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Thursday 13 May 2021
Rockford Man Charged in Federal Court with Bank RobberyRead the Press Release
ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury for the robbery last month of a bank in Rockford.
DEMONTRION DESHAN PHILLIPS, 27, took approximately $5,930 from the Midland States Bank branch, 1700 N. Alpine Rd. in Rockford, on April 7, 2021.
Phillips is charged with one count of bank robbery, which is punishable by a maximum sentence of 20 years in federal prison. He pleaded not guilty Wednesday during his arraignment before U.S. District Judge Iain D. Johnston in Rockford. Judge Johnston ordered Phillips to remain in federal custody pending trial.
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; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
The public is reminded that an indictment contains only charges and 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. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Rochester Man Arrested - Charged with Unlawfully Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Kendrick, 27, of Rochester, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that according to the complaint, on May 11, 2021, a Customs and Border Protection officer encountered the defendant traveling in an erratic manner at the Peace Bridge Port of Entry. The officer also smelled the odor of marijuana from inside the vehicle. During a search of the vehicle, another officer located a semi-automatic firearm. A records check revealed that in October 2011, Kendrick was convicted in Monroe County Court of the crime of Robbery in the 3rd degree, and as a result of such conviction, he is legally prohibited from possessing a firearm.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Raleigh Man Sentenced for Firearm Offense After Reoffending on State ProbationRead the Press Release
NEW BERN, N.C. – Tauheed Rochelle of Raleigh was sentenced today to 58 months in prison for possessing a firearm as a convicted felon. On December 21, 2020, Rochelle pled guilty to the charge. At the time of his arrest, Rochelle was on state probation for two felony drug offenses.
According to court documents and statements made in court, on December 5, 2019, Raleigh Police Department officers responded to a suspicious vehicle call on Tamarino Drive in Raleigh—a location where multiple recent breaking and entering crimes had been reported. As the officers approached, they recognized the car as a Dodge Charger belonging to Rochelle, who they were familiar with from prior encounters. As the officers walked to the car, they smelled marijuana and saw Rochelle throw marijuana from the driver’s side window. Officers instructed Rochelle to place his hands on the steering wheel and noticed a large bag of marijuana at the Defendant’s feet, as well as marijuana crumbs on his lap. When asked whether there was a gun in the car, Rochelle responded, “I don’t know.”
Officers searched the car. In Rochelle’s driver’s seat, they saw that he had been sitting on a black sweat suit jacket that matched the pants he was wearing. The right pocket was pushed between the seat and center console. In that pocket, officers found a .40 caliber handgun. Officers also recovered two digital scales, a marijuana blunt, and in the trunk, a large packaging envelope with marijuana residue.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00206-FL.
Quincy Man Convicted of Enticing A Minor to Engage in Sexual ActivityRead the Press Release
TALLAHASSEE, FLORIDA – This afternoon a federal jury in Tallahassee convicted Constantino Charrez, 27, of Quincy, on the sole count of coercing or enticing a minor to engage in sexual activity. The conviction, which followed a two-day trial that began on Wednesday, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“Child exploitation is horrendous and affects the most vulnerable members of our communities,” 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.”
“The arrests in Operation Stolen Innocence were just the beginning of the process to get justice for the victims in this case,” said Tallahassee Police Chief Lawrence Revell. “I am grateful to see the judicial system work to prosecute those who prey on vulnerable people. When individuals are held accountable for their actions, it reiterates the message that there is no place for human trafficking in our community.”
“Operation Stolen Innocence continues to result in making our communities safer and serves as a premier example of the excellent work being done by HSI and law enforcement partners like the Tallahassee Police Department,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Charrez’s sentencing hearing is scheduled for August 24, 2021, at 1:00 pm, at the United States Courthouse in Tallahassee before the Honorable Allen Winsor. Charrez 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 U.S. Marshal Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of State Attorney, 2nd 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.
Pittsburgh Teen Charged by Criminal Complaint with Violating Federal Drug LawsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been arrested in Pittsburgh on charges of possessing a mixture of fentanyl, as well as crack cocaine, Acting United States Attorney Stephen R. Kaufman announced today.
The criminal complaint named Tyrell Revis, 18, of Pittsburgh, as the sole defendant. Mr. Revis made an initial appearance today in federal court and will have a preliminary examination and a detention hearing on Wednesday May 19, 2021, at 11 a.m. before Chief Magistrate Judge Cynthia Eddy.
According to the complaint, on May 12, 2021 Mr. Revis was stopped by police for traffic violations including driving 60 to 65-mph in a 25-mph zone. As police approached, they saw Mr. Revis and a female passenger in the front seat making furtive movements. There was also a minor child in the backseat. After the two adults were directed to exit the vehicle, police saw on the front passenger seat five bricks (250 stamp bags) of a substance that field-tested positive for fentanyl. Mr. Revis admitted that he tossed those five bricks to the female passenger. Police also found another 30 bricks (1,500 stamp bags) that field-tested positive for fentanyl in the center console, a firearm under the diaper bag in the back seat, and around 18 grams of a substance inside the diaper that field-tested positive for crack cocaine.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1 million or both if Mr. Revis is convicted. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Mr. Revis is being detained pending a detention hearing.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department and the Munhall Police Department made the initial traffic stop and have been assisted by the Federal Bureau of Investigation in conducting the investigation leading to the arrest of Mr. Revis.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pensacola Compounding Pharmacy Owner Sentenced to Federal Prison for $4.8 Million Tricare Fraud and Money Laundering ConspiraciesRead the Press Release
PENSACOLA, FLORIDA – Andrew E. Fisher, 35, of Gulf Breeze, was sentenced yesterday to 24 months in federal prison after a jury found him guilty last year of conspiring to use his pharmacy to defraud TRICARE, a federal health care program for uniformed service members, retirees, and their families, and conspiring to launder the funds generated by the fraud. Fisher was also ordered to pay over $4.8 million in restitution to TRICARE and forfeit an over $3.8 million money judgment. The sentence was announced today by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Between October 2014 and December 2015, Fisher, the owner and operator of Physician Specialty Pharmacy (PSP) in Pensacola, conspired with sales representative Michael Scott Burton and others to defraud TRICARE out of more than $4.8 million in fraudulent claims for prescription compounded pain cream, scar cream, and wellness vitamins. Fisher agreed to fill prescriptions at PSP from a doctor’s office in Georgia whose beneficiary information was provided by Burton and individuals working for him, knowing that these particular beneficiaries had never seen that doctor and the prescriptions were not based on a legitimate doctor-patient relationship. In exchange for recruiting TRICARE beneficiaries to receive the prescriptions, Burton received approximately 50% of the amount paid to Fisher in insurance reimbursements. Those commission payments were laundered in the form of large wire transfers and direct deposits into Burton’s bank account in Georgia.
As part of the scheme, Fisher, who is not a licensed pharmacist, directed his pharmacist employees to use ingredient formulations for the drugs that would maximize the amount his pharmacy could bill to TRICARE – which was upwards of $10,000 to $17,000 per medication at the time – and other insurance companies without considering what was best for patient care. Fisher also directed Burton and his employees to tell beneficiaries not to worry about co-payments, in order to ensure that the beneficiaries would not decline receiving the medications over out-of-pocket cost. Because PSP was not a TRICARE network pharmacy, Fisher paid Burklow Pharmacy in Pace a commission of approximately 15% to allow PSP to bill TRICARE using Burklow’s network provider contract for prescriptions received, filled, and shipped at PSP, including ones Fisher knew were fraudulent.
During the conspiracy, Fisher also purchased Jay Pharmacy in Jay, Florida, and used its existing insurance contracts with TRICARE and others to bill for fraudulent PSP prescriptions.Assistant United States Attorney Alicia H. Forbes prosecuted the case following a joint investigation by the Federal Bureau of Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Florida Department of Financial Services-Bureau of Insurance Fraud, Florida Department of Health, Naval Criminal Investigative Service, and Army Criminal Investigative Command.
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.
Pekin Woman Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
PEORIA, Ill. – U.S. District Judge James E. Shadid today sentenced a Pekin, Ill., woman, Rachel Miller, 29, of the 1400 block of Summit Dr., to serve 30 years in federal prison for sexual exploitation of a child. In addition, Judge Shadid ordered that Miller remain on lifetime supervised release upon completion of her prison sentence and register as a sex offender.
Immediately prior to today’s hearing, Miller pleaded guilty to using a cell phone, in March 2019, to capture a video of herself engaging in sexual activity with a prepubescent male. This video was later distributed to the internet.
In a separate but related case, Miller’s boyfriend, Sebastian Sale, 30, is scheduled to be sentenced on Aug. 26, 2021. Sale pleaded guilty on April 8, 2021, to one count of sexual exploitation of a child.
Both Miller and Sale have remained in the custody of the U.S. Marshals Service since their arrests in March 2020.
The charges are the result of an investigation by U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the Washington, Ill., Police Department. Assistant U.S. Attorney Paul B. Morris represents the government in the prosecutions.
The case was brought as part of Project Safe Childhood, a Department of Justice initiative to combat child sexual exploitation and abuse. For more information about Project Safe Childhood please visit www.projectsafechildhood.gov.
Owners and manager of Ridgefield, Washington, automotive shop indicted for conspiracy to violate the Clean Air ActRead the Press Release
Seattle – A federal grand jury today charged three southwest Washington residents and two corporations with a conspiracy that involved removing federally-required pollution control hardware from diesel pick-up trucks and tampering with the trucks’ emissions monitoring systems, announced Acting U.S. Attorney Tessa M. Gorman. The owners and general manager of Racing Performance Maintenance Northwest and a related Woodland, Washington, company, RPM Motors and Sales NW, will appear in U.S. District Court in Tacoma on May 25, 2020.
The indictment charges company owners Sean Coiteux, 47, and his wife, Tracy Coiteux, 43, the service manager, Nick Akerill, 41, and the corporate entities they controlled with conspiracy to violate the Clean Air Act and eleven specific violations of the Clean Air Act for tampering with the emissions-monitoring system on vehicles when removing pollution control equipment between January 2018 and November 2020.
“By removing required pollution control devices, the defendants caused their customers’ diesel trucks to spew pollutants into the air at a rate of up to 300 times the pollution caused by compliant trucks,” said Acting U.S. Attorney Gorman. “These defendants increased toxins in our environment that are linked to cancer, as well as pulmonary, neurological, cardiovascular, and immune system damage. And they collected hundreds of thousands of dollars in fees for doing so.”
According to the indictment, between January 2018 and January 2021, the defendants charged their customers fees of about $2,000 per truck to remove emissions control systems required by federal law. They then modified legally-required software that works to ensure the vehicle’s pollution remains within legal limits. RPM Motors and Sales sometimes offered, as part of the sale of a truck, to remove the emissions control system after the customer purchased a truck. Email and other electronic records document the conspirators’ purchase of equipment and software kits to remove the pollution control and reprogram the monitoring systems. These modifications, which are known as “tunes” and “deletes,” are marketed to truck owners as improving vehicle power and performance.
Over the three years described in the indictment, the defendants took in more than $500,000 for the modifications that violate the Clean Air Act.
“The defendants intentionally violated the Clean Air Act by installing emissions defeat equipment in passenger vehicles, resulting in increased air pollution,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in the Pacific Northwest. “EPA and our law enforcement partners will continue to focus efforts on stopping the sale of these illegal devices.”
Conspiracy is punishable by up to five years in prison. Each violation of the Clean Air Act is punishable by up to two years in prison and a $250,000 fine.
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.
The case is being investigated by Environmental Protection Agency’s Criminal Investigation Division.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Environmental Protection Agency Special Assistant United States Attorney Karla Gebel Perrin.
Orlando Man Found Guilty of Armed Robbery of Cellphone StoreRead the Press Release
Orlando, Florida – A federal jury has found Tauri Benjamin Rivas Nunez (22, Orlando) guilty of robbery and aiding and abetting the brandishing of a firearm. Rivas Nunez faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for July 28, 2021.
Rivas Nunez had been indicted on January 7, 2021.
According to evidence presented at trial, on August 10, 2019, Rivas Nunez and two others entered a T-Mobile store located at 5420 Deep Lake Road in Oviedo. Rivas Nunez placed an employee in a chokehold, while a co-defendant took another employee into a back room at gunpoint and ordered the employee to empty a safe containing cellphones and merchandise. Rivas Nunez removed money for the cash register and the three individuals ran from the store with the stolen items. Rivas Nunez was located immediately after the robbery at a home in Orlando. The stolen merchandise was recovered from the residence, along with the firearm used during the robbery.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Daniel P. Jancha and Chauncey A. Bratt.
Ohio Man Convicted of Sex Offense Against a MinorRead the Press Release
HUNTINGTON, W.Va. – A federal jury convicted an Ohio man today of traveling in interstate commerce to engage in illicit sexual activity with a minor. Makel Elboghdady, 36, of Columbus, Ohio, was charged by a single-count Indictment in May 2020.
Evidence at trial revealed that Elboghdady traveled on February 28, 2020 from Columbus, Ohio to Huntington to meet a woman in order to engage in sexual activity with her purported minor daughters. Elboghdady believed the girls were 11 and 13 years old. When he arrived in Huntington and met with the person he believed to be the mother of the girls, Elboghdady was placed under arrest.
Elboghdady faces up to 30 years in prison when he is sentenced on August 16, 2021. He will also be required to register as a sex offender.
“Thanks to a proactive investigation in this case by the FBI Child Exploitation and Human Trafficking Task Force and our commitment to combatting child sexual exploitation, Elboghdady was charged and convicted of traveling in interstate commerce with the intent to engage in illicit sexual activity with a minor. This case should serve as a warning to offenders that the U.S. Attorney’s Office and our law enforcement partners will work together to hold you accountable and bring you to justice,” said Acting United States Attorney Lisa G. Johnston.
United States District Judge Robert C. Chambers presided over the trial. Assistant United States Attorneys Jennifer Rada Herrald and Julie White handled the prosecution.
This case was 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. 3:20-cr-00069.
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Nokomis Man Sentenced to More Than 27 Years in Federal Prison for Child Exploitation OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Robert Boehme (64, Nokomis) to 27 years and 3 months in federal prison for receiving and possessing materials depicting the sexual exploitation of children. Boehme was also ordered to serve a 10-year term of supervised release and to register as a sex offender.
Boehme had pleaded guilty on December 7, 2020.
According to court documents, FBI agents detected several online requests to download child exploitation material over the internet and traced these requests to Boehme’s residence. When agents executed a federal search warrant at Boehme’s home, they caught Boehme as he was actively downloading child exploitation material over the internet. A forensic examination of Boehme’s computer revealed that he had amassed a collection of tens of thousands of images and videos depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Colin McDonell and Frank Murray.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Newton Man Pleads Guilty to Defrauding Federal Agency by Inflating Expenses and Submitting Fake BidsRead the Press Release
BOSTON – A Newton man pleaded guilty today in connection with defrauding the General Services Administration.
Benedetto Valente, 60, pleaded guilty to one count of wire fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 8, 2021. Valente was charged on April 22, 2021.
Valente engaged in a scheme to defraud the U.S. General Services Administration (GSA), as well as the company he worked for, by causing expenses to be billed that neither GSA nor the company actually incurred. Valente did so by inflating payroll expenses and charging items he used in his personal business and then creating fake documents to make it appear that those items were intended for GSA. Valente arranged to award contracts for scaffolding and masonry repair to a family member, including by submitting fake bids so his family member could obtain the contracts, and by diverting a subcontract awarded to another contractor to his family member at an inflated price.
The charging statute provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph Dattoria, Special Agent in Charge of the General Services Administration, Office of Inspector General, Boston Field Investigations Office made the announcement. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN MARTIN, age 27, a resident of New Orleans, pleaded guilty on May 12, 2021 to being a felon in possession of a firearm before United States District Judge Carl J. Barbier, announced U.S. Attorney Duane A. Evans.
According to court paperwork, MARTIN was interviewed by ATF special agents who were assisting the New Orleans Police Department in arresting MARTIN on burglary charges. During the interview, MARTIN admitted that he had firearms in his residence and during a subsequent search of that residence police located firearms where MARTIN said they would be. MARTIN already had multiple prior felony convictions at that point.
MARTIN faces up to 10 years imprisonment, a fine of up to $250,000, up to three years of supervised release following any term of imprisonment on the gun charge and payment of a mandatory $100 special assessment fee.
This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution is being handled by Assistant United States Attorney David Haller.
New Britain Resident Charged with Fentanyl and Cocaine OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that on May 4, 2021, a federal grand jury in Hartford returned a four-count indictment charging JOSE MIGUEL VEGA-RIVERA, 49, a citizen of the Dominican Republic recently residing in New Britain, with fentanyl and cocaine offenses.
As alleged in court documents, on April 27, 2021, DEA Task Force investigators stopped a car Vega-Rivera was traveling in after he sold cocaine to an occupant of another vehicle. A subsequent search of a New Britain apartment connected to Vega-Rivera revealed approximately one kilogram of fentanyl, more than 500 grams of cocaine, two firearms, and approximately $55,000 in cash.
The indictment charges Vega-Rivera with one count of possession with intent to distribute, and distribution of, which carries a maximum term of imprisonment of 20 years; one count of possession with intent to distribute cocaine, which carries a maximum term of imprisonment of 20 years; one count of possession with intent to distribute 400 grams or more of fentanyl, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; and one count of possession with intent to distribute 500 grams or more of cocaine, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Vega, who has been detained since his arrest on April 27, appeared today via videoconference before U.S. Magistrate Judge S. Dave Vatti and entered a plea of not guilty to the charges.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone 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.
Mexican National Pleads Guilty to Damaging Marijuana Cultivation Operation in Stanislaus National Forest in Tuolumne CountyRead the Press Release
FRESNO, Calif. — Eleno Fernandez-Garcia, 37, a citizen of Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced. He also agreed to pay $45,688 in restitution to the U.S. Forest Service for the damage that the cultivation operation had on public land.
According to court documents, the cultivation operation contained 9,654 marijuana plants and 200 pounds of processed marijuana and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones covered with marijuana debris. Three others fled from the area, which is near recreational activities and a natural spring used for bottled water.
The cultivation operation caused significant damage to the environment. Investigative agents found lethal restricted use chemicals (aluminum phosphide), fertilizer, and a dead raccoon at the grow site. Native vegetation was cut down to make room for the marijuana plants. Besides chemicals and fertilizer, there was a large amount of trash and irrigation tubing. The grow site was in a grazing permit area where cows roamed freely and had access to the plants and chemicals.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, and the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice. The Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Fernandez-Garcia is scheduled for sentencing on Aug. 6. He faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Methamphetamine Trafficking Organization Leader Sentenced to 17.5 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Vicente Velazquez was sentenced today to 17 and a half years in prison by U.S. District Judge Troy L. Nunley for conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Velazquez and nine others were indicted on drug trafficking charges in 2016 after a two-year wiretap investigation. Velazquez was the leader of the drug trafficking organization who ordered methamphetamine from a supplier in Mexico and then coordinated the distribution of methamphetamine through sub-distributors. Velazquez is the last of the 10 defendants to be sentenced. The following co-defendants were previously sentenced.
Roberto Aguilar Navarro, 11 years 3 months in prison on Nov. 15, 2019;
Pedro Fuentes, 10 years in prison on Jan. 24, 2019;
Luis Alberto Fernandez Contreras, 4 years and 4 months in prison, on Sept. 7, 2017;
Arnulfo Sanchez, 4 years in prison on Aug. 17, 2017;
Jorge Vega-Macias, 4 years in prison on June 13, 2019;
Ivan Alcaraz, 4 years in prison on July 13, 2017;
Edwin Arambulo, 4 years in prison on Jan. 11, 2018;
Leonel Villa Lopez, 3 years and 10 months in prison on Oct. 12, 2017; and
Victor Hernandez-Sosa, 2 years in prison on Oct. 27, 2016.
This case was the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Yuba-Sutter Narcotics Task Force, the Butte Interagency Narcotics Task Force, and the California Highway Patrol. Assistant U.S. Attorney Justin Lee prosecuted the case.
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.
Man Pleads Guilty to Attempting to Provide Material Support and Resources to ISISRead the Press Release
Jacksonville, FL – A Florida man pleaded guilty today to attempting to provide material support and resources to the Islamic State of Iraq and al-Sham, also known as ISIS, a designated foreign terrorist organization since 2014.
According to court documents, Romeo Xavier Langhorne, 31, of St. Augustine, pledged his allegiance to ISIS at some point in 2014, knowing that ISIS was a designated foreign terrorist organization and that they engaged in acts of terrorism.
If convicted, Langhorne faces a maximum of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Throughout 2018 and 2019, Langhorne reaffirmed his support for ISIS on various social media accounts, as well as posted ISIS-produced videos to his YouTube account and participated in online chat rooms with like-minded individuals. In December 2018 and January 2019, Langhorne expressed in one of those chat rooms an interest in creating a video that would improve on existing videos demonstrating the making and use of a deadly explosive – triacetone triperoxide, also known as TATP.
In Feb. 2019, Langhorne began communicating with an undercover employee (UCE) with the FBI who was posing as someone working on behalf of ISIS. Langhorne told the UCE about his plans to create and disseminate an instructional video on making a TATP and sought the UCE’s assistance in creating the video. Langhorne told the UCE that, in order to ensure that the video was not removed from the internet by service providers, the video should include disclaimers advising that it was intended for educational purposes. However, Langhorne informed the UCE that his true purpose in making and distributing the video was to arm ISIS adherents and others with knowledge of how to make TATP and use it for terrorism-related purposes in support of ISIS.
The FBI produced a video in accordance with Langhorne’s instructions, but – unbeknownst to Langhorne – it featured an inert chemical formula for TATP that would not produce an explosion. In Nov. 2019, the UCE provided versions of the TATP video to Langhorne, and Langhorne distributed the video by uploading it to a video-sharing website.
Langhorne was arrested at his residence in Roanoke, Virginia, on Nov. 15, 2019, pursuant to a criminal complaint, and ordered detained pending trial. While in custody, Langhorne admitted that he had “probably at some point” pledged allegiance to ISIS and Abu Bakr al-Baghdadi, who was the leader of ISIS from 2014 until his death on Oct. 26, 2019. Langhorne admitted that he was the person who had communicated with the UCE and admitted that he had uploaded the TATP video to the internet.
The FBI Jacksonville Division and Northeast Florida Joint Terrorism Task Force are investigating the case, with support from the U.S. Customs and Border Protection, Border Patrol and the St. Johns County Sheriff’s Office.
Assistant U.S. Attorney Laura Cofer Taylor for the Middle District of Florida and Trial Attorney Andrew D. Sigler for the National Security Division’s Counterterrorism Section are prosecuting the case.
Malden Man Pleads Guilty to COVID-Relief Fraud and Identity TheftRead the Press Release
BOSTON – A Malden man pleaded guilty today to identity fraud charges in connection with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.
Wagner Sozi, 33, pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim. U.S. District Judge George A. O’Toole Jr. scheduled sentencing for Sept. 22, 2021. Sozi was indicted by a federal grand jury in July 2020.
Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who worked for this realty company, and various files belonging to the company were found in the apartment. Numerous identity theft victims tied to Sozi had been clients of this realty company, including at least one person in whose name a fraudulent PUA claim was filed.
Sozi, along with a female accomplice, opened credit accounts at an office supply retailer under various fake identities and then used these accounts to purchase Visa gift cards. Sozi used another stolen identity to purchase a Rolex for more than $15,000. He also possessed a Maine driver’s license, bearing his photograph and the name of an identity theft victim, which was used to open a bank account and to make large purchases at an Apple Store.
Following his arrest on June 25, 2020, documents were recovered from Sozi’s apartment, including a PUA debit card in another individual’s name. Further investigation revealed that the PUA claim associated with the seized debit card listed Sozi’s address as the mailing address and that another fraudulent PUA claim had been submitted under Sozi’s own name but with another Social Security number.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000. The false claim charge provides for a sentence of up to three years in prison, three years of supervised release and a fine of up to $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; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Nick Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit, the Massachusetts State Police and the Malden, Medford and Braintree Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Bill Abely, Chief of Mendell’s Major Crimes Unit, is prosecuting the case.
Madison County Woman Indicted for Mail Fraud, Wire FraudRead the Press Release
CHARLOTTESVILLE, Va. – A federal grand jury returned an indictment yesterday charging a Madison, Virginia woman with nearly a dozen counts of fraud related to a scheme in which she took money from victims while purporting to have terminal cancer, vast wealth, and connections to celebrities.
According to court documents, starting in 2014, Christine Favara Anderson, 51, of Reva, Va., owned and operated the publishing companies known as Christine F. Anderson Publishing and Media (CFA) and Sage Wisdom. Anderson took money from book authors but later failed to pay the authors their royalties as owed and did not provide products and services as negotiated. In addition, Anderson often falsely claimed to have been diagnosed with cancer to delay payment to the book authors, while also purporting to maintain vast wealth.
In addition to the alleged book publishing scheme, Anderson is also charged with orchestrating a real estate scheme where she signed contracts for expensive real estate, provided false proof of funds, and then was unable to provide the earnest money deposits. Often, Anderson would sign bad checks for the earnest money deposits, which would never clear. While she was putting contracts on these properties, Anderson took money from individuals helping her in these real estate schemes, promising to pay these individuals back. Anderson used her false interest in the expensive real estate to prove to her victims that she was able to pay back the loans, but never did. Anderson’s excuses for her inability to pay the earnest money deposit and the loans included her false claims of a cancer diagnosis and freezes on her bank accounts.
Anderson is charged with eight counts of wire fraud, three counts of mail fraud, one count of making a false statement, and one count of concealing records in a federal investigation.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division made the announcement.
The Federal Bureau of Investigation and the Madison County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Kate Rumsey and Madison County Deputy Commonwealth’s Attorney Wade Gelbert are prosecuting the case.
If you believe you are a victim of fraud or have information about the allegations in this case, please contact the FBI in Charlottesville at 434-293-9663.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lodge Grass man admits assault crime in Crow Agency shootingRead the Press Release
BILLINGS – A Lodge Grass man accused of shooting and wounding a pedestrian from his vehicle in Crow Agency admitted to an assault crime today, Acting U.S. Attorney Leif M. Johnson said.
Fabian Cruz Dawes, 31, appeared for an arraignment and pleaded guilty to an information charging him with assault with a dangerous weapon. Dawes faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Magistrate Judge Timothy J. Cavan presided. Dawes was detained pending further proceedings. A sentencing date has not yet been set.
In court documents filed in the case, the government alleged that on April 7, the victim, identified as John Doe, was walking with another person on Makawasha Avenue, toward the downtown area of Crow Agency, on the Crow Indian Reservation. At the same time, Dawes was parked in a blue vehicle near the Teepee Service, out of view of Doe. As Doe approached a laundromat near the Teepee Service, Dawes drove toward Doe and stopped near the victim. Doe approached the driver’s side door and engaged in a short conversation with Dawes. Dawes then fired a single 9mm bullet at Doe, striking him in the leg, then drove away at a high rate of speed. Doe was treated for injuries at the Indian Health Services. Video evidence and witnesses identified Dawes as the shooter to law enforcement.
Assistant U.S. Attorney Lori Harper Suek is prosecuting the case, which was investigated by the Bureau of Indian Affairs and FBI.
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Lackawanna County Man Convicted of Fraud, Identity Theft, and False Statement Offenses in Automobile Warranty SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 11, 2021, Brian Larry, age 59, of Clark’s Summit, Pennsylvania, was convicted following a seven-day jury trial held before United States District Court Judge Malachy E. Mannion of mail fraud, wire fraud, aggravated identity theft, and false statement offenses.
According to Acting United States Attorney Bruce D. Brandler, Larry was charged with defrauding his former employer, a Wilkes-Barre based automobile warranty company, from approximately January 2014 through October 2018. Larry was convicted of stealing the personal information of warranty policy owners and providing it to his coconspirators, who created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company, where Larry approved payment of the invoices. During the course of the scheme, Larry and his coconspirators obtained approximately $400,000 paid out by the warranty company pursuant to the false invoices, including thousands of dollars in repair work for Larry’s personal vehicle that he charged to other policy owners. The evidence at trial showed that Larry then falsified internal warranty company documents in an attempt to conceal his crimes.
The jury returned a guilty verdict after approximately two hours of deliberation. Larry was convicted of every count in his indictment: one count of conspiring to commit mail fraud and wire fraud; four counts of wire fraud, two counts of mail fraud; five counts of aggravated identity theft; and one count of making a false statement to the FBI when he denied receiving cash kickbacks in exchange for his participation in the scheme.
Three of Larry’s coconspirators previously pleaded guilty in connection with the scheme, and are awaiting sentencing:
- Matthew Gershkoff, age 64, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and to aggravated identity theft, and is awaiting sentencing. Gershkoff was convicted of preparing false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts, and for forging policy owners’ signatures. Gershkoff pleaded guilty on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
- Jason Pannone, age 39, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud and mail fraud, and to aggravated identity theft, and is awaiting sentencing. Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through a North Attleboro, Massachusetts automobile repair shop, Ultra Auto Services. Pannone pleaded guilty on March 23, 2021, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $128,000 in restitution.
- Herman Cabral, age 62, of Cranston, Rhode Island, pleaded guilty to conspiring to commit wire fraud. Cabral was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile repair shop, A Plus Collision Center. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $211,000 in restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the fraud offenses are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry a mandatory, consecutive two-year minimum. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Kalispell meth trafficker sentenced to three years in prisonRead the Press Release
MISSOULA – A Kalispell man who admitted to conspiring with others to obtain large quantities of methamphetamine for distribution was sentenced today to three years in prison and to three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Scott Michael George Daniels, 31, pleaded guilty on Jan. 21 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement learned from several sources that Daniels was distributing meth and that he and others transported stolen vehicles from Kalispell to Spokane and traded them for illegal drugs. The government further alleged that Leon Kavis supplied Daniels with about 12 pounds of meth, which is the equivalent of 43,488 individual doses, in mid-August 2020. Kavis, of Missoula, is awaiting sentencing for a meth conspiracy conviction in a separate case.
The government also alleged that a confidential source saw Daniels with three pounds of meth in his garage and saw him distribute the drug to others. Law enforcement served a search warrant on Daniels’ residence and recovered six rifles, body armor, small quantities of meth and heroin and drug paraphernalia. Daniels admitted to distributing between 49 ounces and 60 ounces of meth between the spring and fall of 2020.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Montana Regional Violent Crime Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Flathead County Sheriff’s Office.
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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Justice Department Seeks to Shut Down San Diego Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Southern District of California seeking to bar a San Diego tax return preparer from owning or operating a tax return preparation business and preparing federal income tax returns for others.
The civil complaint was filed against Archibald W. Smith Jr., also known as Archie Smith, and alleges that he operated a tax preparation business in San Diego, California, under his own name and the names “Ablizzia Bookkeeping and Production” and “ABPC Inc.” According to the complaint, Smith prepared and filed tax returns that falsely understated his customers’ federal income tax liabilities by fabricating businesses and related business expenses; fabricating deductions for unreimbursed employee business expenses and charitable contributions; and overstating tax credits for solar-panel installation.
According to the complaint, the defendant prepared over 3,500 tax returns in aggregate for tax years 2013 through 2020. The complaint alleges that an IRS review of 80 income tax returns for tax years 2013 through 2017 resulted in deficiencies totally nearly $1 million. As a result, the complaint alleges, the defendant has cost the United States lost tax revenue. The complaint further alleges that the defendant harmed his customers, who could potentially face large income tax debts and may be liable for penalties and interest.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury finds St. Louis man guilty on conspiracy and distribution of cocaine base “crack”Read the Press Release
ST. LOUIS – A jury found Bryan Kimble, 32, of St. Louis, Missouri guilty, Wednesday, of conspiracy to possess with intent to distribute cocaine base and three counts of distribution of cocaine base following a three-day jury trial. United States District Judge Stephen R. Clark presided over the trial.
The evidence during the trial proved Kimble distributed cocaine base to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent on three separate dates. Kimble also conspired with others to distribute cocaine base. In October 2019, ATF Special Agents received information from a confidential informant that Kimble was selling cocaine base. On October 11, 19, and 22, 2019, ATF successfully conducted controlled purchases of cocaine base from Kimble using an undercover agent. Kimble would drive to a location to meet the undercover agent on each date and use a female passenger to complete the drug transactions. In all, Kimble sold more than 30 grams of cocaine base to the undercover agent.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorney Rodney H. Holmes and Special Assistant United States Attorney Ashley M. Walker handled the case.
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Judges sentences St. Louis man for carjacking four people and brandishing a firearmRead the Press Release
ST. LOUIS – United States District Judge Stephen R. Clark sentenced Brandon Shell to 155 months in prison today. The 22-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of armed carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
On October 12, 2019, Shell approached four people who had just exited a Kia Optima near the 3700 block of Juniata in St. Louis. Shell brandished a handgun and demanded the four victims give him all their money. The victims complied. After they did so, Shell further demanded “That’s not all you have, give me the keys!” One of the victims handed Shell the keys to the Optima. Another victim threw several items back in the Optima.
Shell then drove away in the Optima. St. Louis Metropolitan Police Department detectives were able to locate Shell driving the Optima shortly after the carjacking. Shell pulled over in the 5300 block of Oriole in St. Louis. When Shell saw detectives, he ran away from them, but was eventually taken into custody.
Detectives found a loaded .380 caliber Kel-Tec semiautomatic pistol on Shell’s person. He was then arrested and charged.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case.
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Judges sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Judge Sarah E. Pitlyk sentenced Andre McIntosh to 72 months in prison today. The 48-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of being a felon in possession of a firearm.
Just before midnight on January 7, 2020, St. Louis Metropolitan Police Department officers patrolling the Jeff Vander Lou neighborhood discovered the license plate of an unoccupied vehicle was registered to McIntosh, who was a non-compliant sex offender on parole from the Missouri Department of Corrections. McIntosh also had several outstanding traffic warrants.
Officers canvassed the area and, after locating McIntosh, asked McIntosh to stop. McIntosh refused the officers’ requests for him to stop, and instead ran from the officers as they approached him. While running away from officers, McIntosh pulled a loaded .40 caliber Smith & Wesson firearm from his pocket and threw it. McIntosh was ultimately detained by police. A post-arrest computer inquiry of the Smith & Wesson firearm thrown by McIntosh revealed it had been reported stolen. A post-arrest search of McIntosh’s person revealed him to be in possession of fentanyl and methamphetamine.
Prior to January 7, 2020, McIntosh had been convicted of one or more felony crimes punishable by a term of imprisonment exceeding one year.
The St. Louis Metropolitan Police Department and Missouri Department of Public Safety investigated this case.
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Johnson Man Charged with Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Joshua Preston, 32, of Johnson, Vermont, was arrested yesterday on a Criminal Complaint alleging that he possessed with intent to distribute heroin, fentanyl, cocaine, and cocaine base in March of 2020. At the time of his arrest, Preston possessed additional controlled substances he intended to distribute. Preston’s initial appearance in federal court has not yet been scheduled.
According to court records, in late February of 2020, a Drug Enforcement Administration Special Agent observed Preston conducting what appeared to be a drug transaction in a parking lot in Williston, Vermont. In early March of 2020, DEA agents conducted surveillance in the same parking lot, and confronted Preston during a suspected drug transaction. A search of Preston’s vehicle resulted in the seizure of approximately 32 grams of suspected cocaine base, approximately 32 grams of suspected cocaine, over 60 grams of suspected fentanyl, and a digital scale. Yesterday, DEA agents conducted surveillance on Preston’s residence in Johnson, Vermont. Agents observed Preston conduct what appeared to be a drug transaction. Preston was subsequently arrested, and a search of his residence resulted in the seizure of nearly 5,000 bags of suspected fentanyl and approximately 140 grams of powder cocaine.
The United States Attorney emphasizes that the charge against Preston is merely an accusation and that he is presumed innocent unless and until proven guilty.
If convicted of the charged offense, Preston could face up to twenty years in prison, up to a $1,000,000 fine, and a period of federal supervised release. Any sentence will be formulated through consultation of the United States Sentencing Guidelines and consideration of Preston’s personal history and characteristics.
This case is being investigated by the Drug Enforcement Administration.
Acting United States Attorney Jonathan A. Ophardt is prosecuting the case for the government. Preston has not yet retained or been appointed counsel.
Illegal Firearms Trafficker from Philadelphia Sentenced to 15 Years After Being Convicted at TrialRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kenneth Eugene Cherry, Jr., 33, of Philadelphia, PA, was sentenced to fifteen years in prison and three years of supervised release by United States District Judge Harvey Bartle III, for 27 counts of firearms trafficking offenses.
In August 2019, following a jury trial, Cherry was convicted of dealing in firearms without a license, possession and transfer of a machine gun, possession of an unregistered firearm, possession of a firearm with an obliterated serial number, and multiple counts of possession of a firearm by a convicted felon.
Utilizing a confidential source during a year-long investigation, federal agents conducted controlled purchases of a total of 45 firearms – 24 from Cherry and 21 from his co-defendant. The firearms purchased from Cherry included two Glock “Auto Sear” conversion devices that are classified as machineguns, an unregistered short-barreled rifle, and six additional assault-style rifles. Cherry also provided a large amount of ammunition with the firearms he sold, which were trafficked from Virginia up to Philadelphia to be sold on the street for profit.
“The defendant put large-capacity, semiautomatic weapons on the streets of Philadelphia, significantly contributing to the violent crime problem in our city,” said Acting U.S. Attorney Williams. “Less than one week ago, I stood with our partners at ATF and the Philadelphia Police Department to discuss how the ATF’s NIBIN Van will be a critical resource to expedite ballistics testing of crime guns like the ones this defendant was trafficking. We are working around the clock and are ‘All Hands On Deck’ to put criminals like Cherry behind bars for a long time.”
“Knowingly selling firearms without a license is a violation of federal law, and by doing so, Cherry circumvented the very laws which are designed to protect communities,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “Public safety is ATF’s top priority, and we are committed to working alongside our law enforcement partners to seek justice above anything.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
IRS Criminal Investigation and the U.S. Attorney Remind Taxpayers of Upcoming Tax Filing DeadlineRead the Press Release
SACRAMENTO, Calif. — The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of California reminded taxpayers of the May 17 filing and payment deadline.
Due to COVID-19, the original filing deadline and tax payment due date for 2020 was postponed from April 15 to May 17. Taxpayers filing Form 1040 series returns must file Form 4868 by May 17 to obtain the automatic extension to Oct. 15.
“Every person in this country is obligated to abide by our tax laws,” said Acting U.S. Attorney Phillip A. Talbert. “It hurts everyone who follows the rules when people submit fraudulent returns and claim taxpayer money to which they aren’t entitled. It is vital that everyone meets their responsibilities to pay taxes and that they have confidence in the government agencies that enforce those rules.”
“With the May 17 tax deadline fast approaching, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Michael Daniels, Acting Special Agent in Charge of the IRS Criminal Investigation in Northern California. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the May 17 deadline.”
For the most up-to-date information about the tax filing deadline taxpayers can visit IRS.gov.
Hobart Man Sentenced to 168 Months in PrisonRead the Press Release
HAMMOND-Charles Gould, 37, of Hobart, Indiana, was sentenced by United States District Court Judge Philip P. Simon to 168 months of imprisonment and 5 years of supervised release following his conviction at trial for conspiracy to distribute 280 grams or more of crack cocaine, announced Acting U.S. Attorney Bell.
According to documents in this case, during 2016 Gould conspired with other individuals in Gary, Indiana, to distribute crack cocaine. As part of the conspiracy, cocaine was cooked into crack cocaine, packaged for sale, and distributed by members of the conspiracy in Gary’s Glen Park neighborhood. During the investigation, law enforcement executed search warrants at five locations and recovered approximately 300 grams of crack cocaine packaged for sale, packaging materials, money, and a 33-page drug ledger. Gould has a prior felony conviction for aggravated battery in Lake County, Indiana.
Eighteen other charged members of the conspiracy were convicted of drug-related offenses in this case.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary, Hobart, and Lake County Police Departments. This case was prosecuted by Assistant United States Attorneys Thomas R. Mahoney and Alexandra McTague.
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Hip-Hop Producer Sentenced for Unlawfully Operating A Prostitution Business Guised as Escort BusinessesRead the Press Release
LAS VEGAS, Nev. – A hip-hop producer was sentenced today to two years and nine months in prison for unlawfully operating a prostitution business over a 12 year period, announced Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
According to court documents, Jamal Rashid, 45, of Las Vegas, known as hip-hop producer “Mally Mall,” owned and operated several escort businesses between April 2002 and September 2014 that served as fronts for a prostitution business. Rashid operated a high-end prostitution business that transported victims across the United States, using various paid websites — such as Backpage and Eros — to advertise the victims for prostitution purposes.
Rashid exploited hundreds of victims as: (a) “independent contractors” who turned over to Rashid a portion of what they earned through prostitution; and (b) “priority girls” who turned over nearly all of the proceeds from prostitution to Rashid. He admitted to manipulating the victims, imposing rules and threatening them so that they would prostitute for him. Further, Rashid encouraged victims to get tattoos of him to demonstrate their loyalty, and led many of them to believe he would advance their careers in show business.
Rashid pleaded guilty in October 2019 to one count of use of an interstate facility in aid of unlawful activity. In addition to imprisonment, U.S. District Judge Gloria M. Navarro sentenced Rashid to three years of supervised release.
This case was investigated by the FBI. Assistant U.S. Attorney Nicholas Dickinson prosecuted the case.
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Hancock County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Gavin Collins, of Newell, West Virginia, has admitted to a child pornography charge, Acting U.S. Attorney Randolph J. Bernard announced.
Collins, 30, pleaded guilty today to one count of “Production of Child Pornography by Person Having Custody or Control.” Collins admitted to producing child pornography with a minor in his custody from September 2018 to July 2020 in Hancock.
Collins faces at least 15 years and up to 30 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Gunna Gang Affiliate Sentenced to 20 Years in PrisonRead the Press Release
DES MOINES – Today a federal judge sentenced Dreshon Rene Frazier, age 25, of Des Moines, to 20 years in prison for drug and gun crimes. Frazier had previously pleaded guilty to Conspiracy to Distribute Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Felon in Possession of a Firearm.
At sentencing, United States District Court Judge Rebecca Goodgame Ebinger found over the course of 2019 to 2020, Frazier repeatedly acquired and dealt marijuana. During that year, Frazier, a known Gunna Gang affiliate, also possessed numerous firearms, including those with high capacity magazines. A search of Frazier’s residence on February 26, 2020, revealed two loaded pistols, drug-related items, and ammunition.
In December 2019, Frazier was involved in a gang-related shooting in Des Moines. During that shooting, Frazier and two other Gunna Gang members shot at the occupied residence of a rival gang member. Frazier pleaded guilty in the Iowa District Court for Polk County to charges related to that shooting. Frazier, a convicted felon, has an extensive criminal history that categorizes him under the United States Sentencing Guidelines as a career offender. He was serving two terms of parole when he committed both the shooting and the federal crimes.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by the Des Moines Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Grand Jury Returns Indictment Charging 21 Individuals Running Narcotics Distribution Ring involving Methamphetamine, Fentanyl, Heroin and CocaineRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned a 32-count indictment charging 21 individuals for their roles in a conspiracy to distribute methamphetamine, fentanyl, heroin, and cocaine across the Wasatch Front. The charges follow joint Organized Crime Drug Enforcement Task Force operations conducted by the FBI’s Safe Streets Task Force, Wasatch Metro Narcotics Strike Force, Davis County Metro Narcotics Strike Force, West Valley Police Department, and the United States Marshals Service.
Law enforcement officers seized more than 27 pounds of methamphetamine, four pounds of fentanyl, two pounds of heroin, 22 pounds of cocaine, two firearms, and more than $415,000 during the course of the operation.
The grand jury charged 18 individuals with conspiracy to distribute methamphetamine; 14 individuals are charged with conspiracy to distribute fentanyl; five individuals are charged with conspiracy to distribute heroin; 18 individuals are charged with conspiracy to distribute cocaine. The indictment also includes 12 counts of distribution of methamphetamine; three counts of distribution of cocaine; one count of distribution of fentanyl; one count of possession with intent to distribute fentanyl; four counts of possession with intent to distribute methamphetamine; three counts of possession with intent to distribute cocaine, two counts of possession with intent to distribute heroin; one count of using a firearm in furtherance of a drug trafficking crime; and one count of using a cellular phone to facilitate the distribution of methamphetamine.
Charged in the indictment are:
- Melvin Bladimir Andrade, aka “The Trucker,” 32, of Roy;
- Jesus Antonio Hernandez Guerrero, aka “Tonio,” 35, of North Ogden;
- Francisco Javier Quezada Aguirre, aka “el Negro” aka “Poncho,” 27, of Mexico;
- Pedro Ignacio Mendoza Ibarra, 28, of Mexico;
- Hector Ramses Blasco Cota, aka “Winnie,” 25, of Salt Lake City;
- Jose Luis Hernandez, aka “Chepe,” 60, of Ogden;
- Troy Rivera, aka “Vecino” aka “Gonzo,” 48, of Farr West;
- Hector Holguin Barrios, aka “Viejo,” 57, of Midvale;
- Hugo Morales Chavero, 30, of Salt Lake City;
- Victor Noe Martinez Portillo, 31, of West Jordan;
- Josiel Rogelio Morales Lopez, 21, of Lehi;
- Isaac Celaya Almanza, aka “Chupa” aka “Flaco,” 50, of Ogden;
- Victor Guzman, “Chiste,” 46, of Ogden;
- Erick Garcia Rivera, 40, of West Valley City;
- Mario Moreno, 40, of Ogden;
- Rubi Rosario Almenta Sanchez, 33, of Westminster, California;
- Edwin Alberto Espino Alfaro, aka “Gordito,” 33, of Ogden;
- Juan Carlos Rosas Rosas, 37, of Ogden;
- Carlos Enrique Canos Gutierrez, aka “Kike,” 26, of West Valley City;
- Marissa Perez, 22, of Torrance, California;
- Andrea Islas, 24 of, Salt Lake City.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. Special Agents from the FBI’s Safe Streets Task Force and investigators from the Wasatch Metro Narcotics Strike Force, Davis County Metro Narcotics Strike Force, West Valley Police Department, and Deputies from the United States Marshals Service, conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Georgia Man Indicted on Charges of Wire Fraud Involving the CARES ActRead the Press Release
ROCKFORD — A Georgia man was indicted Tuesday by a federal grand jury in Rockford on fraud charges involving unemployment compensation claims and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).
ROBERT CARTER, 27, of Hampton, Ga., was charged with three counts of wire fraud. Arraignment is set for May 14, 2021, at 9:00 a.m., before U.S. Magistrate Judge Lisa A. Jensen in Rockford.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Region of the Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
As alleged in the indictment, from June through August 2020, Carter and others schemed to submit fraudulent unemployment insurance claims to the Maryland Division of Unemployment Insurance for claimants whom Carter knew did not work or live in Maryland and were not entitled to benefits. Carter caused the unemployment claims in his name and others to be sent from Homewood, Ill., and DeKalb, Ill., and he opted to have the benefits paid via debit cards and mailed to residences connected to Carter and others involved in the scheme. Funds were then withdrawn from the debit cards at financial institutions and ATMs in Illinois. The fraud scheme resulted in more than $506,000 paid in unemployment benefits, the indictment alleges.
The CARES Act expanded states’ ability to provide unemployment insurance for many workers impacted by the COVID-19 pandemic. The Act created several benefit programs, including the Federal Pandemic Unemployment Compensation Program, the Pandemic Emergency Unemployment Compensation Program, and the Pandemic Unemployment Assistance Program.
The public is reminded that an indictment contains only charges and 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. Each count of wire fraud carries a maximum sentence of 20 years in federal prison. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
General Contracting Company Admits Causing Death of Employee who Fell Off Roof During Residential Roof InstallationRead the Press Release
NEWARK, N.J. – A general contracting company based in Newark today admitted violating Occupational Safety and Health Administration (OSHA) standards, leading to the death of an employee, Acting U.S. Attorney Rachael A. Honig announced.
Trustworthy LLC, d/b/a “Trustworthy Roofing and Siding,” (Trustworthy) via its owner, Derico Ferreira, pleaded guilty before U.S. Magistrate Judge Mark Falk in Newark federal court to an information charging it with one count of willfully violating OSHA standards by failing to provide fall protection to employees engaged in the construction of a residential home, which caused the death of an employee.
According to court documents filed in this case and statements made in court:
On Oct. 15, 2016, Ferreira and four employees began installation of a new roof on a two-story residential home located in Fair Lawn, New Jersey. Trustworthy did not use or provide to its employees any personal fall protection equipment, such as safety harnesses, lanyards, tie-off ropes, guard rails, safety nets, or other feasible means of fall protection, while they were working on the roof.
During the installation of an ice and water shield, one of Trustworthy’s employees (Employee 1), fell off the left corner of the roof. Employee 1 was not wearing any fall protection gear at the time. Ferreira had the required equipment in his truck, and could have also installed a guard rail system around the perimeter of the roof from a ladder, prior to the start of roofing work, but failed to do so. Trustworthy LLC was previously cited by OSHA during an inspection in 2014 for failing to provide fall protection to its employees.
If the court accepts the terms of the plea agreement, Trustworthy will be sentenced to five years of probation and will pay restitution to the estate of Employee 1 in the amount of $305,275. The plea agreement also includes specified conditions that Trustworthy must follow, including providing training procedures to all its employees and a requirement to follow enhanced safety provisions for future construction jobs. Sentencing is scheduled for Sept. 15, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Acting Special Agent in Charge Nikitas Splagounias; Daniel Hennefeld, Counsel for OSHA Office of the Solicitor, Region 2, and OSHA Compliance Officers with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Frisco Attorney Sentenced for Defrauding ClientRead the Press Release
TEXARKARNA, Texas - A Frisco lawyer has been sentenced to federal prison in connection with a wire fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
David A. Krueger, 52, pleaded guilty on Jan. 5, 2021, to federal wire fraud violations and was sentenced to 18 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. He was also ordered to pay $350,000 in victim restitution.
“As an attorney in Texas, this defendant took an oath to act honestly and with integrity. He then violated that oath by scamming his client out of hundreds of thousands of dollars,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Eastern District of Texas will continue to hold accountable those who exploit positions of trust to defraud others.”
According to information presented in court, from February 2014 to September 2015, Krueger, an attorney licensed to practice in the state of Texas, devised a scheme to defraud current and former clients of his law practice by soliciting them to invest in and fund his outside business ventures. Krueger represented to his clients that they would be receive guaranteed annual returns at rates of approximately ten percent of their investments. To facilitate the scheme, Krueger persuaded a client to transfer $400,000 the client received from a legal settlement to Krueger himself for the purpose of funding a misting fan business. Krueger used those investment funds not only for this misting fan business, but also other unrelated business ventures, as well as for his own personal benefit. Krueger was not licensed to sell securities. Krueger was indicted on federal charges on August 21, 2019.
This case was investigated by the Federal Bureau of Investigations – Texarkana Resident Agency and prosecuted by Assistant U.S. Attorneys Frank Coan and Jonathan Hornok.
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Former Owner of a Temporary Employment Agency Pleads Guilty to Wire Fraud and Failure to Pay IRS Employment TaxesRead the Press Release
Baltimore, Maryland – Crystal Powell-Jones, age 54, of Laurel, Maryland, pleaded guilty today to failure to pay to the IRS employment taxes withheld from employees’ wages and to wire fraud in connection with a scheme to defraud at least four victim lenders.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to her guilty plea, from August 2012 to October 2017, Jones operated and was the managing partner of JAG Professional Resources (“JAG”), a temporary staffing agency that provided hourly labor to municipal governments and agencies. As JAG’s managing partner, Jones exercised control over all of JAG’s business affairs, including JAG’s finances and bank account. Individual 1 was a silent minority partner in JAG.
Between at least October 2012 and August 2017, Jones devised a scheme to defraud Victim Lender 1, a factoring company; Victim Lender 2, an automobile financing service; Victim Lender 3, a mortgage banking company; and Victim Lender 4, a personal finance company.
As detailed in the plea agreement, Jones obtained factoring services from Victim Lender 1 for JAG from February 2013 to October 2016. Factoring is a means by which cash intensive businesses, like JAG, could obtain cash quickly and reliably by leveraging accounts receivable. JAG was a cash intensive business because JAG had to pay its temporary employees weekly or biweekly, but typically did not receive payment from its clients until at least 30 days after services had been rendered. Specifically, JAG sold its account receivables to Victim Lender 1 and, in return, JAG received cash advances from Victim Lender 1 totaling approximately 90% of JAG’s accounts receivables. Upon receiving payments from JAG’s clients on the outstanding invoices, Victim Lender 1 sent JAG the remaining 10% of the invoice that had been purchased, less fees Victim Lender 1 charged for its factoring services.
From March 2016 to about May 2016, Jones caused JAG to sell Victim Lender 1 fraudulent invoices totaling more than $350,000 for services that JAG had purportedly provided to a City in Ohio. The City in Ohio had contracted with JAG for temporary employment services beginning in February 2013, but JAG’s relationship with the City in Ohio ended in about February 2016. In total, Victim Lender 1 paid at least $347,993.13 to JAG as a result of fraudulent invoices Jones caused JAG to sell Victim Lender 1.
In October 2012, Jones and her co-borrower, financed the purchase of a 2012 Ford Fusion. To obtain financing, Jones falsely stated she had been employed as JAG’s accountant for four years on an Applicant’s Credit Statement. Jones also submitted a fraudulent bank statement for financing which listed Jones and another individual when, in fact, the bank statement solely belonged to Individual 1.
Subsequently, Victim Lender 2 provided Jones and Individual 1 with financing of $19,657.50 toward the purchase of Jones’s car. Victim Lender 2 suffered a loss of $5, 422.60 after Jones declared bankruptcy and failed to satisfy the debt.
The plea further details that in November 2015, Jones submitted a Uniform Residential Loan Application to Victim Lender 3 in the effort to finance a Laurel, Maryland residence. Jones provided false and misleading information, including that she had been employed with JAG for two years as an accountant, that she was not self-employed, and listed a bank account with a balance of $44,435.26. In fact, Jones’s bank account had a balance of $4,425.26 at the time. Relying on the false documents provided by Jones, Victim Lender 3 provided $417,302 in financing for the purchase of Jones’s residence.
In addition, Jones admitted that in October 2016, she submitted a loan application in the name of Individual 2 to Victim Lender 4. The contact information was an email address and phone number controlled by Jones. The loan application falsely listed that Individual 2 was a JAG employee who earned an annual salary of $75,000. In furtherance of the scheme, Jones completed an employment verification form in which Jones stated that Individual 2 was employed for two years with the salaries of $75,000 and $68,000, respectively. Jones also provided a fraudulent paystub that stated JAG had paid wages to Individual 2 in September 2016. In fact, Individual 2 received no wages from JAG in 2016. Victim Lender 4 approved the loan application and wired $66,708 into a bank account in Jones’s name. In 2017, Jones conducted a similar scheme to defraud with Individual 3 and received at least $29,000 in loan proceeds.
Lastly, from January 2014 to October 2016, JAG Professional Resources paid wages totaling approximately $3,851,994.00. During this period, Jones willfully failed to pay employment taxes to the IRS and failed timely to pay state unemployment and workers’ compensation duties. These failures resulted in additional tax losses to the state in which JAG operated and prevented JAG’s employees from collecting unemployment and worker’s compensation benefits to which they may have otherwise been entitled.
Jones admitted that she did not maintain reliable or accurate business records, including payroll and tax withholding documentation. JAG employees often received incorrect payment for labor and were not paid for all hours worked, including overtime hours. When JAG issued wages, correct or incorrect, it did so while purportedly withholding employment taxes on the employees’ behalf. Additionally, at Jones’s direction, JAG annually issued IRS Form W-2s to its employees that stated employment taxes, including FICA, Social Security, and Medicare, were withheld from the wages paid to the employee. In fact, Jones failed to file a single Employer’s Quarterly Federal Income Tax Return for the 2014 Tax year, an IRS Form 941. As a result of failing to pay the IRS employment taxes from January 2014 to October 2016, Jones caused a tax loss to the IRS of at least $523,244.38.
As a result of Jones’ criminal activity, the United States and victim lenders sustained a total loss of at least $1,196,085.35 ($225,516.28 to the victim lenders and the remainder to the United States).
Jones faces a maximum sentence of 20 years in prison for wire fraud and a maximum of five years in prison for failure to pay to the IRS employment taxes withheld from employees’ wages. U.S. District Judge George L. Russell, III has scheduled sentencing for July 30, 2021 at 11:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dana J. Brusca and Harry M. Gruber, who are prosecuting this case.
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Former Neopit Man Sentenced for Burglary and Firearm Offenses on Menominee Indian ReservationRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 6, 2021, Austin A. Kaquatosh (age: 28), formerly of Neopit on the Menominee Indian Reservation, was sentenced to a total of 24 months in federal prison for burglary and being a felon in possession of firearms.
According to a written plea agreement filed in the case, Kaquatosh, a previously convicted felon, stole electronics and four firearms from a relative’s home on the Menominee Indian Reservation.
At sentencing, Senior United States District Court Judge William Griesbach noted that because Kaquatosh’s “opportunistic” offense was “traumatic” and “disruptive” to the victims, his sentence needed to send a message to the defendant, as well as others who might consider similar conduct, that such behavior was unacceptable. After serving his 24-month prison sentence, Kaquatosh also must spend three years on supervised release.
This case was investigated by the Menominee Tribal Police, and the Green Bay office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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414-297-1700
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Former Marathon County Teacher Pleads Guilty to Producing Child PornographyRead the Press Release
MADISON, WIS. – A former teacher with D.C. Everest Area School District in Marathon County, Wisconsin has pleaded guilty in U.S. District Court in Madison to producing child pornography, according to Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin.
Travis C. Greil, 39, Wausau, Wisconsin, pleaded guilty to producing video files that depict minors engaging in sexually explicit conduct and is obscene. Greil admitted that he used an iPad to make videos and take photos under students’ clothing, a practice called “upskirting.” The investigation began in February 2020 when a student reported to the school liaison officer that she believed Greil had filmed up her skirt while she was standing near Greil’s desk.
Greil will be sentenced by U.S. District Judge William M. Conley on August 12 and 13, 2021. The offense to which he has pleaded guilty has a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison. In the plea agreement with the United States, the parties have agreed that a sentence of at least 6 years in prison is the appropriate disposition of the case.
The charge against Greil is the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation – Internet Crimes Against Children Task Force; Wisconsin Department of Justice Office of Crime Victim Services; Everest Metro and Wausau Police Departments; Marathon County Sheriff’s Office; Marathon County District Attorney’s Office; and the Wausau Police Department – Victim Resource Unit, with the assistance of the D.C. Everest Area School District. Assistant U.S. Attorneys Elizabeth Altman and Chadwick Elgersma are handling the prosecution.
Former IRS Tax Examiner Pleads Guilty to Tax Fraud Directed Refund Amount to Herself as Compensation for Tax PreparationRead the Press Release
Memphis, TN – Linda I. Williams, 52, has pleaded guilty to defrauding the Internal Revenue Service (IRS) by filing false tax returns for various taxpayers in the Memphis area. Acting U.S. Attorney, Joseph C. Murphy, Jr., announced the guilty plea today.
According to the information presented in court, Linda I. Williams, former Internal Revenue Service (IRS) tax examiner, prepared fraudulent returns seeking refunds for taxpayers and who, in some cases, directed part of the refunds as compensation to herself without the taxpayers’ knowledge. The false returns included fabricated deduction in order to claim higher refunds. Williams claimed over $500,000 in false deductions for these taxpayers.
Williams is also accused of failing to report any of her return preparation income on her own returns and sought to have taxpayers lie to investigating Treasury and IRS-CI Agents concerning her receipt of return preparation income.
Williams was a Tax Examiner of the Internal Revenue Service at the time of the alleged fraudulent activity and was under an obligation to truthfully report income received on her own income tax return.
Sentencing is scheduled for August 12, 2021, before U.S. District Judge Sheryl H. Lipman. On February 25, 2021, Williams was charged with filing ten (10) false tax returns. She faces up to three years in federal prison for this offense and a fine of $250,000. There is no parole in the federal system.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.
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Former Erie Resident Admits Distributing Drugs that Resulted in an Overdose DeathRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Damon Dupree Henderson, 31, pleaded guilty to one count of unlawful distribution of a mixture and substance containing a detectable amount of fentanyl and a mixture and substance containing a detectable amount of cocaine before United States District Judge David S. Cercone.
In connection with the guilty plea, Henderson acknowledged that he sold the fentanyl and cocaine that caused the death of R.R.T. on June 15, 2017. The indictment alleged that on June 15, 2017, Henderson unlawfully distributed mixtures of drugs containing fentanyl and cocaine.
Judge Cercone scheduled sentencing for October 4, 2021 at 1:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Erie County District Attorney’s Office County Detective Bureau, the Erie County District Attorney’s Office Drug Task Force, and the Erie Police Department, with assistance from the Drug Enforcement Administration conducted the investigation that led to the prosecution of Henderson.
Former Boston Police Sergeant Charged with Overtime Fraud SchemeRead the Press Release
BOSTON – Former Boston Police Sergeant George Finch has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s evidence warehouse.
Finch, 59, of Franklin, has been charged with one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. Finch will make an appearance via videoconference in federal court in Boston at a date to be set by the Court.
According to charging documents, members of Boston Police Department’s Evidence Control Unit (ECU), were responsible for, among other things, storing, cataloging and retrieving evidence at the warehouse. ECU officers were eligible to earn overtime pay of 1.5 times their regular hourly pay rate for overtime assignments. It is alleged that, beginning in at least March 2015, members of the ECU routinely departed overtime shifts two or more hours early, but submitted false and fraudulent overtime slips claiming to have worked the entirety of each shift.
One such shift, called “purge” overtime, was focused on reducing the inventory of the evidence warehouse. The shift was supposed to be performed from 4-8 p.m. on weekdays. According to charging documents, on days during which Finch and other members of the ECU claimed to have worked until 8:00 p.m., the warehouse was closed, locked and alarmed well before 8:00 p.m., and often at 6:00 p.m. or earlier. Despite this, Finch and, allegedly, other members of the ECU routinely submitted false and fraudulent overtime slips, claiming to have actually worked until 8:00 p.m. It is alleged that supervisors such as Finch, who also left early from this shift, submitted their own false and fraudulent slips and knowingly endorsed the fraudulent overtime slips of their subordinates.
Another shift, called “kiosk” overtime, occurred once a month on Saturdays and involved collecting materials from kiosks located in each of the city’s police districts and transporting it to an incinerator in Saugus. It is alleged that Finch and other officers performing this overtime shift routinely submitted overtime slips claiming to work eight-and-one-half hours. However, officers frequently completed the necessary work early, often within four hours, and falsely and fraudulently claimed to actually work eight-and-one-half hours.
According to charging document, between March 2015 and September 2016, Finch personally collected approximately $11,310 for overtime hours he did not work. In sum, the loss to BPD as a result of the criminal conspiracy is alleged to be in excess of $150,000.
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.
Finch is the 11th officer to be charged as a result of the investigation of overtime at the evidence warehouse. Three, including Finch, have now pleaded guilty or have agreed to do so.
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. Assistance was provided by the Boston Police Department. 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 defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida men sentenced for conspiring to transport stolen campers across state linesRead the Press Release
ELKINS, WEST VIRGINIA – Taylon Batista Garcia and Yankier Gaston Garcia, of Florida, were each sentenced today for their involvement in the theft of campers from a business in Elkins, West Virginia, Acting United States Attorney Randolph J. Bernard announced.
Taylon, 35, was sentenced today to 20 months of incarceration. He pleaded guilty in March 2021 to one count of “Conspiracy to Commit Offense against the United States.” Garcia admitted to driving a heavy-duty pickup truck into Elkins, West Virginia, and stealing a 2020 Jayco North Point Camper valued at $96,365, from Roy’s RV Supercenter in July 2020.
Yankier, 32, was sentenced today to 12 months and one day of incarceration. He pleaded guilty in March 2021 to one count of “Conspiracy to Commit Offense against the United States.” Garcia admitted to driving a heavy-duty pickup truck into Elkins, West Virginia, and stealing a 2021 Grand Design Reflection camper, valued at $48,895.00, from Roy’s RV Supercenter in July 2020.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Florida Woman Apprehended at the Cyril E. King Airport is Convicted of Smuggling Marijuana to St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that Raquel Rivera was convicted at trial yesterday after smuggling marijuana into St. Thomas.
According to evidence presented at trial, Rivera was stopped on April 22, 2020 at the Cyril E. King airport after arriving on St. Thomas from Miami, FL. Customs and Border Protection (CBP) officers then searched the luggage she was carrying, including one suitcase checked in Rivera’s name and one checked in the name of someone else. Inside, officers found 12 identical, vacuum-sealed bags of marijuana concealed in various items of clothing, including jeans, towels, and a Hello Kitty blanket. In total, Rivera had nearly six kilograms of marijuana in both suitcases, and when interviewed by officers that day she gave conflicting accounts of what was in the suitcases and who packed them.
This case is being investigated by the Department of Homeland Security-Homeland Security Investigations and CBP. It is being prosecuted by Assistant United States Attorneys Natasha Baker and Nathan Brooks, and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Rivera will be sentenced at a later date.
Five Brazilian Nationals Charged in Nationwide Identity Theft Ring that Exploited App-Based Rideshare and Food Delivery Companies and CustomersRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – May 13, 2021
SAN DIEGO – Five Brazilian nationals were charged today by criminal complaint with engaging in a nationwide conspiracy to establish fraudulent driver accounts with multiple internet- and app-based rideshare and food-delivery service companies, including by using identities stolen from the very customers of those same companies.
Four of the five defendants—Gustavo De Avila Moreira Farinha, Tatiane Pereira Arantes, Natalia Magalhaes Rocha and Leonardo Trulsen De Oliveira—were arrested early this morning by agents from Homeland Security Investigations and other state and federal agencies. A fifth defendant remains a fugitive. The arrested defendants are due to make their initial appearance tomorrow morning before U.S. Magistrate Judge Jill L. Burkhardt.
According to the complaint, the alleged scheme involved obtaining images and information from victims’ driver’s license and Social Security numbers; creating accounts to drive for the rideshare and delivery companies using those stolen identification documents; using, renting and selling those accounts, including to people who might not otherwise qualify to drive for these companies; incurring IRS Form 1099s for victims’ whose identities were stolen; and using fake driver accounts to collect referral bonuses. To date, agents have identified close to 100 victims in California and across the United States.
As alleged in the complaint, this scheme began in approximately 2018, initially with rideshare companies. In Spring 2020, with the COVID-19 pandemic in full swing and Californians in lockdown, the conspirators shifted away from the rideshare companies, which saw a dramatic decrease in traffic, to food, grocery and other delivery companies, which saw a corresponding and precipitous increase in demand.
During deliveries using these fraudulent accounts, including when verifying IDs, some of the conspirators used the fraudulent accounts to further perpetuate the scheme by stealing additional identities and thereafter creating additional fraudulent accounts in a perpetuating cycle of identity theft.
“Identity theft is a special kind of misery for victims who often are forced into a years-long legal morass of confusion and frustration to reclaim their good names,” said Acting U.S. Attorney Randy Grossman. “Today’s arrests are the first strike back on behalf of those victims.” Grossman praised the extraordinary efforts of prosecutor Kevin Mokhtari and agents from Homeland Security Investigations to achieve justice in this case.
Cardell T. Morant, Special Agent in Charge for Homeland Security Investigations, San Diego, stated, “HSI San Diego remains dedicated to protecting our communities from technology-enabled consumer crime and identity theft.” Special Agent in Charge Morant further noted the assistance of local, regional, and federal partners on this investigation.
Anyone who may be a victim of this crime or who thinks they may have information that may be relevant to this investigation is asked to call HSI San Diego at (760) 901-1004.
This investigation is being handled by Assistant U.S. Attorney Kevin Mokhtari and, prior to his departure from the office, was initiated and investigated by former Assistant U.S. Attorney Francis A. DiGiacco.
DEFENDANTS Case Number 21MJ1891-JLB
Gustavo De Avila Moreira Farinha Age: 29 Brazil
Tatiane Pereira Arantes Age: 37 Brazil
Natalia Magalhaes Rocha Age: 29 Brazil
Leonardo Trulsen De Oliveira Age: 29 Brazil
Defendant 5 - Fugitive Brazil
SUMMARY OF CHARGES
Count 1 - Conspiracy to Commit Wire Fraud – Title 18, U.S.C., 1349
Maximum Penalty: Twenty years in prison, $250,000 fineCount 2 – Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., 1956(a)(1)(A)(i), (b)(i), and 1956(h)
Maximum Penalty: Twenty years in prison, $500,000 fine or twice the value of the monetary instruments
Counts 3-17- Aggravated Identity Theft – Title 18, U.S.C., 1028A
Maximum Penalty: Mandatory minimum sentence of two years in prison, to run consecutively to the specified felony.
AGENCIES
Department of Homeland Security, Homeland Security Investigations
Federal Jury in Lafayette Convicts New Iberia Man of Illegal Possession of FirearmsRead the Press Release
LAFAYETTE, La. – A federal jury in the Western District of Louisiana has found Eric Etienne, 33, of New Iberia, Louisiana, guilty of illegal possession of firearms, announced Acting United States Attorney Alexander C. Van Hook. The two-day jury trial took place in Lafayette before United States District Judge Michael J. Juneau.
Evidence at the trial revealed that on December 18, 2018, officers with the New Iberia Police Department discovered a video on Instagram showing Etienne possessing what appeared to be an AR-15 rifle, two AK-47’s, and a Glock handgun. Law enforcement officers were familiar with Etienne, who is a convicted felon, and were able to determine the location in New Iberia where the video had been taken. Later that day, officers responded to the scene where the video was taken. Upon arrival, Etienne was found standing near a silver sedan which was seen in the video and wearing the same clothes he was wearing in the video. Officers found the AR-15 and Glock handgun in plain view in the sedan. A search of a nearby residence recovered one of the AK-47’s.
A federal grand jury returned an indictment on October 3, 2019 charging Etienne with being a convicted felon in possession of firearms, specifically, the AR-15 rifle, AK-47, and Glock handgun. He was previously convicted of attempted manslaughter in 2006 and is prohibited from possessing any firearm or ammunition.
Etienne faces up to 10 years in prison and up to a $250,000 fine. Sentencing is set for August 13, 2021.
The ATF and New Iberia Police Department conducted the investigation. Assistant U.S. Attorneys David J. Ayo and Danny Siefker prosecuted the case.
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Federal Authorities Announce 11 Cases Charging Alleged Drug Dealers with Providing Opioids that Led to Fatal OverdosesRead the Press Release
LOS ANGELES – Federal authorities today announced 11 criminal cases against alleged drug dealers who sold or provided narcotics to users who suffered fatal overdoses from opioids such as fentanyl or fentanyl analogues.
As a result of the operation led by the Drug Enforcement Administration, each of the 12 defendants named in the 11 cases is charged with distribution of narcotics resulting in death. If convicted, each defendant would face at least a 20-year mandatory minimum prison sentence and a potential maximum sentence of life without parole in federal prison.
“These charges are the first steps in bringing justice to the families of victims who often died without knowing they were ingesting some of the world’s most powerful opioids,” said Acting United States Attorney Tracy L. Wilkison. “The conduct alleged in these cases demonstrates the grave threat people face now that fentanyl is widespread and is commonly hidden in a variety of illicit narcotics. The danger posed by opioids is real – both for unwitting users who risk death and for the dealers who face decades in prison for spreading deadly poison in our communities.”
“The collaborative work to build these cases demonstrates our shared commitment to go after individuals who push fentanyl within our communities and further the opioid crisis, devastating families across the nation,” said DEA Special Agent in Charge Bill Bodner. “Drug dealers who market and sell counterfeit pills via online marketplace and social media platforms may think they can hide behind technology and are absolved from responsibility, but they are not. While our actions can’t bring back a loved one, we hope that we can save other lives by putting these individuals behind bars so they can’t continue to distribute dangerous opioids in the community.”
The cases are the result of investigations by the DEA’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker. Since the start of the Overdose Justice program in 2018, the DEA has worked with an ever-expanding list of local police agencies to obtain approximately one dozen federal indictments that specifically charge death resulting from narcotics trafficking. The 11 cases announced today add to that list of prosecutions. The Task Force is currently investigating other incidents and expects to file additional criminal cases in federal court.
The 11 cases announced today include seven new cases that were filed this week and one case in which prosecutors this week filed special allegations that would lead to a mandatory sentence of life without parole in federal prison if the defendant is convicted. The cases are summarized below.
U.S. v. Fulton
William Vaughn Fulton, 39, of Torrance, was named in a five-count indictment filed Tuesday that accuses him of distributing fentanyl that caused two deaths on consecutive days in Redondo Beach hotel rooms. In addition to the two charges of distributing fentanyl resulting in death, Fulton is charged with possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, and being a felon in possession of ammunition.
The indictment alleges that Fulton distributed fentanyl on October 10, 2020 to a person who died, and the next day he allegedly distributed fentanyl at another hotel where another person died after ingesting the drug. When he was arrested on October 13 by the Redondo Beach Police Department, Fulton allegedly possessed more than two ounces of fentanyl and over 2.5 ounces of methamphetamine. Police also seized two 9mm “ghost guns” and 12 rounds of ammunition Fulton allegedly illegally possessed because, from 2004 through 2017, he previously had been convicted of 24 felony offenses.
Fulton is currently in state prison after pleading guilty to related charges. The United States is seeking a writ to bring him into federal custody.
The DEA and the Redondo Beach Police Department are investigating this matter. Assistant United States Attorney Jenna Williams of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting the case.
U.S. v. Wilson
Alexander Declan Bell Wilson, 20, of Rolling Hills, was arrested Wednesday after being indicted on Tuesday on one count of distributing pills containing fentanyl that led to the death of a 15-year-old boy on May 15, 2020. Law enforcement reviewed Snapchat conversations between the two that show the victim thought he was buying oxycodone, a commonly used and widely abused semi-synthetic opioid.
Wilson is scheduled to be arraigned on the indictment this afternoon.
The DEA and the Los Angeles County Sheriff’s Department are investigating this matter. Assistant United States Attorney Marina A. Torres of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting the case.
U.S. v. McLaughlin
Sean Robert McLaughlin, 47, of Aliso Viejo, the former security manager at the American Junkie nightclub in Newport Beach, was arrested this morning pursuant to an eight-count indictment alleging he distributed furanyl fentanyl, an analogue to fentanyl that has a nearly identical chemical makeup. During the early morning hours of November 18, 2016, the indictment alleges, McLaughlin provided a powdered drug to nightclub guests that resulted in three overdoses, one of which was fatal.
In the indictment filed Wednesday, McLaughlin also is charged with possessing hydrocodone, cocaine, methamphetamine and ecstasy for distribution on the same night as the overdoses. McLaughlin is further charged with distributing cocaine in September 2016.
McLaughlin was initially charged in December 2017 by Orange County District Attorney’s Office, which has agreed to allow the United States Attorney’s Office to take over the prosecution.
The DEA and a task force officer from the Seal Beach Police Department are investigating this matter. The Newport Beach Police Department referred the case to federal authorities last year. Assistant United States Attorney Bradley E. Marrett of the Santa Ana Branch Office is prosecuting the case.
U.S. v. Soheili
Jason Amin Soheili, 26, of Laguna Hills, was arrested Wednesday pursuant to a criminal complaint filed Tuesday in federal court in Santa Ana. Soheili is charged with mailing fentanyl to a man in Fillmore, Utah, who died after taking the drugs on February 21.
The affidavit in support of the complaint outlines evidence that Soheili sent a parcel containing fentanyl “blues” to his friend, who moved to Utah from Orange County to participate in a drug rehabilitation program. Law enforcement recovered the actual package with Soheili’s fingerprints at the victim’s residence. A search of Soheili’s home on April 20 resulted in the seizure of items indicating drug trafficking activity, including various narcotics, several of which tested positive for fentanyl, the complaint states.
At his initial court appearance Wednesday afternoon, Soheili was ordered held without bond, and an arraignment was scheduled for June 1.
The United States Postal Inspection Service, which worked with the Orange County Sheriff’s Department and the Millard County (Utah) Sheriff’s Office, is investigating this matter. Assistant United States Attorney Vib Mittal of the Santa Ana Branch Office is prosecuting the case.
U.S. v. Boukhanian
Michael Boukhanian, 42, of Northridge, was arrested late this morning after a grand jury named him in a one-count indictment filed on Wednesday. Boukhanian allegedly sold counterfeit oxycodone pills containing fentanyl on August 27, 2020 to a Woodland Hills man who died soon after receiving them. Boukhanian is expected to be arraigned Friday afternoon in federal court in Los Angeles.
The DEA and the Los Angeles Police Department are investigating this matter. Assistant United States Attorney Jehan M. Pernas of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting the case.
U.S. v. Wood
Tobin Oliver Wood, 49, of Costa Mesa, was arrested on April 7 pursuant to a grand jury indictment that charges him with distributing fentanyl that caused the overdose death of a 32-year-old San Clemente man, who died on the morning of October 2, 2018. Wood allegedly posted an ad on Craigslist offering “Roxy board short,” which is a street term for oxycodone pills.
Wood, who has pleaded not guilty and is free on bond, is scheduled to go on trial on March 22, 2022.
The DEA, the Huntington Beach Police Department and the Costa Mesa Police Department are investigating this matter. Assistant United States Attorney Maxwell K. Coll of the General Crimes Section is prosecuting the case.
U.S. v. Chi
Calvin Chi, 28, of Hacienda Heights, has agreed to surrender Friday morning to face charges related to the death of a 29-year-old woman who overdosed on oxymorphone on October 10, 2018. Investigators uncovered text communications between Chi and the victim that allegedly show Chi sold the oxymorphone, along with alprazolam (also known as Xanax), to the victim hours before her death. The victim was found dead, slumped over in the front seat of her car, parked about a half mile from Chi’s San Gabriel Valley residence. Chi was indicted by a federal grand jury on Tuesday.
In the fall of 2019, Chi was convicted in state court of unrelated drug trafficking charges and sentenced to probation. In July 2020, deputies with the Los Angeles County Sheriff’s Department conducted a probation compliance check of Chi’s residence and found evidence of drug sales, including scales, baggies, a variety of pills, and more than five grams of methamphetamine. In addition to the charge of distribution of narcotics resulting in death, Chi is charged with possession with the intent to distribute methamphetamine.
The DEA and the Los Angeles County Sheriff’s Department are investigating this matter. Assistant United States Attorney Maria Jhai of the General Crimes Section is prosecuting the case.
U.S. v. Lopez
Edwin Lopez, 21, of Riverside, was arrested this morning on a grand jury indictment that charges him with one count related to a May 17, 2020, transaction in which he allegedly sold counterfeit oxycodone pills containing fentanyl to a 20-year-old Fontana man who suffered a fatal overdose two days later. The evidence in the case indicates that Lopez used Snapchat to negotiate the drug deal, and possibly other transactions, with the victim.
Lopez is scheduled to be arraigned this afternoon in United States District Court in Riverside.
The DEA and the Fontana Police Department are investigating this matter. The San Bernardino County Sheriff’s Department has provided assistance. The Riverside Branch Office is prosecuting the case.
U.S. v. Nobar and Ziafathy
Saied Ziafathy Nobar, 57, of the Rancho Park neighborhood of Los Angeles, and his nephew, Amir Ziafathy, 33, of Granada Hills, face charges of distributing fentanyl that resulted in an overdose death on December 30, 2019. The defendants allegedly sold the victim two counterfeit oxycodone pills that contained fentanyl. Nobar and Ziafathy were arrested in this case on March 16, and they are currently scheduled to go on trial on July 27.
The FBI, the DEA and the Los Angeles Police Department are investigating this matter. Assistant United States Attorney Ali Moghaddas and Kathrynne Seiden of the General Crimes Section are prosecuting the case.
U.S. v. Rodriguez
Marcos Isaac Rodriguez, a.k.a. “Kumar,” 27, who resided in Costa Mesa, but recently relocated to Escondido, was arrested today pursuant to a two-count indictment that alleges distribution of fentanyl resulting in death and distribution of fentanyl. The indictment, which was filed on April 28, charges Rodriguez with distributing fentanyl in two transactions, the second of which resulted in the death of a 33-year-old Costa Mesa man on December 26, 2019. Rodriguez allegedly sold the victim counterfeit oxycodone pills that contained fentanyl.
Rodriguez is expected to be arraigned this afternoon in United States District Court in Santa Ana.
The DEA and the Costa Mesa Police Department are investigating this matter. Assistant United States Attorney Jake D. Nare of the Santa Ana Branch Office is prosecuting the case.
U.S. v. Shepley
Last year, a Westlake Village man was indicted on federal charges of participating in a conspiracy that allegedly distributed heroin to a Ventura County man who suffered fatal overdose, and this week federal prosecutors filed a new document that would bring a mandatory life sentence if he is convicted.
Bradford Shepley, 35, is charged with distribution of heroin resulting in death and with participating in a heroin trafficking conspiracy in relation to the overdose of a 26-year-old man who died in his Oak Park residence on November 6, 2017. On Tuesday, prosecutors filed a two-count information alleging that Shepley was convicted in Los Angeles Superior Court in June 2017 of two felony narcotics offenses. If convicted in federal court of the heroin charge, and if prosecutors can prove he was previously convicted of narcotics offenses, Shepley would face a mandatory minimum sentence of life without parole in federal prison.
Shepley, who is being held in custody without bond, has pleaded not guilty to the offenses alleged in the indictment, and he is currently scheduled to go on trial on November 2.
The DEA and the Ventura County Sheriff’s Department are investigating this matter. Assistant United States Attorney Keith D. Ellison of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting the case.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Ex-Elementary School Teacher Sentenced to 30 Years in Federal Prison for Producing Child Pornography with Former StudentRead the Press Release
LOS ANGELES – A former elementary school teacher who produced pornographic images of his 15-year-old ex-student was sentenced today to 360 months in federal prison.
Sean David Sigler, 56, of Burbank, was sentenced by United States District Judge John A. Kronstadt, who described Sigler’s conduct as “inexcusable,” and further said, “Ruining the lives of minors is unspeakable.”
Sigler, who pleaded guilty in September 2019 to two counts of production of child pornography, previously taught fifth-grade students at Bret Harte Elementary School in Burbank and at Gardner Street Elementary School in Hollywood.
Sigler was the victim’s fifth-grade teacher and kept in contact with her after she left his classroom, using his position as former teacher and mentor to gain the trust of the victim and her parent. Sigler then exploited that trust to gain sexual access to the girl. Over the course of 15 months, Sigler regularly transported the victim to his home, where he gave her alcoholic beverages and pills.
Sigler began having sex with the minor victim when she was 15 years old, and he created multiple sexually explicit videos of the victim and took sexually explicit photographs of her. The illicit conduct took place between September 2016 and May 2017.
He also created child pornography by modifying a pornographic image of the minor victim’s body and digitally superimposing the face of a different underage former student, according to a January 2018 law enforcement search of Sigler’s digital devices. The devices contained numerous images and videos of his sexual acts with the victim, as well as more than 5,000 images of child pornography depicting unknown and previously identified pre-pubescent minors.
Sigler agreed to forfeit $271,506 in cash seized by the government, which constitutes the proceeds from the sale of the home where he produced child pornography.
Homeland Security Investigations and the Burbank Police Department investigated this matter.
Assistant United States Attorneys Damaris Diaz of the Violent and Organized Crime Section, Devon Myers of the Cyber and Intellectual Property Crimes Section, and Jonathan S. Galatzan of the Asset Forfeiture Section prosecuted this case.
Essex County Man Charged with Being Felon in Possession of WeaponRead the Press Release
NEWARK, N.J. – An Essex County man with a previous felony conviction was arrested yesterday for illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Farrakhan Lovett, 24, Belleville, New Jersey, is charged by complaint with one count of unlawful possession of a firearm and ammunition by a convicted felon. He made his initial appearance today by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed a search warrant on a vehicle that Lovett was observed driving in Belleville. They found a Taurus model G3 9x19mm firearm loaded with 18 rounds in a high-capacity magazine. Lovett was previously convicted of felonies in Essex County Superior Court.
The charge of being a felon in possession of a weapon and ammunition carries a maximum sentence of 10 years in prison, and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, Newark Field Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai, and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges. She also thanked the East Orange, Orange and Newark police departments for their assistance.
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; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the Organized Crime/Gangs Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.