Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 June 2021
San Gabriel Valley Man Pleads Guilty to Role in International Conspiracy to Sell Counterfeit Laptop Computer BatteriesRead the Press Release
LOS ANGELES – A San Gabriel Valley man pleaded guilty today to federal criminal charges for participating in a multimillion-dollar scheme to manufacture and ship counterfeit laptop computer batteries and other electronics from China to the United States, where the bogus batteries were sold to unsuspecting buyers in online marketplaces.
Zoulin Cai, a.k.a. “Allen Cai,” 29, of La Puente, pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud and one count of aggravated identity theft.
According to his plea agreement, Cai conspired to import batteries, labels for batteries in laptop computers, cellphones, and other electronics from China to the United States. Cai then sold and shipped the counterfeit batteries to unsuspecting individual buyers via eBay and Amazon, falsely advertising them as brand-name new, genuine, original, or OEM (original equipment manufacturer) products. Those batteries bore counterfeit trademarks of companies such as Apple, Dell, HP and Toshiba, as well as counterfeit certification marks of UL, a company that tests and certifies the safety of electronic products.
Counterfeit lithium-ion laptop batteries pose significant safety risks – including the risk of extreme heat, fire and explosions – and the batteries that Cai and his co-conspirators shipped frequently lacked required and essential internal safeguards.
Cai and his co-conspirators established numerous U.S.-based corporations to facilitate the importation and sale of counterfeit lithium-ion batteries and other electronic accessories for laptop computers and cellular telephones.
Co-conspirators in China packaged counterfeit batteries and electronics and shipped them to the United States, sometimes covering the trademarks with black tape or a similar material, so that a quick inspection of the items by customs officials would not reveal the trademark. The counterfeit batteries were imported, sold and shipped from Cai-controlled warehouses in La Puente.
In December 2019, Cai’s warehouse (including containers on the premises) contained approximately 44,000 batteries, as well as approximately 175,000 labels, bearing the counterfeit marks of multiple companies, including Apple, Dell, HP, Toshiba, Lenovo, Asus, Acer and Samsung, according to the plea agreement.
Cai admitted that from March 2014 to June 2019, he and his co-conspirators fraudulently obtained approximately at least $3.5 million and as much as $23,831,668 from the sale of laptop batteries through eBay and Amazon. During that time, Cai and his co-conspirators sent approximately $18,094,960 through wire transfers from U.S.-based bank accounts that they owned and controlled directly to Chinese bank accounts.
United States District Judge John F. Walter has scheduled an October 4 sentencing hearing, at which time Cai will face a statutory maximum sentence of 22 years in federal prison.
Homeland Security Investigations investigated this matter and was assisted in this investigation by the brand-holding companies.
Assistant United States Attorney Julia S. Choe of the General Crimes Section and Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section are prosecuting this case.
Romanian National Pleads Guilty for His Role in a Conspiracy to Steal over 2,000 Checks Intended for Religious InstitutionsRead the Press Release
Greenbelt, Maryland – Nicolae Gindac, age 52, of Dania Beach, Florida, pleaded guilty today to conspiracy to commit bank fraud and wire fraud. The plea comes in relation to a conspiracy to steal and deposit checks intended for religious institutions.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to his plea agreement, from at least June 2018 to January 2021, Gindac conspired with six co-conspirators and others to steal and negotiate checks from the U.S. mail intended for religious institutions. Gindac’s co-conspirators executed the thefts by driving to roadside mailboxes and directly removing the mail from the religious institutions’ mailboxes.
As part of the scheme to defraud, Gindac and other co-conspirators opened fraudulent bank accounts at several victim financial institutions under false identities and negotiated stolen checks by way of ATMs. Gindac deposited stolen checks into fraudulent bank accounts held in the names of his family members, including a minor family member who had not yet attained 18 years of age, and others. Gindac and his co-conspirators subsequently withdrew the stolen funds and spent them using debit cards associated with fraudulently opened bank accounts and other bank accounts.
As detailed in his plea agreement, Gindac deposited or was present for the depositing of at least $64,811.03 into 13 fraudulent accounts. The accounts that Gindac deposited into received at least approximately $139,057.58 from 143 stolen checks.
On February 6, 2021, law enforcement arrested Gindac and recovered approximately $7,930.38 in U.S. currency as well as a yellow-gold and diamond-encrusted Rolex gentleman’s watch. Over the course of the conspiracy, Gindac used stolen proceeds to purchase a BMW 745i Sport sedan.
In total, the conspiracy received at least approximately $1,065,282.53 from 2,477 stolen checks.
Co-defendant Daniel Velcu, age 43, of Baltimore, Maryland, is scheduled for a guilty plea on July 2, 2021 at 9 a.m.
Gindac faces a maximum sentence of 30 years in prison followed by five years of supervised release for conspiracy to commit bank fraud and wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for August 31, 2021 at 2 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
# # #
Possessing Five Grams of Fentanyl Near Playgrounds Sends Dubuque Man to Federal PrisonRead the Press Release
A man who was found in possession of more than five grams of fentanyl that he intended to distribute was sentenced June 28, 2021, to more than a year in federal prison. Jonathan Matthew Duffey, age 42, from Dubuque, Iowa, received the prison term after a January 11, 2021 guilty plea to one count of possession with intent to distribute a controlled substance.
In a plea agreement, Duffey admitted that during early 2020 he sold heroin and fentanyl in the Dubuque area. In February 2020, Duffey was a passenger in a vehicle stopped by Dubuque police. During the traffic stop, Duffey swallowed three or four baggies of heroin that also contained fentanyl. The next day, law enforcement searched Duffey’s home. During the search, officers seized digital scales, vials of naloxone, drug packaging, and a little over five grams of a substance that tested positive for heroin and fentanyl. Duffey’s residence was within 1,000 feet of Orange Park and Madison Park in Dubuque.
Duffey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Duffey was sentenced to 12 months’ and one day imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Duffey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Dubuque Drug Task Force and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1030-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Pittsburgh Man Sentenced to 5 Years for Illegally Possessing Drugs, a Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to five years (60 months) in prison followed by four years of supervised release for violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
U.S. District Judge Marilyn J. Horan imposed the sentence on Brandon Calhoun, age 29.
According to information provided to the court, Calhoun conspired to distribute one kilogram or more of heroin, 280 grams or more of crack cocaine and 100 grams or more of acetyl fentanyl and valeryl fentanyl and 400 grams or more of fentanyl. Calhoun, a convicted felon, illegally possessed a firearm and ammunition. Under federal law, it is illegal for a felon to possess a firearm or ammunition.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the Government.
The Federal Bureau of Investigation, Monroeville Police Department, the Pennsylvania Office of Attorney General, the Drug Enforcement Agency’s Maryland Office, and the Allegheny County Police Department conducted the investigation that led to the prosecution of Calhoun.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pittsburgh Man Charged with Federal Drug Law ViolationRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Randy Cross, age 38, as the sole defendant.
According to the Indictment presented to the court, on March 10, 2021, the defendant was found to be in possession of a mixture containing heroin and fentanyl.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000 or both. 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.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pinagpasyahan ng Kagawaran ng Katarungan ang Imbestigasyon sa Pag-access ng Wika at sa Paghihiganti sa mga Korte sa Fort Bend County, TexasRead the Press Release
WASHINGTON – Sa araw na ito, inanunsiyo ng Kagawaran ng Katarungan (Justice Department) ang kasunduan sa pag-aayos sa Fort Bend County (FBC) para mapahusay ang pag-access sa korte ng mga taong may limitadong kakayahan sa Ingles (English proficiency, LEP).
Nilulutas ng kasuduang ito ang imbestigasyon ng Kagawaran ng Katarungan sa mga bintang na ang mga korte ng FBC ay nagdiskrimina laban sa mga LEP na gumagamit ng korte batay sa kanilang bansang pinagmulan at naghiganti laban sa isang nagreklamo, na parehong paglabag sa Titulo VI ng Batas ng mga Karapatang Sibil ng 1964 (Title VI of the Civil Rights Act of 1964). Ipinagbabawal ng Titulo VI ang diskriminasyon sa lahi, kulay o bansang pinagmulan ng mga tumatanggap ng mga pederal na tulong pampinansiyal, tulad ng FBC. Natuklasan sa imbestigasyon ng kagawaran ang mga hadlang sa wika na nagpapahirap sa mga taong LEP na magkaroon ng makahulugang access sa sistema ng korte. Kasama sa mga hadlang na ito ang mga kailangan na ang mga nasasakdal sa isang krimen ay gumamit ng bilingual na abogado sa halip na kwalipikadong tagapagsalin sa mga plea proceeding, at mga patakaran na nagresulta sa mas mahal na bayarin sa korte para sa mga magulang na LEP sa mga kaso ng kustodiya ng anak.
“Ang mga taong may limitadong kakayahan sa Ingles ay maaaring dumanas ng pagkawala ng kanilang anak, tahanan, at pangunahing karapatan kapag humarap sila sa mga hadlang sa wika na nagkakait ng makahulugang access sa ating sistemang panghukuman.” ayon kay Assistant Attorney General Kristen Clarke para sa Sangay para sa mga Karapatang Sibil (Civil Rights Division). “Ipagpapatuloy ng Sangay para sa mga Karapatang Sibil ang paglaban para matiyak na tatanggalin ng mga korte ang mga hadlang na nagkakait sa mga tao ng access sa pantay-pantay na katarungan. Aking pinupuri ang Fort Bend County sa pagsasagawa ng mga kinakailangang hakbang nito para matiyak ang access sa wika para sa mga gumagamit ng korte alinsunod sa Titulo VI ng Batas sa mga Karapatang Sibil (Title VI of the Civil Rights Act).”
“Ang Fort Bend ay isa sa magkakaibang county sa ating Distrito,” ayon kay Acting U.S. Attorney Mark Donnelly para sa Southern District of Texas. “Ang kasunduang ito ang titiyak na ang bawat tao ay may access sa ating mga korte maging saan mang bansa nagmula o limitadong kahusayan sa Ingles.”
Sa ilalim ng kasunduan, magbibigay ang FBC ng mga serbisyo ng tagapagsalin nang walang bayad sa mga LEP na indibidwal sa mga kasong sibil at kriminal sa mga korte ng FBC. Pag-aaralan rin ng mga korte ng FBC ang mga plano sa pag-access sa wika sa susunod na taon, bubuo ng sapilitang pagsasanay sa Titulo IV para sa mga korte ng FBC, magbibigay ng pagsasanay sa paghihiganti na nasa Titulo IV at maglalabas ng mga abiso sa publiko na nagpapaliwanag sa patakaran sa walang diskriminasyon na nasa Titulo IV at proseso ng pagreklamo sa mga wikang hindi Ingles. Babantayan ng kagawaran ng dalawang taon ang mga ito at mga ibang kailangan. Sumang-ayon rin ang FBC na magbabayad ng mga danyos sa isang LEP na gumamit ng korte para sa mga gastusin sa korte at sa isang indibidwal na nagbintang ng paghihiganti.
Pangunahing prayoridad ng Sangay para sa mga Karapatang Sibil ang pagpapatupad ng Titulo VI. Ang mga karagdagang impormasyon tungkol sa Sangay para sa mga Karapatang Sibil ay matatagpuan sa website nito sa www.justice.gov/crt, at ang mga impormasyon tungkol sa limitadong kakayahan sa Ingles at Titulo VI ay matatagpuan din sa www.lep.gov. Ang mga miyembro ng publiko ay maaaring magsumbong ng mga posibleng paglabag sa mga karapatang sibil sa https://civilrights.justice.gov/report/.
Pharmacist Sentenced to 3 Years in Prison for Forging Prescriptions to Acquire Oxycodone and AlprazolamRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ERIC TINGLEY, 45, formerly of Lebanon, Connecticut, and currently residing in Hopkinton, Rhode Island, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 36 months of imprisonment, followed by three years of supervised release, for forging prescriptions to acquire thousands of oxycodone and alprazolam tablets from the Connecticut pharmacy where he was employed.
According to court documents and statements made in court, Tingley was a licensed pharmacist employed at a pharmacy in Norwich. Between approximately October 2016 and July 2017, Tingley forged approximately 183 prescriptions for oxycodone and approximately 26 prescriptions for alprazolam, and filled the forged prescriptions at the pharmacy where he worked. Through these forged prescriptions, Tingley unlawfully obtained more than 35,000 oxycodone tablets and more than 2,000 alprazolam tablets. He then distributed the drugs for his own benefit.
After Tingley’s Norwich employer fired him for performance issues, Tingley moved to Las Vegas, began working at a pharmacy there, and stole an additional 6,445 oxycodone pills. Tingley was arrested in Las Vegas on June 27, 2018.
On October 22, 2019, Tingley pleaded guilty to one count of possession with intent to distribute oxycodone and alprazolam.
Tingley, who is released on a $50,000 bond, is required to report to prison on August 20, 2021.
This investigation was conducted by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Owner of Downtown Pittsburgh Tax Preparation Business Indicted on Fraud ChargesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh’s Hill District neighborhood has been indicted by a federal grand jury in Pittsburgh on charges of tax fraud and wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The 15-count Indictment named Brian A. VanDusen, age 51, of Webster Avenue, Pittsburgh, Pennsylvania, as the sole defendant.
According to the Indictment, during 2014 and 2018 VanDusen owned a tax preparation business in the Warner Center of downtown Pittsburgh called EasyTax Refund. During those years, VanDusen and his employees prepared and filed approximately 2,898 federal tax returns, 36% of which contained Schedule C forms and were falsified to claim an earned income tax credit and tax refund for taxpayers.
The law provides for a maximum total sentence of 79 years in prison, a fine of $3,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Man Sentenced to 37 Months in Prison for Gun ChargeRead the Press Release
COUNCIL BLUFFS, IOWA – A Nebraska man was sentenced today by United States District Court Judge Rebecca Goodgame Ebinger to 37 months in prison, to be followed by three years of supervised release, for knowingly possessing a firearm as a prohibited person.
According to court documents, on May 17, 2020, Matthew C. Banfield, age 36, of Omaha, was in possession of a Springfield 45 caliber handgun. Banfield fired the weapon at various stationary targets in a rural location located in Pottawattamie County. Prior to this date, Banfield had been convicted of a felony. During his possession of the firearm, Banfield knew he was a prohibited person based on his prior felony convictions. Banfield pleaded guilty to the gun charge on January 8, 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Council Bluffs Police Department, Omaha Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Southern Iowa Fugitive Task Force investigated the case.
North Vernon Man Sentenced for Sexual Exploitation of ToddlerRead the Press Release
INDIANAPOLIS – A North Vernon man was sentenced to 25 years in prison for sexual exploitation of a minor child. He will also serve 20 years of supervised release and was ordered to pay $10,000 in restitution to the minor victim.
According to court documents, Gage Campos, 26, was arrested September 2, 2020 after evidence of sexual exploitation of a minor child was recovered from his Google account and one of his cell phones. The image creation dates ranged from July to October 2019. The offenses occurred when the minor victim was a toddler, and law enforcement learned that Campos was in a position of trust with respect to the child.
In addition to sexually explicit images of the minor victim, forensic examiners also found evidence that Campos had been collecting child sexual abuse material for at least 4 years. Campos used Google to search for material and images related to the sexual abuse of children. In 2020, Google reported the suspected child abuse images that were contained in one of its user accounts, later identified as belonging to Campos, to the National Center for Missing and Exploited Children (NCMEC). The NCMEC turned this evidence over to the Indiana State Police and the FBI. Working together with partners from the Indiana Internet Crimes Against Children Task Force, officers identified Campos, recovered evidence from his residence, obtained a confession, and ensured the safety of the minor victim.
“The citizens of the Southern District of Indiana rightfully expect swift and coordinated action by law enforcement and their partners to investigate and prosecute persons such as Mr. Campos, said Acting U.S. Attorney John E. Childress. “His significant sentence of imprisonment sends a strong message to others who might consider imitating his reprehensible conduct.”
“Those who prey on the most vulnerable of our citizens and victimize them through such despicable criminal acts can expect to be held accountable,” said FBI Indianapolis Acting Special Agent in Charge Robert Middleton. “This sentence demonstrates the FBI’s commitment to investigating cases of child pornography with a sense of urgency, as well as the collaboration with our law enforcement partners to ensure there is one less predator victimizing our children.”
The case was investigated by the Federal Bureau of Investigation, Indiana State Police – Internet Crimes Against Children Task Force, and the Martinsville Police Department.
Assistant United States Attorney Kristina Korobov prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
North Bay Accountant Charged with Bank Fraud and Embezzlement in Connection with Alleged Schemes to Defraud Cavallo Point Lodge and Redwood Credit UnionRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Stephanie Simontacchi on charges of bank fraud, embezzlement, and tax evasion in connection with schemes to use her access as an accountant to enrich herself at the expense of two former employers. The announcement was made by Acting U.S. Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and IRS Criminal Investigation Division (IRS-CI) Acting Special Agent in Charge Michael Daniels.
Simontacchi, 48, of Petaluma, was employed as a bookkeeper and assistant controller with Cavallo Point Lodge, a hotel near Sausalito, Calif., from December 2009 through April 2016. While employed at Cavallo Point Lodge, Simontacchi had access to her employer’s accounting records and accounting systems. Simontacchi also had signatory authority over Cavallo Point Lodge’s bank accounts which gave her authority to create and sign checks from the hotel’s bank accounts and to pay the hotel’s legitimate payments and obligations. The indictment alleges that Simontacchi embezzled funds from her employer by stealing accounts receivable checks that had been sent to Cavallo Point Lodge from third parties and depositing the checks into her personal bank accounts. Further, the indictment alleges Simontacchi embezzled accounts payable checks that were drawn from Cavallo Point Lodge’s bank accounts and made payable to third party vendors. Instead of sending these checks to the intended third parties, Simontacchi allegedly deposited them in her own bank accounts. Simontacchi allegedly embezzled at least $384,363.28 from, or owed to, Cavallo Point Lodge and deposited these stolen funds into her own accounts.
In addition, the indictment alleges Simontacchi was employed by Redwood Credit Union from April 2016 through April 2019, during which time she embezzled over $437,000 from the credit union. The financial institution employed Simontacchi as a senior accountant and accounting manager. According to the indictment, Simontacchi’s responsibilities included processing voided official checks (also known as cashier’s checks) and communicating with Redwood Credit Union’s official check vendor regarding issues pertaining to the funding and voiding of these checks. Simontacchi also had access to checks intended for and made payable to Redwood Credit Union that were sent to the accounting department for processing, including reimbursement checks from the official check vendor and reimbursement checks from the United States Treasury Department and the State of California. The indictment alleges Simontacchi embezzled some of these checks, as well as official checks that had been returned to Redwood Credit Union by members and were supposed to have been voided, then deposited the checks into her personal bank accounts. She used the embezzled proceeds for personal expenses, including to make a payment towards her home equity line of credit.
Further, the indictment alleges Simontacchi evaded taxes by failing to pay taxes on additional, unreported income received in years 2015, 2017, 2018, and 2019.
In sum, the indictment charges Simontacchi with seven counts of bank fraud, in violation of 18 U.S.C. § 1344(2); seven counts of misapplication and embezzlement of credit union funds, in violation of 18 U.S.C. § 657; and four counts of tax evasion, in violation of 26 U.S.C. § 7201.
Simontacchi was arrested on June 25, 2021. She made her initial federal court appearance before U.S. Magistrate Judge Tse this morning and was arraigned on the charges. Her next appearance is scheduled for July 15, 2021 before U.S. Federal District Court Judge Orrick.
An indictment contains allegations only. Simontacchi is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, the maximum statutory penalties for each violation of 18 U.S.C. § 1344(2) and 18 U.S.C. § 657 is 30 years’ imprisonment and a $1,000,000 fine. The maximum statutory penalty for each violation of 26 U.S.C. § 7201 is 5 years’ imprisonment and a $250,000 fine. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Kristina Green and Amani S. Floyd are prosecuting this case. The case was investigated by the FBI and IRS-CI.
New Orleans Woman Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – The Honorable Sarah S. Vance sentenced EBONY GRAY, age 27, of Kenner, Louisiana, to two years of probation on June 23, 2021 for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, GRAY admitted being caught on federally authorized wire taps discussing the prices for various quantities of heroin, as well as potential customers. GRAY and a co-defendant also discussed how much cut or adulterant the heroin could take.
District Judge Vance sentenced GRAY to two years of probation and a $100 mandatory special assessment fee.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
New Orleans Man Pleads Guilty to Conspiracy to Distribute Drugs and Possession of FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that NATHAN BALLANSAW III, age 69, of New Orleans, pled guilty to conspiracy to distribute cocaine, cocaine base and heroin, and firearms-related charges.
Specifically, on June 24, 2021, BALLANSAW pled guilty to one count of conspiracy to distribute and possess with the intent to distribute a quantity of cocaine hydrochloride, cocaine base, and heroin in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C), and 846. BALLANSAW also pled guilty to one count of possessing a firearm in furtherance of a drug trafficking crime.
On the drug conspiracy, BALLANSAW faces a maximum sentence of 20 years imprisonment, a fine of up to $1,000,000, at least 3 years of supervised release and a mandatory $100 special assessment. On the firearm charge, BALLANSAW faces a mandatory minimum of 5 years of imprisonment, up to life imprisonment, a fine of up to $250,000, up to 5 years of supervised release, and a mandatory $100 special assessment.
According to court documents, BALLANSAW conspired to sell cocaine, cocaine base and heroin between September 12, 2015 and May 4, 2017. In furtherance of that drug-trafficking conspiracy, he possessed a Smith and Wesson Model 638-2 .38 caliber revolver on March 28, 2017.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Murrysville Felon Charged with Illegally Possessing Fentanyl, a Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Murrysville, Pennsylvania has been indicted by a federal grand jury on charges of violating federal firearms and narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Rory Elliot Ashby, age 45, as the sole defendant.
According to the Indictment, on June 3, 2021, Ashby was found to be in possession with the intent to distribute 40 grams or more of fentanyl. The Indictment further alleges that Ashby possessed a firearm and ammunition after having been convicted of a felony. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than five years in prison, a fine of not more than $5,000,000.00, a term of supervised release of at least four years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mt. Vernon man pleads guilty to conspiracy to distribute deadly fentanylRead the Press Release
Seattle – A 22-year-old Mount Vernon, Washington, man pleaded guilty today in U.S. District Court in Seattle to conspiracy to distribute fentanyl, announced Acting U.S. Attorney Tessa M. Gorman. Defendant Jiovanni Nunez supplied counterfeit oxycodone pills tainted with fentanyl to an associate, who distributed them in Skagit and Whatcom Counties. The pills are connected to at least two overdoses, including the overdose death of a Bellingham 17-year-old. Nunez and co-conspirator Rosaliana Lopez-Rodriguez, 23, of Mount Vernon were arrested in late 2019 after an investigation to track down the source of the tainted pills. Both defendants have been in custody since their arrests. Lopez-Rodriguez has already pleaded guilty.
According to records filed in the case, a family member found the 17-year-old victim unresponsive on November 9, 2019. Despite efforts of emergency responders to resuscitate him, the victim died; his cause of death was later determined to be fentanyl overdose. Investigators found a whole and a partial pill near the 17-year-old victim. The pills were designed to look like oxycodone 30-milligram pills, with “M” and “30” stamped on them. But they were fakes tainted with fentanyl. Similar pills have been linked to other overdose deaths throughout the Puget Sound region. In fact, a friend of the 17-year-old victim nearly died after smoking one of the pills on November 2, 2019. Nunez’s co-conspirator knew of that near-fatal overdose when she sold the 17-year-old victim more pills a week later, on November 9, 2019.
During this investigation, law enforcement executed court-authorized search warrants at each defendant’s residence. At Nunez’s residence, law enforcement found a safe containing more than 900 fake oxycodone pills that matched the appearance of the fentanyl-laced pills linked to the fatal overdose. Co-conspirator Lopez-Rodriguez admitted that Nunez supplied her with the pills that killed the Bellingham 17-year-old. She is scheduled for sentencing on August 19, 2021.
Nunez faces a mandatory minimum five years in prison and up to forty years in prison when sentenced by Chief Judge Ricardo S. Martinez on October 1, 2021. Under the terms of the plea agreement, the prosecution and defense will each recommend a term of imprisonment for Nunez of between seven and nine years. Chief Judge Martinez is free to impose any sentence allowed under the statute.
The case is being investigated by the Drug Enforcement Administration (DEA), the Whatcom County Sheriff’s Office, the Skagit County Interlocal Drug Enforcement Unit (SCIDEU), and the Whatcom County Drug and Gang Task Force, which is made up of members of the Whatcom County Sheriff’s Office, Washington State Department of Corrections, U.S. Customs and Border Protection, and Homeland Security Investigations.
The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Mount Pleasant Man Sentenced to Federal Prison for Child Pornography OffenseRead the Press Release
DAVENPORT, IOWA – A Mount Pleasant man was sentenced on June 28, 2021, by United States District Court Judge Stephanie M. Rose to 132 months in prison for Receiving and Distributing Child Pornography. Alanis was ordered to serve five years of supervised release to follow his prison term, pay $100.00 to the Crime Victims’ Fund and $6,000 in restitution.
According to court documents, Jacob Hugo Alanis, age 21, was identified by the Mount Pleasant Police Department when they received a cyber tip from Dropbox alleging the presence of child pornography related to a particular email address. On October 15, 2019, law enforcement executed a search warrant at the residence associated with the email address. At the residence, Alanis admitted the email address belonged to him. Alanis also admitted downloading, watching, and trading child pornography. Law enforcement seized multiple electronic devices, on which law enforcement located hundreds of images and videos of child pornography.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Mount Pleasant Police Department and the Federal Bureau of Investigation investigated this matter. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Montana Native Women’s Coalition ex-director, ex-board treasurer sentenced for stealing grant fundsRead the Press Release
BILLINGS – Two former officials with the Montana Native Women’s Coalition were sentenced to probationary terms and ordered to pay restitution after each admitted to stealing federal grant funds for unapproved spending, including travel to Las Vegas, Nevada, Acting U.S. Attorney Leif M. Johnson said today.
Sheryl Lynn Lawrence, 45, of Colstrip, who was the Coalition’s executive director, was sentenced today to three years of probation and ordered to pay $35,127 restitution jointly and severally with co-defendant Meredith McConnell, the Coalition’s former chairwoman. Lawrence pleaded guilty on Feb. 4 to theft of federal funds.
McConnell, 51, of Lame Deer, was convicted on April 2 in a federal jury trial of crimes related to the unauthorized spending of grant funding and is pending sentencing.
Co-defendant Barbara Mary Daychief, 45, of Browning, who was the Coalition’s board treasurer, was sentenced on June 17 to two years of probation and ordered to be solely liable for $2,973 restitution. Daychief pleaded guilty on Jan. 22 to theft of federal funds.
U.S. District Judge Susan P. Watters presided.
“As executive director and board treasurer, Lawrence and Daychief held trusted positions within the Coalition. By stealing the Coalition’s federal grant money to spend for their own benefit, Lawrence and Daychief prevented the money from being used as intended -- helping Native American victims of domestic and sexual abuse. Our office will prosecute and hold accountable those who misuse grant funding,” Acting U.S. Attorney Johnson said.
“The money that Lawrence and Daychief stole was intended to help Native American victims of domestic and sexual violence. The Department of Justice Office of the Inspector General will continue to root out these schemes, to help ensure that victims of crime are given the help that they need,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
In court documents filed in the case, the government said that the purpose of the Lame Deer-based Coalition is to help Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services.
The government alleged that while serving as the Coalition’s executive director, Lawrence received a travel advance in November 2017. Lawrence claimed $1,826 in travel money for a trip to Las Vegas. Lawrence claimed she drove, which provided more money due to payment for mileage, when in fact, Lawrence flew, which cost significantly less money. Lawrence spent money on a trip to Las Vegas, which was never approved by the OVW, nor would it ever have been approved.
The government also alleged that while serving on the board, Daychief received travel advances for travel to various locations. In November 2017, Daychief claimed $1,874 in travel money for a trip to Las Vegas. Although initially intending to travel to the claimed destinations, Daychief ultimately did not travel as planned. Rather than pay back the travel advances as required, Daychief kept the money for herself. When interviewed by law enforcement, Daychief admitted she obtained travel advances despite not traveling as claimed. The government further alleged the thefts occurred four months after board officials, including Daychief, participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director pleaded guilty to fraud in March 2017 for stealing from the organization.
Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake prosecuted the case, which was investigated by the Department of Justice’s Office of the Inspector General.
XXX
Mississippi Band of Choctaw Indians Tribal Council Member Pleads Guilty to Wire FraudRead the Press Release
Jackson, Miss. – Roderick Bell, 42, of Philadelphia, an elected member of the Tribal Council for the Mississippi Band of Choctaw Indians, entered a plea of guilty today to federal wire fraud, announced Acting United States Attorney Darren J. LaMarca and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
A federal grand jury indicted Bell in February 2019, charging him with one count of theft and one count of wire fraud for defrauding the Choctaw Tribal government. Between April 2017 and October 2017, Bell forged hotel bills and receipts and submitted those documents to the Tribal government in claims for reimbursement for official business travel.
Bell will be sentenced by Judge Carlton W. Reeves on October 6, 2021. He faces a potential maximum penalty of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The case is being prosecuted by Assistant United States Attorneys Theodore Cooperstein and Kevin Payne.
Mexican Native Pleads Guilty to Damaging National Forest Through an Illegal Marijuana Cultivation OperationRead the Press Release
FRESNO, Calif. — Luis Madrigal-Reyes, 37, a native and citizen of Mexico, pleaded guilty 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 $45,057 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 2,307 marijuana plants and was located in the Basin Creek drainage in the Dutch Oven Creek area of the Sierra National Forest. U.S. Forest Service agents saw Madrigal carrying fertilizers and bags of groceries into the grow site and later apprehended him after they chased him down the side of a mountain.
The cultivation operation caused extensive environmental damage to the area, which serves as the habitat for the Sierra Nevada yellow-legged frog, an endangered species and the California spotted owl, which is currently being considered for listing under the Endangered Species Act. Agents found toxic banned pesticides, which appeared to have been applied to the marijuana plants. The water from Dutch Oven Creek had also been diverted to irrigate the plants. Dutch Oven Creek is part of the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the Madera County Sheriff’s Office. Assistance was provided by the Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Madrigal is scheduled for sentencing on Sept. 20. 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.
Charges are pending against co-defendant, Lester Eduardo Cardenas Flores, 24, also a citizen of Mexico. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced to Federal Prison for Attempting to Smuggle Drugs and a Firearm into MexicoRead the Press Release
ALPINE – A federal judge today sentenced 37-year-old Mexican national Jose Miguel Lazarin-Zurita to 60 months in federal prison for attempting to smuggle methamphetamine and a firearm into Mexico earlier this year.
On March 5, 2021, Lazarin-Zurita pleaded guilty to one count of possession with intent to distribute methamphetamine and one count of attempting to export to Mexico a rifle and several firearm-related accessories without a license.
According to court records, Lazarin-Zurita attempted to cross into Mexico on January 27, 2021, at the U.S. Port of Entry in Presidio. While inspecting the defendant’s vehicle, U.S. Customs and Border Protection officers discovered two plastic bags hidden in the engine compartment. One bag contained 26 grams of methamphetamine; the other, 26 grams of cocaine. Inside the vehicle’s seats, agents found a Kel-Tec PLR-16 rifle, a 60-round capacity drum magazine for 5.56mm ammunition and two empty 30-round 5.56mm magazines.
“This case represents the commitment of our law enforcement partners and our prosecutors to thwart smugglers’ attempts to pedal dangerous narcotics and firearms in and out of the country,” said U.S. Attorney Ashley C. Hoff. “We have and will continue to prosecute these important cases with full force.”
Along with USA Hoff, Erick P. Breitzke, Special Agent in Charge, Homeland Security Investigations (HSI), El Paso Division made today’s announcement.
HSI conducted this investigation. Assistant U.S. Attorneys Eduardo R. Mendoza and Fidel Esparza III prosecuted this case.
###
Mexican National Sentenced to 15 Years for Methamphetamine TraffickingRead the Press Release
RALEIGH, N.C. – A Mexican national was sentenced today to 180 months in prison for Possession with Intent to Distribute 50 grams or more of methamphetamine.
According to court documents and information presented in court, Agustin Nunez-Leonardo, 22, told undercover officers that he had a source that could supply kilograms of methamphetamine per delivery to Wake County, North Carolina. Nunez-Leonardo, a Mexican national, had previously been deported. During the course of the investigation, he agreed to sell undercover officers 5 kilograms of methamphetamine. He ultimately sold 4,940 grams of methamphetamine to undercover officers. Laboratory testing revealed the seized methamphetamine was 100% pure.
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 Terrence W. Boyle. The Drug Enforcement Administration and Wake County Sheriff’s Office investigated the case and Assistant U.S. Attorney Tom Crosby prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-185-BO.
Meriden Man Admits Trafficking Heroin from Bridgeport MarketsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that EDDY ANTONIO TORRES MOREL, 50, of Meriden, pleaded guilty yesterday to one count of conspiracy to possess with intent to distribute one kilogram or more of heroin.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, an investigation revealed that Torres was trafficking narcotics from Big Daddy’s Deli and Jamal’s Market, two stores he operated on East Main Street in Bridgeport. During the investigation, law enforcement made two controlled purchases of a half-kilogram of heroin from Torres, first at Jamal’s Market on October 29, 2019, and then at Big Daddy’s Deli on January 24, 2020.
Torres was arrested on February 5, 2020. On that date, investigators searched his residence and stores and seized two firearms, assorted firearm parts, ammunition, and approximately $22,000 in cash.
Torres is released on a $300,000 bond pending sentencing, which is scheduled for September 24, 2021, in Hartford federal court.
This matter is being investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
McKean County Man Pleads Guilty to Purchasing Meth on the Dark Web for DistributionRead the Press Release
ERIE, Pa. - A resident of Kane, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Michael Carter, Anderson, 43 of Kane, Pennsylvania, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Anderson attempted to possess with intent to distribute more than fifty grams of a mixture or substance containing a detectable amount of methamphetamine. Anderson purchased the methamphetamine on the Dark Web for the purpose of selling and redistributing those drugs in the Western District of Pennsylvania.
Judge Cercone scheduled sentencing for November 22, 2021 at 2:00 p.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, 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.
Pending sentencing, the court continued Anderson on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, the Drug Enforcement Administration, the McKean County Detectives, and the McKean County Drug Taskforce conducted the investigation that led to the prosecution of Anderson.
Marrero Man Sentenced to 130 Months Imprisonment After Second Conviction for Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRADLEY EDWARD CORLEY, age 46, a resident of Marrero, Louisiana, was sentenced to 130 months imprisonment by United States District Judge Jay C. Zainey after previously pleading guilty to Count Two of a two-count Indictment charging him with possession of images and videos depicting the sexual exploitation of children, including children as young as approximately four (4) years old, in violation of 18 U.S.C. 2252(a)(4)(B). Additionally, Judge Zainey imposed on CORLEY supervised release for the remainder of his life and a $100 special assessment fee. Judge Zainey also scheduled a restitution hearing in the matter on August 16, 2021. In 2006, CORLEY was convicted in the United States District Court for the Eastern District of Louisiana of possession of child pornography.
According to court documents, in about September 2019, Special Agents with the Federal Bureau of Investigation (“FBI”) received a tip that an individual, subsequently determined to be CORLEY, had uploaded approximately seven (7) images depicting the sexual exploitation of children to a digital application and distribution platform designed for video gaming communities. Agents executed a search warrant at CORLEY’s residence in March 2020 and seized several electronic devices that contained files depicting the sexual victimization of children. A forensic examination of several of the devices confirmed that CORLEY had used them to search for, download, and save at least 60,000 images and 1,5000 videos depicting the sexual victimization of children, including by visiting a web forum on June 16, 2019, August 4, 2019, and March 9, 2020. The filed depicted children as young as approximately four (4) years old engaging in sexually explicit conduct, including numerous images and videos that portrayed “sadistic or masochistic conduct or other depictions of violence.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, with support from the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Marina del Rey Man Sentenced to over 4 Years in Prison for $3.3 Million Ponzi Scheme He Claimed Was Legitimate Forex BusinessRead the Press Release
LOS ANGELES – An accountant was sentenced today to 51 months in federal prison for running a four-year, $3.3 million Ponzi scheme that conned dozens of investors through false promises of generous returns on foreign exchange currency investments and was funded, in part, by his embezzlement from his non-profit employer.
Steven F. Brown, 53, of Marina del Rey, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered Brown to pay $3,313,346 in restitution. Brown pleaded guilty in October 2020 to one count of wire fraud.
Brown controlled and operated Alpha Trade Analytics, Inc., a financial consulting-and-investment company he largely ran out of his home. Neither Brown nor Alpha Trade was a registered broker or dealer in securities. Brown also served as the accountant for a non-profit organization providing dance and theater arts education to children and young adults in Los Angeles, which gave him access to its bank accounts.
From April 2014 to May 2018, Brown solicited investments in Alpha Trade, including from people he encountered through his position at the non-profit, and through his relationship with its executives and employees, which afforded him access to high-net worth individuals.
To encourage those individuals to invest with Alpha Trade, Brown falsely promised that their investments would only be used for foreign exchange (Forex) currency trading and that they would receive guaranteed monthly payouts of around 10%. He also falsely represented that he had extensive experience in Forex investing, regularly made profitable trades, and achieved substantial and growing rates of return that exceeded the industry average.
Contrary to his representations to investors, Brown only used a small portion of the total amount invested in Alpha Trade for Forex trading, mostly in 2015. Instead, he routinely used investor funds for other purposes, including his rent, car payments, restaurant and retail expenses, and lulling payments to other investors.
To induce investors to maintain or supplement their investments with Alpha Trade and to conceal his scheme, Brown periodically provided investors with account statements that reflected fabricated investment returns that often showed steady, significant gains.
Brown made some of the promised recurring payouts and provided demanded refunds, not based on any Forex investment returns, but instead from money stolen from new investors and through funds he embezzled from the dance academy through unauthorized wire transfers, credit card advances and cash withdrawals he was able to make by virtue of his position as the dance academy’s accountant.
In total, Brown caused losses of approximately $3,313,346 to 48 victims, including nearly $700,000 in losses to his former employer based on the money he embezzled from it.
The Securities and Exchange Commission in September 2020 filed a lawsuit against Brown alleging violations of federal securities laws. That litigation is pending.
The FBI investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section prosecuted this case.
Maple Grove Investment Advisor Sentenced to 7 Years in Prison for Defrauding Clients Out of More Than $2.3 MillionRead the Press Release
ST. PAUL, Minn. – A Maple Grove man was sentenced today to 84 months in prison followed by three years of supervised release for engaging in a $2.3 million mail fraud scheme.
According to court documents, from at least 2017 through November 2020, Isaiah Leslie Goodman, 34, defrauded at least 23 of his investor clients out of approximately $2,335,797.19. Goodman was a registered investment advisor and broker who owned Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C. Goodman also owned and operated MoneyVerbs, a business that claimed to provide customers with financial guidance through an internet-based app. Through Becoming Financial Group, Inc., and Becoming Financial Advisory Services L.L.C., Goodman represented that he would provide his clients with financial planning and investment advice, including purporting to place his clients’ savings and retirement funds into financial accounts that Goodman claimed were safe, secure, and profitable.
According to court documents, as part of his scheme to defraud, Goodman lied to prospective and existing clients about his use of their money, the security and profitability of the financial accounts he claimed to administer on their behalf, and the status and performance of their funds. During in-person sales pitches or through email messages and phone calls, Goodman provided clients with materially false and fraudulent information, including investment proposals and bogus online account information. Goodman also misrepresented to clients that their funds would be returned to them upon request, when, in fact, Goodman either kept all of the money or provided investors with refunded payments that were late, incomplete, or both, or that were refunds actually funded by other clients’ money.
According to court documents, instead of placing his clients’ money into safe and secure investment accounts, Goodman deposited client funds into bank accounts he controlled. Goodman misappropriated his clients’ funds for his own use and benefit by, among other things, purchasing and remodeling his home in Maple Grove, using funds for the purchase and construction of a $1.69 million home in Plymouth, buying a 2019 Ford Expedition and a 2020 Ford Explorer, funneling approximately $700,000 toward his other business, MoneyVerbs, and paying for personal expenditures, including a hot tub, a cruise, fitness club memberships, jewelry, and credit card payments.
As part of his sentence, Goodman will forfeit his equity in real estate, a vehicle, and other items of personal property.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
This case is the result of an investigation conducted by the FBI and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Matthew S. Ebert prosecuted the case.
Man who Escaped from Halfway House Sent to Federal PrisonRead the Press Release
A man who signed out to go to work from a residential correctional facility in Waterloo, Iowa, and never returned was sentenced today to two years in federal prison.
Michael Jon Rohrick, age 35, from Waterloo, Iowa, received the prison term after a February 1, 2021 guilty plea to escape from custody.
At the guilty plea, Rohrick admitted he left the halfway house on April 10, 2020, without authorization. He was on the loose for several months until he was apprehended in Waterloo as a result of a high-speed chase months later.
Rohrick was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Rohrick was sentenced to 24 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Rohrick is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the U.S. Marshals Service and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2039.
Follow us on Twitter @USAO_NDIA.
Man pleads guilty to hate crime that involved antisemitic threats to neighbors, breaking their windowRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in federal court to criminally interfering with the right to fair housing. The charges stem from antisemitic threats the defendant made to his neighbors.
According to court documents, Douglas G. Schifer, 66, threatened neighbors and their guests because of their religion during an outdoor gathering at the neighbors’ residence on Nov. 7, 2020.
Plea documents detail that Schifer stated in part, “all you f***ing people, it’s no wonder Hitler burned you people in ovens, “f***ing Hitler should have gassed you,” and “Jews burn, you belong in ovens.”
Plea documents say that Schifer also said to the neighbors, “f***ing dog” and “I will poison your dog if it comes back to the fence.” Schifer admitted to threatening to shoot the neighbors and their dog, and to “burn to the ground” a garage the neighbors were remodeling into an apartment.
Schifer shouted other antisemitic slurs, obscenities and other derogatory language about their religion at his neighbors and their guests on Nov. 7, 2020. He also broke one of their windows and spat on one of the neighbors. He also made reference to gassing Jewish people, chopping them up, and burning them in ovens.
Schifer was charged by a federal criminal complaint in March. Schifer faces up to one year in prison and a possible fine of up to $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the plea entered into on Monday, June 28 before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate, Senior Litigation Counsel Heather A. Hill, and Trial Attorney Cameron Bell of the Department of Justice’s Civil Rights Division are representing the United States in this case.
# # #
Man Who Stole Firearm and Transported it to Wisconsin Sentenced to Federal PrisonRead the Press Release
A man who met an acquaintance at her home in Dubuque, Iowa, and stole a .380 caliber Smith and Wesson revolver from her was sentenced today to more than three years in federal prison.
Michael Coates, age 28, from Cassville, Wisconsin, received the prison term after a January 20, 2021 guilty plea to possession of a firearm by a felon.
At the guilty plea, Coates admitted he possessed the stolen revolver on November 30, 2019, and took it to Wisconsin. Coates was previously convicted of possession of a controlled substance with the intent to manufacture methamphetamine in Dubuque County, Iowa, in 2014.
Coates was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Coates was sentenced to 46 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Coates is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Dubuque Police Department and the Department of Alcohol, Tobacco, Firearms and Explosives..
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1025.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine while possessing a firearm was sentenced in federal court on June 28, 2021.
Jeremy Werneburg, age 41, from Carroll, Iowa, pled guilty on January 19, 2021, to conspiracy to distribute methamphetamine and possession of firearm by a prohibited person. Werneburg was previously convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, in November 2007, in the United States District Court for Northern District of Iowa. This conviction precluded Werneburg from legally possessing guns.
At the plea and sentencing hearings, evidence showed that from November 2017 and continuing to on or about December 2018, Werneburg and others distributed more than 150 grams of pure methamphetamine. On October 7, 2018, law enforcement, utilizing a confidential informant, conducted a controlled buy of over 27 grams of pure methamphetamine from Werneburg. On November 9, 2018, law enforcement received a tip that Werneburg’s vehicle contained drugs. On this same date, a search warrant was executed on the vehicle and law enforcement seized approximately one ounce of methamphetamine (pre-packaged in smaller quantities) and a handgun, from Werneburg’s vehicle. The methamphetamine and gun were located in two separate hidden compartments in the vehicle.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Werneburg was sentenced to 120 months’ imprisonment. He must also serve a 6 year term of supervised release. Werneburg remains in custody of the United States Marshal until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll County Sheriff’s Office, and Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3017.
Follow us on Twitter @USAO_NDIA.
Man Sentenced for Holding a Woman at Knifepoint in an Attempted RobberyRead the Press Release
A felon who held a woman at knifepoint two days after he was released from prison was sentenced today in federal court, said Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Kuna-Gi Lowe to 70 months in federal prison followed by 3 years of supervised release.
He previously pleaded guilty to attempted robbery in Indian Country and assault with a dangerous weapon in Indian Country.
According to court hearings, after being released from prison on felony charges, the defendant took a bus to Tulsa and began drinking heavily over the next several days. Lowe was out of money on August 29, 2019, when he entered an insurance agency where the victim was working and inquired about “opening an account.” Lowe then grabbed the female victim, pulled out a large knife and demanded money as he asked the victim if she “knew what he could do to her”. The victim pulled out of the defendant’s grasp and told Lowe she was calling the police as she fled to the business next door. Tulsa police officers located Lowe a short distance away. The victim confirmed Lowe was the assailant, and he was arrested.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Ross Lenhardt and Benjamin Hargrove prosecuted the case. Mr. Lenhardt is a prosecutor from the Western District of Pennsylvania, and Mr. Hargrove is a prosecutor from the District of Montana. Both men volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations
Man Sentenced for Drug Conspiracy CaseRead the Press Release
Acting U.S Attorney Clint Johnson announced that Devin Hartzell, 26, of Catoosa, was sentenced to 108 months after pleading guilty to drug conspiracy.
In his written plea, Hartzell stated that he conspired with others to possess with intent to distribute and to distribute heroin beginning in January 2018 and continuing until June 2019. During that time, he admitted to purchasing up to one kilogram of heroin multiple times a week from Jose Garcia and Edson Garcia-Velasquez. He would then redistribute the heroin to third parties who redistributed the drug to others.
Devin Hartzell was among 29 individuals indicted for drug conspiracy and other crimes in the 2019 Operation Smack Dragon, an Organized Crime Drug Enforcement Task Force investigation.
The Court sentenced Hartzell to 108 months in federal custody and five years supervised release. Judge Claire V. Eagan presided over the case. Assistant U.S. Attorney Joel-lyn McCormick prosecuted this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department.
Man Pleads Guilty to Violating Endangered Species ActRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to the unlawful sale of endangered species, including elephant and whale ivory.
According to court documents, Gary L. Cooper, 60, operated online storefronts to sell elephant and whale ivory, all in violation of the Endangered Species Act. From at least June 2015 through early 2020, Cooper used online platforms, such as Craigslist and eBay, to list for sale individual carvings made in whole, or in part, from ivory. These items ranged in size, including two raw elephant tusks that measured at least 28 inches long. In addition to several raw and carved tusks, the advertisements offered numerous elephant ivory carvings and both raw and scrimshawed sperm whale teeth. Cooper told his clients, including an undercover agent, that he was selling off an estate belonging to an elderly couple in poor health, when in reality he was regularly buying ivory online and flipping the pieces for profit.
Over about a sixteen-month period beginning in September 2018, Cooper did business with United States Fish and Wildlife Service (USFWS) undercover agents by selling or offering for sale no less than 50 pieces of elephant ivory, with a total market value between $40,000 and $95,000. During their correspondence, Cooper and the undercover agents discussed the illegality of buying and selling ivory across state lines. On November 17, 2018, Cooper offered to sell to an undercover USFWS Special Agent multiple ivory pieces for a total cost of $8,125. On November 26, 2018, Cooper sold two pieces of carved elephant ivory to the undercover agent and mailed the items from Virginia to New York. Upon forensic investigation, the items were confirmed to be genuine elephant ivory.
Cooper is scheduled to be sentenced on August 31. As part of the plea, Cooper will forfeit approximately 136 pieces of raw and carved ivory. He faces a maximum penalty of 1 year in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Ryan Noel, Special Agent-in-Charge, United States Fish and Wildlife Service, Office of Law Enforcement, made the announcement after U.S. Magistrate Judge John F. Anderson accepted the plea.
This investigation was conducted by the United States Fish and Wildlife Service, Office of Law Enforcement, with assistance from the Virginia Department of Wildlife Resources.
Assistant U.S. Attorney Gordon Kromberg and Special Assistant U.S. Attorneys Alejandra Arias and Sara Hallmark are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-mj-212.
Long Haul Truck Driver Convicted of Transporting Children to Engage in Sexual ActivityRead the Press Release
EL PASO – A federal jury convicted 59-year-old Travis Wayne Vavra of transporting a minor with intent to engage in criminal sexual activity and of possession of child pornography.
Evidence presented during trial revealed that Vavra was a long-haul truck driver who advertised free amusement park passes and cross-country trips for boys to explore the United States. As a result of the advertisement, Vavra transported a minor in his tractor trailer from the El Paso, Texas area to different states, including New Mexico, Missouri, Arizona, California, Wisconsin, Illinois, Nebraska, Maryland, Oklahoma, and Louisiana from May 2015 to June 2019. Vavra sexually assaulted the minor during these cross-country trips which began when the victim was nine years old. Vavra had also previously molested two other victims. On the date of his arrest, Vavra posted another flyer for parents and boys advertising these free cross-country trips. Vavra was found to be in possession of child sexual abuse material on his phone at the time of his arrest.
Vavra remains in federal custody. He faces a mandatory minimum sentence of ten years up to life in federal prison on the transportation of minors charge and up to 20 years in federal prison for the possession of child pornography. A sentencing date has yet to be scheduled.
U.S. Attorney Ashley C. Hoff and FBI Acting Special Agent in Charge Jeffrey Coburn made today’s announcement.
The FBI investigated and Assistant U.S. Attorneys Sarah Valenzuela and Richard Watts are prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Logan County Man Pleads Guilty to Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to two federal gun crimes.
According to court documents, Clifford Lee Griffin, 38, of Bruno, admitted that on the evening of September 30, 2019, members of the West Virginia State Police executed a search warrant at a residence in the Gilman Bottom area of Logan County where he had been selling drugs. Troopers arrested Griffin and recovered two loaded handguns, over 75 grams of methamphetamine and over 100 grams of heroin. Griffin admitted that he possessed the guns to protect his drugs and money.
Griffin pleaded guilty to possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms. He faces up to life in prison when sentenced on October 4, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation, the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Nowles Heinrich is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00163.
###
Local Adoption Agency Bookkeeper Pleads Guilty in Scheme to Defraud Employer and FamilyRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon woman pleaded guilty today for engaging in a multi-year scheme to defraud her employer, a non-profit adoption and surrogacy agency operating in Oregon and Washington, and her extended family.
Melodie Ann Eckland, 55, pleaded guilty to wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.
According to court documents, from at least 2011 and continuing until April 2018, Eckland was employed as a bookkeeper for a local adoption and surrogacy agency. Her duties included maintaining agency books and records, managing payroll, filing employment tax returns, and paying quarterly employment taxes to the IRS. Eckland also provided financial statements to the agency’s board of directors, but did not have signature authority over the organization’s business bank account.
Eckland used her position to steal funds from the agency by making unauthorized wire transfers and writing unauthorized checks to herself. Eckland also transferred agency funds in the form of bonuses to her personal bank account. To conceal her scheme, Eckland maintained two sets of financial records. One version, which she provided to the board of directors, showed the business books as they should have been maintained. The other version showed the true payments she made to herself over the course of her employment.
To cover the money she had stolen, Eckland applied for loans from at least five lending agencies on behalf of the adoption agency, using the names of the agency’s owners without their permission. Eckland altered agency financial records to make it appear as though she owned the agency and was authorized to enter into the loan agreements. Beginning in 2016, Eckland stopped making the agency’s quarterly employment tax payments to the IRS and stopped filing employment tax returns. As a result, the agency owed more than $94,000 in past due employment taxes.
To further conceal her scheme, Eckland stole funds from a bank account opened on behalf of her deceased brother-in-law’s estate. As executor of the estate, Eckland’s husband was tasked with selling his brother’s assets, paying estate bills, and preserving the remaining funds for the benefit of his brother’s children. Eckland forged her husband’s signature on unauthorized estate checks and made unauthorized wire transfers of estate funds to herself. She sent a portion of the more than $123,000 stolen from the estate to the adoption agency’s bank account to conceal her theft of agency funds.
IRS records indicated that Eckland did not report any of the embezzled funds on her federal income tax returns for 2013, 2014, and 2017. In 2015 and 2016, she reported more than $550,000 as “other income,” but failed to pay the taxes due. Between 2013 and 2017, Eckland failed to report more than $675,000 in income, resulting in a tax loss of more than $345,000. As a result of her scheme, Eckland’s victims—including the adoption agency and its owners, her brother-in-law’s estate, and the IRS—suffered a total loss of more than $1.5 million.
On June 2, 2021, Eckland was charged by criminal information with wire fraud, aggravated identity theft, filing a false tax return, and willfully failing to collect or pay payroll taxes.
Eckland faces a maximum sentence of 30 years in prison, a $750,000 fine, and three years’ supervised release. She will be sentenced on November 8, 2021 before U.S. District Court Judge Marco A. Hernandez.
As part of her plea agreement, Eckland has agreed to pay restitution of up to $2.5 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the Hillsboro Police Department. It is being prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Lehigh Acres Man Sentenced to 29 Years in Federal Prison for Using A Child to Produce Images Depicting Sexual AbuseRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced John Michael Breen (33, Lehigh Acres) to 29 years in federal prison for sexually abusing a child and taking photos of this abuse. Breen was also sentenced to a lifetime of supervised release and ordered to register as a sex offender.
Breen had pleaded guilty on August 19, 2020.
According to court documents, between April 28 and July 20, 2018, Breen used a child to engage in sexually explicit conduct for the purpose of producing images of this abuse. Breen subsequently uploaded these photos over the internet to a cloud-based storage service. On December 13, 2019, law enforcement officers executed a search warrant at Breen’s residence. During an interview with law enforcement, Breen admitted that he had sexually abused a 7-year-old child at his home and took pictures of the abuse using his cellphone.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Leader and 14 Members of Newark Drug Trafficking Ring ChargedRead the Press Release
NEWARK, N.J. – Fifteen people were charged today for their roles in a Newark heroin and crack cocaine distribution organization that sold hundreds of thousands of dollars’ worth of illegal drugs out of a residential building on Fairmount Avenue, Acting U.S. Attorney Rachael A. Honig announced.
The alleged leader of the operation, Jakai Dennis (see chart below), is charged with engaging in a continuing criminal enterprise. Dennis also is charged, along with the 15 other defendants, with one count each of conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine, and conspiracy to possess firearms in furtherance of a drug trafficking crime. All of the defendants are in custody and are scheduled to have their initial court appearances later today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
“This drug trafficking organization attempted to take control of an entire neighborhood,” Acting U.S. Attorney Honig said. “The defendants’ use of violence and intimidation made life intolerable for the community members who live there. We will continue to work with our law enforcement partners to disrupt operations like these and make our streets safer for the people who call Newark home.”
“The residents of this section of Fairmount Avenue have lived as a captive audience, watching their neighborhood degrade due to the daily drug dealing on their street and the unwelcome violence it brings,” Special Agent in Charge George M. Crouch Jr. said. “As shootings and violent crime continue to escalate in this and other cities around the country, the FBI will remain vigilant, working with our law enforcement partners – including the Newark Police Department – to combat this ongoing epidemic.”
According to the complaint:
The defendants allegedly ran a sophisticated operation that took advantage of the residential building’s location to sell drugs from the porch area, which was guarded by a locked steel door and difficult for law enforcement to infiltrate despite a constant stream of buyers approaching the front porch area day and night. One of the defendants was the building’s superintendent, who was paid in money and heroin to store drugs in his apartment and to give the other defendants access to an empty apartment on the second floor, which they also used to store drugs and guns.
The defendants worked in shifts from 6:00 a.m. until late in the evening. Buyers came on foot, in vehicles and on bicycles to purchase the illegal drugs. The heroin sold was of a high quality and was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred. FBI surveillance witnessed hundreds of narcotics transactions from November 2020 to June 2021.
The charges are the result of an investigation by the FBI, which included surveillance, phone record review, the use of confidential informants to make more than 30 controlled purchases, and the review of arrests by local law enforcement, as well as seizures of heroin, crack cocaine and firearms. Based upon evidence obtained in the case, the defendants sold more than one kilogram of heroin and 280 grams of crack cocaine during the conspiracy period.
The count of running a continuing criminal enterprise carries a minimum sentence of 20 years in prison and a maximum of life in prison. The count of conspiracy to distribute one kilogram or more of heroin and 280 grams or more of crack cocaine carries a minimum sentence of 10 years and a maximum of life in prison. The charge of conspiracy to possess firearms in furtherance of a drug trafficking crime carries a maximum sentence of 20 years in prison.
Acting U.S. Attorney Honig credited special agents of the FBI under the supervision of Special Agent in Charge Crouch in Newark, with the investigation leading to the charges. She also thanked police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the East Orange and Bloomfield police departments and the Essex County Department of corrections for their assistance with the investigation.
The government is represented by Senior Trial Counsel Robert Frazer of the Organized
Crime/Gangs Unit in the Criminal Division in Newark.
The charges and allegations contained in the federal criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charge
Jakai Dennis, a/k/a “Bop
31
Newark
Continuing criminal enterprise;
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Angel Kearney, a/k/a “Jim,” a/k/a “Dred”
31
East Orange, NJ
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Thomas Gibson, a/k/a “Tommy,”
44
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Jamar Hall, a/k/a “Goo”
35
Hamilton, NJ
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Kasim Thurston, a/k/a “Kai,” a/k/a “Kaz”
37
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Ibn Thurston, a/k/a “Wheezy,” a/k/a “Saheed”
33
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Antwan Williams, a/k/a “Ant,” a/k/a “Rue”
30
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Kevin Hall
31
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Andre Fuller, a/k/a “Draco”
31
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Akim Gibson, a/k/a “Ching”
24
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Shalamar McCall, a/k/a “Shaggy”
34
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Hakis Moses, a/k/a “Hak”
43
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Jaleel Drake, a/k/a “Lil”, a/k/a “SK”
27
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Elijah Shumate, a/k/a Eli”, a/k/a “E”
50
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
David Williams
51
Newark
Conspiracy to distribute heroin and crack cocaine; Conspiracy to possess firearms
Lame Deer man sentenced to prison for assaulting womanRead the Press Release
BILLINGS – A Lame Deer man who admitted to assaulting a woman on the Northern Cheyenne Indian Reservation, was sentenced today to 18 months in prison and to three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Darrell Dean Fisher, 36, pleaded guilty on Jan. 28 to assault resulting in substantial bodily injury.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on Aug. 4, 2019, Fisher and the victim, identified as Jane Doe, returned to Ashland from a trip and argued. An altercation ensued and Fisher pushed the victim to the ground, injuring her.
Assistant U.S. Attorney Bryan T. Dake prosecuted the case, which was investigated by the FBI.
XXX
Lake City Man to Federal Prison for Firearm ConvictionRead the Press Release
A man who illegally possessed a firearm was sentenced on June 28, 2021, in federal court in Sioux City.
Jeffrey Carothers, 52, from Lake City, Iowa, pled guilty on January 19, 2021, to possession of a firearm by a prohibited person. Carothers was previously convicted of a crime which prohibited him from possessing guns, namely, receiving stolen property, in the Superior Court for the State of California in and for the county of Plumas, on or about November 17, 1995.
At the hearings, Carothers admitted that around April or May 2019, Carothers possessed a stolen 9mm pistol and sold it to another person he knew to be prohibited from possessing a firearm. Carothers further admitted he was an illegal user of methamphetamine and that on approximately 6 occasions he traded methamphetamine and marijuana for guns over the last 1-2 years, using his home as a “clearing house” of stolen property.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Carothers was sentenced to 27 months’ imprisonment and must serve a 2-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, Lake City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3018.
Follow us on Twitter @USAO_NDIA.
Killeen Couple Admit to Multi-Million Dollar Fraud Scheme Involving Mass Transportation Benefit Program at Fort HoodRead the Press Release
WACO – Today, 42-year-old Kevin Romulus Pelayo and 37-year-old Cristine Furio Fredericks admitted to conducting a multi-million-dollar scheme to defraud the U.S. Army with respect to a mass transportation benefit program at Fort Hood.
On April 21, 2000, Presidential Executive Order 13150, subject Federal Workforce Transportation, directed all federal agencies to implement a Mass Transportation Benefit Program to qualified federal employees for individual employee commuting costs incurred through the use of mass transportation and van pools. On January 1, 2001, the Department of the Army (DA) implemented a mass transportation benefit program for Army soldiers and civilian employees.
Appearing before U.S. Magistrate Judge Jeffrey C. Manske, Pelayo and Fredericks pleaded guilty to two counts of engaging in monetary transactions with criminally derived property. Pelayo also pleaded guilty to one count of conspiracy to commit wire fraud. By pleading guilty, Pelayo and Fredericks admitted that from January 2014 to June 2020, they provided false documentation regarding their ride-share program on Fort Hood called Soldiers Vanpools, LLC, including names and other personal information of over 1,000 unsuspecting active-duty soldiers, in order to fraudulently collect Department of Transportation Mass Transportation Benefit Program funds.
U.S. Attorney Ashley C. Hoff; Special Agent in Charge Ray Rayos, Southwestern Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (Army CIC-MPFU); and Special Agent in Charge Richard D. Goss of the IRS Criminal Investigation’s Houston Field Office made today’s announcement.
The defendants face up to 10 years in federal prison for each money laundering charge. Pelayo faces up to 20 years in federal prison for the conspiracy charge. The defendants have agreed to forfeit to the government proceeds of their fraudulent scheme to include a dozen real estate properties in Killeen, Harker Heights, Copperas Cove and Kempner; 43 automobiles, SUVs, ATVs and a 5th-wheel trailer; over 120 designer tote bags, handbags and wallets; and, over $600,000 in cash. Sentencing has yet to be scheduled.
The Army CIC-MPFU’s Southwestern Fraud Field Office and IRS Criminal Investigation are conducting this ongoing investigation with valuable assistance from the Texas Department of Public Safety’s Criminal Investigations Division. Assistant U.S. Attorneys Greg Gloff and Robert Almonte are prosecuting this case.
###
Justice Department Sues Florida Man for Flagrant Violations of the Rivers and Harbors ActRead the Press Release
The Justice Department’s Environment and Natural Resources Division (ENRD) announced that the United States has filed a civil lawsuit in the Southern District of Florida against Fane Lozman for violations of the Rivers and Harbors Act (RHA) in connection with Mr. Lozman’s obstruction of Lake Worth Lagoon, a navigable waterway, in Riviera Beach, Florida.
According to the Complaint filed on June 25, Lozman or persons acting at his direction constructed and/or installed structures in Lake Worth Lagoon, which is connected to the Atlantic Ocean and the largest estuary in Palm Beach County. Some of the structures are made of closed-cell polystyrene foam and concrete blocks and range from 30 to 100 feet long, with various materials attached to the structures (including a metal shipping container). In at least three separate incidents, one or more of Lozman’s unauthorized structures became unmoored and drifted into Lake Worth Lagoon creating increased risk to navigation, property, and public safety. The United States seeks an order to enjoin Lozman from further building or installing obstructions in waters of the United States, except in compliance with the RHA, and to compel him to remove the unauthorized structures from Lake Worth Lagoon.
The matter was referred to the Department by the U.S. Army Corps of Engineers Jacksonville District. The Corps issued a notice of violation and order to cease and desist in connection with Lozman’s actions earlier this year.
This case is being handled by ENRD’s Environmental Defense Section. Trial Attorneys Brandon N. Adkins and Sydney A. Menees are in charge of the case.
Justice Department Settles Language Access and Retaliation Investigation of Courts in Fort Bend County, TexasRead the Press Release
Note: This press release has been translated in various languages. See attachments below.
The Justice Department announced a settlement agreement with Fort Bend County (FBC) to improve access to court for people with limited English proficiency (LEP).
This agreement resolves a Justice Department investigation into allegations that FBC courts discriminated against LEP court users based on their national origin and retaliated against a complainant, both in violation of Title VI of the Civil Rights Act of 1964. Title VI prohibits race, color or national origin discrimination by recipients of federal financial assistance, such as FBC. The department’s investigation uncovered language barriers that make it difficult for LEP people to meaningfully access the court system. These barriers included requirements that LEP criminal defendants use a bilingual attorney instead of a qualified interpreter in plea proceedings, and policies that resulted in higher court costs for LEP parents in child custody cases.
“People with limited English proficiency can suffer the loss of their children, homes, and fundamental rights when they face language barriers that deny meaningful access to our judicial system,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “The Civil Rights Division will continue fighting to ensure that courts remove barriers that deny people access to equal justice. I commend Fort Bend County for taking actions necessary to ensure language access for court users in compliance with Title VI of the Civil Rights Act.”
“Fort Bend is one of the most diverse counties in our District,” said Acting U.S. Attorney Mark Donnelly for the Southern District of Texas. “This agreement will ensure everyone has access to our courts irrespective of national origin or limited English proficiency.”
Under the agreement, FBC will provide interpreter services at no cost to LEP individuals in civil and criminal cases in FBC courts. FBC courts will also review its language access plans over the next year, develop mandatory Title VI training for FBC courts, provide Title VI retaliation training and issue public notices that explain the Title VI nondiscrimination policy and complaint process in non-English languages. The department will monitor these and other requirements for two years. FBC also agreed to pay damages to an LEP court user for court costs and to an individual who alleged retaliation.
The enforcement of Title VI is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Jury convicts Cuban national for assaulting federal officersRead the Press Release
CORPUS CHRISTI, Texas – A federal jury has returned a guilty verdict against a Cuban woman for assaulting two Border Patrol (BP) agents at the Javier Vega Checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 25 minutes before convicting Yaniuska Ordaz-Echevarria, 31, following a one-day trial.
The jury heard that just before midnight on Jan. 31, Ordaz-Echevarria arrived at the checkpoint in Sarita as a passenger on a commercial bus. Law enforcement removed her in order to inquire more about her citizenship status. Ordaz-Echevarria possessed no identification or other documents indicating she was in the United States lawfully. Authorities then escorted her into the checkpoint building for further processing.
Once inside, Ordaz-Echevarria became irate with authorities, refusing to answer their questions. When law enforcement attempted to peaceably escort her into a holding cell, she swung her fists violently. Her aggressive behavior required multiple agents to attempt to restrain her, during which time she continued to kick and punch them.
Two of the BP agents injured at the checkpoint testified and described attempting to subdue Ordaz-Echevarria while she swung and kicked wildly at agents. The jury also saw exhibits documenting their injuries as well as a video depicting Ordaz-Echevarria’s belligerent acts.
The defense attempted to convince the jury that Ordaz-Echevarria’s actions were unintentional and that Ordaz-Echevarria was just angry about possibly being deported for the fourth time. They were not persuaded and found Ordaz-Echevarria guilty as charged.
U.S. District Judge David Morales presided over the trial and set sentencing for Sept. 28. At that time, Ordaz-Echevarria faces up to eight years imprisonment and a possible $250,000 maximum fine.
She has been and will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorneys Yifei Zheng and Dennis Robinson are prosecuting the case.
Jury Convicts Cedar Park Man for Impersonating an FBI AgentRead the Press Release
WACO – A federal jury yesterday convicted 52-year-old Jonathan Jefferson Ferris on two counts of impersonating a federal agent.
Evidence presented during trial revealed that on multiple occasions in July and August 2019, Ferris entered a pharmacy in Temple looking to fill an out-of-state prescription for Fentanyl patches. Ferris always identified himself to the pharmacy employee as an out-of-town FBI agent on temporary assignment. Ferris wore a lanyard with a fake FBI identification card attached and used fraudulent documentation purportedly from the FBI to support his request for filling the Fentanyl prescriptions.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division made today’s announcement.
Ferris faces up to three years in federal prison. Sentencing is scheduled for September 29, 2021, before U.S. District Judge Alan Albright.
The FBI conducted this investigation together with investigators from DEA Diversion and the Cedar Park Police Department. Assistant U.S. Attorney Mark Frazier is prosecuting this case.
###
Juror Fined $11,000 for Conducting Outside Research During Criminal Trial and Causing MistrialRead the Press Release
CAMDEN, N.J. – A Burlington County man today was held in criminal contempt and fined $11,227 for conducting outside research while serving on a federal criminal jury and sharing his findings with the other jurors, Acting U.S. Attorney Rachael A. Honig announced.
U.S. District Judge Robert B. Kugler made the contempt finding and imposed the sentence today in Camden federal court.
According to statements made in court:
Juror Number 7 was one of 12 jurors on a federal criminal trial held in Camden federal court before Judge Kugler. Before and during the trial, Juror Number 7 and the other jurors were instructed repeatedly, both in writing and verbally, not to conduct any research about the case, including through use of the Internet. During a recess in the trial, Juror Number 7 conducted internet research into evidence in the case. He then shared his findings with the other jurors during deliberations, causing a mistrial. The fine represents the court’s costs associated with empanelling the jury for the trial.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden and Deputy U.S. Attorney Andrew Carey.
Judge sentences Chesterfield man for sex traffickingRead the Press Release
ST. LOUIS – United States District Judge Audrey G. Fleissig sentenced Jeremy Rogers, 45, of Chesterfield, Missouri, to 10 years imprisonment on today’s date. Rogers pleaded guilty, in February, to one count of sex trafficking of a child.
Rogers, in the summer of 2019, contacted the child victim, via a social media application, utilizing an alias. By utilizing the alias, Rogers was able to hide his status as a registered sex offender. During the course of their communications, Rogers was made aware of the victim’s age. In July of 2019, Rogers persuaded the victim to meet him. Rogers drove the victim to his residence in Chesterfield where he subjected her to various sexual acts including sexual intercourse.
Prior to sentencing and by way of an impact statement, the child victim told the Court the following: “What happened has greatly hurt the way I value and view myself. It has caused anxiety and great emotional distress. I feel if he had not been caught, he definitely would have attempted this with some other innocent and naive person who doesn’t know any better.” The victim also stated, “He clearly had no regard for my age, or level of comfort. It will most likely be a very long while, if ever, before I gain complete closure, but knowing that this man will not be able to do this to anybody else will greatly help to give me peace of mind.”
On October 9, 2018, in an unrelated state case, Rogers pleaded guilty, in the Circuit Court of Boone County, Missouri, to the felony offense of attempted sexual exploitation of a minor in violation of Section 573.023, RSMo; after which, Rogers was sentenced to eight years of imprisonment. The execution of that sentence was suspended. Rogers was placed on five years of probation. Due to this state conviction, Rogers was required to register as a sex offender under federal law and the laws of the state of Missouri.
The above sex trafficking of a child case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jillian Anderson is handling the case.
#####
Jacksonville Man Sentenced to More Than 10 Years for Leading Cocaine Trafficking ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Paublo “Chandito” Rondon Quinones (30, Jacksonville) to 10 years and 1 month in federal prison for conspiring to possess with the intent to distribute and to distribute five or more kilograms of cocaine.
Quinones had pleaded guilty on January 24, 2019. As part of his plea agreement, Quinones agreed to the administrative forfeiture of an assortment of jewelry and numerous vehicles, including two jet skis, four motorcycles, two sport utility vehicles, a Porsche Panamera luxury sedan, and a Ferrari F430 sports car.
According to court documents, Quinones led a drug trafficking organization that supplied kilo-quantities of cocaine to drug dealers in Jacksonville. His organization had multiple sources of supply and obtained shipments of cocaine via couriers and through the U.S. Mail from suppliers in Puerto Rico and Orlando.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Florida Highway Patrol, and the North Florida High Intensity Drug Trafficking Area Task Force. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jackson Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Jackson man pled guilty today to possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Jeffery Rivers, Jr., 39, of Jackson, sold almost a half kilogram of methamphetamine on March 2, 2020. The drugs were analyzed by the Drug Enforcement Administration Laboratory and confirmed to be 437.5 grams of pure methamphetamine.
Rivers pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine. He is scheduled to be sentenced on October 6, 2021 and faces a mandatory minimum of 10 years and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Jackson Safe Streets Task Force investigated the case.
Assistant U.S. Attorney Keesha D. Middleton is prosecuting the case.
The case is the result of an extensive investigation, dubbed “Hailstorm,” which began as an operation targeting illegal methamphetamine distribution in central Mississippi.
Iowa Man Sent Back to Federal Prison for the Third Time Following his Second Escape from CustodyRead the Press Release
A man who escaped from federal custody twice in just over two years was sentenced today to nearly three years in federal prison.
Gabriel Mangum, age 45, from Iowa City, Iowa, received the prison term after a December 31, 2020 guilty plea to one count of escape from custody.
Evidence from Mangum’s plea and sentencing hearings showed that he was previously convicted of being a felon in possession of a firearm in federal court in 2009 and sentenced to seven years in prison. In June 2017, Mangum escaped from federal custody while in a halfway house. He was arrested approximately one month later and sentenced to another 18 months’ imprisonment.
Beginning on July 12, 2019, Mangum was in custody and under supervision at the halfway house again. On July 31, 2019, Mangum left the halfway house without permission and escaped from custody for the second time. Mangum remained on the loose and his whereabouts were unknown until October 25, 2020, when he was arrested by law enforcement.
Mangum has a long criminal history. This is his third federal conviction. He was first convicted of robbery in state court and sentenced to 25 years in prison when he was 18. He also has convictions involving drugs, thefts, forgery, and disorderly conduct.
Mangum was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mangum was sentenced to 33 months’ imprisonment, consisting of 18 months in prison for violating his supervised release conditions and 15 months in prison for his most recent escape. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mangum is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-97, 17-CR-56, and 09-CR-2008.
Follow us on Twitter @USAO_NDIA.