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29 June 2021
وزارة العدل األمريكية تبرم اتفاقية تسوية بشأن التحقيق الخاص بإزالة الحواجز اللغوية واالنتقام في محاكم مقاطعة فورت بيند، تكساسRead the Press Release
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Whittier Man Pleads Guilty to Drug ConspiracyRead the Press Release
FRESNO, Calif. —Antonio Castellanos, 38, of Whittier, pleaded guilty today to conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Castellanos, Genaro Serrato-Calles, aka Alejandro, aka Meno, 51; Antonio Valencia-Hernandez, aka Tito, 65, both of Modesto; and Jose Reyes-Pineda, 48, of Anaheim were charged with conspiring over a two-year period to distribute methamphetamine in Stanislaus and San Joaquin Counties. In pleading guilty, Castellanos admitted to working with individuals in Mexico to distribute methamphetamine in the United States and, on one occasion, arranging for the shipment of over 20 pounds of methamphetamine to Serrato-Calles.
Castellanos is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 18. Castellanos faces a statutory mandatory minimum prison term of 10 years and a maximum of life in prison, and a fine of up to $10 million. 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.
A jury trial is set for Serrato-Calles, Valencia-Hernandez, and Reyes-Pineda for Sept. 8. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
West Union Methamphetamine Dealer Who Sexually Assaulted a Woman Sentenced to More Than Sixteen Years in PrisonRead the Press Release
A man who sexually assaulted a woman after he distributed methamphetamine to her was sentenced on June 25, 2021, to more than sixteen years in federal prison.
Herman Lee Ronnfeldt, age 56, from West Union, Iowa, received the prison term after a January 15, 2021 guilty plea to possession with intent to distribute methamphetamine.
Information from sentencing showed that Ronnfeldt, a convicted sex offender, was living in West Union, Iowa, in late 2018. In December 2018, law enforcement officers searched his apartment and located more than eighty grams of methamphetamine. Witnesses testified at sentencing that Ronnfeldt regularly distributed methamphetamine to people at his apartment. On one such occasion, Ronnfeldt distributed methamphetamine to a woman that caused her to feel ill. He then sexually assaulted her.
Ronnfeldt was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. In sentencing Ronnfeldt, Judge Williams noted that Ronnfeldt’s criminal conduct had not slowed down with age, and that Ronnfeldt had continued to distribute dangerous drugs and commit sexual assaults. Judge Williams found that the appropriate sentence was 224 months’ imprisonment. Judge Williams adjusted the sentence to account for time Ronnfeldt had spent in custody for related offenses to 194 months and 20 days’ imprisonment. Ronnfeldt must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Ronnfeldt 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 Kyndra Lundquist and investigated by the Iowa Division of Narcotics Enforcement, the West Union Police Department, and the Fayette County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2026.
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Watertown Man Pleads Guilty to Federal Drug and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – Daniel J. Borg, 43, of Watertown, New York, pled guilty yesterday to possession of controlled substances (heroin/fentanyl and eutylone) with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, possession of a sawed-off shotgun, and possession of a firearm by a convicted felon, announced Acting United States Attorney Antoinette T. Bacon, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Jefferson County District Attorney Kristyna Mills.
As part of his guilty plea, Daniel J. Borg admitted that on January 21, 2021 he was in possession of 305 grams of eutylone as well as 30 separate bags of a heroin/fentanyl mixture in an Audi automobile that he parked at a self-storage area in Watertown where he leased a unit. Detectives from the Metro-Jefferson Drug Task Force (Met-Jeff) surveilled Borg as he was about to enter his locked storage unit. After taking Borg into custody and recovering the drugs from the Audi, Met-Jeff Detectives obtained Borg’s consent to search his locked storage unit. Inside the storage unit Met-Jeff Detectives located a safe containing 500 separate small plastic bags, each holding a small quantity of a heroin/fentanyl mixture. Also recovered from the storage unit was a sawed-off .410-gauge shotgun illegally possessed by Borg, who was previously convicted of five (5) prior felony offenses.
Sentencing is scheduled October 19, 2021, at which time Borg faces a maximum sentence of up to 20-years imprisonment, and a fine of up to $1,000,000.00, and a minimum term of supervised release of 5 years and up to life for his conviction for possession with intent to distribute controlled substances. He faces a mandatory consecutive sentence of 5-years, and up to life for his conviction for possession of a firearm in furtherance of a drug trafficking crime, and up to 10-years imprisonment for possession of a sawed-off shotgun, and possession of a firearm by a previously convicted felon. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Metro-Jefferson Drug Task Force, consisting of Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, Investigators from the Jefferson County District Attorney’s Office, and Special Agents from the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Used Motor Vehicle Dealers Sentenced in Odometer Tampering SchemeRead the Press Release
Yesterday, in federal court in Brooklyn, Shmuel Gali was sentenced by U.S. District Judge Kiyo A. Matsumoto to 60 months’ imprisonment for his role in a long-running odometer tampering and money laundering scheme and ordered to pay $3,936,000 in restitution. The defendant pleaded guilty in August 2020 to conspiracy to commit money laundering, conspiracy to commit odometer tampering, making false odometer statements and securities fraud.
“An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Department of Justice will continue to work with law enforcement partners to prosecute odometer fraud.”
“This sentence sends a warning that this office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.”
“Automobile sales stand as one of the pillars of the American economy, requiring transparency and integrity,” said Acting Special Agent-in-Charge Thomas Fattorusso of IRS-Criminal Investigation (IRS-CI). “The financial expertise of IRS-CI was needed to uncover this criminal enterprise perpetuated by Shmuel Gali who received a just sentence relative to his criminal activity.”
Between 2006 and June 2011, Shmuel Gali, while conspiring with his brother Chaim, defrauded buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles that they sold. They used fictitious dealer names to purchase high-mileage, used motor vehicles from a national vehicle-leasing company; altered the odometers of the vehicles to reflect false, lower mileages; and then sold the vehicles at wholesale automobile auctions. On average, the odometers on the vehicles were rolled back by close to 70,000 miles. Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices.
This matter was investigated by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation and IRS-CI.
Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Catherine M. Mirabile of the Eastern District of New York prosecuted the case.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually. Individuals with information relating to odometer tampering should call NHTSA’s odometer fraud hotline at (800) 424-9393 or (202) 366-4761. More information on odometer fraud is available on the NHTSA website at https://www.nhtsa.gov/odometer-fraud.
Used Car Dealer Sentenced to 60 Months in Prison for Odometer Tampering SchemeRead the Press Release
BROOKLYN, NY – Yesterday, in federal court in Brooklyn, Shmuel Gali was sentenced by United States District Judge Kiyo A. Matsumoto to 60 months’ imprisonment for his role in a long-running odometer tampering and money laundering scheme, and ordered to pay $3,936,000 in restitution. The defendant pleaded guilty in August 2020 to conspiracy to commit money laundering, conspiracy to commit odometer tampering, making false odometer statements and securities fraud.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney General of the Justice Department’s Civil Division, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the sentence.
“The sentence sends a warning that this Office will prosecute those who engage in odometer tampering and deliberately dupe consumers into unknowingly paying inflated prices for their motor vehicles,” stated Acting U.S. Attorney Kasulis. “With the defendant being sentenced to prison and ordered to pay restitution to his victims, he is being held to account for his greed in contriving this fraudulent scheme.”
“An automobile is one of the biggest purchases many consumers make,” stated Acting Assistant Attorney General Boynton. “Misrepresenting used car mileages defrauds buyers and hides important information concerning safety and reliability. The Department of Justice will continue to work with law enforcement partners to prosecute odometer fraud.”
“Automobile sales stand as one of the pillars of the American economy requiring transparency and integrity,” stated Acting IRS-CI Special Agent-in-Charge Fattorusso. “The financial expertise of IRS-CI was needed to uncover this criminal enterprise perpetuated by Shmuel Gali who received a just sentence relative to his criminal activity.”
Between 2006 and June 2011, Shmuel Gali, while conspiring with his brother Chaim, defrauded buyers of used motor vehicles by misrepresenting the mileage of approximately 690 vehicles that they sold. They used fictitious dealer names to purchase high mileage, used motor vehicles from a national vehicle leasing company, altered the odometers of the vehicles to reflect false, lower mileages, and then sold the vehicles at wholesale automobile auctions. On average, the odometers on the vehicles were rolled back by close to 70,000 miles. Consumers who purchased the vehicles at dealerships did not know the true mileage and paid inflated sales prices.
This matter was investigated by the U.S. Department of Transportation National Highway Traffic Safety Administration (NHTSA) Office of Odometer Fraud Investigation, and the Internal Revenue Service-Criminal Investigation.
Assistant United States Attorney Catherine M. Mirabile of the Eastern District of New York and Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch prosecuted the case.
The Defendant:
SHMUEL GALI (also known as “Sam Gali”)
Age: 48
Brooklyn, New York; IsraelE.D.N.Y. Docket No. 14-CR-652 (KAM)
United States Attorney’s Office Resolves False Claims Act Investigation into Improper Submission of Federal Health Care Claims by Health Care & Rehabilitation Services of Southeastern VermontRead the Press Release
UPDATE
The HCRS Settlement Agreement has been attached to this Press Release.
The Office of the United States Attorney for the District of Vermont announced that it has resolved its investigation into whether Health Care & Rehabilitation Services of Southeastern Vermont (“HCRS”) failed to screen its employees and improperly submitted to the government claims for services provided by an individual barred from receiving payments from federally funded health care programs.
“It is imperative that organizations such as HCRS that provide important mental health, substance abuse, and developmental services to Vermonters, carefully vet their employees to ensure that all requirements are followed and taxpayer money is not paid out improperly,” said Acting U.S. Attorney Jonathan A. Ophardt. “I commend HCRS for bringing this issue to the government’s attention and committing to make changes to the ways in which it screens prospective and current employees so that it does not happen again.”
As a health care entity submitting claims to federally-funded health care programs, HCRS must ensure that its employees are not included on the exclusion list created and maintained by the Office of Inspector General of the Department of Health and Human Services (“OIG-HHS”). OIG-HHS may exclude individuals and entities from participation in these programs for a variety of reasons, including but not limited to fraud. For a period of nearly 10 years, HCRS employed an excluded individual and submitted claims on the person’s behalf for reimbursement to Medicare, Medicaid, and Tricare, thereby violating the federal False Claims Act. In addition, the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office (“MFRAU”) concluded that HCRS also violated the Vermont False Claims Act.
To resolve the claims against it, HCRS has agreed to pay to the United States and State of Vermont a total of $170,037.76 and already has begun the payment process. The settlement amount reflects a cooperation credit in light of HCRS’s self-disclosure of the violation, assistance with the investigation, and voluntary adoption of remedial measures to guard against improper employment and claim submission in the future.
Assistant United States Attorney Lauren Almquist Lively handled this matter for the United States Attorney’s Office for the District of Vermont, in partnership with Assistant Attorney General Elizabeth L. Anderson, Director of MFRAU. Anne E. Cramer and Kevin M. Henry of Primmer Piper Eggleston & Cramer PC represented HCRS.
HCRS Settlement AgreementU.S. Attorney's Office, FBI, and AARP Nevada Partner to Protect Nevadans from Gift Card FraudRead the Press Release
LAS VEGAS, Nev. – The U.S. Attorney’s Office for the District of Nevada, FBI Las Vegas Field Office, and AARP Nevada will host an interactive telephonic town hall on June 30, at 10 a.m. PDT, to share information about common gift card fraud schemes and prevention tips.
During the hour-long town hall, an Assistant U.S. Attorney and FBI Supervisory Special Agent will discuss common scams to be aware of and provide tips to protect you and your loved ones. Following the presentations, callers will have the opportunity to ask questions.
According to the Federal Trade Commission, in 2020, Nevadans over the age of 60 lost more than $36.5M. In fact, Nevada ranked first among all states for the number of total fraud reports in 2020 with 35,533.
To join the toll-free telephonic town hall, register at https://aarp.cvent.com/events/aarp-nv-gift-card-scams-tth-statewide-6-30-2021/event-summary-8b14e7f171034e6fb1c3fb7278fee296.aspx. In addition to joining the town hall by phone, AARP members and the community at large may join online by going to the AARP Nevada Facebook page at facebook.com/aarpnv.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
In addition, you can report potential elder fraud to the FBI at www.ic3.gov or by calling 1-800-CALLFBI (225-5324). Similarly, you can call AARP’s Fraud Watch Network helpline at 1-877-908-3360 to report a scam. You can also find tip sheets and sign up for fraud alerts at the Fraud Watch Network site, www.aarp.org/fraud.
To learn more about the Department of Justice’s efforts to stop elder fraud, please visit the Elder Justice website at https://www.justice.gov/elderjustice.
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Two felons sentenced to prison for scheme to steal thousands in COVID-19 unemployment insurance fundsRead the Press Release
SAVANNAH, GA: Two Florida residents who crashed their car while fleeing from a traffic stop have been sentenced to federal prison for colluding in a scheme to steal pandemic unemployment funds.
Malik Abdul McCaully, 43, of Tampa, Fla., and Tamesha Lashelle Brown, 41, of Dade City, Fla., were sentenced to 60 months in prison after pleading guilty to Informations charging each of them with conspiring to commit various offenses, including mail fraud, wire fraud, bank fraud, disaster relief fraud, and access device fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge William T. Moore Jr. also ordered each defendant to pay $137,195 in restitution to the state of Pennsylvania, and to serve three years of supervised release after completion of their prison terms.
There is no parole in the federal system.
“These two criminals used access to technology to scam money out of unemployment benefits programs created specifically to help people who were struggling during the pandemic,” said Acting U.S. Attorney Estes. “But all their high-tech scheming came to a crashing halt when they tried to outrun police officers on I-95.”
As described in court documents and proceedings, McCaully and Brown’s criminal history spanned decades. McCaully has 39 prior convictions, including convictions for cocaine trafficking, robbery, and aggravated assault with a firearm. Brown, meanwhile, has 17 prior convictions that included offenses for grand theft, delivering cocaine, and aggravated child abuse. From about July to October 2020, the two worked together to obtain victims’ personal identifying information, without those individuals’ knowledge or consent, and then used that information to file fraudulent applications for unemployment assistance, including with the State of Pennsylvania. The two posed as the applicants when communicating with banks distributing the payments. After fraudulently obtaining bank cards preloaded with more than $130,000 in unemployment insurance funds, Brown and McCaully traveled to various ATMs in Pennsylvania, withdrawing thousands of dollars.
The two came to the attention of law enforcement in the early morning hours of Oct. 3, 2020, when a vehicle driven by McCaully sped from an attempted traffic stop by Jasper County, S.C., sheriff’s deputies on Interstate 95. McCaully eventually crashed the vehicle in Pooler, Georgia, and he – and his passenger, Brown – were taken into custody. Inside the vehicle, law enforcement recovered more than $20,000 in cash, dozens of prepaid debit cards issued by states’ unemployment insurance funds in the names of others, as well as several false identifications that the two had used.
“These sentences take two career criminals off the street for a substantial amount of time, effectively removing a threat against our law-abiding citizens,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Had it not been for the awareness of our local and state law enforcement partners, and our federal partners, these two would have continued to target those in need of assistance and every American taxpayer.”
“Those who prey on systems created to help our fellow man are among the most dastardly people we have the duty to bring to justice,” said Steven Baisel, Special Agent in Charge of the Atlanta Field Office of the U.S. Secret Service. “They can’t outrun the long arm of the law.”
“Malik McCaully and Tamesha Brown engaged in a scheme to defraud the Pandemic Unemployment Assistance program by submitting fraudulent claims for benefits using PII belonging other individuals. Unemployment insurance programs exist to provide needed assistance to qualified individuals who are unemployed or underemployed due to no fault of their own. Fraud against these programs causes state workforce agencies, like the Pennsylvania Department of Labor, to redirect valuable resources to address fraud to ensure benefits go to individuals who are eligible to receive them. The U.S. Department of Labor Office of Inspector General will continue to work closely with the U.S. Attorney’s Office, the Pennsylvania Department of Labor and our many law enforcement partners to investigate those who exploit the unemployment insurance program,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
The FBI, U.S. Secret Service, and U.S. Department of Labor’s Office of Inspector General, with the assistance of the Pooler Police Department, Port Wentworth Police Department, and the Georgia State Patrol investigated the case. It was prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or go to justice.gov/disastercomplaintform.
Two brothers sentenced in scheme to use drone to smuggle contraband into a Georgia state prisonRead the Press Release
AUGUSTA, GA: Two brothers have been sentenced in U.S. District Court after admitting to a scheme to use a drone to smuggle contraband into a Georgia state prison.
George Lo, 27, of Powder Springs, Ga., was sentenced to 12 months in federal prison after pleading guilty to Owning an Unregistered Aircraft that was Operated, Attempted to be Operated, or Allowed to be Operated by another person, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Lo’s brother, Nicholas Lo, 25, of Dallas, Ga., was sentenced to 12 months in federal prison after pleading guilty to Serving or Attempting to Serve as an Airman Without an Airman’s Certificate. U.S. District Court Judge Dudley H. Bowen Jr. also ordered each man to serve one year of supervised release after completion of their prison terms.
There is no parole in the federal system.
The criminal prosecutions of the Lo brothers, and of co-defendant Cheik Hassane Toure, 24, of Austell, Ga., who is awaiting sentencing after also pleading guilty, are among the first in the nation under federal law regulating non-passenger aircraft. The prosecution of Nicholas Lo is believed to be the first in the nation for illegally serving as a commercial drone pilot.
“For as long as there have been prisons, inmates and their allies have attempted to circumvent security measures to introduce contraband inside the walls,” said Acting U.S. Attorney Estes. “In recent years, the increasing use of remotely operated aircraft has added complexity to this challenge, but in coordination with our law enforcement partners we will continue to work to maintain secure incarceration facilities.”
As described in court documents and testimony, George Lo was serving a state sentence for armed robbery at Telfair State Prison in Telfair County when he began conspiring with Nicholas Lo and Toure, and others, to own and operate a Storm Drone 4 kit-built unmanned aircraft without registration or licensing. The Lo brothers discussed using the drone to deliver contraband to Telfair State Prison, and Nicholas Lo and Toure practiced flying the aircraft. George Lo planned to pay the two to fly the aircraft to deliver the contraband, which he intended to sell to other inmates.
At 1:30 a.m., on Aug. 26, 2019, Telfair County Sheriff’s deputies observed an approaching vehicle turn off its lights and park about 100 yards from Telfair State Prison. During a search of the area, Deputies encountered Nicholas Lo and Toure in a wooded area between the road and prison. The pair possessed a large duffle bag containing the drone, a controller, a video monitor and a headset. In addition, the bag contained 14 cell phones, at least 74 grams of tobacco, a digital scale and earbud headphones. Both men were taken into custody.
Federal law requires registration of unmanned aircraft weighing 0.55 pounds or more, and the Storm Drone 4’s weight was in excess of that requirement. Also, federal law requires the pilot of any unmanned aircraft to hold an airman’s certificate when operating the unmanned aircraft for compensation or hire.
“Today’s sentencing should serve as a warning that violating Federal regulations related to owning and operating drones will not be tolerated,” said Todd Damiani, Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General Southern Region. “As drones continue to be a more prevalent presence in our nation’s airspace, we are committed to working with our law enforcement and prosecutorial partners to ensure that protecting public safety and security remains paramount.”
“Any type of criminal activity perpetrated from behind the walls of our facilities will not be tolerated, and we are proud of our Special Agents for their diligence in stopping the introduction of dangerous contraband into Telfair State Prison,” said Georgia Corrections Commissioner Timothy C. Ward. “With the assistance and support of our law enforcement partners on every level, we are pleased to see that justice is being served on these individuals, and a message is being sent to others who may be contemplating similar actions that could pose a threat to the safety of the public and the secure operations of our facilities.”
The case was investigated by the U.S. Department of Transportation Office of Inspector General, the Georgia Department of Corrections, and the Telfair County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys John P. Harper III and E. Greg Gilluly Jr.
Two Charged Federally in Connection with CarjackingsRead the Press Release
LOUISVILLE, Ky. – A federal grand jury in Louisville, Kentucky, returned an indictment on June 16, 2021, charging two Louisville men with carjacking and brandishing firearms.
According to court documents, Cameron Burnett, 30, carjacked a Toyota Camry while brandishing a firearm on January 18, 2021, in Louisville Kentucky. Additionally, Burnett and Timothy McCurley, 33, carjacked a Hyundai Tucson on January 22, 2021, in Mt. Washington, Kentucky. During the course of that crime, McCurley brandished a firearm.
Burnett is charged with carjacking and brandishing a firearm during the commission of a crime of violence. The defendant made his initial court appearance on June 22, 2021, before U.S. Magistrate Judge Regina S. Edwards of the U.S. District Court for the Western District of Kentucky. If convicted, he faces a mandatory maximum penalty of 15 years in prison for each carjacking and a mandatory minimum penalty of 7 years in prison for brandishing a firearm.
McCurley is charged with carjacking and brandishing a firearm during the commission of a crime of violence. The defendant will make his initial court appearance on July 29th at 1:30 pm, before U.S. Magistrate Judge Colin H. Lindsay of the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum penalty of 15 years in prison for carjacking and a mandatory minimum penalty of 7 years in prison for brandishing a firearm. For each defendant, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky; and Federal Bureau of Investigation Special Agent in Charge of the Louisville Field Office Robert Brown made the announcement.
The FBI, Louisville Metro Police Department, Mt. Pleasant Police Department, and Elizabethtown Police Department are investigating the case.
Assistant U.S. Attorney Ann Marie Blaylock is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Turtle Creek Woman Admits Role in Fentanyl Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Turtle Creek, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking, Acting United States Attorney Stephen R. Kaufman announced today.
Marleka Robinson, age 26, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on September 11, 2016, Marleka Robinson obtained a large quantity of fentanyl from a distributor in the Knoxville section of Pittsburgh at Robinson’s brother and co-defendant Jerry Coker’s request. Robinson returned the drugs to the residence she shared with Coker and their other sister, codefendant Monique Robinson. A search warrant executed at the Coker residence the following day resulted in the seizure of more than 285 grams of fentanyl and small quantities of heroin, cocaine, and marijuana. Drug packaging, weighing, and distributing materials were found strewn through the house, along with two Smith & Wesson pistols and $8,900 in cash, all of which were seized by law enforcement.
Judge Bissoon scheduled sentencing for October 19, 2021, at 2:15 p.m. The law provides for a total sentence of not less than five and not more than 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 ordered Robinson on bond pending appeal.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation that led to the prosecution of Robinson.
Tulsa Man Sentenced for Killing a Sand Springs Woman in a Drunk Driving CollisionRead the Press Release
A drunk driver who killed a woman in a 2019 collision was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Terence C. Kern sentenced Hector Manuel Hernandez, 37, of Tulsa, to 11 years in federal prison followed by five years of supervised release. Hernandez pleaded guilty to second degree murder in March 2021.
In his written plea agreement, Hernandez admitted that he rear-ended a car while driving on South Garnett Road, and as he fled the first accident, hit the victim’s automobile head on. Jennifer Holt died from injuries sustained in the collision. Hernandez had a blood alcohol level of .250. He was also convicted for DUI in Rogers County in 2007.
The Broken Arrow Police Department, FBI and Oklahoma State Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Justin Bish prosecuted the case.
Traffic Stop Leads to Man Pleading Guilty to Meth ChargesRead the Press Release
A man who possessed nearly a half-pound of methamphetamine with the intent to distribute pled guilty June 22, 2021, in federal court in Sioux City.
David Naberhaus, 57, Deloit, Iowa, was convicted of possessing with intent to distribute methamphetamine. In 2000, Naberhaus was convicted in the United States District Court for the Northern District of Iowa of conspiracy to distribute methamphetamine.
At the plea hearing, evidence showed that on November 18, 2020, Naberhaus was stopped by law enforcement for traffic violations in Woodbury County, Iowa. Due to Naberhaus’ nervous behavior, a K-9 was deployed and indicated the presence of controlled substances from within the car. Law enforcement then searched the car and discovered 222 grams (nearly a half-pound) of pure methamphetamine in 5 separate baggies, 12 grams of marijuana, 3 grams of cocaine, and $6,501 in 4 bundles. On February 15, 2021, while on routine patrol, Iowa State Patrol noticed a disabled vehicle on the shoulder of Highway 20. A check of the license of the registered owner revealed the owner to be Naberhaus, who had a federal warrant for his arrest. A later search of Naberhaus’ car revealed bags of meth, bags of marijuana, lidocaine patches, a pipe a lighter, and Ziploc baggies.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Naberhaus remains in custody of the United States Marshal pending sentencing. Naberhaus faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Ida County Sheriff’s Department, Sioux City Police Department, Woodbury County Sheriff’s Department, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4010.
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Town of Mishicot Man Sentenced to 30 Years in Federal Prison Following Decades of Sexually Abusing ChildrenRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 28, 2021, Timothy J. Tetzlaff (age: 59) of the Town of Mishicot, Wisconsin, was sentenced to 30 years in federal prison by Senior United States District Judge William C. Griesbach.
In March 2021, Tetzlaff pled guilty to Transportation of a Minor with the Intent to Engage in Criminal Sexual Activity and Production of Child Pornography. The facts introduced at the sentencing hearing demonstrated that Tetzlaff sexually abused at least eight Manitowoc area children beginning in 1987.
In October 2020, an underage victim came forward and reported abuse by Tetzlaff to Manitowoc authorities and the Federal Bureau of Investigation (FBI). An investigation revealed that Tetzlaff often took minors on camping trips throughout the United States and Canada, abusing them numerous times during the journeys. Tetzlaff also assaulted the children at his home in the Town of Mishicot. Law enforcement also discovered digital images of one of the victims on a digital camera belonging to Tetzlaff. Teztlaff had surreptitiously photographed the child while he slept in 2015. Following his arrest, several additional victims came forward to report being abused by Tetzlaff.
When sentencing Tetzlaff, Judge Griesbach noted the horrendous nature of the crimes and Tetzlaff’s pattern of preying on children. Judge Griesbach explained that a 30-year prison sentence was lengthy enough to protect the community given Tetzlaff’s advanced age. Upon the completion of his prison sentence, Tetzlaff will serve the remainder of his life on supervised release.
This case was investigated by the Manitowoc County Sheriff’s Office and the Green Bay office of the FBI. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Tangipahoa Parish Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAMES WATTS, age 49, a resident of Amite, Louisiana, was charged June 11, 2021 in a one-count indictment by a Federal Grand Jury with possession with intent to distribute fifty grams or more of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
The defendant had his initial court appearance on June 23, 2021, before U.S. Magistrate Judge Karen Wells Roby of the U.S. District Court for the Eastern District of Louisiana. If convicted, WATTS faces a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration and Tangipahoa Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Ben Myers.
Statement of United States Attorney James P. Kennedy, Jr.Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051This Office and our federal partners remain in regular contact with the leadership of both the Buffalo and Rochester Police Departments as well as both the Erie County and Monroe District Attorney’s Offices, as we assist them in addressing the increasing violence, gun crimes, and homicides we are experiencing in both cities. District Attorney Sandra Doorley and I are meeting with Rochester Police Chief Herriott-Sullivan tomorrow morning to discuss how increased federal prosecutions and resources might help to address the problem there. Similar discussions are and have been ongoing with both the BPD and District Attorney Flynn here in Buffalo. On Thursday, I am convening a meeting of federal agency heads in the District, including the ATF, DEA, FBI, HSI, and the USMS, so that we can fine-tune our federal strategy and response, which we will publicly announce next week.
# # # #South Windsor Man Charged with Defrauding Grandparents of $679KRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven has returned an indictment charging DOUGLAS SENERTH, 32, of South Windsor, with offenses related to his alleged theft of approximately $679,000 from his grandparents.
The indictment was returned on June 7, 2021. Senerth appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty. He has been detained in state custody since February 10, 2021, when he was arrested on unrelated charges.
As alleged in the indictment, Senerth defrauded his grandmother and his late grandfather by falsely claiming to be a college student and inducing them to give him approximately $419,000 to pay for nonexistent college tuition and other related expenses, and an additional approximately $260,000 by falsely claiming that he would invest their money into an investment fund run by one of his nonexistent professors. As part of the scheme, Senerth created fraudulent college transcripts, letters and email accounts that he used to corroborate his lies.
The indictment charges Senerth with three counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Sixty Defendants Charged in Nationwide Takedown of Sinaloa Cartel Methamphetamine NetworkRead the Press Release
For more information contact:
Assistant U. S. Attorney Matthew J. Sutton (619) 546-8941, Special Assistant U.S. Attorney Nicole Bredariol (619) 546-8419, and Assistant U. S. Attorney Amy B. Wang (619) 546-6968
Click
HERE for the indictment
Click HERE for the search warrantSAN DIEGO – An indictment was unsealed today in federal court charging 60 members of a San Diego-based international methamphetamine distribution network tied to the Sinaloa Cartel with drug trafficking, money laundering and firearms offenses.
During the last month, hundreds of federal, state, and local law enforcement agents and officers have arrested dozens of defendants and searched multiple locations throughout San Diego County and in five states. As of today, 44 of the 60 defendants are either in federal or state custody, and the search continues for 16 defendants. In addition to these arrests, law enforcement has seized more than 220 pounds of methamphetamine and other illegal drugs; 90 firearms; and more than $250,000 in cash. Law enforcement officials are also seeking the forfeit of residences, high-end vehicles, and bulk cash belonging to these defendants.
According to the indictment and other publicly filed documents, over the last several years, this complex San Diego-based network obtained thousands of kilograms of methamphetamine from the Sinaloa Cartel to smuggle across the international border concealed in hidden compartments in passenger cars and motorcycles. The defendants then used these cars and motorcycles, along with trains, commercial airlines, the U.S. Mail, and commercial delivery services like FedEx and UPS to distribute that methamphetamine to dozens of sub-distributors located throughout San Diego County, the United States, and the world, including Hawaii, Arizona, Texas, Kansas, Iowa, Indiana, Michigan, Minnesota, Missouri, Connecticut, New York, New Jersey, Massachusetts, Kentucky, as well as Australia and New Zealand.
In return, tens of thousands of dollars in narcotics proceeds were returned to the network’s leaders via shipments of bulk cash, structured cash deposits into bank accounts, and money transfer systems like MoneyGram, Western Union, PayPal, Zelle, Venmo, and Cash App. And to protect their illegal operations, the defendants allegedly possessed dozens of firearms and used encrypted communication providers to communicate with each other. This drug trafficking and money laundering continued unabated throughout the COVID-19 global pandemic.
Despite their sophisticated efforts, law enforcement successfully penetrated this network with a variety of investigative techniques, including physical surveillance, obtaining phone records and financial documents, undercover agents, search warrants, as well as a six-month federal wiretap to intercept the communications and track the locations of the defendants.
Today we have dealt a serious blow to this San Diego-based international drug trafficking network with ties to the Sinaloa Cartel,” said Acting U.S. Attorney Randy Grossman. “The intersection of drug dealing and gun possession inevitably leads to violence in our communities. By dismantling this network, the Department of Justice reaffirms its unwavering commitment to reducing violent crime and building a San Diego where all our citizens are safe.”
“DEA is enhancing its efforts to disrupt, dismantle and destroy the most violent drug trafficking organizations across the country under Operation Crystal Shield,” said DEA Special Agent in Charge John W. Callery. “By dismantling this sophisticated drug trafficking network, DEA and our law enforcement partners have prevented significant quantities of methamphetamine and numerous firearms from making their way to the streets of San Diego and other neighborhoods throughout the United States. Drug trafficking is a violent crime, that impacts the safety and security of our communities – and the drug and firearm seizures made in this investigation are testament to that.”
“The primary motivation of drug traffickers is greed,” said Ryan L. Korner, Special Agent in Charge for IRS-Criminal Investigation’s Los Angeles Field Office. “IRS-CI will continue to work tirelessly alongside our partner agencies to stop the flow of narcotics and narcotics proceeds that are killing innocent Americans, and to ensure that crime doesn’t pay—that those individuals, like the 60 defendants indicted and arrested in this case, are brought to justice.”
“The U.S. Postal Inspection Service is committed to preserving the integrity of the mail by ridding the mail of involvement in drug trafficking,” said US Postal Inspection Service Acting Inspector in Charge Eric Shen of the Los Angeles Division. “This operation clearly shows that by combining our strengths and resources with all the involved agencies which include, federal, state and local law enforcement agencies we can disrupt their drug trafficking organizations to protect our communities.”
Acting U.S. Attorney Grossman also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. This case was led by the Drug Enforcement Administration’s Narcotics Task Force (NTF), the Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service. The NTF is a DEA-led task force comprised of federal and local law enforcement from the DEA, San Diego County Sheriff’s Department, the San Diego Police Department, the Escondido Police Department, the United States Border Patrol, and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, Homeland Security Investigations, Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Prisons, also provided vital assistance for the investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Matthew J. Sutton, Nicole Bredariol, and Amy B. Wang of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case, with assistance from Paralegal Specialists Kathleen Jordano and Leticia Adams.
An indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANTS Case Number 21cr1559-H
(D1) Reyes Espinoza Age: 35 San Ysidro, CA
(D2) David Villegas Age: 49 San Diego, CA
(D3) John Bomenka Age: 54 San Diego, CA
(D4) Dennis Jones Age: 49 San Diego, CA
(D5) Darren Mosier Age: 59 San Diego, CA
(D6) Frank Tucker Age: 63 San Diego, CA
(D7) Charles Miller Age: 52 San Diego, CA
*(D8) Carlos Espinoza Age: 28 Tijuana, MX
(D9) Mario Espinoza Age: 20 Tijuana, MX
(D10) Jaron Hillyer Age: 30 San Diego, CA
(D11) Kristina Brown Age: 32 San Diego, CA
(D12) Danny Miller Age: 52 San Diego, CA
(D13) Shawn Morrill Age: 49 San Diego, CA
*(D14) Hilleal Grant Age: 51 San Diego, CA
*(D15) Lewis Rich Age: 59 San Diego, CA
(D16) Cameron Graff Age: 29 San Diego, CA
*(D17) Terry Haith Age: 60 San Diego, CA
(D18) Tansy Steinhauer Age: 51 San Diego, CA
*(D19) Jessica Pomeroy Age: 30 San Diego, CA
*(D20) Shadow Segura Age: 23 Houston, TX
(D21) Jasmine Lucas Age: 50 San Diego, CA
(D22) Philip Abbas Age: 42 San Diego, CA
*(D23) Peter Fuller Age: 63 San Diego, CA
(D24) Eduardo Osuna Age: 41 San Diego, CA
(D25) Frank Carrillo Age: 45 San Diego, CA
(D26) Stephen Myrick Age: 45 San Diego, CA
(D27) Gloria Sandoval Age: 40 San Diego, CA
*(D28) Ashley Hilton Age: 42 Houston, TX
(D29) Joseph Occhiogrosso Age: 44 Brooklyn, NY
(D30) Gary Beasley Age: 39 San Diego, CA
*(D31) Arnulfo Rodriguez Age: 38 San Diego, CA
(D32) Alexandro Larios-Flores Age: 24 San Diego, CA
*(D33) Jose Vargas Age: 31 San Diego, CA
(D34) Michael Nagle Age: 50 San Diego, CA
*(D35) Raymond Sterling Age: 51 San Diego, CA
(D36) Terry Tyler Age: 49 San Diego, CA
(D37) Victor Yamasaki Age: 59 San Diego, CA
(D38) Chris Paschke Age: 57 San Diego, CA
(D39) Charles Gerardi Age: 57 Houston, TX
(D40) Christian Lopez-Villegas Age: 34 San Ysidro, CA
(D41) David Santa Maria Age: 49 San Diego, CA
(D42) Melvin Johnson Age: 44 San Diego, CA
(D43) Daniel Babuata Age: 34 San Diego, CA
*(D44) Garrett Steele Age: 40 San Diego, CA
(D45) Vien Trinh Age: 62 San Diego, CA
*(D46) Troy Prater Age: 46 San Diego, CA
*(D47) Sharon Landhan Age: 44 San Diego, CA
(D48) Gabriel Askay Age: 44 San Diego, CA
(D49) Patrick Lane Age: 57 San Diego, CA
(D50) Kevin Tobin Age: 65 San Diego, CA
(D51) James Ellerbe Age: 68 San Diego, CA
(D52) Hope Stoneking Age: 35 San Diego, CA
(D53) Tasha Almanza Age: 42 San Diego, CA
*(D54) Jason Ferguson Age: 48 San Diego, CA
(D55) Kelle Ferguson Age: 52 San Diego, CA
*(D56) Roger Desroche Age: 74 San Diego, CA
(D57) Steven Brandt Age: 57 San Diego, CA
(D58) Esteban Gastelum-Sanchez Age: 42 San Diego, CA
(D59) Tara Scroggins Age: 45 San Diego, CA
(D60) Debbie Hill Age: 59 San Diego, CA
*Fugitives
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))
Possession with Intent to Distribute Methamphetamine (21 U.S.C., § 841(a)(1))
Importation of Methamphetamine (21 U.S.C. §§ 952 and 960)
Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1)
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release. For the firearms charges, term of custody up to 10 years imprisonment, and a $250,000 fine.
AGENCIES
Drug Enforcement Administration, Narcotics Task Force
Internal Revenue Service - Criminal Investigation
United States Postal Inspection Service
San Diego County Sheriff’s Department
San Diego Police Department
Escondido Police Department
United States Border Patrol
San Diego County Probation Office
United States Marshals Service
Homeland Security Investigations
Bureau of Alcohol, Tobacco, Firearms & Explosives
Federal Bureau of Prisons
San Diego County District Attorney’s Office
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit
U.S. Attorney’s Office for the District of Massachusetts
U.S. Attorney’s Office for the Southern District of New York
U.S. Attorney’s Office for the Eastern District of Kentucky
U.S. Attorney’s Office for the Western District of Texas
U.S. Attorney’s Office for the Central District of California
U.S. Attorney’s Office for the District of Minnesota
U.S. Attorney’s Office for the Northern District of Iowa
U.S. Attorney’s Office for the Western District of Michigan
U.S. Attorney’s Office for the Eastern District of Michigan
Sioux City Man Sentenced to More than Five Years in Federal Prison for Unlawfully Possessing and Firing a GunRead the Press Release
A convicted felon who unlawfully possessed a firearm was sentenced June 22, 2021 to more than five years in federal prison.
Brandon Miller, age 35, from Sioux City, Iowa received the prison term after a February 16, 2021, guilty plea to a one count of possession of a firearm by a felon. Miller was previously convicted of robbery in Jefferson County, Colorado and forgery, eluding and assault with weapon on a peace office in Woodbury County, Iowa.
Evidence at Miller’s detention, change of plea, and sentencing hearings revealed Miller was with two groups of people who met at an apartment complex in Sioux City, and after a short time, several gunshot were exchanged between the two groups. A person in Miller’s group was struck twice by gunfire. Miller can be seen on a video returning fire towards the initial shooter as that person drove away.
Miller was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Miller was sentenced to 70 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Miller is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City, Iowa Police Department, and the U.S. Department of Justice – Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4069.
Follow us on Twitter @USAO_NDIA.
Second Former Deutsche Bank Commodities Trader Sentenced to Prison for Fraud SchemeRead the Press Release
A former commodities trader was sentenced Monday to 12 months and a day in prison for a scheme to commit wire fraud affecting a financial institution.
Cedric Chanu, 42, of France and the United Arab Emirates, was convicted by a federal jury on Sept. 25, 2020. Based on the evidence presented at trial, Chanu, who was employed as a precious metals trader at Deutsche Bank in Singapore and, later in London, engaged in a scheme to defraud other traders on the Commodity Exchange Inc., which was a public exchange. The defendant, together with James Vorley and other Deutsche Bank traders, defrauded other market participants through a deceptive trading practice known as “spoofing.” Specifically, Chanu placed fraudulent orders that he did not intend to execute in order to create the false appearance of supply and demand and to induce other traders to transact at prices, quantities, and times that they otherwise would not have traded. Vorley was sentenced on June 21, also to 12 months and a day in prison.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
The FBI’s New York Field Office investigated the case.
Deputy Chief Brian Young, Acting Principal Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section are prosecuting the case.
Santa Barbara Man Who Allegedly Ran $12 Million Ponzi Scheme Indicted on Federal Fraud and Money Laundering ChargesRead the Press Release
LOS ANGELES – A federal grand jury today returned an 11-count indictment that alleges a Santa Barbara man stole approximately $12 million from victims who were promised their money would be used to purchase annuities from Swiss insurance companies.
Darrell Arnold Aviss, 63, of Santa Barbara, was charged today with five counts of wire fraud and six counts of money laundering. Aviss was arrested June 18 pursuant to a criminal complaint, and he was subsequently ordered held without bond.
According to the indictment filed this afternoon in United States District Court, Aviss ran the scheme from at least 2012 through last summer, soliciting money from people who wanted to purchase annuities from insurance companies based in Switzerland. Aviss claimed the Swiss annuities he offered were safe and secure, and, in some instances, he allegedly told victims the annuities would pay interest rates ranging from 5 to 7 percent.
But, the indictment alleges, Aviss did not use the victims’ money to purchase annuities, even though he arranged for the victims to receive statements showing the purported value of the annuities, which the false documents showed were increasing over time.
Victims, most of whom were over the age of 60, gave Aviss more than $12 million, with most of that money coming from just one victim, according to court documents. Some money was paid back to victims to keep the scheme running.
Instead of purchasing annuities, Aviss allegedly used the victims’ money for his own purposes and to support his lavish lifestyle. Court documents indicate that he used the money for, among other things, Ponzi payments to victims, mortgage payments, luxury car leases, expensive watches, trips to Monaco, more than $100,000 in purchases at a Santa Barbara nightclub, and 20 tickets to a U2 concert and after-party.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Aviss is scheduled to be arraigned in this case on July 9.
The indictment charges Aviss with five counts of wire fraud, each of which carries a statutory maximum sentence of 20 years in federal prison; one count of concealment money laundering, which has a maximum sentence of 20 years; and five counts of laundering criminal proceeds in excess of $10,000, each of which carries a potential sentence of 10 years.
The FBI and IRS Criminal Investigation are conducting the investigation in this matter.
Assistant United States Attorney Monica E. Tait of the Major Frauds Section is prosecuting this case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed from 10 a.m. until 6 p.m. Eastern Time, Monday through Friday. In addition to English, Spanish and other languages are available to callers.
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.
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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.
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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.
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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.
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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.
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