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1 July 2021
Fort Myers Businessman Sentenced to Three Years in Federal Prison for COVID Relief Fraud and Mortgage FraudRead the Press Release
Fort Myers, Florida – Senior U.S. District Judge John Steele has sentenced Casey David Crowther (35, Fort Myers) to three years and one month in federal prison for two counts of bank fraud, two counts of making a false statement to a lending institution, and two counts of money laundering. The court also ordered Crowther to forfeit $2,739,081.21, $630,482.37, and a 40’ catamaran boat, which were the proceeds of the Paycheck Protection Program (PPP) fraud and the mortgage fraud offenses.
At trial, a federal jury had found Crowther guilty of committing bank fraud, making a false statement to a lending institution, and two counts of money laundering on March 26, 2021, which were related to a PPP fraud scheme. Before the trial started, Crowther pleaded guilty to one count of bank fraud and one count of making a false statement to a financial institution, which were related to a mortgage fraud scheme. As part of the mortgage fraud scheme, Crowther created false bank statements to justify a loan he had used to purchase a nearly $1.3 million waterfront house in St. James City, Florida.
According to evidence at the trial, Crowther obtained a $2.1 million PPP loan by falsely stating that he had intended to use the money to make payroll and pay rent and utilities for his company Target Roofing and Sheet Metal, Inc. However, Crowther intended to use the money to enrich himself and, once the loan was obtained, quickly used the proceeds to make a series of personal purchases including a nearly $700,000 boat and a $100,000 payment to a former business partner. Crowther concealed the scheme by providing false explanations for the expenditures to his bank, calling the boat “equipment” and the payment to his former partner “payroll.” Under the terms of the PPP program, Crowther did not have to pay back the loan if he used at least 60% of the proceeds on payroll. To falsely make it appear he met that threshold, Crowther created dozens of fake employees to whom he purportedly paid wages: by adding multiple family members to his company’s payroll, even though they did not actually perform work; and, separately, by creating 39 other fake employees, for whom he obtained fake identification documents -- including Social Security cards -- that he provided to his company’s Human Resources to be placed in the files of the “employees.”
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorneys Trent Reichling and Michael V. Leeman. Assistant United States Attorney Suzanne Nebesky obtained the forfeitures.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Former West Boylston Nurse Sentenced for Tampering with Hydromorphone and MeperidineRead the Press Release
BOSTON – A former nurse was sentenced on Tuesday, June 29 in federal court in Boston for tampering with opioids intended for emergency department patients at a hospital where he worked and then attempting to conceal his crime by replacing the diverted narcotics with saline.
Mark Croft, 48, of West Boylston, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year and one day in prison and three years of supervised release, with the first year to be severed in home confinement. On Jan. 28, 2021, Croft pleaded guilty to one count of tampering with a consumer product and one count of acquiring a controlled substance by deception and subterfuge.
While working at a Massachusetts hospital in January 2016, Croft administered hydromorphone and meperidine – both Schedule II controlled substances – to emergency department patients in need of pain relief. A month earlier, in December 2015, Croft had entered into an Agreement Not to Practice with the Massachusetts Board of Registration in Nursing after being terminated from a previous position as a nurse. Croft did not inform his then-current employer that he had voluntarily agreed not to practice. Between Jan. 5 and Jan. 14, 2016, Croft tampered with carpujects – syringe devices used to administer injectable fluid medication – containing hydromorphone and meperidine by accessing the automated dispensing machine (ADM) in the hospital’s emergency department.
Specifically, Croft used his credentials to enter false “cancel” or “return to stock” transactions in the ADM, which allowed him to remove carpujects containing hydromorphone and meperidine. He then used syringes to puncture the carpujects and remove portions of the hydromprohone and meperidine for his own use. In several instances, Croft replaced the medication he removed with saline in an attempt to conceal his conduct. To avoid detection, Croft later put the carpujects with the diluted medication back in the ADM where they remained available for nurses to unwittingly use on patients.
Acting United States Attorney Nathaniel R. Mendell; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margaret R. Cooke, Acting Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Patrick Callahan of Mendell’s Health Care Fraud Unit prosecuted the case.
Former Postal Worker Pleads Guilty to Mail Theft from Paulina Post OfficeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that LACEY STEWART, age 35, of Baton Rouge, Louisiana pled guilty as charged to a one count Bill of Information on June 29, 2021. She was charged in 2021 by a Bill of Information with Mail Theft, a violation of Title 18, United States Code, Section 1708.
In papers filed with the court and signed by defendant LACEY STEWART, she admitted to being an employee of the Paulina, Louisiana Post Office. She further admitted to stealing a $1,000.00 postal money order from an Express Mail package she handled. She removed the postal money order from the package and cashed it at the Paulina Post Office. Her theft was discovered when the person to whom the package was delivered discovered that the postal money order was missing.
STEWART faces up to five (5) years incarceration, up to a $250,000 fine, restitution, up to three (3) years supervised release and a $100 mandatory special assessment fee. Sentencing is set for August 31, 2021.
U.S. Attorney Evans praised the work of the Office of Inspector General of the United States Postal Service in investigating the matter. The case is being handled by Assistant United States Attorney Carter K.D. Guice Jr.
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Former Exeter Hospital Employee's Request for Compassionate Release from 39-Year Sentence DeniedRead the Press Release
CONCORD – A federal judge today rejected an effort by David M. Kwiatkowski, 41, to obtain compassionate release, Acting United States Attorney John J. Farley announced today.
Kwiatkowski, 41, a medical technician who worked at hospitals in at least eight different states, repeatedly stole fentanyl that was intended for patients who were undergoing medical procedures, injected the drug into his body, and then refilled the syringes with saline. The patients then received injections of saline that had been tainted by his blood. Because he was infected with Hepatitis C, Kwiatkowski’s actions not only deprived patients of medication, but also infected over 40 victims with Hepatitis C. One of those victims, a resident of Kansas, died as a result of his conduct.
Kwiatkowski’s crimes came to light after law enforcement authorities in New Hampshire investigated an outbreak of Hepatitis C at Exeter Hospital in 2012. He was arrested in July of 2012. He pleaded guilty in August of 2013 to eight counts of tampering with a consumer product and eight counts of obtaining a controlled substance by fraud. He was sentenced to serve 39 years in prison in December of 2013.
In January of 2021, Kwiatkowski filed a motion requesting compassionate release from prison. He alleged that his medical conditions placed him at high risk of becoming severely ill if he were to become infected with COVID-19.
At a hearing today, U.S. District Judge Joseph Laplante denied Kwiatkowski’s motion. In rejecting the request, the judge noted that the defendant’s crime had been “extremely cruel and callous” and that the risk posed by COVID-19 did not justify releasing the defendant after he had only served approximately nine years of his 39-year sentence.
“I am grateful that the Court rejected this defendant’s effort to avoid serving his justly-imposed prison sentence,” said Acting U.S. Attorney Farley. “This defendant damaged the lives of dozens of victims in multiple states and caused a significant public health crisis. It would have been a grave injustice if this defendant had been released from prison while so many of his victims continue to endure the health consequences of his unlawful and cruel actions.”
The criminal investigation was a cooperative effort of federal, state, and local law enforcement entities, including the Federal Bureau of Investigation, the Office of Inspector General of the U.S. Department of Health and Human Services, the Drug Enforcement Administration, the Office of Criminal Investigations of the Food and Drug Administration, the Office of Inspector General of the Department of Veterans Affairs, the New Hampshire Attorney General’s Office, the New Hampshire State Police, and the Exeter, New Hampshire Police Department. Assistance also was provided by the New Hampshire Drug Task Force, the Marlborough, Massachusetts Police Department, the Boxborough, Massachusetts Police Department, and the United States Attorney’s Offices in the District of Massachusetts, the District of Kansas, the District of Maryland, and the Middle District of Georgia.
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Former Construction Executive Sentenced to 51 Months in Prison for Tax Evasion and Bribery SchemeRead the Press Release
A New York construction executive was sentenced today in Manhattan federal court to 51 months in prison for evading taxes on more than $1.8 million in bribes he received from building subcontractors.
According to the criminal information, as well as other public documents and recent court proceedings, between 2011 and 2017, Vito Nigro, formerly of Middletown, New Jersey, and now of Ocean, New Jersey, was a senior construction official at Turner Construction Company, a major construction firm that performed building projects in New York City for Bloomberg LLP. Nigro used his position to participate in a scheme to obtain bribes from construction subcontractors, who paid kickbacks in exchange for being awarded construction contracts and subcontracts. In total, Nigro received approximately $1,350,000 in unlawful cash payments, which he did not report on his 2011 to 2017 tax returns. Nigro also received in-kind bribes in the form of renovations and improvement projects at his New Jersey residence.
In imposing the sentence, Judge Torres indicated that a restitution order would be entered, with the amount being no less than $780,000 owed by Nigro to the IRS, and no more than $812,000.
In related proceedings, co-conspirator Ronald Olson, the former vice president and deputy operations manager at Turner Construction, was sentenced on June 15 by the Honorable P. Kevin Castel to 46 months in prison for evading taxes on more than $1.5 million in bribes. Another co-conspirator, Anthony Guzzone, a former Director of Global Construction at Bloomberg, was sentenced on Jan. 19 by the Honorable Lewis J. Liman to 38 months in prison for evading taxes on more than $1.45 million in bribes in the same scheme. Michael Campana, a subordinate construction manager at Bloomberg also involved in the same scheme, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison for evading taxes on more than $420,000 in bribes.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney Audrey Strauss for the Southern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Stanley J. Okula of the Tax Division and Assistant U.S. Attorney David Raymond Lewis of the Southern District of New York’s Complex Frauds and Cybercrime Unit are in charge of the prosecution.
Former Construction Executive Sentenced to More Than 4 Years in Prison for Tax Evasion and Bribery SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that VITO NIGRO, a former construction project manager at Turner Construction Company (“Turner”), was sentenced today in Manhattan federal court to 51 months in prison for evading taxes on more than $1.8 million in bribes he received from building sub-contractors, in connection with a number of building projects undertaken for Bloomberg LP (“Bloomberg”). NIGRO previously pled guilty to those charges, and was sentenced today before U.S. District Judge Analisa Torres.
In related proceedings, co-conspirator Ronald Olson, a former vice president and deputy operations manager at Turner, was sentenced on June 15, 2021, by the Honorable P. Kevin Castel, to 46 months in prison, for evading taxes on more than $1.5 million in the same scheme; Anthony Guzzone, a former director of global construction at Bloomberg, was sentenced on January 19, 2021, by the Honorable Lewis J. Liman to 38 months in prison, for evading taxes on more than $1.45 million; Michael Campana, a subordinate construction manager at Bloomberg, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000.[1]
U.S. Attorney Audrey Strauss said: “Bribery and tax evasion in the construction industry impose hidden, unfair costs on law-abiding builders, contractors, and fellow taxpayers. Appropriately, Vito Nigro has been sentenced to prison for his crimes.”
According to the four criminal Informations filed in these federal cases, as well as other public documents and recent court proceedings:
Between 2011 and 2017, NIGRO was a construction project manager at Turner, a construction firm that performed various building projects in New York City and elsewhere for Bloomberg, a global financial firm. Throughout those years, Guzzone oversaw such building projects at Bloomberg, while NIGRO and Olson worked at Turner. Beginning in 2013, Campana was also a construction manager at Bloomberg, and a subordinate to Guzzone. Each of the defendants participated in a scheme to obtain bribes from construction sub-contractors, who paid kickbacks to the defendants in exchange for being awarded various construction contracts and sub-contracts performed for Bloomberg. Olson and NIGRO also separately schemed to receive kickbacks in connection with construction projects Turner was performing for clients other than Bloomberg.
In all, the defendants have pled guilty to failing to pay taxes, between 2010 and 2017, on bribes exceeding $5.1 million. The defendants received such bribes in various forms, including millions of dollars in cash, as well as construction projects on their individual homes and properties, and the direct payment of personal expenses. Such personal expenses included hundreds of thousands of dollars’ worth of repeated renovations and improvement projects at NIGRO’s home in New Jersey and OLSON’s homes on Long Island and Long Beach Island, as well as a sham lease of that beach house, through which OLSON received $20,000 per month in payments that he falsely characterized as rent; Guzzone’s receipts of several sets of Super Bowl tickets, worth approximately $8000 per ticket; and Campana’s receipt of charges related to his 2017 wedding, such as approximately $40,000 paid by sub-contractors to a catering hall in New Jersey, over $13,000 to a photography studio, and over $23,000 to a travel agent for airline tickets purchased in connection with Campana’s honeymoon. Each of the defendants evaded federal income tax on this bribery income, by failing to declare it on income tax returns for various years between 2010 and 2017.
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NIGRO, 60, of Middletown, New Jersey, pled guilty on October 28, 2020, to a single count of tax evasion for the tax years 2011 through 2017. In addition to the prison term, NIGRO was sentenced to three years of supervised release. He was also ordered to make full restitution, in an amount to be set by Judge Torres within 30 days. The Government is seeking $812,108.93 in restitution for unpaid taxes and interest.
Olson, 54, of Massapequa, New York, pled guilty on July 29, 2020, to a single count of tax evasion for the tax years 2011 through 2017. He was sentenced on June 15, 2021, to 46 months in prison, three years of supervised release, and ordered to pay restitution of $661,519.57 in unpaid taxes and interest.
Guzzone, 52, of Middletown, New Jersey, pled guilty on September 29, 2020, to a single count of tax evasion for the tax years 2010 through 2017. He was sentenced on January 19, 2021, to 38 months in prison, three years of supervised release, and restitution of $574,005.33 in unpaid taxes and interest.
Campana, 35, of Tuckahoe, New York, pled guilty to a tax evasion charge on November 26, 2019, for the tax years 2014 thought 2017, and was sentenced last week, on July 24, 2020, to 24 months in prison, three years of supervised release, restitution of $155,000 in unpaid taxes, and a fine of $10,000.
Ms. Strauss praised the excellent work of the Internal Revenue Service.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis, and Stanley J. Okula, Senior Litigation Counsel of the Tax Division of the Department of Justice, are in charge of the prosecution.
[1] In addition, all four defendants have pled guilty in New York State Supreme Court, Indictment No. 04038-2018, to participating in the underlying bribery scheme, and are awaiting sentencing.
Former Boston Police Officer Pleads Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer pleaded guilty today in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s evidence warehouse.
Craig Smalls, 55, of Roxbury, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Allison D. Burroughs scheduled sentencing for Oct. 21, 2021. Smalls was charged on June 17, 2021.
From at least March 2015 through September 2016, Smalls submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Smalls claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Smalls submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts.
Between March 2015 and September 2016, Smalls personally collected approximately $16,252 for overtime hours he did not work.
To date, 14 Boston Police officers have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. Smalls is the eighth officer to plead guilty.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florencia 13 Gang Member Sentenced to 160 Months in Federal PrisonRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Aleandro Leon, age 24, of Pasco, Washington, was sentenced on June 30, 2021, after having pleaded guilty to: being a Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g)(1), 924(a)(2); Conspiracy to Provide Prohibited Objects to an Inmate in Prison in violation of 18 U.S.C. § 1791(a)(1), (a)(2), (b)(1), (b)(2) (b)(3), (b)4, and (c), all in violation of 18 U.S.C. § 371; and Inmate in Possession of a Prohibited Object, in violation of 18 U.S.C. § 1791(a)(2), (b)(1)(c). Chief United States District Judge Stanley Bastian sentenced Leon to a 160-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from prison.
According to information disclosed during court proceedings, Leon was under Department of Corrections supervision for a drive-by shooting conviction when he was indicted in three separate federal indictments, all involving separate criminal conduct from January 2019 until April 2020. Leon was identified as working within a criminal organization responsible for the distribution of thousands of deadly Fentanyl laced pills in early 2019. A partner of Leon, Miguel Candido' s apartment was searched in March of 2019 where 5000 Fentanyl laced pills, 1 pound of heroin, over $20,000 in US currency, drug ledgers, scales, and cell phones linking the two to a criminal organization were located. When Leon was arrested for those drug charges, he was unlawfully in possession of a loaded firearm. While in custody, Leon, a confirmed Florencia 13 gang member, became involved in a conspiracy to smuggle illegal contraband into the Benton County Jail with the assistance of a correctional officer. The illegal contraband included methamphetamine, heroin, marijuana, and cell phones.
Leon pled guilty to two out of the three federal indictments. A contested sentencing hearing was held June 30, 2021, and Chief Bastian found that, shortly after Leon's release from state custody on the drive-by shooting conviction in November 2017, Leon immediately began new criminal conduct to include the distribution of large quantities of Fentanyl laced pills and heroin. Even after his arrest, this criminal conduct continued with the serious actions within the Benton County Jail. Chief Judge Bastian determined Leon posed a danger to the community and an extreme risk to re-offend given his significant criminal history and recidivist criminal behavior. Judge Bastian sentenced Leon to 100 months on the firearms offense and a consecutive 60 months on the contraband offense.
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the federal and local agencies who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker and violent offender from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the DEA-Tri-Cities Task Force, METRO and Pasco Street Crimes Unit, United States Marshals Service, and Benton County Sheriff's Office. This case was prosecuted by Stephanie Van Marter, Assistant United States Attorney for the Eastern District of Washington.
Felon Sentenced to Four Years in Federal Prison for Possession of A Firearm and AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Claude Avery Rucker, age 31, of Capitol Heights, Maryland to four years in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his plea agreement, on December 11, 2019, Prince George’s County Police Department officers received a call reporting a parked vehicle in Capitol Heights, Maryland. As officers arrived on the scene, officers observed a silver vehicle parked with it’s low beams on. There were no other vehicles with lights on at the scene.
As officers approached Rucker, the driver and sole occupant of the vehicle, one officer smelled the odor of marijuana emitting from Rucker. When asked if he lived in the area, Rucker informed police that his uncle lived at one of the near-by residences. When law enforcement asked Rucker to provide identification, Rucker was unable to do so. Officers then asked Rucker to step out of the vehicle, at which time Rucker asked to call his uncle.
As Rucker exited the vehicle, Rucker shoved one law enforcement officer and attempted to flee on foot. Officers struggled with Rucker near the trunk of the vehicle as Rucker repeatedly reached for his waistband area and refused to comply with officers’ commands to place his hands behind his back.
As officers placed Rucker into handcuffs, a Glock Model 19 9mm handgun loaded with 15 rounds of 9mm ammunition fell from Rucker’s waistband. Law enforcement performed a search incident to the arrest that recovered approximately 15.4 grams of marijuana from Rucker’s right jacket pocket.
Prior to December 11, 2019, Rucker had been previously convicted of a crime punishable by a term exceeding one year and his civil rights had not been restored.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Dwight J. Draughon and Special Assistant U.S. Attorney Craig G. Fansler, who prosecuted the case.
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Federal Jury Convicts Local High School Janitor of Secretly Filming Students in Bathroom StallRead the Press Release
Orlando, Florida – Acting United States Attorney Karin Hoppmann announces that a federal jury has found Derremy Jerrell Walker (31, Sanford) guilty of two counts of using, or attempting to use, children to produce sexually explicit videos. Walker’s sentencing hearing has been set for September 21, 2021.
According to evidence and testimony admitted during the trial, Walker was a contracted janitor at Oviedo High School in November 2019, when two 15-year-old female students discovered an actively recording cellphone hidden under the sink inside a toilet stall in a student bathroom. The girls took the phone to school administrators, who then contacted the Oviedo Police Department.
Forensic analysis of the cellphone revealed Walker had placed the phone in the same location on two prior dates in November 2019, each time creating a one-hour video of students in that stall. On the date the girls found the phone, it had been recording video for about 15 minutes before they discovered it. In each of the three instances, Walker had angled the cellphone’s camera in an effort to capture the genitalia and pubic areas of those in the stall. School administration officials and law enforcement officers were able to identify six of the ten students unknowingly captured in the videos Walker created.
Further analysis revealed Walker had also set up a surreptitious cellphone camera to record in the school’s faculty bathroom earlier that month.
This case was investigated by the Oviedo Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Federal Indictment Accuses Three Men of Unlawfully Dealing or Possessing Firearms in ChicagoRead the Press Release
CHICAGO — Three men have been charged in a federal indictment with unlawfully dealing or possessing firearms in Chicago.
JOHNATHAN BURGOS, 28, of Chicago, illegally dealt firearms in Chicago from January to March of last year, according to an indictment returned in U.S. District Court in Chicago. Burgos also illegally possessed handguns and a semiautomatic rifle on seven occasions last year and this year, the indictment states. As a previously convicted felon, Burgos was not lawfully allowed to possess the firearms.
Two other convicted felons – ALEJANDRO DAVIS, 29, of Chicago, and DAMIAN REYES, 23, of Chicago – are also charged in the indictment with illegally possessing firearms in the city.
All three defendants were arrested Wednesday and have made initial appearances in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Paul Mower represents the government.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Illegal possession of a firearm by a convicted felon is punishable by a maximum sentence of ten years in federal prison, while dealing firearms without a license is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Federal Gun Trafficking and Drug Dealing Charges Filed Against Chicago ManRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with trafficking a loaded submachine gun and dealing cocaine in the city.
JOSUE CANALES, 28, knowingly transferred a loaded Israeli Military Industries Model submachine gun to another individual on Dec. 15, 2020, according to an indictment returned in U.S. District Court in Chicago. The indictment also accuses Canales of distributing cocaine in Chicago on four occasions in 2019.
Canales was arrested Wednesday and has made an initial appearance in federal court in Chicago.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorney Paul Mower represents the government.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
One of the four drug counts against Canales carries a mandatory minimum sentence of five years in federal prison and a maximum of 40 years. The three other drug counts are each punishable by a maximum sentence of 20 years, while the firearm count carries a maximum sentence of ten years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Extradited Ghanaian National Sentenced to Nearly 6 Years in Prison for Multimillion-Dollar Money Laundering ConspiracyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that DEBORAH MENSAH was sentenced to 70 months in prison for her participation in a conspiracy to launder millions of dollars of fraud proceeds from business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018. MENSAH was extradited from the Republic of Ghana (“Ghana”) to the United States on August 21, 2020. She pled guilty to conspiring to commit money laundering on April 2, 2021, before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
Manhattan U.S. Attorney Audrey Strauss said: “Deborah Mensah was a member of an international criminal enterprise that stole millions of dollars from businesses and vulnerable individuals across the United States, and laundered that money through a network of bank accounts in the Bronx. Having previously been extradited from Ghana, Deborah Mensah has now been sentenced to a term in a U.S. prison for her crime.”
According to the Indictment and other public filings in the case:
From at least in or about 2014 through in or about 2018, MENSAH was a member of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York.
The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise. First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company to “spoof” or impersonate those employees or third parties. These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic. The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees. By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including MENSAH.
The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise, including MENSAH. At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise. The members of the Enterprise, posing as the romantic interest of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise.
MENSAH and her co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise into bank accounts that she and other members of the Enterprise controlled in the Bronx, New York. MENSAH opened and maintained multiple business bank accounts in the name of an auto sales company to receive funds stolen from victims and launder them to co-conspirators based primarily in Ghana. She also recruited and directed one co-conspirator to receive and launder fraud proceeds and instructed that co-conspirator on how to set up a business bank account for this purpose to avoid detection.
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MENSAH, 34, a citizen of Ghana, was also sentenced to three years of supervised release. In addition, MENSAH was ordered to forfeit $202,964 and pay restitution of $1,505,519 to victims.
Other defendants in this case who have been sentenced include Muftau Adamu, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” 32, of the Bronx, New York, who was sentenced to 51 months in prison on June 7, 2019; Tourey Ahmed Rufai, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” 34, of the Bronx, New York, who was sentenced to 48 months in prison on April 12, 2019; Prince Nana Aggrey, 45, of the Bronx, New York, who was sentenced to 30 months in prison on May 10, 2019; and Assana Traore, 41, of the Bronx, New York, who was sentenced to 15 months in prison on October 8, 2019. Adamu, Rufai, and Aggrey each pled guilty to one count of conspiracy to commit wire fraud, and Troare pled guilty to one count of conspiracy to receive stolen money. Each of the defendants was sentenced by Judge Cote.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Ms. Strauss also thanked the United States Marshals Service, the FBI Legal Attaché in Accra, Ghana, U.S. Customs and Border Protection, the Ministry of Justice & Attorney General’s Office of Ghana, and Ghana’s Economic and Organised Crime Office, for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Ghana.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi and Mitzi Steiner are in charge of the prosecution.
Ex-Corrections Officer Trainee Sentenced in Federal CourtRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Tarrence Dramon Tolbert, 40, of Brewton, Alabama, was sentenced on June 29, 2021 to 135 months’ imprisonment for his possession with intent to distribute methamphetamine on February 24, 2020. In January of 2021, Tolbert pled guilty to the charge in federal court in Mobile.
According to documents filed in connection with his guilty plea, Tolbert was a corrections officer trainee at Fountain Correctional Facility in Atmore, Alabama, on February 24, 2020, and a supervisor observed that he was stopped on the side of the road at about 8:30 p.m. The supervisor stopped and asked Tolbert if everything was okay, and Tolbert replied that he was waiting on a relative. The supervisor was suspicious about these circumstances, and left instructions to have Tolbert and his belongings searched when he arrived for his shift. Investigators conducted the search as instructed, and discovered methamphetamine ice, marijuana, earbuds, a SIM card, cigars, two bottles of liquor and two knives, which Tolbert intended to smuggle into the prison and deliver to certain inmates.
United States District Court Judge William H. Steele imposed the sentence of 135 months’ imprisonment, to be followed by a five-year term of supervised release when Tolbert is released from custody. No fine was imposed but Tolbert was also ordered to pay a mandatory special assessment of $100.
The case was investigated by the Alabama Department of Corrections, the Alabama Law Enforcement Agency and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Essex Man Pleads Guilty to Crack Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Joel William Hammond, age 35, of Essex, Maryland, pleaded guilty today to conspiracy to distribute and possess with intent to distribute at least 28 grams of cocaine base.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; Sheriff Jeff Gahler of the Harford County Sheriff’s Office; and the Harford County Narcotics Task Force comprised of members of the Harford County Sheriff's Office, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department and the Harford County States Attorney’s Office.
According to his guilty plea, the Harford County Narcotics Task Force undertook an investigation into a drug trafficking organization (DTO) distributing powder and crack cocaine in Harford County, Maryland. On February 4, 2020, the Harford County Narcotics Task Force received authorization from a Circuit Court County Judge to intercept wire and electronic communication of drug trafficking organization members.
Over the course of the investigation, detectives intercepted numerous drug-related communications over social media and phone calls. The intercepted communications identified Hammond as a drug supply source.
On March 7, 2020, task force detectives followed one of the DTO members to Hammond’s Essex, Maryland residence. Upon arrival, detectives observed members of the DTO make contact with Hammond. Following the meeting with Hammond, DTO members returned to Harford County. Detectives then observed one of the members of the DTO meet with several known drug users, following the meeting with Hammond. Detectives believe this to be consistent with this individual obtaining two to three ounces of crack cocaine from Hammond, the source of supply for the DTO.
Hammond met with members and customers of the DTO on at least 10 occasions between March and April 2020. Specifically, on March 31 detectives intercepted a series of communications indicating that a member of the DTO planned to meet Hammond to obtain crack cocaine. Investigators learned that Hammond sold approximately one ounce of crack cocaine to the individual during the meeting.
On April 21, 2020, investigators intercepted a communication that indicated that Hammond and a DTO member were to meet later that day. Detectives observed Hammond and the DTO member make contact at Hammond’s residence. Soon after, the DTO member proceeded to drive back to Harford County. As the DTO member returned to Harford County, the Harford County Sheriff’s Office Special Response Team and Harford Narcotics Task Force searched the member’s vehicle during a traffic stop pursuant to a search warrant.
As a result of the search, law enforcement discovered two plastic bags of a white substance as well as $660 in U.S. currency. One of the bags contained a white rock like substance that was similar to powder cocaine that had been directly cut off a kilogram of pressed cocaine. In total, the substance was 16 grams in weight. The second bag was an off-white rock like substance that law enforcement determined to be crack cocaine. The total weight of the bag was 41 grams. Both substances tested positive for the presence of cocaine. The combined weight of the two bags was 57.9 grams.
On April 22, 2020, law enforcement executed a search warrant at Hammond’s residence and seized a small quantity of crack cocaine.
Hammond agrees it is reasonably foreseeable that the conspiracy involved at least 112 grams but less than 196 grams of crack cocaine.
Hammond and the government have agreed that, if the Court accepts the plea agreement, Hammond will be sentenced to six years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 27, 2021 at 11 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Harford County States Attorney’s office, the Harford County Narcotics Task Force, and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Christopher J. Romano who is prosecuting the case.
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Duval Felon Indicted for Attempting to Purchase FirearmRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Jose Angel Vazquez, (59, Jacksonville) with making a false statement to a federal firearms dealer. If convicted, Vazquez faces a maximum penalty of five years in federal prison.
According to the indictment, Vazquez attempted to purchase a handgun from a Federally Licensed Firearm Dealer on February 2, 2021, after having been convicted of numerous felonies on multiple occasions.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce Federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of Federal, State, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Department of Justice Statement on Supreme Court Decision in BrnovichRead the Press Release
The U.S. Department of Justice today released the following statement from spokesman Anthony Coley following the Supreme Court’s decision in Brnovich, et al. v. Democratic National Committee, et al.:
“The Attorney General has made clear, ‘the Department of Justice will never stop working to protect the democracy to which all Americans are entitled.’ The department remains strongly committed to challenging discriminatory election laws and will continue to use every legal tool available to protect all qualified Americans seeking to participate in the electoral process. The department urges Congress to enact additional legislation to provide more effective protection for every American’s right to vote.”
Defendants Sentenced in Four Separate CasesRead the Press Release
ALEXANDRIA/LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of numerous cases this week in United States District Court in the Western District of Louisiana, all of which are listed below.
SENTENCING HEARINGS – LAFAYETTE
Joshua L. Damond, 29, of Lafayette, Louisiana, was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 78 months (6 years, 5 months) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Damond was charged in an indictment and pleaded guilty on March 8, 2021.
In June 2020, Damond led law enforcement officers on a high-speed chase after leaving the residence where his daughter lived with her mother. When Damond went to the residence where his daughter lived, the mother refused to allow him to enter the residence, but he kicked in the door and then got into a verbal altercation with her. The mother and daughter left, and he followed them. Law enforcement officers arrived on the scene and observed Damond leaving the area and attempted a traffic stop. He refused to stop, and a pursuit ensued. During the chase, officers observed Damond throw items from the vehicle. Other officers assisting in the chase stopped to find the item that was thrown and found a firearm wrapped in the blue shirt Damond had been wearing. He was apprehended and arrested. The firearm was determined to be stolen.
Damond has prior felony convictions for possession of cocaine (2014) and monies derived from drug violation and illegal possession of stolen firearm (2015) and is prohibited from possessing a firearm.
The ATF, Lafayette Parish Sheriff’s Office and Jefferson Davis Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John W. Nickel prosecuted the case.
Shaun J. Labbe, 38, and Ana C. Smith, 33, both of Scott, Louisiana, have been sentenced by United States District Judge Robert L. Summerhays on drug trafficking charges. Labbe was sentenced to 210 months (17 years, 6 months) and Smith was sentenced to 72 months (6 years) in prison, followed by 5 years of supervised release for each.
Labbe and Smith were indicted on March 18, 2020 and charged with drug trafficking and firearms charges. Labbe pleaded guilty March 5, 2021 to conspiracy to possess with intent to distribute methamphetamine. Smith pleaded guilty January 6, 2021 to possession with intent to distribute methamphetamine. Evidence introduced in court revealed that in 2018, agents with the Lafayette Parish Narcotics Unit began investigating Labbe and Smith who were suspected of selling large quantities of methamphetamine from their residence and his place of business. Law enforcement agents obtained search warrants for their residence and his place of business and in October 2018 executed those warrants. Agents found 370.7 grams of methamphetamine, 45.4 grams of marijuana and other narcotics, as well as over $8,000 in cash, two handguns, and other drug paraphernalia. During a search of Labbe’s place of business, agents found approximately 5,053 grams of methamphetamine which was hidden inside a child’s playhouse. Labbe admitted the seized items and cash found in the residence were his and that he was aware the narcotics were hidden in the business. Smith admitted to law enforcement that she knew about the items in the residence and that she participated in the distribution and sale of methamphetamine in Lafayette Parish.
The DEA, FBI and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John W. Nickel prosecuted the cases.
SENTENCING HEARINGS – ALEXANDRIA
United States District Judge Dee D. Drell sentenced the following defendants in Alexandria:
Chace Middlebrooks, 37, of Evergreen, Louisiana, was sentenced to spend 59 months in prison, followed by 2 years of supervised release, for being a convicted felon in possession of a firearm. Middlebrooks was charged in an indictment and pleaded guilty March 26, 2021. According to court documents, Middlebrooks had an outstanding arrest warrant and on April 20, 2020, two Louisiana State Police troopers spotted a vehicle that belonged to him near a residence in Evergreen. As the troopers drove toward the vehicle, the driver who was later identified as Middlebrooks, led the troopers on a brief pursuit and after a short time they were able to stop the vehicle and arrest him. Middlebrooks admitted to having a sawed-off shotgun in his possession prior to the pursuit and troopers were able to find and seize the gun. Middlebrooks has four prior felony convictions for unauthorized entry of an inhabited dwelling (2009); theft and illegal possession of stolen things (2011); violation of a protective order (2019); and domestic abuse battery by strangulation (2019), and is prohibited from possessing a firearm.
The ATF and Louisiana State Police conducted the investigation and Assistant U.S. Attorney Leon H. Whitten prosecuted the case.
Baldomero C. Velasco, 31, of Baytown, Texas, and Antonio Zarate, 22, of South Houston, Texas, were each sentenced on drug trafficking charges. Velasco and Zarate were each sentenced to 28 months in prison, followed by 1 year of supervised release. Both defendants pleaded guilty to the charges on January 31, 2020.
Velasco pleaded guilty to conspiracy to possess with intent to distribute cocaine and admitted to conspiring with his co-defendants to willfully joining in the conspiracy and knew of its unlawful purpose. He stipulated and agreed that the conspiracy involved at least 500 grams or more of cocaine and that the acts took place in the Western District of Louisiana.
Zarate pleaded guilty to a Bill of Information charging interstate travel or transportation in aid of racketeering. He admitted that on March 16 and 17, 2018, he traveled from the State of Tennessee to the State of Louisiana with the specific intent of carrying out an unlawful activity, by conspiring to possess with intent to distribute cocaine.
The Drug Enforcement Administration and Department of Homeland Security-Office of Immigration and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the cases.
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City of Chicago Alderman and Her Chief of Staff Indicted on Federal Bribery ChargesRead the Press Release
CHICAGO — A federal grand jury today indicted City of Chicago Alderman CARRIE M. AUSTIN and her Chief of Staff on bribery offenses for allegedly conspiring to receive home improvements from construction contractors seeking city assistance for a development project in Austin’s Far South Side ward.
Austin, 72, of Chicago, is charged with one count of conspiring to use interstate facilities to promote bribery, two counts of using interstate facilities to promote bribery, and one count of willfully making materially false statements to the FBI. Austin’s Chief of Staff, CHESTER WILSON JR., 55, of Chicago, is charged with one count of conspiring to use interstate facilities to promote bribery, two counts of using interstate facilities to promote bribery, and one count of theft of government funds.
The indictment was returned today in U.S. District Court in Chicago. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Anthony Mohatt, Special Agent-in-Charge of the U.S. Department of Agriculture, Office of Inspector General; Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Joseph M. Ferguson, Inspector General for the City of Chicago. The government is represented by Assistant U.S. Attorneys Andrianna Kastanek and Katie M. Durick.
According to the indictment, starting in 2014 a construction company planned to construct a residential development in Austin’s ward at a cost of approximately $49.6 million. Under an agreement with the city, the company was responsible for making infrastructure improvements within the project, including construction of new interior streets, street lighting, landscaping, and sidewalk improvements, and was eligible to receive more than $10 million in tax increment financing and other payments from the city.
The indictment alleges that, beginning in 2016, Austin and Wilson were provided with personal benefits by the owner of the construction company and other contractors in an effort to influence them in their official capacities. The benefits included home improvements, furniture, and appliances for Austin’s residence, and home improvement materials and services for rental properties owned by Wilson, the indictment states.
According to the charges, in June 2017 a contractor on the development project paid an invoice for $5,250 to cover a portion of the purchase price of kitchen cabinets at Austin’s residence by falsely representing that the cabinets were for an address within the development. In addition, in July 2017 Austin accepted from a contractor on the project an offer to pay for two “brand new” and “expensive” sump pumps, and to have the contractor’s family member buy and install a new dehumidifier, the indictment states. Wilson also solicited benefits from a contractor on the project for his rental property, including services for “heating and air,” the charges allege. In October 2017 the contractor told Wilson that he would pay for a portion of a new HVAC system at Wilson’s property because, “you help me a lot, and I’ll help you,” the indictment states.
The indictment alleges that Austin and Wilson authorized the expenditure of aldermanic menu funds to benefit the construction company for infrastructure within the development, and that on multiple occasions in 2017 and 2018 Austin coordinated with the construction company owner to seek the city’s release of TIF and other payments.
The theft charge against Wilson accuses him of engaging in a separate scheme to purchase Supplemental Nutrition Assistance Program (SNAP) benefits at a discount. Wilson, who was not eligible for SNAP benefits due to his city of Chicago salary, allegedly obtained a card containing SNAP benefits by paying cash to the recipient in an amount below the face value of the card, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The conspiracy, bribery, and false statement counts are each punishable by up to five years in federal prison, while the theft charge is punishable by up to one year. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
California Parent Agrees to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – A California parent has agreed to plead guilty to a tax offense in connection with his involvement in the college admissions case.
Homayoun Zadeh, 59, an associate professor of dentistry at the University of Southern California (USC), has agreed to plead guilty to a superseding information charging him with one count of filing a false tax return. A plea hearing has not yet been scheduled. Under the terms of Zadeh’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of six weeks in prison, one year of supervised release with 250 hours of community service and a fine of $20,000.
As set forth in the charging document, Zadeh agreed with William “Rick” Singer to pay $100,000 to facilitate the admission of Zadeh’s daughter to USC. Zadeh made installment payments toward that total to Singer’s purported charitable foundation, the Key Worldwide Foundation, and deducted the payments from his taxes as a purported gift to charity, despite knowing that they were not legitimate charitable contributions, but were made in exchange for facilitating his daughter’s admission to USC.
Singer has previously pleaded guilty for his role in the college admissions scheme.
Zadeh will be the 31st parent to plead guilty in the case.
Case information, including the status of each defendant, charging documents, and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of filing a false tax return provides for a sentence of up three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns, Karin M. Bell and Stephen E. Frank of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bridgeport Felon Pleads Guilty to Illegal Gun PossessionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ALBERT LOPEZ, 51, last residing in Bridgeport, pleaded guilty today to unlawful possession of a firearm by a felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Victor A. Bolden occurred via videoconference.
According to court documents and statements made in court, on October 12, 2017, members of the U.S. Marshals Service Fugitive Task Force located Lopez at a residence in Bridgeport and arrested him on a state warrant in connection with the alleged shooting of a victim in Bridgeport on September 9, 2017, and on a federal warrant related to his alleged violation of supervised release conditions. A search of Lopez’s bedroom on the date of his arrest revealed a stolen .40 caliber pistol.
Lopez has previously been convicted of multiple felony offenses in Connecticut state court and in federal courts in both Connecticut and Pennsylvania. Specifically, Lopez has been convicted of assault with a firearm, carrying a pistol without a permit, conspiracy to distribute cocaine, possession of contraband by an inmate, and possession of a firearm by a felon (twice). In March 2008, Lopez was sentenced to 47 months of federal imprisonment for possession of a firearm by a felon and, in January 2013, he was sentenced to 72 months of imprisonment for possession of a firearm by a felon and for violating the conditions of his federal supervised release.
Lopez has been detained since his arrest. As sentencing, which is not scheduled, he faces a maximum term of imprisonment of 10 years.
State charges against Lopez related to the September 9, 2017, shooting are pending.
This matter has been investigated by the Bridgeport Police Department, the U.S Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Anastasia E. King.
Bozeman man sentenced to prison for trafficking methRead the Press Release
MISSOULA – A Bozeman man who admitted to drug trafficking after an officer found methamphetamine and heroin in his vehicle during a traffic stop was sentenced today to five years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Rick Ray Garcia, 37, pleaded guilty on Feb. 12 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided. Garcia was detained.
The government alleged in court records that on Dec. 18, 2019, a Bozeman law enforcement officer conducted a traffic stop with Garcia in Gallatin County and arrested Garcia on an outstanding warrant. During a subsequent search of Garcia and his vehicle, law enforcement found about 9 grams of heroin, about 29 grams of meth and a loaded 9mm handgun. Garcia was known to law enforcement for distributing drugs.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bozeman Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Boone County Man Pleads Guilty to Federal Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – A Boone County man pleaded guilty today to a federal child pornography crime.
According to court documents, Gregory Weymes, 58, of Ridgeview, admitted that on February 23, 2021 he possessed child pornography on his cell phone. After receiving a cybertip through the National Center for Missing and Exploited Children, law enforcement investigators obtained a search warrant for Weymes’ residence. While executing the search warrant, investigators seized the cell phone from Weymes. In an interview, Weymes admitted that he used various social media platforms, including MeWe, to view and trade child pornography and that investigators would find child pornography on his phone. A forensic review of Weymes’ cell phone uncovered numerous videos depicting child pornography on the device.
Weymes pleaded guilty to possessing child pornography and faces up to 20 years in prison when he is sentenced on October 14, 2021. He will also be required to register as a sex offender.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00080.
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Berkeley County man arraigned on firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Detrick Lee Foston, of Martinsburg, West Virginia, was arrested today after being indicted by a federal grand jury on firearms charges, Acting U.S. Attorney Randolph J. Bernard announced.
Foston, 24, was indicted on one count of “Conspiracy,” two counts of “False Statement During Purchase of Firearms,” one count of “Transfer of Firearm to Out-of-State Resident,” one count of and one count of “False Statement During Purchase of Firearm.”
Foston is accused of working with another defendant charged in the indictment, Marquise Hicks, to illegally purchase and transfer firearms from March 2020 to June 2020 in Berkeley County and elsewhere.
Hicks, age 26, was indicted on one count of “Conspiracy” and one count of “Illegal Transportation or Receipt in State of Residency of Firearm Purchased or Acquired Outside of State of Residency.”
Fotson and Hicks each face up to five years of incarceration and a fine of up to $250,000 for the conspiracy charge. Fotson faces up to 10 years of incarceration and a fine of up to $250,000 for each of the false statement charges and faces up to five years of incarceration and a fine of up to $250,000 for the transfer charge. Hicks faces up to five years of incarceration and a fine of up to $250,000 for the illegal transportation charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge Robert W. Trumble presided.
Belizean National Sentenced for Using Counterfeit Immigration and Social Security Cards at Nevada DMVRead the Press Release
LAS VEGAS, Nev. – A Belize citizen, who was unlawfully in the United States, was sentenced today to three years and one month in prison for using a fraudulent United States Permanent Resident Card and a fake Social Security card while applying for a "Real ID" identification card at a Nevada Department of Motor Vehicles office.
According to court documents, on October 1, 2020, Rickon Amyon Wade, aka “Ricky Wade,” 35, attempted to obtain a Nevada Real ID identification card at a DMV office in Henderson. Wade presented a counterfeit United States Permanent Resident Card and counterfeit Social Security card — bearing Wade’s name and a Social Security number not assigned to him — as identification. Wade had obtained the fraudulent immigration and Social Security cards from a counterfeit document vendor in Los Angeles, California.
In addition to the prison term, U.S. District Judge Gloria M. Navarro sentenced Wade to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Inspector General Gail S. Ennis for the Social Security Administration Office of the Inspector General (SSA OIG) made the announcement.
The case was investigated by HSI and the SSA OIG after referral by the Nevada Department of Motor Vehicles Compliance Enforcement Division. Assistant U.S. Attorneys Kimberly Frayn and Jessica Oliva prosecuted the case.
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Attorney General Merrick B. Garland Imposes a Moratorium on Federal Executions; Orders Review of Policies and ProceduresRead the Press Release
Today, Attorney General Merrick B. Garland issued a memorandum imposing a moratorium on federal executions while a review of the Justice Department’s policies and procedures is pending.
“The Department of Justice must ensure that everyone in the federal criminal justice system is not only afforded the rights guaranteed by the Constitution and laws of the United States, but is also treated fairly and humanely,” said Attorney General Garland. “That obligation has special force in capital cases.”
In the last two years, the department made a series of changes to capital case policies and procedures and carried out the first federal executions in nearly two decades between July 2020 and January 2021. That included adopting a new protocol for administering lethal injections at the federal Bureau of Prisons, using the drug pentobarbital. Attorney General Garland’s memorandum directs the Deputy Attorney General to lead a multi-pronged review of these recent policy changes, including:
- A review coordinated by the Office of Legal Policy of the Addendum to the Federal Execution Protocol, adopted in 2019, which will assess, among other things, the risk of pain and suffering associated with the use of pentobarbital.
- A review coordinated by the Office of Legal Policy to consider changes to Justice Department regulations made in November 2020 that expanded the permissible methods of execution beyond lethal injection, and authorized the use of state facilities and personnel in federal executions.
- A review of the Justice Manual’s capital case provisions, including the December 2020 and January 2021 changes to expedite execution of capital sentences.
The Attorney General’s memorandum requires the reviews to include consultations with a wide range of stakeholders including the relevant department components, other federal and state agencies, medical experts and experienced capital counsel, among others.
No federal executions will be scheduled while the reviews are pending.
The Attorney General’s memorandum can be found here: /media/1149381/dl?inline.
Artesia man charged with illegal possession of firearms and child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Trevor Wright, 50, of Artesia, New Mexico, made an initial appearance in federal court today facing charges of possession of child pornography and being a drug addict in possession of firearms. Wright will remain in custody pending a detention hearing scheduled for July 7.
According to a criminal complaint, on June 25, the FBI executed a search warrant on Wright’s residence in Artesia. Investigators allegedly found child pornography on one of Wright’s cellular telephones. They also located 15 firearms allegedly in Wright’s possession within the residence. As a drug addict, Wright cannot legally possess a firearm.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Wright faces up to 20 years in prison.
The FBI Albuquerque’s Child Exploitation and Human Trafficking Task Force investigated this case with assistance from the Artesia Police Department. Assistant U.S. Attorneys Jaymie L. Roybal and Sarah Mease are prosecuting this case.
Altoona Man Sentenced for $1.2 Million Fraud Scheme and Failing to Pay TaxesRead the Press Release
PITTSBURGH, PA - A resident of Blair County, Pennsylvania, has been sentenced to 33 months in prison followed by three years of supervised release on charges of tax evasion and wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Patrick S. LaMarsh, 42, of Altoona, Pennsylvania.
The government represented to the court that between 2011 and 2013, LaMarsh defrauded TracFone and Walmart by selling fraudulently obtained Straight Talk airtime cards on Amazon.com. LaMarsh fraudulently re-encoded Straight Talk prepaid wireless cards and sold them for a discount, netting approximately $1.2 million in proceeds. LaMarsh used the proceeds to buy precious metals and a recreational vehicle. In addition, LaMarsh deposited proceeds into nominee bank accounts to conceal income.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and United States Secret Service conducted the investigation leading to the prosecution of LaMarsh.
Acting U.S. Attorney Raj Parekh Announces Enhanced Commitment to Civil Rights Enforcement in EDVARead the Press Release
ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today the formation of a Civil Rights Team in the Office’s Criminal Division, which will be responsible for enforcing the Nation’s federal criminal civil rights laws in EDVA, including additional resources to investigate and prosecute hate crimes, bias-related incidents, and alleged law enforcement misconduct, and to enhance outreach and awareness among impacted communities. The development of the Civil Rights Team in EDVA’s Criminal Division builds upon the prior establishment of the Civil Rights Enforcement Unit in EDVA’s Civil Division, which has engaged in trailblazing efforts to protect the civil rights of military servicemembers and individuals with disabilities, among others.
“Every individual has the right to enjoy their lives free from violence or discrimination based on race, color, national origin, religion, gender, gender identity, sexual orientation, age, disability, or any other protected basis,” said Acting U.S. Attorney Parekh. “Far too often, victims of hate crimes and discrimination suffer in silence. Through the creation and expansion of the Civil Rights Teams in both our Criminal and Civil Divisions, we aim to bring awareness, improve reporting of hate crimes and discrimination, increase enforcement of civil rights protections, and ensure the prosecution of those who infringe on the civil rights of others.”
These initiatives implement President Biden’s and Attorney General Garland’s directives to confront violence, hatred, and discrimination through modern, comprehensive methods that address the complexity of these issues. In a May 2021 memorandum, Attorney General Garland directed U.S. Attorneys’ Offices nationwide to bolster the Department’s effectiveness in this area, stating that these actions “will enhance our current efforts to combat unlawful acts of hate by improving incident reporting, increasing law enforcement training and coordination at all levels of government, prioritizing community outreach, and making better use of civil enforcement mechanisms.”
The civil rights enforcement efforts in EDVA’s Criminal and Civil Divisions are designed to meet these goals through close coordination with our federal, state, and local partners, and through sustained collaboration with impacted communities in the Eastern District of Virginia.
EDVA’s Criminal Civil Rights Team will focus on violations of federal civil rights laws, including hate crimes and bias-related incidents, alleged law enforcement misconduct, and other federal civil rights offenses. Assistant U.S. Attorney (AUSA) Nicholas U. Murphy II will continue to serve as the district-wide Civil Rights and Hate Crimes Coordinator for EDVA’s Criminal Division. Acting U.S. Attorney Parekh also announced today that he is appointing the following AUSAs to serve as additional Civil Rights Coordinators in all four of EDVA’s geographic divisions: Jamar K. Walker (Alexandria); Stephen E. Anthony (Richmond), E. Rebecca Gantt (Norfolk), and D. Mack Coleman (Newport News). These Civil Rights Coordinators will serve as internal subject matter experts and provide legal advice and training to other AUSAs and EDVA personnel on best practices for investigating and prosecuting federal hate crimes and other civil rights violations, in coordination with the Justice Department’s Civil Rights Division. In addition, the Civil Rights Coordinators will engage with federal, state, and local partners to expand EDVA’s existing outreach programs by improving awareness and proactively engaging with communities to increase hate crimes reporting and strengthen law enforcement’s collective response on these critical issues.
The creation of the Criminal Civil Rights Team follows last year’s announcement of the establishment of the Civil Rights Enforcement Unit in EDVA’s Civil Division, in connection with the 30th anniversary of the Americans with Disabilities Act (ADA). EDVA’s Civil Rights Enforcement Unit has engaged in groundbreaking work to enforce the ADA and ensure equal access to public accommodations, such as health care providers, and state and local government services, such as polling locations, in addition to protecting the rights of military servicemembers and veterans under the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act. The Civil Rights Enforcement Unit has also interacted extensively with the vulnerable communities that these laws seek to protect, providing essential education so that impacted individuals can understand and exercise the rights that the law affords.
Although the work of the Civil Rights Enforcement Unit has focused primarily on the enforcement of federal laws protecting the civil rights of veterans and individuals with disabilities, Acting U.S. Attorney Parekh announced today that the Unit’s work would expand to include the enforcement of federal civil rights laws for all protected individuals in connection with housing discrimination and harassment, actions that unduly burden religious expression, and law enforcement and correctional entities that engage in a pattern or practice of unlawful conduct.
The Civil Rights Enforcement Unit in EDVA’s Civil Division includes AUSA Steve Gordon, who serves as the Civil Rights Enforcement Coordinator, and AUSAs Lauren F. Oberheim, Deirdre G. Brou, and Clare P. Wuerker. AUSA Wuerker will focus her civil rights work on pattern or practice allegations in the law enforcement and correctional context.
“These enhanced efforts within EDVA’s Criminal and Civil Divisions will strengthen our Office’s unwavering commitment to ensuring that the civil rights of all who call the Eastern District of Virginia home—especially those in vulnerable communities—are vigorously protected,” said Acting U.S. Attorney Parekh.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
6-Time Convicted Armed Drug Trafficker Sentenced to 20 YearsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Danny Turner, 40, Madison, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 20 years in federal prison for 5 counts of distributing crack cocaine and heroin, possessing a firearm as a felon, and possessing a firearm in furtherance of a drug trafficking crime. Turner was convicted of these charges on July 15, 2020, after a three-day trial.
In January and February of 2020, Turner sold crack cocaine and heroin to an undercover police officer on five separate occasions. At the time of his arrest, he fought with the arresting officer while possessing a loaded firearm and more crack cocaine. Turner committed the first two drug distribution offenses while still on supervised release for his 2008 federal conviction for distribution of crack cocaine. Because Turner has three or more felony drug trafficking convictions and possessed a firearm, he was subject to a 15-year mandatory minimum sentence under the Armed Career Criminal Act. In addition, he faced another 5-year mandatory consecutive term of imprisonment because of his conviction for possessing a firearm in furtherance of a drug trafficking crime.
The charges against Turner were the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney David J. Reinhard.
$1.3 Million Fraud Ringleader Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, RI – The leader of a multi-state conspiracy that executed multiple schemes to defraud banks, finance companies, car dealerships, and retailers of more than $1.3 million was sentenced today to more than seven years in federal prison.
According to court documents, soon after arriving in the United States from the Dominican Republic in 2016, Octavio Andres Difo-Castro, 30, of Brooklyn, NY, began purchasing blocks of stolen identifying information of unsuspecting victims from the dark web. The identities were used to create high-quality drivers’ licenses and other documents he provided to individuals who worked at his direction to execute schemes that defrauded financial institutions and retailers.
Difo-Castro’s schemes included using the stolen identities and fraudulent documents to open bank accounts that were used to deposit and withdraw fraudulently obtained funds; to pose as both the seller and the buyer of vehicles in order to fraudulently secure bank and/or credit union financing from financial institutions in several states; and to obtain retail store credit and to make purchases at clothing and cellphone retailers in Rhode Island, Massachusetts, Connecticut, and Pennsylvania.
According to court documents, banks and credit unions were defrauded of $899,866; cellphone retailers of $117,341; and clothing retailers of $14,067.
Difo-Castro pleaded guilty on September 19, 2019, to conspiracy to commit wire fraud, conspiracy to access device fraud, two counts of aggravated identity theft, and nineteen counts of wire fraud. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 87 months in federal prison to be followed by three years of federal supervised release. He was ordered to pay restitution in the amount of $649,180.
Difo-Castro’s sentence is announced by Acting United States Attorney Richard B. Myrus.
Also charged and convicted in these matters are:
- Reynaldo Martinez, 25, of Providence. Martinez pleaded guilty in November 2017 to four counts of aggravated identity theft, two counts of access fraud, and one count each of bank fraud, conspiracy to commit fraud, attempted access fraud, and interstate transportation of stolen goods. He was sentenced to 48 months in federal prison and ordered to pay restitution totaling $38,126.62.
- Jason McDonald, 38, of Attleboro, MA. McDonald pleaded guilty in March 2018 to conspiracy, attempted bank fraud, fraudulent use of a Social Security number, and aggravated identity theft. He was sentenced to 39 months in federal prison and ordered to pay restitution in the amount of $29,825.
- Donald A. Wicklund, 34, of Pawtucket, pleaded guilty in April 2018 to two counts of wire fraud, five counts of fraudulent use of a Social Security Number, five counts of aggravated identity theft and three counts of bank fraud. He was sentenced by to 24 months and one day in federal prison and ordered to pay restitution in the amount of $80,799.
- Yenesia Pujols, 48, of Providence, R.I., pleaded guilty in October 2019 to conspiracy to commit wire fraud, conspiracy to commit bank fraud, and three counts of wire fraud. She was sentenced to two years and one day in federal prison and ordered to pay restitution in the amount of $86,144.
- Angel L. Morales, 54, of New York, NY, pleaded guilty in September 2019 to two counts of conspiracy to commit bank fraud, seven counts of bank fraud, and two counts of aggravated identity theft. He was sentenced to 36 months in federal prison and ordered to pay restitution in the amount of $116,000.
- Patricia Peralta, 30, of Patterson, N.J., pleaded guilty on August 21, 2019, to conspiracy to commit wire fraud, conspiracy to commit access fraud, aggravated identity theft, wire fraud, and fraudulent use of a Social Security number. She is awaiting sentencing.
Also charged for his alleged participation in the conspiracy is Israel Arana Ruiz Velasco, 27, whose whereabouts are unknown. Velasco is charged with conspiracy to commit wire fraud and sixteen counts of wire fraud. A warrant has been issued for his arrest.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Zachary Cunha.
The investigations were conducted by the Social Security Administration, Office of the Inspector General/Office of Investigations, and the U.S. Secret Service.
Acting United States Richard B. Myrus acknowledges the United States Postal Inspection Service; the East Providence, Warwick, Seekonk and Mansfield Police Departments; and the Rhode Island State Police for their assistance in the investigation of these matters.
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30 June 2021
Waterbury Man Sentenced to 87 Months in Prison for Role in Heroin and Fentanyl Trafficking RingRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that FRANCIS AYBAR-PEGUERO, also known as “Grena,” 29, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by five years of supervised release, for his role in a heroin and fentanyl trafficking ring. Judge Bryant also ordered Aybar-Peguero to pay a fine of $30,000.
According to court documents and statements made in court, an investigation by the DEA New Haven Task Force and the Waterbury Police Department revealed that Nestor Sosa-Ortiz operated a Waterbury-based drug trafficking organization that received large quantities of heroin and fentanyl from suppliers in Connecticut and New York and distributed the narcotics throughout New Haven County. The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of heroin and fentanyl, and to process and package the drugs for street sale.
On May 18, 2019, Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge. On that date, law enforcement intercepted a planned drug transaction and seized approximately two kilograms of fentanyl and two kilograms of heroin. Sosa-Ortiz continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The investigation revealed that Aybar-Peguero received fentanyl and heroin from members of the Sosa-Ortiz organization and sold the drugs out of his business, the Corner Mini market located on East Farm Road in Waterbury.
Aybar-Peguero and several co-defendants were arrested on October 29, 2019. On that date, investigators executed search warrants at five locations, including the Corner Mini Market, and seized a total of approximately six kilograms of suspected heroin/fentanyl, approximately 100,000 bags of suspected heroin/fentanyl packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm and approximately $50,000 in cash.
Further investigation revealed that the Corner Mini Market was primarily being used by Aybar-Peguero to distribute narcotics and to launder drug proceeds.
Law enforcement seized approximately $98,000 from Aybar-Peguero’s business bank account.
On September 30, 2020, Aybar-Peguero pleaded guilty to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl, and one count of concealment money laundering.
Aybar-Peguero, who is released on bond, is required to report to prison on August 25, 2021.
Sixteen individuals were charged as a result of this investigation. Sosa-Ortiz has pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, and Lauren Clark through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Waseca Travel Agency Owners Pleads Guilty to Scheme to Defraud Travel Agents Nationwide of Commission MoneyRead the Press Release
MINNEAPOLIS – A Waseca travel agency owner pleaded guilty today to a scheme to defraud travel agents out of more than $400,000 in commission payments, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, Matthew Harold Schumacher, 45, was owner and operator of Travel Troops, LLC, and Vacation Agent Nation, LLP, which were host travel agencies based in Waseca, Minnesota. Through his businesses, Schumacher purported to provide host travel services to independent travel agents throughout the United States in exchange for a monthly fee. Schumacher represented that his host travel business was a reliable and profitable means for his fee-paying travel agents to receive higher commission rates from travel industry suppliers, such as airlines, resorts, and cruise companies, than if the individual travel agents booked their customers’ travel arrangements. Pursuant to service agreements that Schumacher entered into with travel agents, Schumacher claimed to receive and collect on behalf of travel agents commission payments from travel industry suppliers and to distribute those commission payments to the various travel agents who booked the travel and earned the commissions.
According to court documents, Schumacher defrauded at least 36 travel agents by misappropriating for his own personal use and benefit at least approximately $484,000 in commission payments owed to them from travel suppliers.
According to court documents, Schumacher tried to retain his travel agents’ money and to lull them into a false sense of security by, among other things, providing the travel agents with partial payments and by giving them materially false and fraudulent information. Schumacher misappropriated travel agents’ commission payments for his own personal use and benefit by, among other things, depositing at least approximately $160,000 to a personal account, funding of at least approximately $150,000 for his own travel expenses, including travel to Australia, the Caribbean, Mexico, Alaska, and multiple European countries, withdrawing of at least approximately $33,000 in cash, purchasing approximately $3,117 of electronics at Best Buy, as well as making payments for personal expenses, such as retail purchases, restaurant bills, car payments, credit card bills, StubHub ticket purchases, and loan payments.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
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United States Obtains Consent Decree Against Chinatown Retail Seller for Repeated Violations of Federal Meat Inspection ActRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Paul Kiecker, Administrator of the U.S. Department of Agriculture’s (“USDA”) Food Safety and Inspection Service (“FSIS”), announced today the entry of a consent decree against defendants YIN GONG CORP. and YONG XING WANG (“Defendants”) for violations of the Federal Meat Inspection Act at Defendants’ places of business in New York, New York’s Chinatown.
U.S. Attorney Audrey Strauss said: “Consumers should be able to have confidence in the safety of the food they buy. Here, Defendants repeatedly sold uninspected pork products to retailers in violation of the Federal Meat Inspection Act, designed to ensure that the food supply is wholesome and unadulterated. Today’s consent decree protects the public health by requiring Defendants to adopt practices that comply with the law – and imposing significant sanctions if they fail to do so in the future.”
USDA FSIS Administrator Paul Kiecker said: “Our inspection personnel are on the job daily, verifying that establishments are providing consumers with safe, wholesome, and properly labeled meat products. We will not tolerate a disregard for consumer health and this consent decree ensures Yin Gong Corp. follows food safety laws.”
The Federal Meat Inspection Act protects the public health by imposing strict requirements on food suppliers regarding the inspection, preparation, transportation, and sale of meat products. These requirements enable American consumers to have confidence that the meat they purchase and consume is wholesome and unadulterated.
According to the complaint filed earlier this week in Manhattan federal court, for years, Defendants repeatedly violated federal law by selling hundreds of pounds of non-federally inspected pork products to retailers located in New York and other states. For example, in November 2019, Defendants sold approximately 274 pounds of non-federally inspected pork dumplings and pork buns to a grocery store located in Rochester, New York. That grocery store then sold approximately 167 pounds of those pork products to its customers. In all, USDA has uncovered over 650 pounds of meat products sold by Defendants in violation of the Federal Meat Inspection Act. Although USDA compliance investigators repeatedly warned Defendants, they did not conform their conduct to the law.
In the consent decree entered today, Defendants admit, acknowledge, and accept responsibility for the following:
- Defendants have repeatedly sold non-federally inspected meat and meat food products to retailers for resale, in violation of the Federal Meat Inspection Act. For example, on or about August 6, 2015, March 3, 2016, July 12, 2018, September 22, 2018, November 24, 2019, and November 19, 2020, Defendants prepared, offered for sale, and sold non-federally inspected pork dumplings to other retailers for resale.
- Defendants have also repeatedly sold misbranded meat and meat food products, in violation of the Federal Meat Inspection Act and an accompanying federal regulation.
- Defendants have also repeatedly failed to maintain records that fully and correctly disclosed their business transactions, in violation of applicable federal regulations.
Pursuant to the consent decree, Defendants are enjoined from selling or transporting any uninspected or misbranded meat products required to be inspected and passed by USDA, or engaging in any other conduct that would violate the Federal Meat Inspection Act. Defendants are subject to additional actions, including civil monetary penalties, termination of exempt status, contempt sanctions, and other relief, if they violate the provisions of the consent decree.
Ms. Strauss thanked the USDA for its investigative efforts in connection with this matter.
This case is being handled by this Office’s Environmental Protection Unit of the Civil Division. Assistant United States Attorney Charles S. Jacob is in charge of the case.
Yin Gong Corp. and Yong Xing Wang complaint.pdf Yin Gong Corp. and Yong Xing Wang consent decree.pdf- Defendants have repeatedly sold non-federally inspected meat and meat food products to retailers for resale, in violation of the Federal Meat Inspection Act. For example, on or about August 6, 2015, March 3, 2016, July 12, 2018, September 22, 2018, November 24, 2019, and November 19, 2020, Defendants prepared, offered for sale, and sold non-federally inspected pork dumplings to other retailers for resale.
Two Men Charged with Conspiring to Steal Guns from Suburban Chicago Firearms DealerRead the Press Release
CHICAGO — Two men have been charged in federal court with conspiring to steal a dozen handguns from a suburban Chicago firearms dealer.
RONEAL NIGHTENGALE and ERIC ROWE conspired to steal the guns from Shoot Point Blank, a firearms dealer and shooting range in Naperville, Ill., on June 1, 2020, according to an indictment returned in U.S. District Court in Chicago. The indictment alleges that Nightengale drove Rowe and an unindicted co-conspirator to Shoot Point Blank around 9:00 p.m., and that Rowe and the co-conspirator burglarized the facility and stole the guns.
In addition to the conspiracy charge, the indictment charges Nightengale and Rowe with stealing the firearms, possessing the stolen firearms, and illegally possessing the firearms as previously convicted felons.
Nightengale, 34, of Glendale Heights, Ill., was arrested earlier this month in Arizona. He pleaded not guilty Tuesday during his arraignment before U.S. Magistrate Judge Sunil R. Harjani in Chicago. A detention hearing is set for Thursday at 9:15 a.m.
Rowe, 36, of Bellwood, Ill., is not in custody and a warrant has been issued for his arrest.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Robert Marshall, Chief of the Naperville Police Department. Substantial assistance was provided by the DuPage County Sheriff’s Office. The government is represented by Assistant U.S. Attorney Jared C. Jodrey.
Each count of stealing firearms from a licensed firearms dealer, illegally possessing stolen firearms, and illegally possessing firearms as a convicted felon carries a maximum sentence of ten years in federal prison, while the conspiracy charge is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Twelve people charged in two indictments following investigation of drug trafficking ringRead the Press Release
Seattle – Twelve people are in custody today following a second round of arrests in an investigation involving armed drug trafficking, announced Acting U.S. Attorney Tessa M. Gorman. The indictments and arrests today are a follow-up to the April 7, 2021 takedown involving 24 defendants. Most of those arrested today will appear in U.S. District Court in Seattle and Tacoma this afternoon.
“Even after the arrest of 24 defendants in April, law enforcement pursued the higher-level sources of the drugs that were distributed in our community,” said Acting U.S. Attorney Tessa M. Gorman. “I am pleased that prosecutors in our office and law enforcement officers continued to work up the chain of this trafficking organization making large drug seizures and taking guns off the street.”
“Over the course of two years, more than 250 FBI employees have contributed to this investigation to fight back against this widespread drug-dealing conspiracy,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “I am incredibly proud of the hard work of my office and our partners to remove dozens of firearms and toxic drugs such as fentanyl and cocaine from our communities.”
“The recent rise of violent crime – specifically crimes involving the trafficking of firearms and illegal drugs – is of great concern to the Seattle Police Department, which is why the SPD values its partnerships with federal and local law enforcement agencies. By working together, we increase our ability to arrest dangerous offenders, get them off our streets, and weapons out of their hands,” said Seattle Police Chief Adrian Diaz. “Our joint efforts lead to the detention of 24 defendants in April. Today, we’re announcing the arrests of 12 more. Not only are these dozens of suspects off the streets, but so are dangerous narcotics, including fentanyl tablets and the tools to manufacture them. Our communities have been devastated by a recent rise in fentanyl deaths and continue to be devastated by on-going gun violence. The SPD is certain these joint efforts saved lives, and we’re gratified the many months of hard work by our officers and partners paid off.”
During the course of the investigation, law enforcement seized 84 firearms, including stolen firearms and ghost guns, 16 kilos of cocaine and about 50-thousand fentanyl tainted pills. In one traffic stop in January 2021 on I-5 they seized 6 kilos of cocaine that defendant Arambula was bringing back from southern California.
In all, law enforcement has seized more than $1 million in cash. They also seized a pill press used for manufacturing fentanyl tainted pills, three pounds of methamphetamine and some heroin.
Today alone officers seized 48 guns, 2 kilograms of cocaine, 2 pounds of methamphetamine, several thousand fentanyl pills and two illegal marijuana grows. An additional $120,000 cash was also seized.
Those indicted in this round include:
Cresencio Moreno Aguirre, 41 of Kent, Washington
David William Armer, 41, Spanaway, Washington
Samuel Duarte Avila, 47, of Renton, Washington
Elyas Mohamed Kerow, 27, of Seattle
Brett David Radcliff, 21, of Puyallup, Washington
Sergio Reyes-Pina, 39, of Seattle
Herbert Dean Scott Jr., 49, of Burien, Washington
Rafael Ramirez, 49, Pacific, Washington
Cesar Arambula, 39, of Kent, Washington
Raul Barreto Bejines, 50, of Redmond, Washington
Jorge Aguilar Duran, 42, Issaquah, Washington
Viet Phi Nguyen, 34, of Seattle
Two people were arrested this morning who are being charged separately by criminal complaint. Two of the indicted defendants are still being sought by law enforcement.
Earlier this month, a 13th defendant was arrested and indicted. Kendle Hawkins, 31, of Goodyear, Arizona was arrested June 14, 2021 with 50,000 fentanyl tainted pills, five firearms and two silencers.
“This investigation has removed a large number of firearms and narcotics from the hands of violent drug traffickers operating throughout the Seattle Metropolitan area,” said DEA Special Agent in Charge Frank Tarantino. “The violence spike in our communities is a clear and present danger to public safety and is a top priority for DEA and our law enforcement partners. For those wreaking havoc in our streets and perpetuating violence, you will be held accountable.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
The investigation was led by the FBI Safe Streets Task Force with key participation by the Drug Enforcement Administration (DEA), Seattle Police Gang and Narcotics Units, Homeland Security Investigation (HSI), and Internal Revenue Service Criminal Investigation (IRS-CI).
Today’s arrests and searches involved teams from FBI, DEA, Seattle Police Department, HSI, Pierce County Sheriff's Office, King County Sheriff's Office, Valley SWAT, Kent Police Department, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and Narcotics/Currency/Firearms K9 support from Snohomish County Sheriff's Office, U.S. Customs and Border Protection (CBP), Centralia Police Department, Auburn Police Department, Renton Police Department, King County Sheriff's Office, and Tacoma Police Department.
The case is being prosecuted by Assistant United States Attorneys Erin H. Becker and Lyndsie Schmalz.
aguirre_et_al_indictment_0.pdf arambula_indictment_0.pdf hawkins_complaint_0.pdfThree Sedalia Residents Indicted for Drug Trafficking, Illegal FirearmsRead the Press Release
JEFFERSON CITY, Mo. – Three Sedalia, Missouri, residents were indicted by a federal grand jury today for their roles in a conspiracy to distribute methamphetamine after law enforcement officers seized 28 firearms from a residence during the investigation.
James Jacob Johnson, 23, Amber Marie Lawson, 36, and Eric Ryan Janes, 36, were charged in a five-count indictment returned by a federal grand jury in Jefferson City, Mo.
Today’s indictment alleges that Johnson, Lawson, and Janes participated in a conspiracy to distribute methamphetamine in Pettis County, Mo., from April 1 to June 15, 2021.
In addition to the conspiracy, Johnson is charged with possessing firearms in furtherance of the drug-trafficking conspiracy. Law enforcement officers seized 28 firearms from Johnson’s residence while executing a search warrant on June 15, 2021.
Johnson is also charged with one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine with the intent to distribute. According to the indictment, those firearms included two AK 47s, a Glock 9mm pistol, a .38-caliber revolver, a Ruger 57, a Tauron PR 24/7 Pro, a Glock 20, a Smith & Wesson MIP 20, a Smith & Wesson Bodyguard 380, a Ruger EC9S, a Ruger 89, a Rossi 357, a 44 magnum Ruger, a Springfield Armory Saint .223-caliber rifle, a Chrome Palmetto AR .223, a Keltec Sun 2000 9mm, a Savage 300, a Gold 9mm AR, a Marlin 17, an MCK Roni with Glock 17, a Digmonn 200 blackout, a Smith & Wesson, a Black Dawn 300 blackout, a Typhoon F-12 Gold 12 gauge, a Zastava Arms, an M&P Bodyguard 38 special, and a Smith &Wesson M&P 9C.
Lawson and Janes also are each charged with one count of possessing methamphetamine with the intent to distribute.
This case is being prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Pettis County, Mo., Sheriff’s Department, the Sedalia, Mo., Police Department, the Morgan County, Mo., Sheriff’s Department, and the DEA’s Mid Missouri Drug Task Force.
Texas Man Sentenced to Two Years in Prison for Looting Native American LandRead the Press Release
A San Marcos man has been sentenced to two years in federal prison for illegally excavating a Native American homestead in Amarillo, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jeffrey Alan Vance, 37, pleaded guilty in February to violating the Archeological Resource Protection Act (ARPA), a federal law that prohibits the unauthorized removal of artifacts from tribal land. He was sentenced Tuesday by U.S. District Judge Matthew J. Kacsmaryk.
According to plea papers, Mr. Vance admits he and a coconspirator, 33-year-old Dax Wheatley, excavated Native American artifacts from a site known as 41PT109 – a former homestead of the Antelope Creek Culture, Native Americans who lived in the Texas panhandle between approximately 1200-1500 A.D.
In March 2019, a tipster alerted the Bureau of Land Management that an individual calling himself "Jerry Montopolis" had posted photographs of an illegal excavation on facebook. When a commenter warned “Jerry” that he was “digging in federal land and rangers enforce there,” he responded, “I’m not scared of the feds.”
The Bureau of Land Management sent the photographs – posted in December 2017 – to Homeland Security Investigations, which was able to identify the men in the photos as Mr. Vance and Mr. Wheatly. The facebook account, they determined, actually belonged to Mr. Vance, who bragged that he planned to display skeletons he’d excavated in his “secret artifact lair.”
In a text messages reviewed by law enforcement, Mr. Vance called himself an “infamous illegal excavator of Native American artifacts in Texas” and warned his contacts, “don’t be telling people we are digging on government property!”
Following a search of his home in November 2019, Mr. Vance admitted that he had human remains and burial beads inside his residence.
Mr. Wheatley also admitted to violating ARPA. He entered his guilty plea in February and is slated to be sentenced in July.
Taney County Woman Pleads Guilty to Sexually Assaulting Children, Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Merriam Village, Missouri, woman pleaded guilty in federal court today to sexually assaulting two children to produce child pornography, and to receiving and distributing child pornography.
Tara Sau Millman, 41, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of the sexual exploitation of minors and one count of receiving and distributing child pornography. Millman has been in federal custody since her arrest and remains detained without bail.
By pleading guilty today, Millman admitted that a co-defendant used her iPhone to record video of her performing a sexual act on a 2-year-old child, identified in court documents as John Doe. Investigators also found images and videos of child pornography on Millman’s iPhone, including files that depicted Millman and her co-defendant sexually assaulting John Doe and a 4-year-old child victim, identified in court documents as Jane Doe.
Millman also admitted that she used a social media application to share child pornography over the internet, and that she and her co-defendant viewed child pornography together.
The investigation began when agents with Homeland Security Investigations in San Diego, California, began investigating users of a cloud storage platform (identified in court documents as “Cloud Platform A”). The cloud platform provides encrypted, cloud-based services that enable private, secure online storage, communication, and collaboration for business and individuals. During the investigation, the agents accessed a weblink to an encrypted chat room with approximately 145 registered users. Files containing child pornography were uploaded/posted by participants in the chat room. A search warrant was executed at Millman’s residence in Taney County, Mo., on Jan. 28, 2021.
Under federal statutes, Millman is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled upon the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Tallahassee Man Convicted of Enticing Minor to Engage in ProstitutionRead the Press Release
TALLAHASSEE, FLORIDA – This afternoon a federal jury in Tallahassee convicted Michael Jarcord, 52, of Tallahassee, on the sole count of coercing or enticing a minor to engage in prostitution. The conviction, which followed a two-day trial that began on Monday, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“Today’s verdict affirms our commitment to the protection of our most vulnerable,” said Acting U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence, we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“Operation Stolen Innocence was part of the Tallahassee Police Department’s collective commitment to dismantle sexual exploitation in our community,” said Chief Lawrence Revell. “We are pleased to see another offender found guilty of their crimes against those most vulnerable in our community. The continuous arrests resulting from this operation are a true testament to the diligent work of our investigators and every agency we have worked with in this mission.”
“This guilty verdict is another success of the strong law enforcement partnership between HSI and the Tallahassee Police Department with Operation Stolen Innocence,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Jarcord’s sentencing hearing is scheduled for September 14, 2021, at 1:00 pm, at the United States Courthouse in Tallahassee before the Honorable Mark Walker. Jarcord faces a mandatory minimum term of ten years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of State Attorney, Second Judicial Circuit, to combat human trafficking in the Tallahassee area. Assistant United States Attorney Michelle Spaven prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
State Contractor Pleads Guilty in $3 million Unemployment Fraud SchemeRead the Press Release
A Detroit woman pleaded guilty today for her role in a multi-million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced Acting United States Attorney Saima Mohsin.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Juan Vargas, Acting Postal Inspector in Charge of the Detroit Division, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Acting Special Agent in Charge Kelly Lewis, Internal Revenue Service-Criminal Investigation and Liza Estlund Olson, acting director of the Unemployment Insurance Agency.
Brandi Hawkins, 40, pleaded guilty before United States District Judge Paul D. Borman. A sentencing date was set for October 28, 2021 where she faces a statutory maximum penalty of 20 years in federal prison.
According to court records, Brandi Hawkins was a contract employee for the State of Michigan Unemployment Insurance Agency. Her duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims. Between April and June of 2020, HAWKINS worked with outside actors, known and unknown to law enforcement. Daily, those actors entered numerous false claims into the State of Michigan’s Unemployment Insurance Agency system, many of which were filed using stolen identities. These actors communicated with HAWKINS by cellular telephone calls and texts. HAWKINS accepted bribes in return for releasing many of these claims. HAWKINS used her insider access to fraudulently release payment on over seven-hundred claims, more than ten of which involved claims filed using stolen identities. HAWKINS’s actions resulted in the fraudulent disbursement of approximately $3.8 million of federal and state funds intended for unemployment assistance during the pandemic. Had every fraudulent claim released by HAWKINS been disbursed in full, the resulting loss of federal and state funds would have been over $12 million.
During the execution of a search warrant at Hawkins’ residence, over $200,000 in cash was seized. Hawkins used proceeds from her crimes to purchase high-end handbags and other luxury goods.
“Hawkins exploited the pandemic to defraud the State of Michigan and United States for her own personal gain,” said Acting US Attorney Mohsin. “Our office continues to focus on identifying and prosecuting those individuals who seek to divert funds intended for those in need during what has been a very difficult period of unemployment.
“Facilitating a fraudulent scheme to enrich yourself and others by stealing unemployment compensation earmarked for pandemic assistance is a vicious crime,” stated Acting Special Agent in Charge Kelly Lewis. “IRS-Criminal Investigation will continue to seek justice on behalf of Michiganders across the state against those who defraud the UIA and Michigan workforce."
“Brandi Hawkins while employed as a contractor used her position to take advantage of the public and defraud the State of Michigan. She was able to manipulated the Michigan Unemployment Insurance Agency system for her and others’ personal gain. We will continue to work with our law enforcement partners throughout Michigan to bring criminals like Hawkins to justice,” said Douglas J. Zloto, Special Agent in Charge, U.S. Secret Service, Detroit Field Office.
“Brandi Hawkins abused her position as an Unemployment Insurance Examiner for the State of Michigan Unemployment Insurance Agency to release payment on $3.8 million in fraudulently filed unemployment insurance claims in exchange for bribes. Hawkins approved claims that, if disbursed in full, would have resulted in the fraudulent payout of over $12 million earmarked for Pandemic Unemployment Assistance. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
"Brandi Hawkins used her position to approve fraudulent unemployment claims and divert money desperately needed by those who lost jobs as a result of the pandemic," said Timothy Waters, Special Agent in Charge of the FBI's Detroit Division. "The FBI will continue to work with our federal law enforcement partners to protect the integrity of these vital federal assistance programs."
“U.S. Postal Inspectors are federal law enforcement agents who conduct investigations of postal-related crime, including any fraud in which the postal system is used, in an effort to ensure America’s confidence in the U.S. Mail. Investigating violations of more than 200 federal laws, the Postal Inspection Service seeks to leverage relationships with our law enforcement partners and enforce these statutes to the maximum extent possible against those aiming to utilize the U.S. Mail in furtherance of illicit activities and criminal schemes. I commend the partnership, hard work, and countless hours put forth by all agencies involved in bringing this investigation to a successful resolution,” said Juan Vargas, Acting Postal Inspector in Charge of the Detroit Division
“People who willfully commit unemployment insurance fraud should know that the State of Michigan and the Unemployment Insurance Agency are serious about identifying and holding them accountable for their actions,” said Liza Estlund Olson, acting director of the Unemployment Insurance Agency. "Through the great work of our federal and state partners along with UIA investigators, we’re are working to root out fraudulent schemes like this one and protect unemployment benefits for those who are legitimately entitled to them.”
The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
St. John the Baptist Man Sentenced on Federal Drug and Firearms ChargesRead the Press Release
NEW ORLEANS, LA. – U.S. Attorney Duane A. Evans announced that a St. John the Baptist man was sentenced on June 16, 2021 to 14 years in prison for violating federal drug and firearms laws.
According to court documents, JONATHAN WEBRE, age 35, a resident of Reserve, Louisiana, was indicted on August 29, 2019 by a Federal Grand Jury in a three-count indictment. In Count 1, WEBRE was charged with distribution of five grams or more of methamphetamine in violation of 21 U.S.C 841(a)(1) and 841(b)(1)(b), In Count 2, WEBRE was charged with possession with the intent to distribute 50 grams or more of methamphetamine in violation of 21 U.S.C. 841(a)(1) and 841(b)(1)(A). Lastly, in Count 3, WEBRE was charged with being a felon in possession of a firearm in violation of 18 U.S.C. 922 (g)(1) and 924(a)(2). WEBRE pled guilty to all three charges on October 23, 2019. WEBRE’S sentencing has been postponed numerous times because of the COVID-19 pandemic.
These charges stemmed from an investigation by both the St. John the Baptist Sheriff’s Office and the United States Drug Enforcement Administration into the illegal activities of WEBRE over the last two years.
At his sentencing on June 16, 2021, Federal District Court Judge Lance Africk sentenced WEBRE to serve 168 months (14 years) for the two drug charges, Counts 1 and 2, and to serve 120 months (10 years) for Count 3, the federal firearms violation. All sentences were ordered to be served concurrently.
U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration (D.E.A.), the St. John The Baptist Parish Sheriff’s Office, and the St. John the Baptist District Attorney’s Office. Assistant United States Attorney Maurice Landrieu prosecuted the case.
St. John the Baptist Man Sentenced on Federal Drug and Firearms ChargesRead the Press Release
NEW ORLEANS, LA. – U.S. Attorney Duane A. Evans announced that a St. John the Baptist man was sentenced on June 16, 2021 to 14 years in prison for violating federal drug and firearms laws.
According to court documents, JONATHAN WEBRE, age 35, a resident of Reserve, Louisiana, was indicted on August 29, 2019 by a Federal Grand Jury in a three-count indictment. In Count 1, WEBRE was charged with distribution of five grams or more of methamphetamine in violation of 21 U.S.C 841(a)(1) and 841(b)(1)(b), In Count 2, WEBRE was charged with possession with the intent to distribute 50 grams or more of methamphetamine in violation of 21 U.S.C. 841(a)(1) and 841(b)(1)(A). Lastly, in Count 3, WEBRE was charged with being a felon in possession of a firearm in violation of 18 U.S.C. 922 (g)(1) and 924(a)(2). WEBRE pled guilty to all three charges on October 23, 2019. WEBRE’S sentencing has been postponed numerous times because of the COVID-19 pandemic.
These charges stemmed from an investigation by both the St. John the Baptist Sheriff’s Office and the United States Drug Enforcement Administration into the illegal activities of WEBRE over the last two years.
At his sentencing on June 16, 2021, Federal District Court Judge Lance Africk sentenced WEBRE to serve 168 months (14 years) for the two drug charges, Counts 1 and 2, and to serve 120 months (10 years) for Count 3, the federal firearms violation. All sentences were ordered to be served concurrently.
U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration (D.E.A.), the St. John The Baptist Parish Sheriff’s Office, and the St. John the Baptist District Attorney’s Office. Assistant United States Attorney Maurice Landrieu prosecuted the case.
Southwest Virginia Man Pleads Guilty to Conspiring to Traffic Methamphetamine from Georgia to Lee and Wise CountiesRead the Press Release
ABINGDON, Va. – A Wise County, Virginia man pleaded guilty today to conspiring with others to traffic methamphetamine from Georgia into Lee and Wise counties for further distribution.
According to court documents, Cory Austin Hamond, 23, purchased significant quantities of methamphetamine from co-defendant Daniel Rowland and other sources in Georgia. Hammond then transported the drugs into Lee and Wise County for redistribution. Hammond admitted today to purchasing more than 500 grams of methamphetamine between July 1, 2019 and December 31, 2020.
Hammond pleaded guilty today to one count of conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine and one count of distributing methamphetamine. He is scheduled to be sentenced on September 29, 2021 and faces a mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Southwest Virginia Drug Task Force are investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Somerset County Man Sentenced to 108 Months in Prison for Traveling to Foreign Country to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man has been sentenced to 108 months in prison for traveling to the Philippines to engage in sex with a minor, Acting U.S. Attorney Rachael A. Honig announced.
James A. Diggs, 45, of Somerville, New Jersey, previously pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with foreign travel to engage in criminal sexual activity.
According to documents filed in this case and statements made in court:
In October 2018, Diggs traveled to the Philippines to meet and engage in sexual activity with Minor Victim-1 in exchange for money and gifts, knowing the victim was a minor.
In addition to the prison term, Judge Wolfson sentenced Diggs to five years of supervised release and ordered him to register as a sex offender.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea. He also thanked agents of the U.S. Customs and Border Protection, John F. Kennedy International Airport, for their assistance.
The government is represented by Assistant U.S. Attorney Patricia Astorga of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
Six Indicted in Marijuana Trafficking ConspiracyRead the Press Release
MINNEAPOLIS – Six individuals have been arrested and charged with conspiracy to distribute 1,000 kilograms or more of marijuana, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, from 2016 through June 2021, Douglas Robert Finch, Danny William Gehl, Jr., David William Gehl, Frank Joseph Kittleson, Patrick Thomas Maykoski, and Daniel Richard Thomas, conspired to distribute more than 1,000 kilograms of marijuana. The defendants and others were part of a drug trafficking operation (DTO) that shipped marijuana from California to Minnesota. Members of the DTO routinely sent shipping crates from a warehouse in St. Paul, Minnesota, to a warehouse in North Highlands, California. The DTO members would fly from Minnesota to California to purchase the marijuana, fill the crates with marijuana, and then load them on a delivery truck for shipment back to Minnesota. Once the shipment arrived in Minnesota, the DTO members unpacked the crates, repackaged the marijuana, and placed the marijuana in large garbage bags and boxes for distribution. Members of the DTO then transported the marijuana from the Minnesota warehouse to various locations for storage and packaging pending distribution to customers.
This case is the result of an investigation conducted by Homeland Security Investigations and IRS-CID.
Assistant U.S. Attorney Thomas M. Hollenhorst is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Salem Area Methamphetamine Supplier Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Salem, Oregon man was sentenced to federal prison today for providing local drug dealers in Salem and Albany, Oregon with methamphetamine and illegally possessing a firearm as a convicted felon.
Frank Defelice, 63, was sentenced to 8 years and four months in federal prison and four years’ supervised release.
According to court documents, in 2016, following a months’ long investigation into local drug trafficking and firearms violations, Defelice was identified by local and federal law enforcement as a major supplier of methamphetamine to drug dealers in Salem and Albany. On January 27, 2017, officers stopped Defelice’s vehicle and arrested him pursuant to a state warrant. Officers found approximately 15 grams of methamphetamine under the driver’s seat of Defelice’s vehicle. Police then searched his home and recovered an additional 324 grams of methamphetamine as well as scales, drug packaging material, a drug ledger, and a loaded .380 caliber semi-automatic handgun. Officers also found and seized more than $37,000 in cash on Defelice’s person and in his residence.
On November 2, 2016, Defelice was charged by criminal complaint with possessing with intent to distribute methamphetamine. Later, on June 21, 2017, a federal grand jury in Eugene returned a five-count indictment charging Defelice with possessing with intent to distribute methamphetamine, possessing a firearm during and in relation to a drug trafficking crime, and possessing a firearm as a convicted felon.
On January 4, 2021, Defelice pleaded guilty to possessing with intent to distribute methamphetamine and possessing a firearm as a convicted felon.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department, Albany Police Department, and U.S. Drug Enforcement Administration. Assistant U.S. Attorney Pamela Paaso prosecuted the case.
Reading, PA Woman and New York Man Plead Guilty for Their Role in Nationwide “Grandparents Scheme” Worth $300k+Read the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Daniel Duran, 33, of Jamaica, NY, and Jacqueline Velazquez, 37, of Reading, PA, entered guilty pleas before United States District Court Judge Mark A. Kearney on multiple counts of mail fraud in connection with a phone and mail-based scheme to defraud elderly victims across the country out of hundreds of thousands of dollars.
The defendants were charged by criminal Information with seven counts of mail fraud in June 2021. According to the Information, from December 2018 through March 2020, the defendants played an integral role in what is commonly known as a “Grandparents Scheme,” which worked as follows: co-schemers based in the Dominican Republic telephoned elderly victims throughout the United States and, while posing as a grandchild or grandchild’s lawyer, falsely told each victim that their grandchild had been involved in a vehicular accident and needed money to pay for medical, legal, or court expenses. These co-schemers would also instruct the elderly victims to send large amounts of cash to certain addresses allegedly identified by the defendants, including addresses in Reading, PA. The defendants are charged with picking up the packages and sharing the money with their co-schemers. All told, this scheme defrauded at least fifty elderly victims across the United States of more than $300,000.
“Schemes like this ‘Grandparents Scheme’ are particularly heinous because they prey on a senior’s love for their family,” said Acting U.S. Attorney Williams.“The Department of Justice is committed to protecting our seniors from fraud, and our Office will continue to prioritize prosecuting criminals who prey on our elderly residents.”
The case was investigated by the United States Postal Inspection Service, in connection with the Reading Police Department, and is being prosecuted by Assistant United States Attorney Matthew T. Newcomer.
Previous Drug Offender and Cocaine Supplier Pleads Guilty to Conspiracy to Distribute Controlled Substances and Possession with Intent to Distribute CocaineRead the Press Release
Baltimore, Maryland – Mark Williams, a/k/a Swanny, age 52, of Elkton, Maryland, pleaded guilty yesterday to conspiracy to distribute controlled substances and possession with the intent to distribute cocaine. Williams has prior criminal convictions including a 2001 drug felony offense for the distribution of cocaine. Two other defendants, Kevin Johnson and Troy Neal, were indicted with Williams in 2020 and are pending trial September 27, 2021. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; and Cecil County Sheriff Scott Adams.
According to his guilty plea, the Maryland State Police, Cecil County Sheriff’s Office, and the Department of Homeland Security identified Williams and two co-conspirators as suppliers of cocaine after an extended investigation dating back to 2019. The conspiracy members distributed crack cocaine to multiple customers in Elkton, Maryland.
During the investigation, the Cecil County Circuit Court issued an order to authorize the interception of wire and electronic communications of Williams and his co-conspirators. Intercepted text and telephone communications revealed Williams as a member of the drug distribution conspiracy.
Law enforcement intercepted at least eight instances in which Williams, or his co-conspirators, conversed in coded conversations about drug activity. For example, on May 27, 2020, after a series of calls between a co-conspirator and a customer, police observed Williams and a co-conspirator visit a customer’s residence. Shortly after their arrival, two male customers entered the co-conspirator’s residence. After one of the two male customers left the residence, police conducted a traffic stop and seized 3.6 grams of crack cocaine.
As stated in his plea agreement, after a series of coded calls among Williams and two co-conspirators law enforcement covertly surveilled the three men depart Neal’s residence and travel to the Bronx in New York, a known source area for cocaine. The next day, on June 14, 2020, law enforcement observed the three men travel back to a Maryland residence. Law enforcement executed a search warrant at a co-conspirator’s residence and recovered 497 grams of compressed suspected cocaine, several bags of suspected marijuana, a digital scale, and several cell phones.
Police arrested Williams, Neal and Johnson. Each were charged in Cecil County with various drug-related crimes.
Other evidence corroborates Williams’s involvement in drug trafficking including a lack of legitimate employment to support his life expenses. According to the IRS, Williams had reportable wages of approximately $6,000 in 2019 and less than $5,000 in 2020. Additionally, two witnesses would advise that they regularly purchased crack cocaine from Williams and a co-conspirator from February 2020 to May 2020.
Williams and the government have agreed that, if the Court accepts the plea agreement, Williams will be sentenced to seven years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 5, 2021 at 11 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police Department, and the Cecil County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Sandra Wilkinson and Kim Y. Oldham, who are prosecuting the case.
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Pottawatomie County Man Sentenced to Serve a Decade in Federal Prison for Illegal Possession of AmmunitionRead the Press Release
OKLAHOMA CITY – Today, OSCAR DE JESUS LOPEZ, 31, of Pottawatomie County, was sentenced to serve 120 months in federal prison for being a convicted felon in illegal possession of ammunition, announced Acting U.S. Attorney Robert J. Troester.
On November 2, 2020, a federal grand jury returned a one-count Indictment that alleged illegal possession of a firearm. On February 18, 2021, Lopez pleaded guilty to Count 1 of a Superseding Information that charged him with being a convicted felon in illegal possession of ammunition.
Public records reflect that, on September 10, 2020, Lopez was involved in a confrontation with his girlfriend’s husband. This confrontation escalated to a shootout during which Lopez discharged a firearm multiple times towards his girlfriend’s husband. On September 11, 2020, Lopez was arrested for the shooting. During the investigation, law enforcement discovered a phone call made by Lopez from the jail, asking his girlfriend to dispose of ammunition located at his residence. Before September 2020, Lopez had felony convictions for possessing cocaine with the intent to distribute, robbery in the second degree, and pointing a firearm at two people, including a five-year-old child. Federal law prohibits prior convicted felons from possessing firearms or ammunition.
Today, U.S. District Judge Stephen P. Friot sentenced Lopez to serve 120 months in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Friot noted the nature and circumstances of the offense, including Lopez’s conduct during the shooting, and Lopez’s serious criminal history.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma City Police Department, and the Norman Police Department. Assistant United States Attorney Mary E. Walters prosecuted the case.
Reference is made to public filings for more information.