervised release.
Muschiano’s sentence is announced by Acting United States Attorney Richard B. Myrus.
This Project Safe Childhood case, investigated by members of the ICAC Task Force, was prosecuted by Assistant U.S. Attorney Dulce Donovan.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit, detectives from the Warwick, Cranston, Newport, East Providence, Pawtucket, Bristol, and Portsmouth Police Departments, and agents from Homeland Security Investigations.
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Westford Man Sentenced for Embezzlement and Tax CrimesRead the Press Release
BOSTON – The former CEO and co-founder of a Boston-based cell phone music streaming service was sentenced Tuesday, June 29 in connection with embezzling hundreds of thousands of dollars from his employer and filing false tax returns.
David John, who recently changed his name from David Fondots, 56, was sentenced by U.S. District Court Judge Richard G. Stearns to 18 months in prison and three years of supervised release. John was also ordered to pay restitution in the amount of $187,603 to the Internal Revenue Service, as well as restitution to the victims in an amount to be determined at a later date. In February 2020, John pleaded guilty to one count of wire fraud and one count of filing false tax returns.
John misappropriated company funds which he used for his personal benefit. From 2014 to 2016, John caused his company to pay significant sums of money directly to himself, to a family member and to companies controlled by a family member. John used the embezzled funds to pay personal expenses for himself and his family, including car payments, legal fees and travel, among other things.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit and Jordi de Llano, Deputy Chief of the Securities, Financial & Cyber Fraud Unit, prosecuted the case.
Union County Mail Carrier Charged with Making False Statements to Obtain Federal Workers’ Compensation BenefitsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, U.S. Postal Service (USPS) mail carrier made her initial court appearance today for making false statements to obtain federal workers’ compensation benefits, Acting U.S. Attorney Rachael Honig announced.
Monique Gee, 38, of Hillside, New Jersey, is charged by complaint with one count of knowingly and willfully falsifying, concealing, and covering up a material fact, and making a false, fictitious, and fraudulent statement and representation in connection with the application for and receipt of federal workers’ compensation benefits. Gee made her initial appearance today by videoconference before U.S. Magistrate Judge Leda Dunn Wettre, and was released on $150,000 unsecured bond.
According to documents filed in this case and statements made in court:
Gee worked as a mail carrier for the USPS in Middletown, New Jersey. On June 1, 2016, Gee signed and certified a form in which she alleged she sustained a knee sprain while performing her duties on that date. On subsequent forms, Gee certified that she did not receive earnings from employment outside of her federal job. However, an investigation revealed that Gee operated a business from which she received substantial income. During the investigation, an undercover law enforcement officer placed an order from Gee’s business and made a payment for the order to Gee via a mobile payment platform. As a result of her false representations, Gee received more than $150,000 in federal workers’ compensation benefits to which she was not entitled.
The count of making false statements to obtain federal workers’ compensation benefits carries a maximum penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited members of the USPS Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Mark J. Pesce of the U.S. Attorney’s Office’s OCDETF/Narcotics Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Tulsa Man Sentenced for Coercing a Minor to Engage in ProstitutionRead the Press Release
A Tulsa man was sentenced today in federal court for coercing a 16-year-old to engage in sexual acts as part of a sex trafficking ring, announced Acting U.S. Attorney Clint Johnson.
Dominique Laron Morgan, 25, was sentenced to 25 years in federal prison followed by 25 years supervised release for possessing a firearm in furtherance of a drug trafficking crime and for coercion and enticement of a minor to engage in sexual activity.
In a blind plea, Morgan admitted that from April 10 through April 20, 2020, he used his phone and internet to knowingly entice the minor victim to engage in prostitution. He also admitted that he knowingly possessed a firearm to further his marijuana distribution activities.
Also charged in the sex trafficking case were Rontaysha Leann Cox, 27, of Wichita, Kansas, and Treveon Marquise Cato, 23, of Tulsa. In March, Cox pleaded guilty to the sex trafficking of children, and Cato pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime.
On April 17, 2020, officers with the Tulsa Police Department’s Human Trafficking Vice Unit discovered advertisements for the teenager on a website promoting prostitution and soliciting sex acts in exchange for money. An officer, acting as a john, contacted the victim using the phone number listed and arranged to meet her on April 20. During the appointment, the officer revealed his identity, and the minor victim was taken into protective custody.
Officers learned that Rontaysha Cox had rented the room, and that Cox and two other men left the hotel room in a silver sedan shortly before the scheduled appointment. Cox, Cato, and Morgan were later stopped and ordered out of the sedan. A semi-automatic pistol could be seen from outside of the vehicle wedged between the driver’s seat and center console. Officers subsequently arrested the three, and during a search of the vehicle and the occupants, officers recovered marijuana, phones and the firearm.
An analysis of the phones found conversations between Cox, Morgan and the victim discussing prostitution as well as photos of the victim that constituted child pornography. Also found, were conversations between Morgan and the victim where she told him she was 16 years old.
The Tulsa Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Edward Snow is prosecuting the case.
Three Arrested for Orchestrating Multimillion-Dollar “Silver Lease” Investment FraudRead the Press Release
AUDREY STRAUSS, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ROBERT JEFFREY JOHNSON, a/k/a “Jeff Johnson,” ROSS BALDWIN, and KATHLEEN HOOK with conspiring to commit wire fraud and wire fraud for defrauding at least approximately 60 investors of at least approximately $8 million in connection with a precious metals leasing program known as the “Silver Lease Program.” JOHNSON and BALDWIN were further charged with conspiring to commit wire fraud and wire fraud for defrauding insurance companies by making misrepresentations to these insurance companies in connection with obtaining insurance for the purported silver. BALDWIN was also charged with making false statements to federal officials in connection with lying to officials of the Commodity Futures Trading Commission (“CFTC”) during a sworn deposition. JOHNSON and HOOK were arrested this morning in Palm Beach, Florida, and were presented today in the United States District Court for the Southern District of Florida. BALDWIN was arrested this morning in Albany, New York, and was presented today in the United States District Court for the Northern District of New York.
Manhattan U.S. Attorney Audrey Strauss said: “Robert Jeffrey Johnson, Ross Baldwin, and Kathleen Hook allegedly lied to investors in order to get them to invest millions of dollars in the ‘Silver Lease Program.’ As alleged, these investors were told that they were purchasing silver, that their silver was being securely stored for them at a high-tech storage facility in Florida, and that they would earn a guaranteed monthly dividend payment. In reality, the defendants’ promises were not worth their weight in silver – or anything else for that matter. Instead of using investors’ money to purchase silver on their behalf, the defendants allegedly misappropriated that money to pay for their own lavish personal expenses and to fund unrelated business ventures.”
As alleged in the Indictment[1] unsealed today in Manhattan federal court:
The “Silver Lease Program”
From in or about 2014 through in or about January 2021, JOHNSON, BALDWIN, and HOOK conspired to defraud investors in the “Silver Lease Program.” Investors could participate in the Silver Lease Program by either (1) paying funds to purchase silver that the investor then leased back to the operators of the program in return for a fixed monthly dividend payment or (2) providing silver the investor already owned in order to lease that silver to the operators of the program in return for a fixed monthly dividend payment.
While investors were told that they owned a particular quantity of silver that was being stored for them at a specific secure, locked storage facility in Florida (the “Florida Storage Facility”), in reality the purported silver was not being stored at the Florida Storage Facility. The entity that was supposed to be storing the investors’ silver, Precious Commodities Inc. (“PCI”), which was functionally controlled by JOHNSON, did not even have any storage units at the Florida Storage Facility. In order to induce investors to invest in the Silver Lease Program, BALDWIN, through his company National Coin Broker (“NCB”) told the investors various other lies, both orally and through websites and brochures that he prepared in order to solicit investors to participate in the program.
Investors in the Silver Lease Program provided millions of dollars in order to purchase silver through the Silver Lease Program. Unbeknownst to these investors, a substantial portion of their funds were misappropriated to pay for, among other things, personal expenses of JOHNSON, JOHNSON’s wife, and HOOK, as well as to fund other, unrelated business ventures that JOHNSON, JOHNSON’s wife, and other associates of JOHNSON were engaged in.
Misrepresentations to Insurers
In order to induce investors to invest in the Silver Lease Program and so that they would feel secure in their investment, the operators of the Silver Lease Program touted the fact that the investors’ silver would be fully insured. Investors were ultimately provided with a certificate of insurance showing that PCI held an insurance policy with respect to the investor’s silver. JOHNSON and BALDWIN caused material misrepresentations to be made to insurance brokers in connection with procuring these insurance policies. These misrepresentations included lying about BALDWIN’s role with respect to PCI and lying by claiming that the silver the insurers were insuring would be stored at the Florida Storage Facility.
Dividend Payments Cease and Investors Do Not Receive the Return of their Silver or Funds
Beginning in approximately the Spring of 2019, investors largely ceased receiving their monthly dividend payments. Many investors eventually demanded the return of their silver and/or the funds they had invested in the Silver Lease Program. Investors primarily contacted BALDWIN in their efforts to receive the return of their silver and/or their funds, and BALDWIN frequently forwarded these communications from disgruntled investors to JOHNSON.
Despite the repeated attempts by numerous Silver Lease Program investors to obtain the return of their silver and/or their money, these investors never received the return of either.
BALDWIN’s False Statements to the CFTC
In October 2018, BALDWIN participated in a sworn deposition with the CFTC that occurred in Manhattan, New York. During that deposition, BALDWIN made numerous material false statements, including by lying about the role he played in obtaining insurance for PCI and by lying about visiting a storage vault at the Florida Storage Facility with an associate of JOHNSON and observing silver, when in reality this associate of JOHNSON’s never had any storage units at the Florida Storage Facility and did not otherwise have access to any storage units at the Florida Storage Facility.
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JOHNSON, 55, of West Palm Beach, Florida, is charged with two counts of conspiracy to commit wire fraud and two counts of wire fraud, which each carry, respectively, a maximum sentence of 20 years in prison. HOOK, 59, of West Palm Beach, Florida, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry, respectively, a maximum sentence of 20 years in prison. BALDWIN, 60, of Miami, Florida, is charged with two counts of conspiracy to commit wire fraud and two counts of wire fraud, which each carry, respectively, a maximum of 20 years in prison, and is also charged with one count of making false statements to federal officials, which carries a maximum sentence of 5 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Ms. Strauss praised the investigative work of the FBI. Ms. Strauss also thanked the CFTC, which has filed a civil enforcement action against the defendants.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Noah Solowiejczyk is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Three Appear in Federal Court for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Three individuals appeared in federal court today for gun crimes.
Eddie Lee Conley, 45, of Logan County, was sentenced to 46 months in federal prison for being a felon in possession of a firearm. According to court documents, Conley admitted that during the early morning hours of May 15, 2020, he possessed a .38 caliber Cobra derringer-style handgun in his motel room at the Roadway Inn in Chapmanville, West Virginia. Conley was prohibited from possessing firearms due to a 2016 conviction for conspiracy to operate a clandestine drug laboratory in Logan County Circuit Court. Conley further admitted that he also possessed a different .38 caliber handgun in Madison, West Virginia, on January 29, 2020. The West Virginia State Police and Madison Police Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Nowles Heinrich is handling the prosecution.
In another case, John Leach, 55, formerly of St. Albans, was sentenced to 37 months in prison for being a felon in possession of a firearm. According to court documents, on November 25, 2018, Leach was driving an improperly registered truck and was pulled over by the West Virginia State Police. In the truck, the Trooper found a loaded .25 caliber pistol. Leach was prohibited from possessing firearms due to multiple, prior felony convictions, including a 2006 conviction for malicious wounding in Kanawha County Circuit Court. The West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant United States Attorney Steve Loew handled the prosecution.
Also, Kayla Slater, 29, of Charleston, pleaded guilty to possession of a firearm by a prohibited person. According to court documents, on August 27, 2020, officers with the Charleston Police Department attempted to conduct a traffic stop on a vehicle in which Slater was a passenger. Officers knew that Slater had several outstanding municipal arrest warrants. The driver of the vehicle failed to stop and sped away from the scene. Officers later located Slater walking on Beech Avenue in Charleston and could see a Beretta Px4 Storm 9mm semi-automatic pistol in plain view in Slater’s handbag. Slater admitted to the officers that the gun was hers and that she was addicted to heroin. Slater is prohibited from possessing firearms due to being an habitual user of a controlled substance. Slater faces up to 10 years in prison when she is sentenced on October 14, 2021. The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney Negar Kordestani is handling the prosecution.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the West Virginia State Police, the Madison Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Irene C. Berger presided over the hearings.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00172 (Leach), 2:21-cr-00035 (Conley) and 2:21-cr-00079 (Slater).
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Texan convicted of attempting to export firearms, magazines and ammunitionRead the Press Release
LAREDO, Texas – A Laredo federal jury has convicted a 64-year-old man for attempting to export firearms, firearm magazines and thousands of rounds of ammunition to Mexico, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than six hours before convicting Jose Rafael Vasquez, Dallas, following a two-day trial.
On Oct. 15, 2020, Vasquez attempted to exit the United States into Mexico through the Laredo Port of Entry. The jury heard that he was driving a tan 2007 Chevrolet Suburban. During initial inspection, law enforcement discovered suspicious bundles zip-tied to the undercarriage of the vehicle. They appeared to contain ammunition.
A further inspection revealed three AK-47 rifles, eight semi-automatic handguns of various calibers, 16 handgun magazines and approximately 4,714 rounds of 7.62 mm ammunition hidden inside his vehicle. Several of the handguns had decorative handles. The jury heard testimony that these weapons were expensive and highly prized by senior members of criminal organizations in Mexico.
The weapons and ammunition had an approximate street value of $25,000.
The defense attempted to convince the jury Vasquez did not know about the items inside the vehicle. They did not believe his claims and found him guilty as charged.
U.S. District Judge Diana Saldana presided over trial and will set sentencing for a later date. At that time, Vasquez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Previously released on bond, Vasquez was taken into custody following the sentencing today where he will remain pending sentencing.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation along with Customs and Border Protection. Assistant U.S. Attorneys Francisco J. Rodriguez and David Fawcett are prosecuting the case.
Ten Defendants in Synthetic Identity Fraud Ring Convicted of Bank Fraud, Wire Fraud, and Related ChargesRead the Press Release
RALEIGH, N.C. – Eight defendants pleaded guilty today to offenses contained in a 50-count, 2nd Superseding Indictment charging various forms of Bank Fraud, Wire Fraud, Conspiracy to Commit Bank Fraud, Making False Statements to a Bank on Loan, Aggravated Identity Theft, and Perjury. Two additional defendants previously pleaded guilty in connection with the same scheme.
The indictment charges that defendant Michael Griffin, operating from his business location in Raleigh and home in Knightdale, accepted fees from clients for alleged credit repair services. The indictment alleges that, in reality, Griffin was creating fictitious credit profiles and fraudulently altering client credit data through the use of fictitious police reports.
The indictment further charges that various defendants, many of whom were family, conspired with Griffin to defraud Synchrony Bank, a Lowe’s credit card provider, by opening credit accounts in the name of fraudulent identities, cashing out the accounts through prepaid card purchases, and then defaulting on the credit accounts. The indictment also charges various defendants with similar frauds against other banks, including Capital One and Discover.
Regina Griffin (Michael Griffin’s sister), 49, of Raleigh, North Carolina, pled guilty to Count 29 of the 2nd Superseding Indictment, which charged False Statement to Influence a Bank on a Loan, in violation of Title 18, United States Code, Section 1014. The offense occurred between February 11, 2019 and March 19, 2019, and involved Alcova Mortgage, LLC.
Angela Griffin (Michael Griffin’s wife), 53, of Knightdale, North Carolina, pled guilty to Count 13 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between November 21, 2017 and December 21, 2017 and involved Synchrony Bank.
Creshun Alexandria Griffin (Michael Griffin’s daughter), 27, also of Knightdale, pled guilty to Count 16 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between August 11, 2017 and December 31, 2018, and involved Capital One Bank.
Sharon Annita Edmond (Michael Griffin’s sister), 57, of Raleigh, pled guilty to Count 25 of the 2nd Superseding Indictment, which charged Wire Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1343 and 2. The offense occurred on or about April 16, 2018 and involved Strategic Funding Partners, doing business as Merchant Cash Group.
Katina Griffin Perry (Michael Griffin’s sister), 48, of Raleigh, pled guilty to Count 27 of the 2nd Superseding Indictment, which charged Wire Fraud, in violation of Title 18, United States Code, Section 1343. The offense occurred between August 21, 2017 and September 19, 2017 and involved Kia Motor Finance.
Harvey Griffin (Michael Griffin’s brother) 47, of Raleigh, pled guilty to Count 11 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October of 2017 and January of 2018 and involved Synchrony Bank.
Melvin Griffin (Michael Griffin’s brother), 45, of Knightdale, pled guilty to Count 18 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October 5, 2017 and August 31, 2018, and involved Discover Bank.
Jasmine Mariah Davis, 29, of Lakeland, Florida, pled guilty to Count 12 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October of 2017 and February of 2018 and involved Synchrony Bank.
Acting United States Attorney G. Norman Acker, III stated, “The charges in this case largely involve the use of a false Social Security Number to obtain money, credit, or other valuables, under a false identity. Synthetic identity frauds such as these often involve the use of what are referred to as “CPNs” or alternate “credit profile numbers.” These are nothing but fancy sounding terms for Social Security Numbers that do not belong to you. The public needs to know that when you place a fraudulent Social Security Number or CPN on a bank credit application or loan document – you are committing a fraud, and you could face federal prison time for it.”
The maximum punishment for committing Bank Fraud and Conspiracy to Commit Bank Fraud, violations of Title 18, United States Code, Sections 1344 and 1349, is not more than 30 years in prison. The maximum punishment for Wire Fraud, a violation of Title 18, United States Code, Section 1343, is not more than 20 years imprisonment. The maximum punishment for Making a False Statement to a Bank on a Loan is not more than 30 years in prison.
The sentencings for each of these defendants are not yet scheduled, but will occur as early as October 2021.
Shawn Allen Farmer, 52, of Cary, North Carolina, also named in the Second Superseding Indictment, previously pled guilty to Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2, and Making False Claims, in violation of Title 18, United States Code, Section 287. Farmer was sentenced on May 27, 2021 to 15 months in prison, and ordered to pay $42,783 in restitution.
Tyrone Edmonds, 47 of Weldon, North Carolina, also named in the Second Superseding Indictment, previously pled guilty on February 8, 2021 to Count 6, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between July of 2017 and August of 2018, and involved Synchrony Bank. The sentencing is not yet scheduled but will also occur as early as October of 2021.
Charges against Michael Griffin, Jasper Deonta Goodman, and Coscina Brooks, also named in the Second Superseding Indictment, remain pending. An indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the United States Marshals Service and the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore represents the United States.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Tehama County Woman Pleads Guilty in Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Sabrina Raylene Toilolo, 26, of Corning, pleaded guilty today to conspiracy to commit wire fraud for her participation in a refund‑fraud scheme, Acting U.S. Attorney Phillip A. Talbert announced.
In June 2020, a federal grand jury returned a 14-count superseding indictment against her and her previously charged co-defendant Johnathon Ward, charging them with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
According to court documents, between July 2017 and September 2019, Sabrina Toilolo, Johnathon Ward, Monica Nunes, and Talalima Toilolo conspired to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to refund customers for returns, reimbursements, and erroneous charges.
The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular retail merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ payment processors to transfer funds to the defendants’ fraudulent accounts. The defendants then drained the stolen funds from the accounts and distributed them among members of the conspiracy.
This case is the product of an investigation by the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Sabrina Toilolo is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on September 23, 2021. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will 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.
On April 2, Nunes was sentenced to 12 and a half years in prison. On February 11, Talalima Toilolo was sentenced to10 years in prison. Charges against Ward are pending. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sussex County Man Admits Fraudulently Obtaining $5.6 Million Loan Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man today admitted fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of over $5 million, Acting U.S. Attorney Rachael A. Honig announced.
Azhar Sarwar Rana, 30, of Newton, New Jersey, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank fraud and one count of money laundering. Rana was previously arrested on Dec. 12, 2020, after he booked a same-day flight to Pakistan; he was charged by complaint and made his initial appearance on Dec. 14, 2020.
According to documents filed in this case and statements made in court:
Rana submitted a fraudulent PPP loan application to a lender on behalf of a corporate entity, Azhar Sarwar Rana LLC, that purportedly invested in real estate development. The application falsified payroll and tax information and included internally inconsistent listings of the number of company employees. New Jersey Department of Labor records showed that Azhar Sarwar Rana LLC paid no wages in 2019, and the minimal wages it purportedly paid in 2020 were mostly to individuals whose submitted Social Security numbers did not correspond to their submitted names.
Based on Rana’s alleged misrepresentations, the lender approved Rana’s PPP loan application and provided Azhar Sarwar Rana LLC with approximately $5.6 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Rana used the fraudulently obtained PPP loan proceeds to pay for numerous personal expenses, including to invest millions in the stock market, make a payment to a luxury car dealership, and send hundreds of thousands of dollars to accounts in Pakistan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The count of bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine; the count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater. Sentencing is scheduled for Nov. 3, 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; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Peter C. Fitzhugh in New York, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jennifer S. Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Spokane Repeat Federal Offender Convicted of Felon in Possession of a Firearm and AmmunitionRead the Press Release
Spokane – Today, Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that on June 30, 2021, a federal jury in Spokane, Washington, convicted Randy D. McReynolds (a/k/a “Randall D. McReynolds,” “Randy Del McReynolds”) of Felon in Possession of a Firearm and Ammunition in violation of 18 U.S.C. § 922(g)(1), 924(a)(2).
According to court documents, United States Probation received a tip that McReynolds was in possession of firearms inside his home. They conducted a probationary search and found two backpacks containing a 357 revolver and ammunition as well as ammunition for a 9mm pistol. During the trial, McReynolds presented evidence that the handgun and ammunition belonged to his son-in-law and that he was unaware of its presence in his home. The government challenged this evidence through recorded jail calls. The jury found that McReynolds constructively possessed the firearm and ammunition.
Acting United States Attorney Harrington said, “Prosecuting firearm-related crimes continues to be a priority here in the Eastern District of Washington. Individuals serving a term of court-ordered supervised release, like McReynolds was in this case, are subject to robust enforcement by the United States Probation Office of release conditions. The community impact of such enforcement effort keeps firearms out of the hands of convicted felons and holds them accountable for their conduct. I commend the efforts of the officers with the Probation Office and the ATF who successfully investigated this case.
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the United States Probation Office for the Eastern District of Washington. This case was prosecuted by Michael J. Ellis and Timothy J. Ohms, Assistant United States Attorneys for the Eastern District of Washington.
South Bay Man Arrested on Federal Child Pornography Charges Alleging He Paid Impoverished Filipino Boys to Film Sex ActsRead the Press Release
LOS ANGELES – Federal authorities have arrested a Redondo Beach man on charges of producing child pornography, allegedly by developing a relationship with at least one boy in the Philippines who performed sex acts online in exchange for money.
Billy Frederick, 51, was arrested Wednesday morning without incident by special agents with Homeland Security Investigations. During his initial court appearance late Wednesday afternoon, a United States magistrate judge ordered Frederick jailed without bond pending trial. The criminal complaint naming Frederick was unsealed this afternoon.
According to the complaint filed on June 22, Frederick stored in his Google accounts various images and videos depicting child pornography, at least some of which he obtained from video calls on Google Hangout. The affidavit in support of the complaint details one video from July 2020 in which a boy, who appears to be between 11 and 14 years old, engages in sexual activity while Frederick records the video call. In messages sent relating to the video call, the victim calls Frederick “master.”
The investigation also uncovered chats between Frederick and the victim prior to the video call in which the boy asks to borrow money to purchase underwear. Immediately after the call, Frederick chatted online with the boy, who asked for money to be sent to his brother.
The affidavit outlines other online chats from 2020 between Frederick and a person claiming to be relative of the victim seen on the Google Hangout video. In one chat, after telling Frederick that the victim had broken his leg and required medical aid, the relative wrote, “we’re just poor so I agree to my [relative] for what his doing,” according to the affidavit.
During a search of one of Frederick’s online accounts, “I discovered many CSAM [child sexual abuse material] images of young nude male minors ranging from approximately 6 years of age to 15 years of age,” according to the affidavit by an HSI special agent. “Further, I discovered messages where Frederick would discuss the solicitation of CSAM of young boys, including enticement to engage in sexually explicit activity.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Frederick is charged with production of child pornography for transportation into the United States, an offense that carries a mandatory minimum sentence of 15 years in federal prison and a statutory maximum penalty of 30 years.
Frederick is scheduled to be arraigned in this case on July 22.
Homeland Security Investigations is investigating this matter.
Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section is prosecuting this case.
Six Houston Residents Indicted for Conspiracy to Steal from Bank ATMsRead the Press Release
KANSAS CITY, Mo. – Six Houston, Texas, residents have been indicted by a federal grand jury for their roles in a conspiracy to travel across the country breaking into bank ATMs and stealing the money inside, including at least one theft in Kansas City, Missouri.
Deandre J. Gilliam, 19, Ladarious S. Thomas, 28, Jamarkus D. Bogany, 19, J’Korean K. Hadnott, 19, Ocatvious Q. Waiters, 20, and Clayton J. Brown, 21, were charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on June 23, 2021. That indictment was unsealed and made public today upon the arrest and initial court appearances of Gilliam, Thomas, Bogany, Waiters, and Brown in U.S. District Court in Houston. Gilliam, Thomas, Bogany, Waiters, and Brown are being held in federal custody in the Southern District of Texas pending a detention hearing in that district tomorrow.
The federal indictment alleges the defendants, along with additional co-conspirators not identified or charged in the indictment, participated in a conspiracy from Nov. 10, 2019, to March 6, 2020, to travel in groups or teams from Texas to other states, including Missouri and Kansas, to steal from banks by forcing open ATMs and stealing tens of thousands of dollars from the cash boxes.
According to the indictment, conspirators would steal a large pick-up truck for the theft. They attached tow chains with hooks to the pick-up truck, then searched for a suitable ATM to burglarize. After conducting surveillance and with some conspirators serving as lookouts, the indictment says, conspirators used pry bars or tow chain hooks to forcibly pry open or pry apart the ATM’s protective metal encasement. After the ATM had been opened or disassembled, the conspirators would then remove the ATM canisters containing cash. They then abandoned the stolen truck and traveled back to Texas.
The indictment alleges that all six defendants left Houston on March 5, 2020, and traveled to the Kansas City metropolitan area in three separate vehicles. Conspirators allegedly stole a Ford F-250 pickup on March 6, 2020, that was parked on the street in Fairway, Kansas. At approximately 5:30 a.m. the same day, the indictment says, conspirators connected tow chains to the stolen Ford F-250 and to the door of an ATM at Chase Bank, 1614 E. 63rd Street in Kansas City, Mo. They used the force of acceleration from the truck to remove the exterior metal panel of the ATM, then removed canisters that contained a total of $150,220 from inside the damaged ATM. They abandoned the stolen truck in the parking lot of a nearby apartment building.
Later the same day, the indictment says, law enforcement officers in Montgomery County, Texas, spotted the three vehicles being driven by the defendants, who were traveling in tandem southbound on Interstate 45. Officers attempted to stop all three vehicles; Hadnott and Waiters pulled over to the shoulder, but the other vehicles attempted to flee from law enforcement. A Jeep Cherokee occupied by Brown and another, unnamed conspirator fled from officers at speeds between 80-115 miles per hour before it crashed and they were apprehended. A Chevrolet Impala occupied by Thomas, Gilliam, and Bogany fled from officers at speeds between 90-125 miles per hour before all three defendants fled from the vehicle on foot. Thomas, the driver, was taken into custody after a foot chase. With the assistance of air surveillance, Bogany and Gilliam were located and arrested. Gilliam was carrying a Spiderman backpack that contained approximately $72,385 (primarily in $20 bills). One of the Impala occupants dropped a duffle bag while running from the police. This bag was retrieved by an unknown female before police officers could recover it.
The federal indictment charges each of the defendants with one count of conspiracy, one count of bank theft, and one count of transporting stolen property across state lines.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI Field Offices in Kansas City, Mo., and Houston, Texas, the Kansas City, Mo., Police Department, the Houston Police Department, the Montgomery County, Texas, Sheriff’s Department, the Texas Department of Public Safety, and the Montgomery County Constable.
Schuylkill County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyler Kegolis, age 34, formerly of Frackville, Pennsylvania, pleaded guilty on June 30, 2021, before U.S. District Court Judge Malachy E. Mannion to distribution of crystal methamphetamine.
According to Acting United States Attorney Bruce D. Brandler, Kegolis admitted to distributing highly pure crystal methamphetamine in the Schuylkill County area between December 2018 and February 2019.
This matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Schuylkill County Drug Task Force. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Judge Mannion ordered that a presentence report be completed for Kegolis. Sentencing will be scheduled at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum sentence of ten years in prison. The maximum sentence under federal law is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Resident of Hong Kong Who Smuggled Endangered Glass Eels from the United States Pleads GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Edward Grace, Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service, announced that KING SHEUNG CHAN, also known as “Nelson,” 30, a permanent resident of Hong Kong of the People’s Republic of China, waived his right to be indicted and pleaded guilty today in Bridgeport federal court to one count of attempted smuggling of glass eels from the United States.
According to court documents and statements made in court, there is strong foreign demand for the export of live juvenile American glass eels, commonly called “glass eels” or “elvers,” to large “eel farms” in mainland China where the baby eels are raised to adult size for human consumption. Along the Atlantic Coast, the commercial harvest of glass eels is legal only in South Carolina and Maine, with Maine using a heavily regulated quota system. In recent years, the legal price for glass eels has generally fluctuated between $3,000 and $5,000 per kilogram.
The illegal harvest and sale of glass eels to overseas buyers have damaged American eel populations and their long-term vitality. Since 2014, the International Union for the Conservation of Nature has listed the American eel as “Endangered.”
Chan worked for Asia Aquatic Company, Ltd., based in Hong Kong, and a Canadian company named Laknock Trading. Chan’s job was to procure glass eels from countries in North America and Europe, and to have them shipped via overnight air to Hong Kong.
On April 7, 2021, Chan packed 19.3 kilograms of live glass eels worth approximately $86,000 that had been stored at a Connecticut facility. Chan was told by undercover U.S. Fish and Wildlife Service (FWS) officers who were posing as fisherman that these glass eels had been unlawfully harvested from Virginia, Maryland and Massachusetts. After packing the glass eels in oxygenated bags, he paid $29,500 to the undercover officers and drove the live cargo to JFK Airport.
Later that afternoon, Chan met the freight forwarder near JFK Airport that was handling the in-transit shipment of 10 boxes shipped by Laknock Trading from Canada. Chan had arranged for the shipment of the boxes, which contained bags of dead glass eels with a few live ones mixed in. Chan opened the boxes, took out the bags of dead glass eels, and replaced them with the bags of live glass eels packed a few hours before in Connecticut. Chan resealed the boxes and returned them to the freight forwarder, which transported the shipment to the airline cargo area for export to Hong Kong. Shortly thereafter, FWS officers arrested Chan and seized the glass eels from the airline cargo area. FWS later released the glass eels into the wild.
In pleading guilty, Chan admitted that, in 2017, he illegally smuggled 103 kilograms of glass eels, valued at approximately $340,000, from the U.S. to Hong Kong. Some of those glass eels had been illegally harvested in Connecticut.
“I commend the U.S. Fish and Wildlife Service for holding accountable those individuals who drive this illegal market and deplete an important American wildlife resource for their selfish gain,” said Acting U.S. Attorney Boyle. “We shall continue to investigate and prosecute those actors, foreign and domestic, who profit from this illicit, lucrative trade.”
“In addition to the robust legal trade of American juvenile eels, or elvers, they are also subject to poaching and international trafficking,” said Edward Grace, the Assistant Director of the Office of Law Enforcement for the U.S. Fish and Wildlife Service. “Our natural resources are important to the American public and to its economy. Working with our state and federal partners, the defendant was arrested and prosecuted in the United States for his crimes. His guilty plea sends a message to all wildlife traffickers, you will be caught and you will be prosecuted.”
Chan has been detained since his arrest. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on September 30, 2021, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Plaquemines Parish Man Sentenced for Federal Drug Trafficking CrimeRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DALE PHILLIPS, age 40, a resident of Plaquemines Parish, Louisiana, was sentenced on June 30, 2021 to 151 months imprisonment after previously pleading guilty to one count of distributing cocaine in violation of Title 21, United States Code, Section 841.
According to the Indictment, PHILLIPS conspired with others to distribute cocaine, obtained from the Houston, Texas area, in Plaquemines Parish.
The Honorable U.S. District Judge Jane Triche Milazzo sentenced PHILLIPS as a “Career Offender” to 151 months imprisonment and payment of a $100 special assessment fee, to be followed by a three-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Maurice Landrieu and was investigated by the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office.
Pittsburgh Felon Admits Illegally Possessing Multiple Drugs and Violating Firearms LawsRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, has pleaded guilty in federal court in Pittsburgh to violating federal narcotics and firearms laws Acting United States Attorney Stephen R. Kaufman announced today.
Che Williams, age 34, pleaded guilty before United States District Judge Marilyn Horan.
According to information provided to the court, on November 19, 2019, Williams conspired to distribute one kilogram or more of heroin, 280 grams or more of crack cocaine, 100 grams or more of acetyl fentanyl and valeyrl fentanyl, and 400 grams or more of fentanyl, and possessed with intent to distribute 40 grams or more of fentanyl and possessed firearms and ammunition as a convicted felon. As a conviction felon, it is in violation of federal law to possess any firearms and/or ammunition. Williams also pleaded guilty to knowingly participating in a conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl from September 2017 to November 2019.
Judge Horan scheduled sentencing for Nov. 10, 2021 at 9:30 a.m. As to Count One of the Information, the law provides for a total sentence of not more than 40 years’ imprisonment, a $5,000,000 fine or both. As to Count Two of the Information, the law provides for a total sentence of not more than ten years, a $250,000 fine or both. Under the law, Count One of the Indictment provides for a total term of imprisonment of not less than ten years with a fine not to exceed $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered Williams to remain in the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Che Williams.
Orlando Man Sentenced to Ten Years for Conspiring and Distributing Fentanyl-Laced HeroinRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Freddie Miguel Velez-Gonzalez (53, Orlando) to 10 years in federal prison for conspiring to possess with the intent to distribute and distributing more than 40 grams of fentanyl and more than 100 grams of heroin.
Velez-Gonzalez had pleaded guilty on March 22, 2021.
According to court documents, Velez-Gonzalez was a member of a drug trafficking organization (DTO) that distributed controlled substances including, heroin, fentanyl, cocaine, marijuana, and tramadol, in the Middle District of Florida. On six dates between approximately April 23 and August 11, 2020, at the direction of law enforcement, a confidential source negotiated and met with Velez-Gonzalez at the same designated location and purchased from him a total of over 100 grams of mixtures containing heroin, fentanyl, or a combination of the two substances. Velez-Gonzalez sold the drugs to the confidential source to further a drug trafficking conspiracy with other members of the DTO, including Inginio Santos-Garcia, a co-defendant of Velez-Gonzalez.
On September 8, 2020, authorities arrested Velez-Gonzalez and Santos-Garcia at an address on Brosche Road in Orlando from which they were distributing narcotics in furtherance of the conspiracy. Santos-Garcia pleaded guilty on November 9, 2020, and was sentenced to eight years in federal prison on April 14, 2021.
This case was investigated by the Drug Enforcement Administration and the Orlando Police Department. It was prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Ilianys Rivera-Miranda.
Oregon Man Pleads Guilty for Role in Covid-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today for his role in a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Russell Anthony Schort, 39, of Myrtle Creek, Oregon, pleaded guilty to bank fraud.
Schort worked with his accomplice, Andrew Aaron Lloyd, 51, of Lebanon, Oregon, to take advantage of the Small Business Administration’s Paycheck Protection Program (PPP), an integral part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March 2020. The CARES Act provided emergency financial assistance to millions of Americans and small businesses suffering from the economic effects of the COVID-19 pandemic.
According to court documents, on May 1, 2020, Lloyd submitted a PPP loan application under Schort’s business name, Schort Lee Construction, to U.S. Bank. Included in the loan application package was a false IRS form 944 listing 2019 wages paid of more than $3 million. The application also included a fake list of fifty-six employees and the wages purportedly paid to each employee.
Based on these false representations, U.S. Bank processed the PPP loan application, resulting in the disbursal of more than $600,000 into Schort’s bank account. Three days later, Schort transferred $307,000 to Lloyd’s bank account, who used the funds to purchase securities through an online brokerage account.
On January 5, 2021, Schort was charged by criminal complaint with wire fraud, bank fraud, and money laundering. On June 8, 2021, he was charged by superseding criminal information with bank fraud.
Schort faces a maximum sentence of 30 years in prison, a $1 million fine, and five years of supervised release. He will be sentenced on October 21, 2021 before U.S. District Court Judge Michael J. McShane.
As part of his plea agreement, Schort has agreed to pay no less than $294,552 in restitution to the U.S. Treasury.
On June 17, 2021, Lloyd pleaded guilty to bank fraud, money laundering, and aggravated identity theft.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the SBA Office of Inspector General and IRS Criminal Investigation. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Operator of Residential Nursing Facility Sentenced for Health Care FraudRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to two years in prison for defrauding the Virginia Medicaid program by submitting over $188,000 in false claims for a residential nursing facility.
“For three years, the defendant used his position as a nursing home operator to fraudulently obtain over $188,000 from the Virginia Medicaid program,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Health care fraud takes funding and critical services away from those who truly need it. We will continue to hold accountable those who exploit these essential health care programs at the expense of vulnerable members of our communities.”
According to court documents, Lopez Scott, 47, operated Turning Points Residential Care, a business authorized to provide residential support services and skilled nursing services to recipients of Medicaid. Between October 2016 and October 2019, Scott submitted numerous false and fraudulent claims to Virginia Medicaid, known as the Virginia Medical Assistance Program (VMAP), which misrepresented that 5,847.75 hours of skilled nursing services had been provided to a Medicaid recipient. As a result, Scott received approximately $188,297.39 in health care payments to which he was not entitled.
“When Lopez Scott launched his fraud scheme, he threatened the integrity of the Medicaid program and illegally pocketed taxpayer funds meant to pay for the legitimate care of needy patients,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services (HHS) Office of the Inspector General. “Along with our law enforcement partners, we will continue to hold such fraudsters accountable for their unprincipled actions.”
According to court documents, in order to conceal and cover up the fact that no skilled nursing services had been provided to the Medicaid recipient, Scott created fraudulent entries of nursing notes in the electronic office records of Turning Points, including the forged signature of a nurse, which falsely indicated that such services had been provided. Scott also asked this nurse to falsely state to investigators that she had continued to work for the company even after her employment had ceased.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for HHS, made the announcement after sentencing by U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorney Alan Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-104.
Old Town Man Pleads Guilty to Possessing Short-Barreled ShotgunRead the Press Release
BANGOR, Maine: An Old Town man pleaded guilty today in federal court in Bangor to possessing an unregistered firearm, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on September 8, 2020, Stephen Warren, 37, was pulled over by the Old Town Police. He was issued a summons for operating a motor vehicle with a suspended license and served with a protection order. Warren was told not to operate his car due to his suspended license. He ignored this order, however, and drove away from the area. Officers attempted to stop him again, but he failed to stop and a brief pursuit occurred before he was eventually stopped and arrested.
A subsequent inventory search of Warren’s car revealed a short-barreled shotgun without a serial number that was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of a weapon made from a shotgun, if the modified weapon has a barrel less than 18 inches in length or an overall length of less than 26 inches, unless that weapon is registered to the possessor in the NFRTR.
Warren faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Old Town Police Department investigated the case.
North Las Vegas Woman Pleads Guilty to Stealing over $200,000 in Social Security Retirement BenefitsRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas woman pleaded guilty today to unlawfully collecting over $200,000 of her deceased mother’s Social Security retirement benefits. She also admitted to wrongfully taking over $20,000 of her deceased mother’s annuity payments from a life insurance company.
According to court documents and admissions made in court, Inez Baker Cone, 74, held a joint bank account with her mother. The Social Security Administration (SSA) directly deposited her mother’s retirement benefits into the joint account. When her mother passed away in 1995, Baker Cone did not inform the SSA that her mother had died and was accordingly no longer eligible to receive retirement benefits. Instead, nearly two years after her mother’s death, Baker Cone changed her mother’s mailing address with the SSA to her own home address.
Similarly, Baker Cone changed her mother’s mailing address with Transamerica Life Insurance Company to her own home address in order to wrongfully collect her mother’s annuity payment checks mailed by the company. Baker Cone deposited the checks by forging her late mother’s signature. From April 1995 to September 2020, Baker Cone unlawfully obtained approximately $200,244 of SSA retirement benefits and $22,763 of annuity payments from Transamerica Life Insurance Company.
Baker Cone pleaded guilty to one count of theft of government property. She is scheduled to be sentenced by U.S. District Judge Richard F. Boulware II on October 14, 2021, and she faces a statutory maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. attorney Christopher Chiou for the District of Nevada and Inspector General Gail S. Ennis for the Social Security Administration Office of Inspector General (SSA OIG) made the announcement.
This case was investigated by the SSA OIG. Assistant U.S. Attorney Eric Schmale is prosecuting the case.
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Niece of Veteran Pleads Guilty to Stealing Va Benefits Intended for Her UncleRead the Press Release
Montgomery, Ala. – On Wednesday, June 30, 2021, Mende Leone, also known as Shirl Lee Cook, 37, pleaded guilty to misappropriation of a federal benefit by a fiduciary, announced Acting United States Attorney Sandra J. Stewart. Leone resided in Phenix City, Alabama at the time of the crime.
This case involves the fraudulent misapplication by a fiduciary of funds provided by the U.S. Department of Veterans Affairs (VA) intended for the sole benefit of a veteran. The VA’s mission is to provide and care for United States military veterans. Among its many programs, the VA administers a fiduciary program designed to protect certain VA beneficiaries who, as a result of injury, disease, or infirmities of advanced age, or by reason of being less than the age of majority, cannot manage their VA benefits. Under this program, the VA may appoint a relative or some other fiduciary to receive payments of benefits on behalf of the beneficiary for the use and benefit of the veteran.
According to court records, Mende Leone was the niece of a veteran living in Phenix City who was receiving benefits from the VA and was eventually appointed to serve as his fiduciary. In late 2014, the VA notified Leone that a large retroactive payment of benefits would be made on behalf of her uncle. A short time after these payments, the VA received a tip that large transfers had been made from the veteran’s bank account where his funds were being held. When looking into the matter, the VA discovered that from March-May of 2015, Leone wrote several checks from the veteran’s fiduciary account made payable to her mother, Shirley Ann Moreman, who is also the veteran’s sister. Moreman either cashed or deposited the checks into her personal account and then almost immediately withdrew most of the money. Moreman and Leone then used the money for their personal use and not for the benefit of the veteran. The investigation revealed that Leone and Moreman misappropriated at least $151,000.00 of VA benefits intended for the veteran.
Both Leone and Moreman were indicted by a federal grand jury in March 2020 for their roles in the scheme. However, Moreman passed away in February 2021 before her case could be adjudicated. At some date in the coming months, Leone will be scheduled for a sentencing hearing where she faces a maximum sentence of five years in prison, as well as monetary penalties and restitution.
“Stealing benefits from a veteran is a despicable crime,” stated Acting U.S. Attorney Stewart. “Our country owes a debt to all service members for their sacrifice and we must ensure that they are protected from those that would take advantage of them for personal gain. I am grateful that the Department of Veterans Affairs quickly discovered this illegal activity and my office stands ready to use every tool available to investigate and prosecute those that target our most vulnerable citizens.”
“The OIG is committed to prioritizing the protection of vulnerable veterans from unscrupulous fiduciaries that use veterans’ VA benefit payments for personal gain,” stated David Spilker, Special Agent in Charge at the VA Office of Inspector General (VA OIG). “The defendant abused her position of trust as a VA fiduciary to enrich herself and her mother—siphoning taxpayer dollars intended to support a disabled veteran’s needs.”
The U.S. Department of Veterans Affairs Office of Inspector General investigated this case, with assistance from the Russell County Sheriff’s Office and the Russell County Department of Human Resources (DHR) Adult Protective Service. Assistant United States Attorney Stephanie Billingslea and Special Assistant U.S. Attorney Thomas Govan are prosecuting the case.
Monroe County Man Sentenced to 36 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald McKenna, age 41, of Monroe County, Pennsylvania, was sentenced on June 30, 2021, to 36 months’ imprisonment by United States District Court Judge Malachy E. Mannion for drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, McKenna pleaded guilty to distributing between 80 and 100 grams of heroin (which is the equivalent of 3,200 to 4,000 individual doses) and accepting a firearm in exchange for heroin.
The case was investigated by the Federal Bureau of Investigation and the Stroud Area Regional Police Department. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Moncks Corner Man Who Shot at Berkeley County Deputy and Pointed a Gun at U.S. Marshals Sentenced to 30 Years in Federal PrisonRead the Press Release
Charleston, South Carolina ––– Acting United States Attorney M. Rhett DeHart announced today that Ricky DeWayne Johnson, 35, of Moncks Corner, has been sentenced to 30 years in federal prison, after pleading guilty to assaulting two members of the United States Marshal’s Fugitive Task Force and unlawfully possessing a firearm.
“Anyone foolish enough to point a gun at federal law enforcement yet fortunate enough to survive should know that they will be prosecuted to the full extent of the law,” said Acting U.S. Attorney DeHart. “Our law enforcement officers – local, state, and federal – put their lives on the line each day to protect and serve the public. Our office will never tolerate criminals threatening or shooting at our brave men and women in uniform.”
Evidence presented in court showed that, just after 2:00 AM on March 22, 2018, a deputy with the Berkeley County Sheriff’s Office attempted to stop a truck for traffic violations. While the truck initially slowed and pulled into a gas station parking lot, it quickly pulled out and led the deputy on a high-speed chase into a residential subdivision. The driver of the vehicle, later identified as Johnson, made a U-turn in a neighborhood and fired a .45 caliber pistol at the pursuing deputy. Johnson continued driving until he made an abrupt stop, where he pointed the handgun at the deputy who had exited his vehicle and had drawn his weapon. When the deputy took cover, Johnson sped off and made his way to a cul-de-sac in the neighborhood, where he exited the vehicle and ran from the deputy.
Upon searching the truck, which had been stolen, deputies located inside a spent casing for a .45 caliber round and a .22 caliber handgun. Another spent casing was discovered nearby in the street. After deputies established a search perimeter, they learned that a van had been stolen around where the suspect had fled on foot. Hours later, two members of the U.S. Marshals Fugitive Task Force located Johnson in downtown Summerville, activated blue lights, and pulled up behind Johnson in an attempt to apprehend him. Johnson attempted to flee and, during the ensuing foot chase, pulled a handgun from his jacket and pointed it at the pursuing Marshals. The Marshals opened fire at Johnson and brought him down. Investigators recovered a .45 caliber handgun loaded with 4 rounds of ammunition from Johnson who was treated for a gunshot wound in a local hospital and taken into custody.
Federal law prohibits Johnson from possessing firearms and ammunition, as he was previously convicted of a crime punishable by imprisonment of more than one year. Johnson’s criminal history includes prior convictions for second degree burglary in 2009 and 2010, grand larceny in 2009 and 2013, possession with intent to distribute methamphetamine in 2014, financial transaction card theft in 2009, breaking into motor vehicles in 2010, and failure to stop for blue lights in 2014 and 2015.
United States District Court Judge Margaret B. Seymour sentenced Johnson to the statutory maximum of 30 years in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol Tobacco Firearms & Explosives (ATF), the United States Marshals, the South Carolina State Law Enforcement Division (SLED), and the Berkeley County Sheriff’s Office. The Ninth Circuit Solicitor’s Office worked with the U.S. Attorney’s Office to secure Johnson’s plea.
Assistant United States Attorney Chris Schoen prosecuted the case.
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Meth trafficker sentenced to 12 years in prison in Billings conspiracyRead the Press Release
MISSOULA – A man convicted in a methamphetamine conspiracy in which he helped bring the drug to Billings for distribution was sentenced today to 12 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
James Moe McPhail, 35, unknown hometown, pleaded guilty on March 4 to conspiracy to possess with intent to distribute meth. McPhail was detained.
U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the government alleged that in July 2019, law enforcement learned that McPhail, while incarcerated at Crossroads Correction Center, was in contact with co-defendant, Todd William Weidler, to arrange for delivery of meth to Weidler in Billings. Investigators also learned that Weidler always had meth on hand, could usually sell ounces in a matter of minutes and conducted all of his business from his BMW or Range Rover in parking lots.
In September 2019, law enforcement searched Weidler’s residence, vehicles and storage units and recovered meth and approximately $11,900 in currency. Law enforcement estimated Weidler distributed at least 1,153.3 grams, or about 2.5 pounds, which is the equivalent of about 9,060 doses. Weidler was sentenced to 10 years in prison for conviction in the case.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Montana Department of Corrections, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Maryland Accountant Convicted of Preparing False Tax Returns for D.C. ResidentsRead the Press Release
A federal jury in the District of Columbia convicted a Maryland woman today for preparing three false tax returns for District of Columbia residents that claimed more than $1.1 million in fraudulent refunds.
According to court documents and evidence presented at trial, Charese Johnson, of Aberdeen, Maryland, operated Prodigy Accounting Services and prepared false amended income tax returns in 2014 for three District of Columbia taxpayers. Those returns fraudulently claimed large refunds based upon fictious refundable credits and phony withholdings that had never been paid to the IRS.
Johnson is scheduled to be sentenced on Sept. 17 and faces a maximum penalty of three years in prison on each count. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
Special Agents of IRS-Criminal Investigation investigated the case.
Trial Attorneys Abigail Burger Chingos and Jeffrey McLellan of the Justice Department’s Tax Division are prosecuting the case.
Martin County Resident Pleads Guilty to Child ExploitationRead the Press Release
Miami, Florida -- Today, Nikolas Cook, 22, of Stuart, Florida, pled guilty in federal district court in Ft. Pierce to production, distribution, and possession of child pornography.
According to court documents, on September 10, 2020, Cook communicated with others in a social media group created for individuals interested in child sexual abuse material. While participating in the chat group, Cook produced and distributed multiple pornographic images of a three-year-old girl. An investigation led agents to Cook’s residence. Agents arrested Cook within 12 hours of learning of his activity in the chat group. During a search of Cook’s residence, agents located electronic devices containing multiple sexually explicit images and videos of minor children being sexually abused.
The court will set a date for Cook’s sentencing hearing. Cook faces a minimum of 15 years in prison and a maximum possible sentence of 70 years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez and Special Agent in Charge for FBI Miami George L. Piro announced the guilty plea.
The Federal Bureau of Investigation and Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Daniel E. Funk and Luisa Berti are prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), 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 Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found 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-14007.
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Marine Corps Official Sentenced to Prison for Taking $100,000 in Bribes in Exchange for Directing over $2,000,000 Worth of Transportation Contracts to AssociateRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ERIK MARTIN, aged 49, was sentenced on June 29, 2021 to 45 months in prison by the Honorable Wendy B. Vitter for taking bribes in exchange for directing transportation contracts to Darrel Fitzpatrick, an Atlanta businessman, after previously pleading guilty to his role in the bribe conspiracy scheme. MARTIN will also serve two (2) years of supervised release after prison. MARTIN will also owe restitution to the government, which will be determined at a future hearing.
On December 29, 2020, MARTIN pleaded guilty to Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(2). MARTIN faced up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
According to the Factual Basis, in 2019 Darrel Fitzpatrick was a senior account manager at Company A, a bus brokerage company that provided transportation to the United States Marine Corps Reserves. That same year, Fitzpatrick started a competing transportation brokerage company called National Charter Express.
In 2019, Fitzpatrick agreed to pay kickbacks to MARTIN, a civilian employee of the United States Marine Corps Reserves, in exchange for Martin directing business to Company A, and then later, National Charter Express. The conspiracy resulted in at least $2,000,000 in transportation contracts being corruptly awarded to companies associated with Fitzpatrick over six months in 2019. In exchange, Fitzpatrick wired and attempted to wire MARTIN over $250,000 in bribes in a series of at least four transactions. Fitzpatrick was charged separately for his role in the scheme and is scheduled to be sentenced on July 8, 2021, by United States District Judge Carl J. Barbier in case number 20-cr-150, “J.” Additionally, government authorities successfully forfeited approximately $1,000,000 of the criminal proceeds from accounts belonging to one or more of the defendants.
“This sentencing should serve as a warning that perpetrators who seek to defraud the Department of the Navy will always be exposed and investigated to the fullest extent,” said NCIS Southeast Field Office Special Agent in Charge Thomas Cannizzo. “Mr. Martin’s reprehensible scheme to accept bribes in exchange for directing Marine Corps contracts to a specific transportation company damaged the integrity of the DON procurement process, wasted American taxpayer money, and squandered valuable investigative resources. NCIS and our partners remain committed to rooting out bribery and corruption that threatens warfighter readiness.”
“I’d like to thank the U.S. Attorney’s Office and the Naval Criminal Investigative Service for partnering on this important investigation,” stated DCIS Special Agent in Charge Cynthia Bruce. “I am pleased that we were able to secure a significant forfeiture to take back ill-gotten gains from the defendants and send the message that ultimately crime does not pay.”
U. S. Attorney Evans praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorneys Myles Ranier and Andre Lagarde.
Man sentenced for procuring firearms used in Atlanta-area crimesRead the Press Release
ATLANTA – Ben’Andre Javon Goolsby has been sentenced to prison for unlawfully acquiring dozens of firearms, several of which were later recovered by police at various crime scenes in the metro-Atlanta area and beyond.
“Goolsby’s illegal purchases of firearms helped fuel the violence in our community,” said Acting U.S. Attorney Kurt R. Erskine. “Those who illegally receive, possess, and peddle weapons face prosecution and significant federal prison terms for their actions.”
“By putting guns in the hands of criminals, Mr. Goolsby has violated the trust of his community, the trust of those he should care about and has contributed to the unnecessary violence in our communities,” said Arthur Peralta, ATF Special Agent in Charge. “It is not okay to buy guns for people who cannot legally own them and doing so has consequences.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From October 2017 through the date of his arrest in May 2020, Ben’Andre Javon Goolsby purchased 33 pistols from a federally licensed firearms dealer in Jonesboro, Georgia. Most of the firearms were 9mm and .40 caliber pistols. On several occasions, Goolsby purchased multiple guns of identical make, model, and caliber within a single week.
During each transaction, Goolsby falsely stated to the firearms dealer that he was not under indictment for a felony offense. In fact, Goolsby knew at the time of each of his many purchases that he had been indicted in Rockdale County, Georgia, for a smash-and-grab burglary and other crimes. Those charges related to a 2014 break-in at a pawn shop from which Goolsby and others stole numerous firearms. Because federal law prohibits any person under indictment from receiving firearms, each of Goolsby’s purchases was unlawful.
Several of the guns that Goolsby purchased found their way into the hands of people who sought to—and did—use them unlawfully. For example, in September 2018, police officers in Forest Park, Georgia, pulled over a car in which one of the 9mm pistols Goolsby bought was found alongside two other guns, pepper spray, walkie-talkies, and a taser. The vehicle’s occupants were dressed entirely in black and had black masks and gloves.
In June 2019, sheriff’s deputies in Decatur, Georgia, found another of Goolsby’s 9mm pistols in the possession of a fugitive who was wanted on aggravated assault charges. A month later, also in Decatur, police confiscated a Goolsby-purchased .40 caliber pistol from a 19-year-old suspected of robbing a jewelry store and burglarizing a dollar store and gas station.
Ben’Andre Javon Goolsby, 25, of Atlanta, Georgia, was sentenced on June 25, 2021, by U.S. District Judge Michael L. Brown, to three years, four months in prison to be followed by three years of supervised release. Goolsby was convicted of making false statements to a federally licensed firearms dealer and unlawful receipt of a firearm, after he pleaded guilty on January 11, 2021.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Man admits meth trafficking in Great Falls, role in crime spree of stolen ATVsRead the Press Release
GREAT FALLS – A Florida man today admitted trafficking methamphetamine in Great Falls and transporting stolen property after he was arrested in Missouri driving a truck and pulling a stolen trailer loaded with $80,000 in stolen ATVs and other items, Acting U.S. Attorney Leif M. Johnson said.
Harold Goodson Hill, 37, pleaded guilty to possession with intent to distribute meth and to interstate transportation of stolen property. Hill faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug crime and a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the transportation of stolen property crime.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Oct. 21. Hill was detained pending further proceedings.
The government alleged in court documents that in September 2020, the Great Falls Police Department responded to series of theft complaints around town of various items, including an ATV from a pickup truck. While responding to a report, officers found Hill asleep in the driver’s seat of a vehicle and seized stolen items found in the vehicle. In October 2020, law enforcement learned Hill had been selling meth in Great Falls and that he was receiving suspicious packages from Las Vegas to an address he had in Townsend. Officers stopped Hill after he picked up a package at the Townsend post office, seized the package and determined it contained 1.9 pounds of meth. Hill told agents he had come to Montana from Virginia in April 2020 and admitted to distributing meth. The agents released Hill.
The government further alleged that Hill rented a 26-foot Penske truck in Whitehall on Oct. 29, 2020. A trooper in Missouri ultimately stopped the Penske truck, which was pulling a trailer that had been stolen from Broadwater County and had a license plate stolen from Belgrade. Hill was the driver and sole occupant of the truck. Officers searched the truck and trailer and found five ATVs and a UTV that had been stolen in Bozeman, Great Falls and Spearfish, S.D., along with a Toro lawnmower and other items. The estimated value of the stolen items was $80,000.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case, which was investigated by the FBI, Drug Enforcement Administration, Great Falls Police Department, Russell Country Drug Task Force, Broadwater County Sheriff’s Office, U.S. Postal Service, Gallatin County Sheriff’s Office, South Dakota Division of Criminal Investigation, Belle Fourche Police Department, South Dakota, Sioux Falls Police Department, South Dakota, and Missouri State Highway Patrol.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Major International Automotive-Parts Suppliers Restructure Deal to Resolve Antitrust ConcernsRead the Press Release
Auto parts supplier Tupy agreed to restructure its acquisition of Teksid after the Department of Justice raised concerns that the merger would result in higher prices and reduced quality and timeliness of production for crucial components used in heavy-duty engines. As initially proposed, the deal would have combined the two most significant suppliers of engine blocks and cylinder heads for heavy-duty engines to customers in North America. These components are key inputs for engines used in large trucks, construction and agricultural equipment, as well as numerous other vehicles.
Under the original agreement, Tupy would have acquired Teksid’s entire iron automotive components business from Teksid’s parent company Stellantis N.V. The original acquisition included Teksid’s plant and other assets in Mexico used to manufacture iron blocks and heads for U.S. automotive customers. Following the restructuring, Tupy will acquire only Teksid’s iron operations in Brazil and Portugal. Teksid will retain its iron operations in Mexico and continue to compete with Tupy to supply U.S. customers.
“Tupy’s decision to restructure their merger is a victory for American engine manufacturers and consumers,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “I commend our team for their diligence in conducting a thorough investigation, a testament to the division’s resolve to enforce the antitrust laws. As originally proposed, the transaction would have eliminated competition that keeps prices low and quality high for vital industries such as transportation and agriculture.”
Tupy S.A., a Brazilian company headquartered in Brazil, is the largest supplier of iron blocks and heads for heavy-duty engines to customers in North America. Tupy owns four iron foundries, two in Brazil and two in Mexico.
Teksid S.p.A., an Italian corporation headquartered in Italy, is a wholly-owned subsidiary of Stellantis, a multinational automobile manufacturer headquartered in Amsterdam, the Netherlands. Teksid is the second largest supplier of blocks and heads for heavy-duty engines in North America. Teksid owns iron foundries in Mexico, Brazil, Poland, and Portugal. Teksid is also part of a joint venture that owns an iron foundry in China.
Luzerne County Man Sentenced to 120 Months’ Imprisonment for Conspiracy to Possess and Distribute MethamphetamineRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wilver Veras, a/k/a “Gavi,” age 31, of Hazleton, Pennsylvania, was sentenced to 120 months’ imprisonment to be followed by five years on supervised release on June 29, 2021, by U.S. District Court Judge Robert D. Mariani for conspiring to possess and distribute methamphetamine.
According to Acting United States Attorney Bruce D. Brandler, Veras previously pleaded guilty to conspiring to possess and distribute 50 grams and more of actual methamphetamine throughout Hazleton and other parts of Luzerne County. Veras’s involvement in the charged conspiracy began in January 2018 and ended with his arrest in September 2018.
The case was investigated jointly by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Landlord to Pay $90,000 under the False Claims Act for Violating HUD Rules by Renting Subsidized Section 8 Apartment to RelativeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mikhail Geneles (“Geneles”), will pay $90,000 to resolve False Claims Act allegations that he illegally claimed subsidies from the Department of Housing and Urban Development (“HUD”) while renting an apartment to his father-in-law in violation of the department’s requirements.
The settlement resolves allegations that, between May 2010 and May 2020, Geneles rented a subsidized apartment to his relative in violation of the Housing Choice Voucher Program’s (“HCVP”) requirements. The HCVP is commonly known as Section 8 housing. In the agreement, the United States alleges that Geneles participated as a landlord in the HCVP, a program whereby HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market. The government alleges that Geneles submitted documents to the Bucks County Housing Authority (which administers the HCVP in Bucks County) falsely certifying that the assisted tenant in Geneles’ rental property was not an immediate relative of the property’s owners. In fact, the sole tenant was Geneles’ father-in-law, which precluded Geneles’ receipt of HCVP rental subsidies.
“HUD instituted the HCVP program to help low-income residents without other options to obtain decent housing,” said Acting U.S. Attorney Williams. “By investigating this case, we put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.” Williams added, “From the time that this matter was brought to his attention, Mr. Geneles committed himself to setting things right. We appreciate his cooperative approach and efforts toward rectifying the problem.”
“The U.S. Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and community stakeholders to ensure that Federal funds intended to help low-income families are not wasted or misapplied,” said Acting Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and by the Bucks County Housing Authority. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Lakeland Man Sentenced to More Than 9 Years in Federal Prison for Downloading and Possessing Child Sex Abuse Videos from the DarkwebRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jack R. Dove, III (40, Lakeland) to nine years and two months in federal prison for receiving and possessing videos and other images depicting the sexual abuse of children. The court also ordered Dove to pay $13,000 in restitution to victims of the offenses and to forfeit electronic devices used in the commission of the offenses.
Dove had pleaded guilty on March 29, 2021.
According to court documents, Dove used bitcoin to pay for membership to a particular Darknet marketplace that contained more than 100,000 videos depicting the sexual exploitation of children, the largest volume of child sexual exploitation materials on the Darknet. In March 2018, the Korean National Police Agency in South Korea seized the computer server that was used to operate the website.
This particular Darknet marketplace exclusively advertised child sexual exploitation videos available for purchase and downloading by members of the website using bitcoin. An analysis of the server revealed that Dove had created multiple accounts. In January and February 2017, Dove used one of his accounts to purchase “points” from the website. Dove then used those “points” to download and received nearly 9 gigabytes of child sexual abuse materials. In August 2018, Dove used another account to pay for “VIP” membership to this website, granting him unlimited downloads from the website for a six-month period. During his VIP membership status, Dove downloaded and received 38 videos depicting children being sexually exploited and abused, including children under the age of 12.
On November 30, 2018, federal agents executed a search warrant at Dove’s residence and seized several electronic devices. Forensic analyses of those devices confirmed Dove had in fact received the child sex abuse videos he had previously purchased from the Darknet marketplace and, also, that he possessed additional materials depicting the sadistic sexual abuse of young children, including infants and toddlers.
“As crimes become more sophisticated and advanced technology is being used to sexually exploit young children, our HSI special agents, and all of law enforcement must stay ahead of the criminals,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “This case is an example of a child predator who thought he could hide behind the Darknet and international borders, but was instead caught and will now be held accountable for his crimes against children.”
This case was investigated by Homeland Security Investigations. The original international investigation was led by the IRS-Criminal Investigation, Homeland Security Investigations, the National Crime Agency in the United Kingdom, and the Korean National Police of the Republic of Korea. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Ilyssa Spergel, with assistance provided by U.S. Department of Justice Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Withdraws from Settlement with the National Association of RealtorsRead the Press Release
Today the Justice Department’s Antitrust Division filed a notice of withdrawal of consent to a proposed settlement with the National Association of Realtors (NAR). The department has also filed to voluntarily dismiss its complaint without prejudice. The department determined that the settlement will not adequately protect the department’s rights to investigate other conduct by NAR that could impact competition in the real estate market and may harm home sellers and home buyers. The department is taking this action to permit a broader investigation of NAR’s rules and conduct to proceed without restriction.
“The proposed settlement will not sufficiently protect the Antitrust Division’s ability to pursue future claims against NAR,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Real estate is central to the American economy and consumers pay billions of dollars in real estate commissions every year. We cannot be bound by a settlement that prevents our ability to protect competition in a market that profoundly affects Americans’ financial well-being.”
As the real estate industry’s leading trade association, NAR has rules and policies that affect millions of real estate brokers and agents and, in turn, impact millions of American home buyers and sellers, who, according to reported industry data, paid over $85 billion in residential real estate commissions last year. The department filed a complaint and proposed settlement on Nov. 19, 2020. The complaint alleged that NAR established and enforced certain rules and policies that illegally restrained competition in residential real estate services. The proposed settlement sought to remedy those illegal practices and encourage greater competition among realtors, but it also prevented the department from pursuing other antitrust claims relating to NAR’s rules.
Under a stipulation signed by the parties and entered by the court, the department has sole discretion to withdraw its consent to the proposed settlement. The proposed settlement may also be modified with consent from the department and from NAR. The department sought NAR’s agreement to modify the settlement to adequately protect and preserve the department’s rights to investigate and challenge additional conduct by NAR, but the department and NAR could not reach an agreement. Because the settlement resolved only some of the department’s concerns with NAR’s rules, this step ensures that the department can continue to enforce the antitrust laws in this important market.
Juneau Man Sentenced to 15 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
JUNEAU – A Juneau man was sentenced to 15 years in federal prison followed by 35 years of supervised release for the sexual exploitation – receipt of child pornography. Also, he must pay $9,000 to the known victims.
According to information presented in court, Arthur Moe Martin, 51, became the subject of an investigation in December 2017 when the Anchorage Cyber Crimes Unit received a cybertip from the National Center for Missing and Exploited Children (NCMEC). An online internet email provider contacted NCMEC with a tip regarding the download of an image involving a prepubescent female engaged in sexual conduct with an adult male. The email account was located in Juneau. The Federal Bureau of Investigation (FBI) and the Juneau Police Department identified and contacted Martin as the owner of the email account. Martin admitted that he possessed electronic images of sexually exploited children and turned over his cell phones and computer to law enforcement where they found more than 200 images of very young children being sexually exploited. In 1995, Martin was convicted in Alaska state court for sexually abusing a minor.
“Sexual exploitation of children is especially abhorrent, and the harm caused to the child victims lasts for the rest of their lives,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “There is no place in society for these acts on children and our office will vigorously pursue all of those who perpetuate these crimes.”
“Now more than ever, our children need to be protected from online predators seeking to exploit their innocence,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “It’s a top priority of ours at the FBI, and thanks to this dedicated investigation and prosecution team, there is now one less predator roaming our streets.”
The Federal Bureau of Investigation (FBI) and Juneau Police Department conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Jack Schmidt prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines 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.
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Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross sentenced Joe Lea, 34, of St. Louis, to 48 months in prison today. Lea pleaded guilty to being a felon in possession of a firearm.
On July 30, 2019, two members of the North County Police Cooperative were on patrol in the area of the Wellston Food Market when the officers observed Lea exit a vehicle and drop what appeared to be controlled substances to the ground. Lea retrieved the suspected controlled substances and placed them in a satchel that Lea was wearing.
The officers approached Lea to investigate further. Lea refused to cooperate and initiated a struggle with the officers. During the struggle, Lea struck one of the officers in the face and ran. As Lea fled on foot, Lea tossed a firearm and his satchel to the ground. After doing so, Lea eventually stopped running and was arrested.
Lea’s nine-millimeter firearm was seized. It was loaded with 26 rounds of ammunition. Inside Lea’s satchel, officers seized 17 capsules containing fentanyl; two additional loaded nine-millimeter firearm magazines, and additional loose rounds of ammunition.
Prior to July 30, 2019, Lea was convicted of at least one felony crime.
The North County Police Cooperative investigated the case.
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Judge sentences Fairview Heights man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Court Judge Rodney W. Sippel sentenced Darryl Lewis today to 37 months in prison and ordered Lewis to pay $2,250 in restitution. The 22-year-old Fairview Heights, Illinois resident pleaded guilty in April to one count of being a felon in possession of a firearm.
On June 5, 2019, Lewis stole multiple items from a car parked in a garage in the 1100 block of Washington Avenue in downtown St. Louis. One of the items was a camouflage-colored DPMS Panther 5.56 caliber A15 firearm with a 30-round magazine. Garage surveillance cameras captured Lewis carrying the firearm out of the garage. The firearm was reported stolen to the St. Louis Metropolitan Police Department two days later.
Police detained Lewis, on June 12, 2019, after encountering him near the crime scene and recognizing Lewis as the person in the surveillance video carrying the stolen firearm. Lewis initially denied ever being in the garage, but later admitted he was the individual in the surveillance video holding the firearm stolen from the car.
Police seized Lewis’s cell phone. A search warrant was issued to obtain the phone's content. A search of the phone revealed photographs, created on the same day the firearm was stolen, of a rifle matching the description of the stolen firearm.
Prior to June 5, 2019, Lewis had been convicted of at least one felony crime.
The St. Louis Metropolitan Police Department investigated this case.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 28 was:
James Michael Gunderson, 58, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Gunderson faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Gunderson was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-44.
Leslee Marie Kinsey, 29, a transient, on charges of theft of mail. If convicted of the most serious crime, Kinsey faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Kinsey was detained pending further proceedings. The U.S. Postal Service investigated the case. PACER case reference. 21-42.
Eric Antonio Espinoza, 30, a transient, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Espinoza faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Espinoza was detained pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-43.
Appearing on June 29 and pleading not guilty was:
Jessy James Zachariah Harwood, 29, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Harwood faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Harwood was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-39.
Michael Andrew Cuellar, 30, a transient, on charges of bank fraud, aggravated identity theft and theft of mail. If convicted of the most serious crime, Cuellar faces a maximum 30 years in prison, a $250,000 fine and five years of supervised release. Cuellar was detained pending further proceedings. The U.S. Postal Service investigated the case. PACER case reference. 21-42.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 29 was:
William Daly Harrington, 42, of Helena, on charges of distribution of child pornography and possession of child pornography. If convicted of the most serious crime, Harrington faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Harrington was released pending further proceedings. The FBI, Lewis and Clark County Sheriff’s Office, Homeland Security Investigations and Internet Crimes Against Children Task Force investigated the case. PACER case reference. 21-05.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Indicted for Illegal Firearms Trafficking Using the United States MailRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a two-count indictment charging Luis Christian Montalvo-García with conspiracy to engage in illegal firearms trafficking and to receive firearms illegally from outside of this district, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to the Government’s allegations, between March and June 2021, Luis Christian Montalvo-García conspired to receive firearms from states including Texas and Pennsylvania, to sell them in Puerto Rico. Among other events:
- In March 2021, Montalvo-García communicated with a co-conspirator regarding the mailing of a package containing a firearm from Texas.
- In April 2021, Montalvo-García received a communication regarding a rifle, handgun, and accessories for sale for $2,700. In response to a request from a co-conspirator, Montalvo-García sent a photo of a rifle, a magazine, and AK-47 accessories. Montalvo-García also received a message regarding a rifle with a price of $1,500.
- In May 2021, Montalvo-García communicated regarding various models of Glock pistols with magazines and accessories.
- In June 2021, a co-conspirator in Pennsylvania sent via U.S. Priority Mail Express two packages with a firearm frame, a firearm slide, five magazines and firearm accessories to Montalvo-García in Puerto Rico, which Montalvo-García attempted to take possession of.
Montalvo-García is not a licensed importer or dealer in firearms.
Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The United States Postal Inspectors and the Department of Homeland Security are jointly in charge of the investigation. If convicted, the defendant faces a maximum of five years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Hillsboro Man Pleads Guilty in Mail and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon man pleaded guilty today after stealing hundreds of pieces of residential mail throughout the Portland Metropolitan Area and using the personal identity of one local resident to purchase a luxury car.
Dwayne Leroy Daan, 42, pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.
According to court documents, between February and May 2020, Daan stole more than 800 pieces of mail from residences in Portland, Beaverton, West Linn, Milwaukee, and Hillsboro, Oregon. Some of the mail was stolen using a counterfeit U.S. Postal Service arrow key. On April 20, 2020, Daan used the stolen identity of a local resident to obtain a line of credit and purchase a 2018 Audi for $51,031 from a car dealership in Milwaukee.
On July 16, 2020, a federal grand jury in Portland returned a four-count indictment charging Daan with possessing stolen mail and a counterfeit U.S. Postal Service arrow key. Later, on June 29, 2021, a superseding criminal information added felony charges for bank fraud and aggravated identity theft.
With his continued acceptance of responsibility, the U.S. Attorney’s Office will join Daan in jointly recommending a 90 months federal prison sentence to run concurrently with sentences previously imposed in the Multnomah and Washington County Circuit Courts for similar conduct. If the recommended federal sentence is imposed, the Clackamas County District Attorney’s Office will move to dismiss pending charges filed against Daan in the Clackamas County Circuit Court.
Daan will be sentenced on September 29, 2021 before U.S. District Court Judge Michael W. Mosman.
As part of his plea agreement, Daan has agreed to pay restitution in full to his victims and abandon his right to criminally derived proceeds and property seized by law enforcement.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations, the Portland Police Bureau, West Linn Police Department, and Hillsboro Police Department. This case was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Havre woman admits trafficking fentanyl pillsRead the Press Release
GREAT FALLS – A Havre woman accused of trafficking fentanyl pills on the Rocky Boy’s Indian Reservation and in Hill and Cascade counties admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Amber Victoria Standingrock, 24, pleaded guilty to possession with intent to distribute controlled substances as charged in an information during an arraignment and plea change hearing. Standingrock faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Oct. 21. Standingrock was detained pending further proceedings.
In court documents filed in the case, the government alleged that on April 15, a Great Falls Police Department officer arrested Standingrock on an outstanding warrant. During a subsequent search of Standingrock’s purse, the officer found $2,825 in cash, two cellular phones and about 40 small blue pills, identified as fentanyl. Officers served a search warrant on Standingrock’s vehicle and phones and located four identical pills, $150 in cash and communications in which Standingrock appeared to be arranging the sale of “fettys,” which is common slang for fentanyl pills. Law enforcement executed a search warrant on Standingrock’s Facebook account and retrieved communications showing her arranging and proposing sales of fentanyl pills.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI, Great Falls Police Department and Russell Country Drug Task Force.
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Havelock Man Convicted of Multiple Drug OffensesRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Havelock man yesterday on charges of conspiring to distribute and possess with intent to distribute more than a kilogram of heroin, four counts of distributing heroin and aiding and abetting, and one count of possessing with intent to distribute more than a kilogram of heroin.
According to court records and evidence presented at trial, Daryl Lee Godette, 36, conspired to distribute over a kilogram of heroin in the Havelock area for approximately one year from 2018–2019. He involved several people in his scheme, including a co-defendant. In that time, Godette distributed quantities of heroin on at least four occasions. Godette also maintained a separate residence for storing bulk amounts of heroin and preparing it for sale. A search warrant of that residence revealed over 1,200 grams of heroin and extensive drug distribution paraphernalia.
Godette, who was on federal supervised release at the time of the new offenses, faces a mandatory minimum of fifteen years in prison when sentenced in September 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. Havelock Police Department, Carteret County Sheriff’s Office, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorneys Lucy Brown and John Parris are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-82.
Harahan Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that CHARLES A. LOPEZ (“LOPEZ”), age 28, of Harahan, Louisiana, pled guilty on June 30, 2021 to receipt of child pornography in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1).
The case against LOPEZ developed as a result of an undercover child exploitation investigation conducted by special agents with the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”). On April 30, 2019, HSI agents and special agents with the Louisiana Bureau of Investigation executed a federal search warrant at LOPEZ’s Harahan home and determined LOPEZ received images and videos depicting the sexual exploitation of minors.
LOPEZ faces a mandatory minimum penalty of five (5) years imprisonment up to twenty (20) years, followed by up to a life term of supervised release, a $250,000.00 fine, and a $100.00 mandatory special assessment fee. Sentencing in this matter is scheduled for September 29, 2021, before United States District Judge Ivan L. R. Lemelle.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Chief of Financial Crimes Unit, Assistant U.S. Attorney Brian M. Klebba.
Guilford County Man Sentenced for Distribution of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced on July 1, 2021, to 188 months in prison for distribution of child pornography.
Christian Dean Hall, 35, was indicted in October, 2020, on one count of distribution and attempted distribution of child pornography and one count of possession of images containing child pornography. He later pleaded guilty to one count of distribution of child pornography on December 17, 2020.
According to court documents, in April, 2020, an online covert employee (OCE) encountered Hall after graphic messages were sent in a group chat on the app Kik. After engaging directly with Hall, the OCE asked Hall if he had any child pornography in his collection. In response, Hall sent multiple videos to the OCE containing child pornography. Investigators obtained Hall’s name, email, and address and discovered that he was a Visual Arts teacher at Gate City Charter Academy in Greensboro. Upon execution of a search warrant at Hall’s residence in Greensboro, agents from the Federal Bureau of Investigations discovered hundreds of photos and videos containing child pornography on multiple accounts and devices. After initially denying that he was part of the conversation with the OCE, Hall later admitted sharing graphic content involving minors despite knowing that it was illegal to do so.
This case was investigated by the Federal Bureau of Investigations and the Greensboro Police Department and was prosecuted by Assistant U.S. Attorney Kennedy Gates and Assistant U.S. Attorney Nicole R. Dupre.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify 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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Greenbush Man Pleads Guilty to Unlawfully Possessing AmmunitionRead the Press Release
BANGOR, Maine: A Greenbush man pleaded guilty today in federal court in Bangor to being a felon in possession of ammunition, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on multiple dates at the end of January 2021, David Phillips, 30, was seen on video purchasing ammunition at a gun and ammunition store in Maine. These purchases were confirmed on Phillips’ debit card. The ammunition he purchased was not manufactured in the state of Maine. He was prohibited from possessing ammunition under federal law because he had previously been convicted in Connecticut state court of Violation of a Protective Order, a crime that was punishable by a term of imprisonment exceeding one year.
Phillips faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Penobscot County Sheriff’s Office; the Maine State Police; and the Bangor Police Department investigated the case.
Grand jury indicts St. Louis man for arson and possession of a destructive deviceRead the Press Release
ST. LOUIS – A federal grand jury indicted 23-year-old Rashaad Cotton for arson and one count of possession of a destructive device on Wednesday. Police arrested the St. Louis resident on April 30, 2021.
According to the indictment, on April 30, 2021, Cotton maliciously tried to damage and destroy a building located in the 1400 block of Beale Street in St. Charles, Missouri using fire and explosive materials.
Cotton knowingly possessed a destructive device (Molotov cocktail) consisting of a glass bottle filled with an ignitable liquid with a wick inserted into the neck of the bottle.
For the arson count, Cotton faces a maximum punishment of at least five years but not more than 20 years in prison and a fine of up to $250,000. For the destructive device count, the maximum punishment is 10 years in prison and a fine of up to $10,000.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The St. Charles Police Department and ATF are investigating this case. The case is being handled by Assistant United States Attorney John Ware.
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Four Indicted for Wire Fraud, Mail Fraud and Money Laundering in International Telemarketing Scheme Targeting SeniorsRead the Press Release
Myrtle Beach, South Carolina ––– Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a 13-count indictment charging four in the Myrtle Beach area for an alleged international telemarketing scheme targeting seniors.
Fabian Gray, a/k/a Mike Taylor, 29; Avia Reid, 29; Khalelah Powell, 20; and Romaine Gordon, 29, all of Myrtle Beach, have been charged with conspiracy to commit wire fraud, wire fraud, mail fraud, and conspiracy to commit money laundering.
The indictment alleges that, since June 2015, the four defendants knowingly, willfully, and intentionally conspired to defraud victims by use of telemarketing. Namely, it is alleged that the defendants and their co-conspirators falsely informed more than 100 victims, most of them elderly, that the victims had won large awards of money and then convinced the victims that they had to pay fees in advance in order to receive their awards.
The indictment further alleges that the defendants and their co-conspirators sent communications purported to be from a genuine sweepstakes company, financial institutions, and even federal agencies that discussed the purported cash awards, designed to hide the true nature of the conspiracy and to convince victims of the authenticity of the winnings and fees. The defendants then allegedly instructed how and whom the bogus fees and taxes were to be sent. After receiving the victims’ money through prepaid cards, money orders, cash, personal checks and wire transfers, the defendants in turn wire transferred and carried to co-conspirators in Jamaica and elsewhere.
It is alleged in the indictment that at least $665,000 was stolen in the scheme.
The maximum penalty the defendants could receive per count is 20 years imprisonment and a fine of $250,000. Because the indictment alleges that the defendants targeted victims over the age of 55, the defendants face an enhanced penalty of up to 10 additional years for the first 12 counts of the indictment.
All defendants are currently detained pending trial. During the detention hearing of several of the defendants, information was presented to the court that the defendants are all originally from Jamaica and that at least two of the defendants are in the United States without legal status.
The case was investigated by Homeland Security Investigations (HSI). Assistant United States Attorney Derek Shoemake is prosecuting the case.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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