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Thursday 13 May 2021
Essex County Man Admits Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to steal check books and credit cards from the postal system, Acting U.S. Attorney Rachael A. Honig announced.
Tashon Ragan, 21, of Hillside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Ragan conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at victim financial institutions and withdrawing funds from those accounts before the fraudulent checks were identified and further withdrawals were blocked. Ragan and his conspirators arranged for USPS employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Ragan and his conspirators. Ragan and his conspirators forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students and who had given Ragan and his conspirators access to their accounts, also in exchange for cash. It was also part of the conspiracy that Ragan and his conspirators created counterfeit checks, including counterfeit pandemic relief checks. Ragan and his conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and blocked further withdrawals. Ragan and his conspirators obtained and attempted to obtain approximately $280,000 from victim financial institutions.
The conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Sept. 20, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Essex County Man Admits Conspiring to Defraud Banks of over $250,000 Using Credit Cards snd Blank Checks Stolen from Postal SystemRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted to conspiring to defraud two banks of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Qshaun Brown-Guinyard, 27, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From August 2018 through January 2020, Brown-Guinyard and his conspirators engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey. Because the cards were stolen, they never reached the intended cardholders. After obtaining the stolen cards, Brown-Guinyard and his conspirators used them to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere.
The blank checks were also stolen from various New Jersey-based post office facilities, and never reached their intended recipients. Once obtained, Brown-Guinyard and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit. He and his conspirators would then fraudulently withdraw money at various ATMs from the third-party account holders’ accounts.
Four of Brown-Guinyard’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, and Allen Varice – pleaded guilty over the past two months to identical informations, and they are due to be sentenced in July and August 2021.
The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1,000,000. Sentencing is scheduled for Sept. 15, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Des Moines Man Pleads Guilty to Sex Trafficking Several VictimsRead the Press Release
DES MOINES, Iowa – Marlin Santana Thomas, age 45, of Des Moines pleaded guilty yesterday in federal court to sex trafficking six victims by force, fraud, and coercion announced Acting United States Attorney Richard D. Westphal. Thomas is scheduled to be sentenced on September 10, 2021, before United States District Court Chief Judge John A. Jarvey.
Thomas pleaded guilty to sex trafficking six adult victims and admitted to trafficking a 14 year-old victim. Thomas admitted in his plea agreement to trafficking victims beginning in 2009, and as recently as February 28, 2018, when he was arrested as part of a separate federal drug investigation, for which he is currently serving a term of federal imprisonment. Thomas admitted to posting online escort advertisements of victims, transporting them to hotels and motels within and outside of Iowa to engage in commercial sex acts, and taking proceeds of the commercial sex acts. Thomas admitted to using physical violence towards all six adult victims, and admitted to providing heroin to one victim to keep her engaging in sex acts. Thomas also admitted in his plea agreement to arranging for a 14-year-old to engage in commercial sex acts, knowing that she was not yet 18 years old.
Thomas is subject to a fifteen-year mandatory minimum prison term for each count of sex trafficking by force, fraud, or coercion, up to life imprisonment. The terms of imprisonment may be imposed consecutive to or concurrent with one another.
Human trafficking is a crime involving the exploitation of youth under the age of 18 for commercial sex; the exploitation of adults for commercial sex through the use of force, fraud, or coercion; and the exploitation of any individual for compelled labor. Human trafficking does not require the transportation of individuals across state lines, or that someone is physically restrained. Signs that a person is being trafficked can include working excessively long hours, unexplained gifts, physical injury, substance abuse issues, running away from home, isolation from others, or having a person in their life controlling them or monitoring them closely. Victims particularly susceptible to being trafficked include those with criminal histories, a history of physical or sexual abuse, uncertain legal status, and dependency on controlled substances. Individuals who purchase sex from minors or from those who are otherwise exploited for commercial sex are also subject to prosecution for sex trafficking under federal law, if they knew or were in reckless disregard of the fact that they were under the age of 18, or that force, fraud, or coercion was used.
Anyone who suspects human trafficking is occurring, be it a minor engaging in paid sex acts, or anyone being coerced into prostitution or labor, is urged to call the National Human Trafficking Hotline at 1-888-373-7888. If anyone has information about this defendant, they are urged to call the Des Moines Police Department Vice/Narcotics Office at 515-237-1516, or call the Hotline.
This case was investigated by the Des Moines Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Coeur d’Alene Tribal Member Sentenced to Federal Prison for Assaulting His Girlfriend on the Colville Indian ReservationRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Silas James Enick, age 31, an enrolled member of the Coeur d’Alene Tribe, was sentenced today after pleading guilty on February 10, 2021, to Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. United States District Judge Thomas O. Rice sentenced Enick to a time-served sentence of 376 days imprisonment, to be followed by a 3-year term of court supervision.
According to information disclosed during court proceedings, this case arose in February 2020 when Enick struck his girlfriend’s face at their residence on the Colville Indian Reservation. Enick’s girlfriend, an enrolled member of the Confederated Tribes of the Colville Reservation, suffered a broken jaw requiring her to undergo surgery and have her jaw wired shut for almost two months.
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington works closely with federal, state, local, and tribal law enforcement agencies to ensure that Native American women and families are protected from violence such as this.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and the Colville Tribal Police Department. This case was prosecuted by Michael L. Vander Giessen, Special Assistant United States Attorney for the Eastern District of Washington.
Cocaine Trafficker Sentenced to More Than 7 Years in Federal PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that OMRYS DELGADO, 33, of Windsor, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 87 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service into Delgado and others, who were receiving shipments of cocaine from Puerto Rico and California, and distributing the drug in and around Hartford. The investigation revealed that a U.S. Postal Service letter carrier was facilitating the shipment of parcels containing kilograms of cocaine through the USPS to addresses that were on his delivery route in Hartford. The letter carrier distributed cocaine to his own drug customers, and also delivered parcels to Delgado and other cocaine traffickers in the Hartford area.
Delgado was arrested on May 21, 2019. On June 4, 2019, a grand jury in Hartford returned an indictment Delgado and 18 co-defendants with conspiracy to distribute cocaine and related offenses. On January 12, 2021, Delgado pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
Delgado, who is released on a $100,000 bond, is required to report to prison on August 18, 2021.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Cleveland man found guilty of being a felon in possession of a firearmRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on Wednesday, May 12, a federal jury found Ronald Sharp, 42, of Cleveland, Ohio, guilty of being a felon in possession of a firearm.
According to court records, in 2006, Sharp was convicted of gross sexual imposition and kidnapping with a sexually motivated specification in the Cuyahoga County Common Pleas Court. Following his release from prison in 2015, Sharp was placed on post-release supervision with the Ohio Adult Parole Authority (APA) and was prohibited from possessing a firearm.
As part of his release from prison, Sharp agreed to certain parole conditions, including being subject to warrantless searches and obeying federal, state and local laws and ordinances. On September 25, 2019, the supervising parole officer for Sharp became aware that Sharp may have been in violation of the terms of his release. Sharp was then taken into custody, and his residence searched. During the search, parole officers found a loaded, 9mm semi-automatic pistol under a bedroom pillow. In addition, officers located a set of camouflaged body armor inside the bedroom closet.
Sharp was then transported to the Cuyahoga County jail on an active hold order for parole violations. DNA samples from the firearm were later matched to DNA taken from Sharp.
Sharp is scheduled to be sentenced on September 1, 2021. This case was investigated by the ATF and APA. This case was prosecuted by Assistant United States Attorneys Margaret Kane and Andrea Isabella.
California man arraigned for his role in a phone trade-in schemeRead the Press Release
ATLANTA - David Shemtov has been arraigned after being charged with eight counts of wire fraud for his role in a scheme to fraudulently inflate the reimbursement value of more than 1,400 electronic devices that he submitted for trade-in.
“The ability to trade in electronic devices for cash value or gift cards allows users to recover some value for devices they no longer need,” said Acting U.S. Attorney Kurt R. Erskine. “Shemtov allegedly found a way to exploit this process to recover many times the value of the actual devices he traded in.”
“This alleged fraud scheme not only hurt the victim company, but potentially hurt consumers,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The courts will now decide Shemtov’s fate for allegedly choosing his own self-interest and greed over legitimate business transactions.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: From approximately October 2019 through January 2020, Shemtov allegedly participated in a scheme to submit more than 1,400 fraudulent electronic device trade-in requests online. On Internet trade-in request forms, the trade-in requests purported to have newer, higher-valued devices, typically an iPhone XS Max, to trade in. The trade-in requests provided multiple different post office box locations as the addresses where the shipping boxes should be sent and used more than a dozen fictitious names. In reality, Shemtov never intended to trade in the higher-valued devices identified in the trade-in requests. Instead, substantially less valuable devices–typically iPhone 6s and 7s–were sent in.
The device trade-in process was handled by a third-party provider (the victim company) that oversaw the mailing and receipt of the devices, and the reimbursement payments, typically in the form of Apple gift cards. The victim company paid substantially more than the true value for the devices sent in as part of the scheme. For instance, more than 900 of the trade-in requests claimed to have iPhone XS Max with 64 gigabyte capacity, for a value of $545, but the devices mailed in were various versions of iPhone 6’s, with a trade-in value of $30.
After the victim company detected the scheme, from about March 2020 through December 2020, Shemtov submitted more than 1,000 additional trade-in requests using more than 100 fictious names. The victim company flagged these requests and did not complete the trades.
David Shemtov, 28, of Los Angeles, California, was arraigned before U.S. Magistrate Judge Christopher C. Bly. Shemtov was indicted by a federal grand jury on April 6, 2021. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Alison B. Prout is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Browning man admits kidnapping, strangling womanRead the Press Release
GREAT FALLS – A Browning man accused of kidnapping a woman and strangling her in two separate assaults in 2020 on the Blackfeet Indian Reservation admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Nash Devine Angel Ingraham, 19, pleaded guilty to kidnapping and to strangulation of a dating partner. Ingraham faces a maximum of life in prison, a $250,000 fine and five years of supervised release. A plea agreement in the case calls for a term of between 135 months to 168 months of imprisonment and five years of supervised release to be imposed if the federal district court judge accepts the agreement at sentencing. The judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Chief U.S. District Judge Brian M. Morris presided. Sentencing was set for Aug. 26, and Ingraham was detained pending further proceedings.
In court documents, the government alleged that on Feb. 10, 2020, the victim, identified as Jane Doe, met up with Ingraham in Browning, on the Blackfeet Indian Reservation. Doe left Ingraham’s house and went to a friend’s place to sleep. Ingraham arrived at the friend’s house the next morning, jerked the victim out of bed, forced her out of the house and then force-marched her across Browning, assaulting her along the way. Ingraham took Doe to his house where he continued to assault her. Law enforcement officers went to Ingraham’s house multiple times looking for Doe, but the family refused to open the door. Officers responded to the house a third time, and Doe exited the house. Officers observed injuries on Doe.
The government further alleged that Ingraham strangled Doe to near unconsciousness on Dec. 17, 2020 during an assault at a Browning residence, where he had held her for about four days. Doe went to a hospital in Browning and reported the assault.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Brothers Who Ran Farming Operation Together Sentenced to Federal Prison for Tax EvasionRead the Press Release
Two brothers who ran a farming operation together while also farming their own land were sentenced today to federal prison for evading taxes.
Scott Stecher, age 61, and Doug Stecher, age 58, from Clarion, Iowa, received the prison terms after each pled guilty to tax evasion on December 9, 2020.
At the guilty pleas, each brother admitted that each took steps to hide income from the Internal Revenue Service (IRS) to evade paying income taxes. Information from their plea agreements and from their sentencing hearings showed that, for tax years 2011 through 2013, each brother diverted income from their farming operations into bank accounts that their accountant did not know about. The accountant then prepared tax returns for each brother, which they then signed knowing that the tax returns were false because the returns did not report each brother’s full income. During those three tax years, Doug Stecher hid $718,995 of income from the IRS and paid $240,053 less in income tax than he should have paid. Scott Stecher hid $448,059 of income from the IRS and paid $183,785 less in income tax as a result.
The Stechers were sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Each was sentenced to one month of imprisonment and fined $30,000. They must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
“Our federal income tax system requires taxpayers to be honest,” said Acting United States Attorney Sean R. Berry. “These sentences show that hiding income from the IRS to avoid paying taxes is a crime with significant consequences. In this case those consequences include federal prison.”
“Today’s sentencings of Scott Stecher and Doug Stecher show that enforcement of our tax laws is vital to maintaining a fair and honest system,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “There are consequences for individuals who intentionally conceal income and evade taxes that includes going to jail and paying back all the taxes owed plus steep penalties and interest.”
Both Scott and Doug Stecher were released on the bond previously set and are to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service Criminal Investigation Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-3049 and 20-CR-3050.
Follow us on Twitter @USAO_NDIA.
Boston Police Officer to Plead Guilty to Overtime FraudRead the Press Release
BOSTON – A Boston Police officer has agreed to plead guilty in connection with committing over $16,000 in overtime fraud while assigned to the Boston Police Department’s evidence warehouse.
Michael Murphy, 61, of Hyde Park, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.
In September 2020, Murphy and eight other Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019.
Between September 2016 and February 2019, Murphy submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4-8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Murphy claimed to have worked from 4-8 p.m., but he routinely left at 6:00 p.m., or before. For the kiosk shift, Murphy submitted overtime slips claiming to have worked eight-and-one-half hours, but he only worked three-to-four hours of those shifts.
From 2016 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
As part of the ongoing investigation, two additional officers from the evidence warehouse have recently been charged. Former Boston Police Captain Richard Evans was indicted in April 2021, and former Sergeant George Finch was charged today and has agreed to plead guilty.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced to 12 Years in Prison for Child Pornography ChargesRead the Press Release
BOSTON – A Boston man was sentenced today in connection with surreptitiously filming boys in the restrooms at Boston Latin School (BLS).
Eric Tran Thai, 39, was sentenced by U.S. District Judge William G. Young to 12 years in prison and five years of supervised release. On Jan. 12, 2021, Thai pleaded guilty to two counts of possession of child pornography.
On Feb. 6 and Feb. 27, 2018, two separate Boston College students reported to the police that they had been videotaped without their knowledge or consent while were using the men’s restrooms on the Boston College campus. Following the Feb. 27, 2018, report, police located and spoke with Thai on campus. Thai was placed under arrest on state charges related to his surreptitious recording of the students and his bag was subsequently searched; in it, police found several covert camera devices, including faux smoke detectors, a water bottle containing a small cube recording device and a pair of sunglasses outfitted with a built-in camera. The state charges related to those offenses are currently pending in Middlesex County Superior Court.
Following Thai’s arrest, a search of his home was executed where dozens of devices including computer hard drives, thumb drives, covert and regular cameras, computers, iPads, cell phones and multiple SD and Sim cards were recovered. Investigators found several electronic folders labeled BU, MIT, Harvard, Northeastern, Bunker Hill, Boston Latin High School, and several different malls, airports and foreign country locations. Thai was charged federally for the child pornography located in the Boston Latin folders, which contained approximately 45 surreptitiously-recorded videos of male students in various states of dress using the urinals and stalls in the boys’ bathroom. The videos appear to have been created on approximately 10 separate dates between February and December 2017, all after school hours.
In general, the videos show Thai sitting in a bathroom stall at Boston Latin High School recording individuals in adjacent stalls or at the urinals through various secret recording methods. In some videos, Thai holds a camera over the top of the partition between the bathroom stalls and videotaping from overhead. In other instances, he hides a small camera inside his backpack, places the backpack on the bathroom floor and videotapes individuals in the adjacent bathroom stall from under the stall’s partition. While recording, Thai simultaneously viewed what the camera was recording on a cellphone or a tablet device in his possession.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Middlesex District Attorney Marian T. Ryan; Boston Police Acting Commissioner Gregory Long; and Boston College Police Chief William B. Evans made the announcement. Assistant U.S. Attorney Anne Paruti, Mendell’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Boston Man Pleads Guilty to Being a Felon in Possession of FirearmRead the Press Release
BOSTON – A Boston man pleaded guilty today in federal court in Boston to being a felon in possession of a firearm and ammunition.
Elvis R. Abinader, 21, pleaded guilty to one count of being a felon in possession of a firearm and ammunition before U.S. Senior District Court Judge Mark L. Wolf who scheduled sentencing for Aug. 5, 2021. Abinader was indicted in October 2019.
Abinader possessed a Ruger .380 caliber pistol with an obliterated serial number and three rounds of ammunition on June 24, 2019, at the Mt. Pleasant Play Area, a playground in Boston. Federal law prohibits Abinader from possessing a firearm or ammunition due to a prior felony conviction for a narcotics distribution offense.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Suffolk County District Attorney Rachael Rollins; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney James R. Drabick of Mendell’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
Bluefield Doctor Sentenced to Federal Prison on Misbranding ChargeRead the Press Release
ABINGDON, Va. – A family medicine physician in Bluefield, Virginia, was sentenced yesterday to one month in prison on a charge of misbranding Schedule II controlled substances to three individuals, two of whom his office staff called “back door patients.”
According to court documents, between December 2014 and January 2016, Phillip Peterson, 64, was a family medicine physician at Bluefield Family Medicine in Bluefield, Va. During this time, Peterson saw several patients who did not check in with the receptionist but rather entered through a side door. Office staff called these patients “back door patients.” These patients came through the side door to pick-up Schedule II controlled substances prescriptions, which they had received from Peterson. These “back door patients” were not actually examined by Dr. Peterson each time they picked-up prescriptions and did not pay for office visits. Evidence showed that each of the prescriptions listed for the “back door patients” was issued outside the usual course of professional practice.
Dr. Peterson also had one patient who brought lists of prescriptions to the front desk of Bluefield Family Medicine for the receptionist to give to Dr. Peterson or his nurse. Dr. Peterson authorized those prescriptions, including prescriptions for Schedule II controlled substances, on occasion without the patient actually being seen or evaluated by Dr. Peterson. Evidence showed these prescriptions were issued outside the usual course of professional practice.
Acting U.S. Attorney Daniel P. Bubar and Special Agent in Charge Jared Forget of the Drug Enforcement Administration made the announcement.
The investigation of the case was conducted by Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorneys Lena L. Busscher, Whit D. Pierce and Randy Ramseyer prosecuted the case for the United States.
Bank Robber Sentenced to Federal PrisonRead the Press Release
Memphis, TN – Charo Stone, 43, has been sentenced to 46 months in federal prison for bank robbery. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on July 10, 2019, a man entered the First South Financial Credit Union on Winchester Road, wearing a white polo shirt and carrying a blue folder. He then approached a teller's window with a note that read "Gun, No Dye Pack, All 50s and 100s." The teller complied and provided $8,150 in cash. The suspect placed the money in the blue folder and fled the scene.
The robber was described on video surveillance as a black male, medium build, 5’5’’ with facial hair and a goatee and mustache combination. Photographs from the robbery were shown by media outlets.
On July 11, 2019, a crime stoppers tip identified Charo Stone. The teller identified Stone as the robber in a 6-person lineup. Stone confessed to committing the robbery to law enforcement.
The Memphis Police Department and the FBI’s Safe Streets Task Force investigated this case.
On May 11, 2021, U.S. District Judge Mark S. Norris sentenced Stone to 46 months in federal prison to be followed by three years supervised release. There is no parole in the federal system.
Assistant U.S. Attorneys Will Crow and Raney Irwin prosecuted this case on behalf of the government.
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Bakersfield Man Indicted for Distributing FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Marcus Randall, 37, of Bakersfield, charging him with distribution of fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 16, 2020, Randall sold fentanyl pills to a victim who later ingested the pills, resulting in her overdose death.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the United States Secret Service, the Bakersfield Police Department, Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.
If convicted, Randall faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Armed Carjacker Sentenced to over 20 Years as a Career OffenderRead the Press Release
Memphis, TN – Cody Davis, 29, has been sentenced to 262 months in federal prison for carjacking and brandishing a firearm. Acting U.S. Attorney, Joseph C. Murphy, Jr., announced the sentence today.
According to the information presented in court, at approximately 4:00 a.m. on December 21, 2018, the victim, J.G., was asleep in his vehicle in the parking lot of a business on White Station Road, when the suspect approached him and pointed a gun. The suspect took the victim's cell phone, ordered him out of the car, told him to walk around the corner, and then drove off with the victim’s Audi A4. The armed robbery was captured on surveillance video.
The Audi A4 was recovered several days later. In the vehicle was a cell phone that did not belong to the victim. Fingerprints on the cell phone belonged to Davis.
On January 4, 2019, detectives conducted surveillance at the defendant’s residence. While there, detectives observed Davis depart the residence and enter a vehicle. Davis disregarded several traffic signals and was stopped by law enforcement. Detectives recovered a tan Century Arms 9mm pistol under the driver's seat, loaded with 19 rounds of ammunition.
The defendant later waived his Miranda rights and admitted to being a convicted felon, committing the carjacking, and possessing the firearm found in his vehicle.
Further investigation from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that the Century Arms 9mm caliber pistol and the Audi A4 were manufactured outside the State of Tennessee.
As a result of his prior felony convictions, including robbery and aggravated burglary, Davis is prohibited by federal law from possession of firearms or ammunition. Further, Davis' prior convictions qualified his status as a Career Offender.
Davis pled guilty on August 19, 2020.
On May 12, 2021, U.S. District Court Judge Mark S. Norris sentenced Davis to 262 months in federal prison to be followed by three years’ supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department – Violent Crimes Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Acting U.S. Attorney recognizes police week, honors law enforcement who sacrificed their lives in the line of duty in 2020Read the Press Release
DAYTON – In honor of National Police Week, Acting U.S. Attorney Vipal J. Patel recognizes the service and sacrifice of federal, state, and local law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“We join the nation in honoring the selfless men and women who sacrificed their lives or were injured in the line of duty. To them, we owe our deepest gratitude and respect,” said Acting U.S. Attorney Patel.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year, the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60% succumbed to COVID-19.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
“Today, with heavy hearts, we join the nation and our law enforcement partners as we pay tribute to fallen heroes whose names will be read during a virtual candlelight vigil – including Kaia Grant and Adam McMillen of the Southern District of Ohio – who were killed in the line of duty in 2020. And we continue to honor Dayton detective and DEA task force officer Jorge Del Rio, who was killed in the line of duty in 2019,” Patel said.
Those who wish to view the Virtual Candlelight Vigil today, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
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Acting U.S. Attorney Erskine recognizes Police WeekRead the Press Release
ATLANTA – In honor of National Police Week, Acting U.S. Attorney Kurt R. Erskine recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Each day, law enforcement officers work hard to keep our citizens safe, and we want to take this opportunity to honor their service during National Police Week,” said Acting U.S. Attorney Kurt R. Erskine. “We also want to recognize the brave men and women in law enforcement who have been injured or lost their lives to protect our communities. My office is extremely grateful for the continued commitment and sacrifices they make for our communities.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Here in the Northern District of Georgia, seven officers died in the line of duty.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Accountant admits to providing false information to IRSRead the Press Release
CINCINNATI, OHIO – Ronald R. Geesner, 66, of Cincinnati, Ohio pleaded guilty in U.S. District Court to providing a false statement to the Internal Revenue Service (IRS).
According to court documents, since March 2017 Geesner has served as the in-house accountant/bookkeeper at two Cincinnati businesses. When questioned about his role as the internal accountant/bookkeeper of the businesses, Geesner lied to IRS agents to conceal his true earnings. As a result of his concealment the Social Security Administration (SSA) had paid Geesner $31,525 in SSA benefits to which he was not entitled.
False Statement or Representation to an Agency of the United States carries a maximum penalty of 5 years in prison and a $250,000 fine.
“When bookkeepers and accountants are interacting with the IRS, it is important for them to provide accurate and honest information,” said Lisa B. Mendelsohn, Acting Assistant Special Agent in Charge, IRS Criminal Investigation. “Those who provide false information will be held accountable.”
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio and Lisa B. Mendelsohn, Acting Assistant Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the plea entered before Senior U.S. District Judge Michael R. Barrett.
This case is being prosecuted by Assistant United States Attorney Ebunoluwa A. Taiwo and was investigated by special agents of IRS-Criminal Investigation and the Office of Inspector General, Social Security Administration.
Wednesday 12 May 2021
Virginia Man Sentenced for Defrauding Export-Import Bank of $1.6 MillionRead the Press Release
RICHMOND, Va. – A Glen Allen man was sentenced today to 34 months in prison for defrauding both a Pennsylvania-based bank and the Export-Import Bank of the United States in connection with a $1.6 million loan.
“For over two years, the defendant deliberately deceived financial institutions to fraudulently obtain a $1.6 million government-backed loan,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, those who defraud American taxpayers and seek to undermine the integrity of our financial system will be held accountable for their criminal conduct.”
According to court documents, Tae Il Lee, 41, was the Managing Director of New World Group, a Richmond-based company engaged in the business of exporting American snacks and other food stuffs to international buyers (typically South Korean companies). In April 2016, Lee sought what eventually became a $1.6 million loan from First National Bank of Pennsylvania, relying on the “Working Capital Program” offered by the Export-Import Bank of the United States (EXIM Bank). Under the program, EXIM guaranteed to provide financial backing for the loan in the event that New World Group defaulted.
Over the next two years, Lee regularly provided First National Bank, and the bank’s auditing firm, with financial documents that purported to show New World Group’s accounts receivable, banking statements, and financial statements. These documents reflected that New World Group was a growing, thriving export company, grossing more than $6 million in export sales in 2017 and another $6.3 million in just the first few months of 2018.
Those financial documents, however, were false. Specifically, Lee had created fictitious accounts receivable and financial statements, and doctored New World Group’s actual bank statements to show non-existent, high-dollar transactions that never took place. During the course of his fraud scheme, Lee also created a fictitious intermediary—a purported employee of New World Group—in order to account for delays in Lee’s communications with First National Bank.
In the spring of 2018, First National Bank issued a demand letter for the $1.6 million loan to New World Group. New World Group never completed any payments to First National Bank, which requested that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee pleaded guilty to committing wire fraud and making false statements to a federally insured bank.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer Fain, Acting Inspector General for the Export-Import Bank of the United States, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke prosecuted the case.
This matter was investigated by the EXIM Office of Inspector General (OIG). EXIM is the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to EXIM programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
A copy of this press release is located on the website of the for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-2.
United States Attorney's Office Recognizes National Police WeekRead the Press Release
May 9-15 is National Police Week
May 15 is National Peace Officers Memorial DayTALLAHASSEE, FLORIDA - In honor of National Police Week, Acting U.S. Attorney Jason R. Coody recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Every day our brave law enforcement officers face dangerous and difficult situations without reservation or expectation of thanks,” stated Acting U.S. Attorney Coody. “These courageous individuals serve, not for fame or fortune, but act selflessly to protect their fellow citizens and keep our communities safe. It is fitting and proper to express our unwavering support and appreciation to our law enforcement officers and their families, while remembering those among their ranks who have made the ultimate sacrifice in service of our nation.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19.
Two officers from the Northern District of Florida were added this year:
- Detention Deputy Charles Otis Pugh, II, Santa Rosa County, Sheriff’s Office, contracting COVID-19 following a confirmed exposure in the Santa Rosa County Jail.
- Captain William Thomas Etheridge, Pensacola, FL, Pensacola Police Department, died in December of 1908 after being injured while patrolling on his horse.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Union County Man Admits Role in Cocaine Trafficking and Money Laundering ConspiracyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a cocaine trafficking and money laundering conspiracy, Acting U.S. Attorney Rachael A. Honig announced.
Jose A. Rivera Jr., 48, of Union Township, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to possess with intent to distribute cocaine and one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
Rivera is a leader of a drug-trafficking and money laundering organization. Law enforcement officers learned that Rivera utilized various locations to conduct narcotics trafficking and money laundering on behalf of the organization, including his residence and a stash location in Union.
On Nov. 6, 2020, law enforcement officers conducted lawful searches of the residence and the stash location and recovered over $1 million in cash, financial paperwork and notations related to narcotics proceeds and transactions. On Nov. 7, 2020, law enforcement officers conducted a lawful search of Rivera’s vehicle and recovered 191 grams of cocaine in a hidden compartment within the glove box of the vehicle.
The charge of conspiracy to possess with intent to distribute cocaine carries a maximum penalty of 20 years in prison and a statutory maximum fine of $1 million, or twice the amount involved in the offense. The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Sept. 29, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration under the direction of Special Agent in Charge Raymond Donovan in New York; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to today’s guilty plea.
The prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The New York Strike Force is a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the NYPD; the New York State Police; HSI; IRS-CI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.
The government is represented by Assistant U.S. Attorneys Lauren E. Repole of the Economic Crime Unit and Alexandra Tsakopoulos Saker of the OCDETF/Narcotics Unit in Newark.
U.S. District Court Appoints Neil Barofsky to be the Independent Monitor over the United Auto Workers UnionRead the Press Release
DETROIT– Acting United States Attorney Saima S. Mohsin announced that U.S. District Judge David Lawson has issued an order today appointing Neil Barofsky to be the Independent Monitor over the United Auto Workers Union (UAW) pursuant to the terms of the Consent Decree entered by the Court.
U.S. District Judge Lawson has previously entered a Consent Decree following the filing by the United States of an anti-corruption and anti-fraud civil lawsuit against the UAW in federal district court seeking equitable relief to bring about reform and oversight of the union. Under the Consent Decree, the United States proposed attorney Neil Barofsky to act as the Independent Monitor providing oversight of the UAW for a period of six years. The Monitor has the power to oversee the operations of the UAW, to investigate possible fraud or corruption within the union, and to impose discipline on UAW officers and members before an Independent Adjudications Officer also appointed by the Court. The Monitor will oversee, in conjunction with the Department of Labor, a binding and secret-ballot referendum of the UAW’s membership to determine whether to change the UAW’s election method from the current delegate system to a direct election model, also known as “one member, one vote,” where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board. The referendum will take place within six months of today.
Neil Barofsky is a partner at the law firm of Jenner & Block, where he leads the firm’s monitorship practice. Mr. Barofsky was a federal prosecutor for thirteen years in the Southern District of New York. Mr. Barofsky was also appointed and served as the Special Inspector General for the Troubled Asset Relief Program, an anti-fraud investigative agency that Mr. Barofsky built from scratch. In addition, Mr. Barofsky has previously served as the Independent Monitor of Credit Suisse Securities LLC and Credit Suisse AG, following billion dollar settlements. Mr. Barofsky’s team includes Jenner & Block partner Reid J. Schar, who previously served as a federal prosecutor in Chicago, where he prosecuted former Illinois Governor Rod Blagojevich. Mr. Barofsky will also be assisted by Glen McGorty, a partner in the law firm of Crowell & Moring and a former federal prosecutor. Mr. McGorty has served as the Independent Monitor overseeing the New York City District Council of Carpenters labor union, which included oversight of direct union elections.
“The men and women of the UAW deserve honest and faithful leaders dedicated to serving the best interests of the membership,” said Acting U.S. Attorney Mohsin. “We believe that oversight by an Independent Monitor will help to ensure that the rights and interests of the UAW’s membership are protected. I am confident that Neil Barofsky will provide tough but fair oversight of the UAW.”
Two Individuals Charged for their Roles in Massive Cattle Ponzi SchemeRead the Press Release
A federal grand jury in Colorado returned an indictment that was unsealed Tuesday charging an Illinois woman and a Georgia man with running a Ponzi scheme that raised approximately $650 million from investors across the country.
According to court documents, Reva Joyce Stachniw, 69, of Galesburg, Illinois, and Ron Throgmartin, 57, of Buford, Georgia, were charged with running a Ponzi scheme, along with a third co-conspirator, Mark Ray, from late 2017 until early 2019. Ray was previously charged by criminal information for his role in the Ponzi scheme in the Central District of Illinois in February 2020.
According to the indictment, Stachniw, Throgmartin, and other co-conspirators solicited hundreds of millions of dollars from victim-investors throughout the United States. Most often, the conspirators fraudulently represented to victim-investors that their investments were backed by short-term investments in cattle. They also used false and fraudulent pretenses to solicit money from victim-investors for the conspirators’ Colorado-based marijuana business, Universal Herbs LLC. Other victim-investors gave the conspirators money based on false promises that investment money would be used for legitimate business activity related to cattle or marijuana, without having the investment money linked to specific investment opportunities.
In all three variations of the conspirators’ investment fraud scheme, victim-investors were promised returns of approximately 10% to 20% over periods as short as several weeks. At no point did Stachniw, Throgmartin, or Ray tell victim-investors that they were primarily using their money to repay other investors in a Ponzi-style investment scheme, or to enrich themselves. Stachniw and Throgmartin allegedly received millions of dollars from the scheme, despite putting little to none of their own money into it.
Stachniw and Throgmartin are each charged with one count of conspiracy to commit wire fraud and bank fraud, five counts of wire fraud, and one count of conspiracy to engage in money transactions in property derived from specified unlawful activity. Stachniw and Throgmartin made their initial court appearance Tuesday before U.S. Magistrate Judge N. Reid Neureiter of the U.S. District Court for the District of Colorado. If convicted, Stachniw and Throgmartin face a maximum penalty of 30 years in prison and a $1 million fine for conspiracy to commit wire fraud and bank fraud, 20 years in prison and a $250,000 fine for wire fraud, and 10 years in prison and a $250,000 fine for conspiracy to engage in money transactions in property derived from specified unlawful activity. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Chicago Regional Office; and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
The FDIC-OIG and the FBI are investigating the case.
Trial Attorney Michael P. McCarthy of the Justice Department’s Fraud Section 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.
Two Indicted for $2 Million Scheme that Defrauded over 20 InvestorsRead the Press Release
An indictment charging a District of Columbia man and Connecticut woman with perpetrating an advance fee and investment fraud scheme that defrauded more than 20 victims of more than $2 million was unsealed today in the District of Columbia.
According to court documents, Paul Maucha, 56, of Washington, D.C., and Melisa Shapiro, 63, of Bridgeport, Connecticut, conspired to engage in a scheme through a shell company they controlled, American Eagle Services Group (AESG), to make numerous misrepresentations about AESG, its assets and its access to money and capital.
As alleged in the indictment, Maucha and Shapiro enriched themselves by falsely promising to provide victims with financing, surety bonds and investing opportunities through AESG and AESG related entities in exchange for advance fees. Maucha and Shapiro falsely claimed that AESG could make multimillion-dollar loans to victims and would convince the victims to pay a refundable “commitment fee” or “due diligence deposit” before the loans would be made. Because Maucha and Shapiro themselves spent the fees paid by the victims, they did not have the funds to issue refunds when they failed to fund the promised loans.
In addition, Maucha and Shapiro induced victims to give AESG money for placement in a high-yield investment program and then misappropriated large portions of the victims’ investments. Maucha and Shapiro also borrowed funds from at least one victim based on false representations about how the funds would be used and AESG’s ability to repay. Maucha and Shapiro concealed their scheme by lulling victims with false assurances about their promised financial services, AESG’s access to capital, and AESG’s ability to provide refunds.
Maucha and Shapiro are each charged with one count of conspiracy to commit wire fraud, three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property. If convicted, Maucha and Shapiro each face a maximum penalty of up to 20 years in prison for the conspiracy and wire fraud counts and up to 10 years for each count of engaging in monetary transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips for the District of Columbia; and Special Agent in Charge J. Chris Hacker of the FBI’s Atlanta Field Office made the announcement.
The FBI is investigating the case.
Assistant Chief William E. Johnston and Trial Attorney Kyle W. Maurer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia are 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.
Two Indicted for $2 Million Scheme That Defrauded over 20 InvestorsRead the Press Release
WASHINGTON – An indictment charging a District of Columbia man and Connecticut woman with perpetrating an advance fee and investment fraud scheme that defrauded more than 20 victims of more than $2 million was unsealed today in the District of Columbia.
According to court documents, Paul Maucha, 56, of Washington, D.C., and Melisa Shapiro, 63, of Bridgeport, Connecticut, conspired to engage in a scheme through a shell company they controlled, American Eagle Services Group (AESG), to make numerous misrepresentations about AESG, its assets, and its access to money and capital.
As alleged in the indictment, Maucha and Shapiro enriched themselves by falsely promising to provide victims with financing, surety bonds, and investing opportunities through AESG and AESG related entities in exchange for advance fees. Maucha and Shapiro falsely claimed that AESG could make multimillion-dollar loans to victims and would convince the victims to pay a refundable “commitment fee” or “due diligence deposit” before the loans would be made. Because Maucha and Shapiro themselves spent the fees paid by the victims, they did not have the funds to issue refunds when they failed to fund the promised loans.
In addition, Maucha and Shapiro induced victims to give AESG money for placement in a high-yield investment program and then misappropriated large portions of the victims’ investments. Maucha and Shapiro also borrowed funds from at least one victim based on false representations about how the funds would be used and AESG’s ability to repay. Maucha and Shapiro concealed their scheme by lulling victims with false assurances about their promised financial services, AESG’s access to capital, and AESG’s ability to provide refunds.
Maucha and Shapiro are each charged with one count of conspiracy to commit wire fraud, three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property. If convicted, Maucha and Shapiro each face a maximum penalty of up to 20 years in prison for the conspiracy and wire fraud counts and up to 10 years for each count of engaging in monetary transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips for the District of Columbia; and Special Agent in Charge J. Chris Hacker of the FBI’s Atlanta Field Office made the announcement.
Three Gang Members Arrested on Complaint Alleging Armed Robbery and Shooting at Beverly Hills RestaurantRead the Press Release
LOS ANGELES – Three members of the Rollin’ 30s Crips street gang have been arrested on a federal criminal complaint alleging they committed an armed robbery at a Beverly Hills restaurant’s crowded outdoor dining area on March 4 in which one restaurant patron was held at gunpoint and another was shot and wounded.
The complaint, which was unsealed on Tuesday, charges the following three men – all South Los Angeles residents and documented members of the Rollin’ 30s Crips – with one count of conspiracy to interfere with commerce by robbery:
- Malik Lamont Powell, 20;
- Khai McGhee, a.k.a. “Cameron Smith,” 18; and
- Marquise Anthony Gardon, 30.
The defendants were arrested on Tuesday and are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, during the afternoon of March 4, an armed robbery occurred at Il Pastaio restaurant in Beverly Hills. During the robbery, a restaurant patron was held at gunpoint while he was robbed by three men for his Richard Mille wristwatch, worth approximately $500,000. A struggle for the gun ensued, during which approximately two rounds were discharged from the firearm, striking another restaurant patron in the leg. Ultimately, the handgun was dropped to the ground during the struggle with the victim. The robbers fled the scene with the victim’s watch.
Based on a review of video surveillance footage and witness statements, a total of five individuals are believed to be involved in the robbery crew that committed this robbery, the affidavit states. Law enforcement has identified Powell and McGhee as two of the three robbers, and Gardon has been identified as a driver of the robbery crew’s getaway car, according to the affidavit.
Powell’s car – a black BMW – allegedly was used to transport the robbery crew to and from the robbery, and his cell phone allegedly was present near Il Pastaio at the time of the robbery. Powell’s social media accounts allegedly contained images of various guns and high-value wristwatches.
McGhee’s DNA was found on the robbery victim’s clothing following the struggle for the gun, the affidavit states. Surveillance camera footage allegedly shows Gardon getting out of the rear passenger seat and into the driver’s seat of the getaway car just before the robbery at Il Pastaio, and his cell phone was present near the restaurant at the time of the robbery.
Surveillance camera footage allegedly shows the robbers scouting the area prior to the robbery.
If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and the Beverly Hills Police Department investigated this matter with the Santa Monica Police Department providing assistance.
Assistant United States Attorneys Joseph D. Axelrad and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section are prosecuting this case.
Texan sentenced for attempting to smuggle over 70 people in one trailerRead the Press Release
LAREDO, Texas - A 24-year-old Corpus Christi man has been ordered to federal prison for conspiring to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Francisco Benavides pleaded guilty Dec. 18, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo ordered him to serve a 48-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Marmolejo noted his lengthy criminal history and the number of aliens he was hauling.
On Oct. 14, 2020, Benavides arrived at the US-83 Border Patrol checkpoint driving a semi-truck and trailer. A K-9 alerted to the presence of contraband in the trailer. Authorities cut the seal and found 74 illegal aliens, including an unaccompanied minor.
Benavides claimed he traveled to Laredo from Corpus Christi to work as a trucker, despite not having a commercial license or any training as a driver. He also said he thought the trailer was full of frozen meat and expected to be paid $250 to drive it to Eagle Pass.
At the time of his plea, Benavides admitted he knew aliens were inside the trailer.
Benavides will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul Harrison prosecuted the case.
Tax Preparer Pleads Guilty in False Returns SchemeRead the Press Release
A Georgia woman pleaded guilty today to preparing false tax returns for clients.
According to court documents, between 2012 and 2017, Candace Roberts worked as a return preparer and manager at Rogers Tax Service, a tax preparation business located in Albany, Georgia. Over a five year period, Roberts inflated her clients’ tax refunds by fraudulently claiming American Opportunity Credits, education credits, and business income. In total, Roberts caused a tax loss to the IRS of more than $700,000.
Roberts will be sentenced at a later date and faces a maximum penalty of three years in prison. The defendant also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Brian Flanagan of the Justice Department’s Tax Division and Assistant U.S. Attorney Jim Crane of the Middle District of Georgia are prosecuting the case.
Tax Preparer Arrested for Stealing from His Clients and Filing False Tax ReturnsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Amanda Hiller, Acting Commissioner of the New York State Department of Taxation and Finance (“DTF”), announced today the unsealing of a Complaint charging CARLOS DE LA TORRE with wire fraud, mail fraud, and filing false income tax returns in connection with a years-long scheme to steal from the clients of his tax preparation business and defraud the Internal Revenue Service (“IRS”) and New York State Department of Taxation and Finance (“NYSDTF”). DE LA TORRE was arrested today and will be presented in Manhattan federal court before United States Magistrate Judge Sarah Netburn.
U.S. Attorney Audrey Strauss said: “As alleged, Carlos De La Torre defrauded the clients of his tax preparation business by converting to his own use money the clients had been told they owed the IRS and New York State. Further, De La Torre allegedly defrauded the IRS and the State by seeking refunds for overpayments of his taxes that were actually the funds he stole from his clients, and by failing to report those stolen funds as income. Now Carlos De La Torre is facing multiple federal felony charges.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “With the tax filing deadline only days away, the arrest of Mr. De La Torre is a timely reminder to taxpayers to do their due diligence when selecting a tax preparer. Not only is the defendant accused of violating the trust placed in him by his clients, he also allegedly profited nearly half a million dollars in this years-long scam. IRS-CI special agents are working tirelessly to protect taxpayers from fraud and investigate potential unscrupulous tax return preparers.”
Acting DTF Commissioner Amanda Hiller said: “Tax preparers are expected to operate with honesty and integrity. Those who instead defraud their clients – and New York State – for personal gain must be held accountable. We’ll continue to work with all levels of law enforcement, including the U.S. Attorney’s Office for the Southern District of New York, to bring dishonest tax preparers to justice.”
As alleged in the Complaint unsealed today in Manhattan federal court[1]:
DE LA TORRE is a tax preparer and the sole proprietor of a bookkeeping and tax preparation business in New York, New York. From at least in or about 2014 through at least in or about 2020, DE LA TORRE represented certain small businesses based in New York City and their owners (the “Victims”) in connection with the preparation and filing of their personal and business federal and state tax returns. During that time period, DE LA TORRE told the Victims how much they allegedly owed in state and federal personal and business taxes, and the Victims gave DE LA TORRE checks in those amounts.
Instead of submitting the Victims’ checks as payments to be applied toward the Victims’ federal and state tax liabilities, DE LA TORRE fraudulently altered the checks and mailed them to the IRS and the NYSDTF as estimated tax payments to be credited against his own personal tax liabilities. Those payments greatly exceeded DE LA TORRE’s own tax liabilities each year. At the end of each tax period, DE LA TORRE fraudulently sought and received refunds from the IRS and the NYSDTF for the total amount of the altered checks he submitted to each agency, less any amount DE LA TORRE actually owed in taxes. Refunds from the IRS and the NYSDTF were wired by the U.S. Treasury and New York State, respectively, directly into DE LA TORRE’s personal bank account. In total, DE LA TORRE stole at least approximately $455,000 from the Victims through this scheme.
DE LA TORRE also filed false tax returns with the IRS in connection with this scheme. He failed to report the money he stole from the Victims on his federal tax returns. Had DE LA TORRE reported that income, as he was required to do, his total federal tax liability each year would have been much greater than it was, and he would not have been entitled to the refunds that he claimed. As a result, DE LA TORRE defrauded the IRS of at least approximately $48,000 in tax liabilities (including interest).
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DE LA TORRE, 79, of Little Neck, New York, is charged with one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of wire fraud, in violation of Title 18, United States Code, Section 1343, each of which carries a maximum sentence of 20 years in prison, and five counts of subscribing to false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the IRS-CI and NYSDTF.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Swampscott Financial Advisor Pleads Guilty to Stealing Former Client’s Retirement AssetsRead the Press Release
BOSTON – A Swampscott financial advisor pleaded guilty yesterday in federal court in Boston to defrauding an elderly victim and her bank by stealing the victim’s retirement assets.
Felix Gorovodsky, 29, pleaded guilty to one count of bank fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 14, 2021.
Gorovodsky served as a financial advisor for the victim. In or about July 2019, the victim terminated that advisor relationship and revoked the power of attorney she had previously granted him. Approximately nine months later, Gorovodsky accessed and liquidated the victim’s bank account, transferring more than $250,000 into his own bank account. Gorovodsky then used the victim’s stolen retirement funds for personal expenses, including paying off more than $100,000 in federal student loans. As part of the scheme, Gorovodsky forged the victim’s signature on a purported “gift letter,” which he sent to the bank in an attempt to legitimize the fraudulent transfer.
Pursuant to the terms of the plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of 33 months in prison, two years of supervised release and restitution of at least $318,000.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Department of Education, Office of Inspector General provided valuable assistance with the investigation. Assistant U.S. Attorney Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Supplier to Drug Trafficking Organization and Member of Organization each Sentenced to Five Years in PrisonRead the Press Release
TRENTON, N.J. – Two men have been sentenced to federal prison for their roles in a drug trafficking organization that sold illegal drugs in Mercer County, New Jersey, and in Philadelphia, Pennsylvania, Acting U.S. Attorney Rachael A. Honig announced today.
Jawaan Foreman, 37, of Trenton, was sentenced today to five years in prison. Foreman previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of possession with intent to distribute 28 grams or more of cocaine base.
Duane Paulino-Escalera, 28, of Philadelphia, was sentenced May 7, 2021, to five years in prison. Paulino-Escalera previously pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin.
Paulino-Escalera and Foreman are the ninth and 10th defendants to be sentenced in conjunction with this investigation. Judge Shipp imposed both sentences in Trenton federal court.
According to documents filed in this case and statements made in court:
From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman, and Highland avenues in Trenton, and around Barbary Road in Philadelphia.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Paulino-Escalera, whom Gbanapolor referred to as “Papi.”
Members of the conspiracy distributed the heroin supplied by Paulino-Escalera to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity, and customer satisfaction.
Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s sentencing. She also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine Hoffman; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai.
These sentencings are part of an Organized Crime Drug Enforcement Task Force (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.
The government is represented by Assistant U.S. Attorneys Eric A. Boden and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Gbanapolor was charged Feb. 25, 2021, in a superseding indictment with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, one count of distribution and possession with intent to distribute heroin, and one count of possession with intent to distribute 100 grams or more of heroin. That case remains pending. The charges and allegations against the him are merely accusations and he is presumed innocent unless and until proven guilty.
Suburban Chicago Man Pleads Guilty to Federal Fraud Charge for Misappropriating Hundreds of Thousands from Non-Profit OrganizationRead the Press Release
CHICAGO — A suburban Chicago man admitted in federal court today that he fraudulently misappropriated hundreds of thousands of dollars from a non-profit organization for physically and psychologically challenged children.
STUART NITZKIN, 45, of Deerfield, Ill., pleaded guilty to one count of wire fraud. U.S. District Judge Sara L. Ellis set sentencing for Aug. 3, 2021.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Sheri H. Mecklenburg.
According to a plea agreement, Nitzkin from 2011 to 2016 worked as the Executive Director of an Illinois-based non-profit organization whose mission was the rehabilitation of physically and psychologically challenged children. During that time, Nitzkin knowingly submitted to the organization invoices and receipts for payment and reimbursement of expenses that Nitzkin claimed were incurred on behalf of the organization. In reality, Nitzkin knew the expenses were not actually incurred by the organization but rather by Nitzkin for his and others’ personal benefit, the plea agreement states.
The expenses Nitzkin submitted for reimbursement included luxury vacations for Nitzkin and his family to Las Vegas, Florida, Ireland, and Puerto Rico, personal golfing expenses, tickets to Chicago Bulls basketball games and other professional sporting events, personal medical expenses, real estate taxes for his family residence, health club dues, household goods, meals, and car maintenance, the plea agreement states. Nitzkin also pocketed cash from fundraising events held on behalf of the organization and used the money for personal expenses, the plea agreement states.
Nitkin admitted in the plea agreement that as a result of the scheme he fraudulently misappropriated at least $550,000 from the organization. The government charged, and intends to prove at sentencing, that Nitzkin misappropriated approximately $831,400.
Wire fraud is punishable by up to 20 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
South Texan handed significant sentence for trafficking cocaineRead the Press Release
McALLEN, Texas – A 46-year-old Alton man has been ordered to federal prison following his conviction of conspiracy to possess with intent to distribute more than five kilograms of cocaine, announced acting U.S. Attorney Jennifer B. Lowery.
A federal jury deliberated for approximately six hours before convicting Rosbel Garcia Jr. Jan. 14 following a one-day trial which included seven witnesses.
Following his conviction, Garcia executed a signed statement admitting to his involvement in the offense and his knowledge of the controlled substances involved.
Today, U.S. District Judge Micaela Alvarez took the statement into consideration and handed Garcia a 78-month sentence to be immediately followed by three years of supervised release. In imposing the sentence, the court also noted Garcia’s greedy motivation in committing the crime and his recruitment of another individual.
According to the testimony at trial, authorities learned of a possible 20-kilogram cocaine transaction that would be occurring in the Houston area in January 2018.
The jury heard from Rene Ramos III, the person Garcia had recruited, who explained that he had been previously arrested in Houston while in possession of approximately 60 pounds of marijuana belonging to Garcia in 2012. He claimed that at the time of that arrest, he was also in possession of approximately $90,000 of Garcia’s drug trafficking proceeds.
In early January 2018, Ramos claimed Garcia contacted him and told him he had to begin working for him in order to reduce that drug debt. As part of that involvement, Ramos testified he directed his wife, Christy Leigh Wells, to deliver cocaine to individuals in Houston.
Testimony revealed Garcia traveled to Houston from the Rio Grande Valley in January 2018 along with Luby Janet Luna. Wells also testified and admitted she delivered 10 kilograms of cocaine to Luna and others Jan. 30, 2018.
The defense attempted to convince the jury that all involved were just cons who fabricated Garcia’s involvement in the scheme. The jury disagreed and found him guilty as charged.
Wells, 42, Cypress, admitted to her role in the conspiracy.
Luna, 34, Mission, is a fugitive and a warrant remains outstanding for her arrest. Anyone with information about her whereabouts is asked to contact the U.S. Marshals Service at 956-618-8025 or the Drug Enforcement Administration at 956-992-8400.
Garcia remains in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Roberto Lopez Jr. and M. Alexis Garcia prosecuted the case.
Sinaloa-based Narcotics Distributor Designated under the Kingpin Act for Trafficking Fentanyl, Heroin, and Methamphetamine in OregonRead the Press Release
PORTLAND, Ore.—Acting U.S. Attorney Scott Erik Asphaug announced the unsealing of an indictment today against a Sinaloa-based drug trafficker for his role in trafficking fentanyl, heroin, and methamphetamine from Mexico to the Pacific Northwest.
Efrain Mendivil Figueroa, 41, of Sinaloa, Mexico, has been charged with conspiracy to distribute heroin, methamphetamine, and fentanyl and conspiracy to commit money laundering.
The announcement of charges against Figueroa follows the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designation of Figueroa as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). OFAC identified Figueroa as a fentanyl, heroin, methamphetamine, and cocaine distributor and transportation coordinator for the Jesus Gonzalez Penuelas Drug Trafficking Organization (aka “Gonzalez Penuelas DTO”). OFAC also designated the construction company City Plaza, Sociedad Anonima de Capital Variable, based in Guasave, Sinaloa for being owned or controlled by Figueroa. According to OFAC, the Gonzales Penuelas DTO is one of the largest raw opium gum and heroin sources of supply in northern Mexico, and increasingly a major distributor of fentanyl.
“Efrain Figueroa’s drug trafficking organization has deep ties in the Pacific Northwest. Our charges allege he is a long-term, active trafficker of heroin, methamphetamine, and fentanyl from Mexico to Oregon. Together, these drugs, particularly fentanyl, have caused immeasurable harm to the public safety and health of communities throughout our state,” said Acting U.S. Attorney Asphaug. “We applaud OFAC for designating Jesus Gonzalez Penuelas as a Significant Foreign Narcotics Kingpin and Figueroa as a Specially Designated Narcotics Trafficker under the Kingpin Act for the significant danger they pose to the U.S. and its citizens.”
“This bold action highlights the DEA’s ability and intention of holding accountable the dangerous Mexican Drug Trafficking Organizations who reside within our borders, but also those operating in Mexico who believe they are untouchable,” said DEA Special Agent in Charge Frank Tarentino. “DEA makes it a priority to identify and target drug traffickers who flood our city streets with poison and deny these drug trafficking organizations the profits of their illegal trade responsible for fueling the opioid epidemic. We will continue to work closely with our international partners to bring Efrain Figueroa to justice and dismantle drug cartels like Gonzales Penuelas DTO.”
“Fentanyl, particularly in the form of counterfeit prescription pills, is the region’s emerging drug threat and poses a significant danger to our communities. The increase in fentanyl supply and use over the past 2 ½ years in Oregon is reflected in the number of law enforcement trafficking investigations, drug seizures, overdose hospitalizations and, tragically, overdose deaths,” said Oregon-Idaho HIDTA Executive Director, Chris Gibson. “The Oregon-Idaho HIDTA will continue to support the cooperative efforts of our treatment, prevention and law enforcement partners with the ultimate goal of reducing the demand for and supply of the dangerous drugs that sadly wreak havoc in the lives of an increasing number of Oregonians.”
According to the indictment, beginning in at least August 2018, Figueroa and several associates are alleged to have conspired with one another to possess and distribute heroin, methamphetamine, and fentanyl in Oregon and elsewhere. As part of their drug trafficking scheme, the group maintained various locations for the purpose of storing and packaging narcotics and used vehicles to transport and distribute product. The group would also smuggle bulk quantities of U.S. currency across state and international borders to facilitate drug transactions and engaged in money laundering to conceal their trafficking proceeds.
Acting U.S. Attorney Asphaug and Special Agent in Charge Tarantino made the announcement.
This case was investigated by the Drug Enforcement Administration (DEA) and the High Intensity Drug Trafficking Area (HIDTA) Interdiction Taskforce with assistance from the FBI and Homeland Security Investigations. It is being prosecuted by Steven T. Mygrant, Assistant U.S. Attorney for the District of Oregon.
The Oregon HIDTA program was established by the White House Office of National Drug Control Policy in June of 1999. In 2015 the program expanded into Idaho and was renamed the Oregon-Idaho HIDTA. The Oregon-Idaho HIDTA consists of 16 counties, including Oregon’s Clackamas, Deschutes, Douglas, Jackson, Josephine, Lane, Linn, Malheur, Marion, Multnomah, Umatilla and Washington counties, and Idaho’s Ada, Bannock, Canyon, and Kootenai counties.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Opioid abuse affects communities across the nation. The Centers for Disease Control and Prevention reports that in 2019, its most recent data, there were 70,630 drug overdose deaths in the U.S. Opioids and synthetic opioids were alone responsible for 49,860 overdose deaths or nearly 71% of all overdoses. Drug overdose is now the leading cause of injury or death in the United States.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male.
The availability of illicit fentanyl in Oregon has presented public safety and health officials with a host of new challenges, including a dramatic increase in overdose deaths. Fentanyl-related overdose deaths in Oregon have doubled between 2016 and 2019. In 2020, most fentanyl seized in Oregon was in the form of counterfeit prescription pills, such as Oxycodone, commonly referred to as M-30s.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Counterfeit Oxycodone Seized in Portland Metro Area Counterfeit Oxycodone Seized in Portland Metro Area Counterfeit Oxycodone (M-30) Seized in Jackson CountyShreveport Trauma Surgeon Sentenced for Stealing More than $200,000 in Social Security BenefitsRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that John T. Owings, 60, of Shreveport, Louisiana, was sentenced today by United States District Judge Elizabeth E. Foote to 21 months in prison, followed by 2 years of supervised release, for stealing Social Security benefits. Owings was ordered to pay restitution in the amount of $200,434.70.
Owings, who was formerly the Chief of Trauma at the former LSU Health and Sciences Center in Shreveport (LSUHSC), was convicted by a federal jury in February 2019 of 20 counts of theft of government property and 1 count of concealing or failing to disclose an event affecting right to a government benefit. The United States presented evidence during the trial showing that Owings applied for disability benefits in 2008 and continued to receive those benefits through June of 2017, after returning to work in 2012. When Owings went back to work as a surgeon at the University of California-Davis in 2012, making $22,000 a month, he failed to tell the Social Security Administration (SSA) about his return to work. In 2013, LSUHSC hired Owings as its trauma chief, paying him over $40,000 a month. Owings never disclosed his employment at LSUHSC to the SSA. Instead, Owings took disability insurance benefits throughout his employment at the University of California-Davis and LSUHSC that he was not entitled to. Owings used the benefits to pay for personal expenses and fund his coin collecting hobby.
“Despite being a highly-paid, working trauma surgeon, Dr. Owings took advantage of a program that is designed to benefit those who are in need of assistance due to their inability to work,” Acting U.S. Attorney Van Hook said. “I would like to thank the agents with the Social Security Administration – Office of Inspector General for doing such an outstanding job on this case and other cases such as this by seeking out those individuals who take advantage of a program designed for the disabled. We will continue to prosecute those who abuse the system in this way.”
The SSA is responsible for the implementation of the Disability Insurance Benefits Program under Title II of the Social Security Act. The SSA provides monetary benefits to individuals who have worked and paid taxes to SSA. To be eligible for monthly cash benefits, individuals must have been deemed medically disabled and must have been unable to maintain gainful employment.
Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence would then be evaluated by SSA to determine the individual’s medical impairments and determine the effect of the impairment on the claimant’s ability to work on a sustained basis. Recipients of Social Security disability insurance benefits are required by federal law to report any changes in their medical or employment status to SSA, including any work activity, whether compensated or not. Eligibility for Disability Insurance Benefits is conditioned on the recipient’s lack of employment income during the period when the disability benefits are paid.
The Social Security Administration – Office of Inspector General conducted the investigation. Assistant United States Attorneys Seth D. Reeg and Leon H. Whitten prosecuted the case.
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Shop owner admits to illegally selling hummingbirdsRead the Press Release
LAREDO, Texas – A businesswoman and her employee have admitted they were responsible for selling parts of a protected species, announced Acting U.S. Attorney Jennifer B. Lowery.
Cecilia Castaneda, 63, pleaded guilty today, while Maria Luisa Garza-Salazar, 57, entered her plea Jan. 22. The Laredo women admitted to illegally selling hummingbirds. Castaneda owned and operated Herbario Corpus Christi, a business specializing in herbs and spices. Garza-Salazar was her employee.
Both women were charged under the Lacey Act for selling dried or parts of more than 160 hummingbirds. The Lacey Act still protects the migratory birds although they are no longer an endangered species. The law makes it a crime to import, sell, receive or acquire any wildlife which have been possessed, transported or sold in violation of any law.
Dried hummingbirds, or parts of the birds, are illegally packaged and sold commercially as love charms together with prayer cards. The hummingbirds are typically packaged in a paper sleeve and surrounded with red threads or envelopes.
In a companion case, Maria Guadalupe Garcia, 55, Laredo, admitted to selling more than 200 hummingbirds Oct. 28. She owned and operated Herbario Lupita, an herbal shop located in Laredo.
“These guilty pleas send a clear message to wildlife traffickers that we and our law enforcement partners are in the business of identifying and apprehending those who exploit protected species for commercial gain,” said Special Agent in Charge Phillip Land of the Fish and Wildlife Service (FWS-OLE.) “We thank the U. S. Attorney's Office for the Southern District of Texas for holding these individuals responsible for their actions.”
Castaneda is set for sentencing Aug. 10, while Garcia’s hearing is scheduled for June 22. At those times, they each face up to five years in federal prison and a possible $250,000 maximum fine.
The FWS – OLE conducted the investigation with the assistance of Texas Game Wardens. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Rocky Mount Tax Return Preparer Sentenced for Conspiracy to Filing False Tax ReturnsRead the Press Release
NEW BERN, N.C. – A Rocky Mount, NC woman was sentenced yesterday to twenty-four (24) months imprisonment and ordered to pay $229,000 in restitution for committing conspiracy to prepare and file false tax returns.
According to court documents, Priscilla Evans, 65 years old, conspired with others to file false tax returns for the 2011 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Evans and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. On July 14, 2020, Evans pled guilty to the charge.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge Louise W. Flanagan. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-00077-2FL.
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Residents of Florida, Georgia and North Carolina Indicted for Promoting Tax Fraud SchemeRead the Press Release
A federal grand jury in Orlando, Florida, returned an indictment April 21, 2021, charging residents of Florida, Georgia and North Carolina with promoting a tax fraud scheme.
According to the indictment, from 2013 to 2017, Iran Backstrom of Milledgeville, Georgia; Mehef Bey of Charlotte, North Carolina; Yomarie Febres of Atlanta, Georgia; and Aaron Aqueron of Clermont, Florida, allegedly conspired together and with others to promote a tax fraud scheme to more than 200 individuals in 12 states. The indictment alleges that the defendants recruited clients by falsely representing that the clients’ mortgages and other debts entitled them to tax refunds. To execute the scheme, the defendants and their conspirators allegedly prepared and caused clients to file tax returns that falsely claimed large amounts of income taxes had been withheld from the clients and paid over to the IRS, entitling the clients to tax refunds. According to the indictment, the defendants typically charged each client fees ranging from approximately $10,000 to $15,000 and did not report on their own tax returns any income generated from the scheme.
The indictment further alleges that when the IRS discovered the fraud and attempted to recover the fraudulently obtained tax refunds, Aqueron encouraged clients to provide the IRS with false information and remove funds from their bank accounts in order to thwart the IRS’s collection efforts. As a result of the scheme, the defendants allegedly filed, and caused to be filed, with the IRS approximately $40 million in fraudulent claims for tax refunds
Backstrom, Bey, Febres and Aqueron are charged with conspiring to defraud the United States and aiding in the preparation of false tax returns. Aqueron is also charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws.
Backstrom, Febres and Aqueron are scheduled for their initial court appearances today before a U.S. Magistrate Judge for the Middle District of Florida. Bey will make an initial appearance at a later date. If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge and three years of prison on each count of aiding in the preparation of false tax returns. Aqueron also faces a maximum of three years in prison on the obstruction charge. In addition, the defendants face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Lauren Archer, Kavitha Bondada and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Karen Gable of the U.S. Attorney’s Office for Middle District of Florida are 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.
Residents of Florida, Georgia and North Carolina Indicted for Promoting Tax Fraud SchemeRead the Press Release
Orlando, FL – A federal grand jury in Orlando, Florida, returned an indictment April 21, 2021, charging residents of Florida, Georgia and North Carolina with promoting a tax fraud scheme.
According to the indictment, from 2013 to 2017, Iran Backstrom of Milledgeville, Georgia; Mehef Bey of Charlotte, North Carolina; Yomarie Febres of Atlanta, Georgia; and Aaron Aqueron of Clermont, Florida, allegedly conspired together and with others to promote a tax fraud scheme to more than 200 individuals in 12 states. The indictment alleges that the defendants recruited clients by falsely representing that the clients’ mortgages and other debts entitled them to tax refunds. To execute the scheme, the defendants and their conspirators allegedly prepared and caused clients to file tax returns that falsely claimed large amounts of income taxes had been withheld from the clients and paid over to the IRS, entitling the clients to tax refunds. According to the indictment, the defendants typically charged each client fees ranging from approximately $10,000 to $15,000 and did not report on their own tax returns any income generated from the scheme.
The indictment further alleges that when the IRS discovered the fraud and attempted to recover the fraudulently obtained tax refunds, Aqueron encouraged clients to provide the IRS with false information and remove funds from their bank accounts in order to thwart the IRS’s collection efforts. As a result of the scheme, the defendants allegedly filed, and caused to be filed, with the IRS approximately $40 million in fraudulent claims for tax refunds
Backstrom, Bey, Febres and Aqueron are charged with conspiring to defraud the United States and aiding in the preparation of false tax returns. Aqueron is also charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws.
Backstrom, Febres and Aqueron are scheduled for their initial court appearances today before a U.S. Magistrate Judge for the Middle District of Florida. Bey will make an initial appearance at a later date. If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge and three years of prison on each count of aiding in the preparation of false tax returns. Aqueron also faces a maximum of three years in prison on the obstruction charge. In addition, the defendants face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Lauren Archer, Kavitha Bondada and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Karen Gable of the U.S. Attorney’s Office for Middle District of Florida are 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.
Prison Official Pleads Guilty to Accepting Bribes to Smuggle Contraband to InmatesRead the Press Release
A North Carolina man pleaded guilty today to a bribery and smuggling scheme in which he abused his position as a prison official to funnel drugs and other contraband into Caledonia Correctional Institution.
According to court documents, Ollie Rose III, 62, of Pleasant Hill, worked as a case manager at Caledonia Correctional Institution, a state prison in Halifax County. Rose admitted to agreeing to use his position, from at least November 2018 through October 2020, to smuggle contraband — including oxycodone, marijuana and synthetic cannabinoids — into the prison for inmates. Rose further admitted that he did so in exchange for payments ranging from $500 to $1,200 and received more than $40,000 in total in bribes. He was paid both in cash and via a mobile application, and he sometimes also accepted a portion of the drugs he smuggled into the prison as payment.
Rose pleaded guilty to one count of conspiring to use a facility in interstate commerce in furtherance of unlawful activity and one count of extortion under color of official right. A sentencing date has been scheduled for the Sept. 7 term of court. Rose faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement.
The case was investigated by the FBI, with significant assistance from the North Carolina Department of Public Safety.
Trial Attorneys Rebecca M. Schuman and Lauren E. Britsch of the Criminal Division’s Public Integrity Section are prosecuting the case.
Postal Worker Pleads Guilty to Stealing MailRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee pleaded guilty yesterday in federal court in Boston in connection with stealing mail and making over $16,000 in fraudulent purchases and ATM withdrawals.
Angela Gomez, 40, of Lynn, pleaded guilty to one count of theft of mail by an employee. U.S. District Court Judge Denise J. Casper deferred acceptance of the plea until sentencing, which is scheduled for Sept. 2, 2021. In November 2020, Gomez was arrested and charged by criminal complaint.
Postal inspectors received information that customers in Lynn reported missing mail. For example, one USPS customer reported that an expected Lilly Pulitzer gift card never arrived in the mail. Further investigation revealed that USPS City Carrier Assistant Angela Gomez handled that particular customer’s route. Records indicated that the expected gift card was used in January 2020 for purchases delivered to Gomez’s then-home address and that the corresponding email address belonged to Gomez. Subsequent surveillance of Gomez during the performance of her duties revealed that she rifled through and stole mail on 21 separate occasions.
Agents were then contacted by an Eastern Bank fraud investigator, who was investigating multiple unauthorized Automatic Teller Machine (ATM) withdrawals and debit card purchases made using three separate Eastern Bank accounts. The Eastern Bank accounts were owned by individuals who all resided on the carrier route Gomez was assigned to prior to when the unauthorized transactions began. Eastern Bank records confirmed three compromised accounts. Security camera video footage related to several of the unauthorized debit card purchases (including at Walmart and Target shopping centers) showed Gomez making unauthorized purchases using debit cards associated with the three compromised Eastern Bank accounts. ATM and bank security camera videos from Eastern Bank showed Gomez making unauthorized cash withdrawals from the three Eastern Bank accounts. The total loss amounts of unauthorized debit card purchases and ATM withdrawals incurred to the three Eastern Bank accounts is $16,587.
Gomez also stole four separate U.S. Treasury Economic Impact Payment (EIP) checks, more commonly known as stimulus checks, totaling $4,800, which were intended for delivery to USPS customers who lived on Gomez’s carrier route.
In total, Gomez stole $21,387 in fraudulent debit card purchases, ATM withdrawals and stimulus checks.
As part of the plea agreement, Gomez has agreed to pay restitution to the victims.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; and William Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration Office of Investigations, New York Field Office made the announcement. Assistant U.S. Attorney Eugenia M Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Philadelphia Man Sentenced to over 15 Years in Federal Prison for Narcotics TraffickingRead the Press Release
Jackson, Miss. - A Philadelphia man was sentenced today to 189 months in federal prison for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations’ New Orleans Field Office.
According to court documents, Landon Marquale Dupree, 35, of Philadelphia, Mississippi, was charged with and pled guilty to selling methamphetamine to an individual on July 15, 2019, in Philadelphia. Dupree was sentenced to serve 189 months in the custody of the Bureau of Prisons, to be followed by 8 years of supervised release. He was also ordered to pay $4595.00 in restitution to the Mississippi Bureau of Narcotics.
Dupree has a prior felony conviction for sale of cocaine in Neshoba County, Mississippi.
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.
The case is part of a joint investigation by the United States Immigration, Customs Enforcement, Homeland Security Investigations and Mississippi Bureau of Narcotics, with assistance from US Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Louisville Police Department, and Mississippi Highway Patrol. The case is being prosecuted by Assistant United States Attorney Erin Chalk.
Ocean County Man Sentenced to 40 Years in Prison for Producing Images of Sexual Abuse of Children and Advertising Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 40 years in prison for producing images of himself sexually abusing young children, Acting U.S. Attorney Rachael A. Honig announced.
Sebastien Attar, 36, of Brick, New Jersey, previously pleaded guilty before U.S. District Peter G. Sheridan to an information charging him with two counts of sexual exploitation of children. Separately, Attar also pleaded guilty before Judge Sheridan to a superseding indictment charging him with one count of advertising child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements filed in court:
Beginning in mid-2017, federal law enforcement began investigating individuals participating in a private chat messaging group dedicated to the discussion and dissemination of images and videos depicting the sexual abuse of children. The private chat group was named “Taboo Train 2.0,” and law enforcement identified Attar as a member of that group, operating with the account identifier “Seb Seb.” The investigation revealed that on multiple occasions and in response to requests from other users, Attar, operating as “Seb Seb,” shared with the “Taboo Train 2.0” chat group images depicting adults sexually abusing very young children.
In March 2018, in connection with the investigation of the “Taboo Train 2.0” chat group, federal law enforcement agents executed a search warrant at Attar’s Brick, New Jersey residence, and seized a number of electronic devices and electronic storage media. In July 2018, a grand jury sitting in the Northern District of Georgia returned a superseding indictment charging Attar and others with advertising child pornography.
During a forensic review of the electronic media seized pursuant to the search of Attar’s residence, law enforcement discovered graphic images in which an individual – later identified as Attar – had photographed himself sexually abusing two infants. Attar was subsequently arrested and charged in a criminal complaint filed in the District of New Jersey. As part of the plea agreement, the superseding indictment filed in the Northern District of Georgia against Attar was formally transferred to the District of New Jersey so that Attar could plead guilty to that charge in conjunction with his guilty plea to the information filed in this district.
In addition to the prison term, Judge Sheridan sentenced Attar to lifetime supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI-Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the FBI-Atlanta Field Office, under the direction of Special Agent in Charge J.C. Hacker, with the investigations leading to today’s guilty pleas. She also thanked prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia, under the direction of Acting U.S. Attorney Kurt R. Erskine, for their assistance.
The government is represented by J. Brendan Day, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.
New Haven Man Sentenced to 10 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KEVIN McFARLANE, also known as “Jabari McBurn” and “Dexter Creque,” 43, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by four years of supervised release, for firearm possession and crack cocaine distribution offenses.
According to court documents and statements made in court, on July 8, 2018, in New Haven, McFarlane possessed a loaded Glock model 43 9mm semiautomatic handgun and approximately 97 grams of crack cocaine. The firearm had been reported stolen in Florida in 2017.
McFarlane’s criminal history includes a 2004 conviction in Connecticut for sale of a hallucinogen/narcotic, and a 2007 conviction in Florida for murder in the second degree. He was released from Florida state prison in July 2017.
McFarlane has been detained since his arrest on related state charges on July 11, 2018. On September 5, 2019, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Nantucket Painting Business Owner Sentenced for $2 Million Income & Payroll Tax Fraud SchemeRead the Press Release
BOSTON – The owner of a commercial and residential painting business on Nantucket was sentenced yesterday in connection with an income diversion and payroll tax scheme resulting in a tax loss that exceeded $2 million.
Durvan C. Lewis, 51, of Nantucket, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to two years in prison, two years of supervised release and a fine of $10,000. Lewis was also ordered to pay $2,084,852 in restitution to the IRS. On Feb. 10, 2021, Lewis pleaded guilty to one count of tax evasion and one count of failure to pay over taxes.
Lewis owned and operated a painting business known as DCL Painting. From 2014 through 2017, Lewis diverted over $1.5 million of DCL Painting’s gross receipts to his personal bank account and failed to report the diverted receipts to his tax preparer. In addition, during the tax quarters ending March 31, 2012 through Sept. 30, 2019, Lewis paid over $5 million in wages to DCL Painting’s employees in cash “under the table.” As a result of his conduct, Lewis underreported his personal income tax obligations, as well as failed to report and pay over to the IRS the employment taxes owed on the cash wages. In total, Lewis caused a loss to the IRS of $2,084,852.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Boston Field Office made the announcement. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Murphy, N.C. Resident Is Sentenced to Six Years for Distribution of Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Tuesday, May 11, 2021, U.S. District Judge Max O. Cogburn Jr. sentenced Lawrence Keith Limon, 52, of Murphy, N.C. to 72 months in prison for distribution of child pornography, announced William T. Stetzer, U.S. Attorney for the Western District of North Carolina. Limon was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Sheriff Derrick Palmer of the Cherokee County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed documents and statements made in court, from June 2017 to January 2019, Limon engaged in the online distribution of images depicting the sexual abuse of children. Court records show that law enforcement became aware that an individual, later identified as Limon, was distributing multiple child pornography using various internet platforms, including the social media blog platform Tumblr.com and a Gmail email account. On March 12, 2019, law enforcement executed a search warrant at Limon’s resident, seizing three electronic devices including a tablet, a cellphone and a laptop. A forensic analysis of the seized devices revealed that it contained more than 600 images of child pornography.
On November 30, 2020, Limon pleaded guilty to distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI and the Cherokee County Sheriff’s Office for their investigation of this case.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Morgantown man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Burns, of Morgantown, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Burns, 34, pled guilty to one count of “Unlawful Use of Communication Facility.” Burns admitted to using a phone to help sell fentanyl, cocaine base, and heroin in March 2020 in Monongalia County.
Burns faces not more than four years of incarceration and a fine of not more than to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case 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.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Michael Gonzalez Sentenced to Time Served for Federal Firearm OffenseRead the Press Release
The Acting United States Attorney for the District of Vermont announced today that Michael Gonzalez, 32, was sentenced today to time served, which was a period of over 13 months of imprisonment, for making a false statement in connection with the attempted acquisition of a firearm. Chief Judge Geoffrey Crawford also ordered that Gonzalez serve a three-year period of supervised release.
According to court documents, on August 26, 2019, Gonzalez was arraigned by Judge David Fenster in Chittenden County Superior Court on a charge of first-degree aggravated domestic assault with a weapon, in violation of 13 VSA, Section 1043(a)(2). During the arraignment, Michael A. Gonzalez was provided with a copy of the charging information, which stated that the penalty for a violation of 13 VSA, Section 1043(a)(2), was not more than 15 years of imprisonment. On September 23, 2019, Michael A. Gonzalez attempted to purchase a Ruger Security 9-millimeter caliber pistol from a federally licensed dealer in Williston, Vermont. As part of the attempted purchase, Gonzalez completed an ATF Form 4473. On the ATF Form 4473, Gonzalez falsely stated that he was not under indictment or charged by information for a felony for which the judge could imprison him for more than one year. Gonzalez provided the ATF Form 4473 containing the false statement to the firearms dealer, who submitted the information to the FBI’s National Instant Criminal Background Check System (NICS). The initial response from the NICS required a “delay.” Gonzalez never obtained the Ruger pistol.
In July of 2018, law enforcement seized a firearm from Gonzalez due to evidence he was recently using controlled substances. In October 2018, Gonzalez was prevented from obtaining a firearm due to a denial during a federal background check, which also stemmed from his use of controlled substances.
Acting United States Attorney Jonathan Ophardt commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). “A crucial tool in combatting domestic violence is preventing firearm sales to those accused of and convicted of violent domestic assaults. The United States Attorney’s Office will continue to aggressively prosecute federal firearm crimes to disrupt potential violence before it occurs. We appreciate the assistance of licensed federal firearms dealers who diligently follow background check procedures, which are crucial to these efforts.”“ATF’s top priority is to keep guns out of the hands of criminals and other prohibited persons. A valuable tool in this prevention effort is the ATF Background Check Form 4473, which must be completed before a federally licensed firearm dealer sells or transfers a firearm,” said Special Agent in Charge Kelly D. Brady of the ATF Boston Field Division. “Criminals and other prohibited persons who attempt to thwart the background check process by lying on the required forms threaten to undermine this important crime prevention tool, and such conduct cannot be tolerated.”
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Gonzalez is represented by Chandler Matson, Esq. The prosecutor is Assistant U.S. Attorney John Boscia.
Meridian Man Sentenced to over Four Years Years in Prison under Project EJECT for Being a Convicted Felon in Possession of AmmunitionRead the Press Release
Jackson, Miss. – A Meridian man was sentenced today to 52 months in federal prison for possession of ammunition by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Todrian Kwame Laphand, 27, of Meridian, Mississippi, purchased 40 rounds of .223 caliber ammunition from a pawn shop in Meridian on July 10, 2019. Laphand also purchased a large sheath or holster for a large semi-automatic pistol capable of firing .223 caliber ammunition. After Laphand left the pawn shop, in the company of three other people, officers of the Lauderdale County Sheriff’s Office conducted a traffic stop and took Laphand into custody. Laphand was found in possession of the ammunition he purchased, along with a firearm and the sheath that contained that firearm. Also found in the vehicle were two other firearms and several different suspected controlled substances. Laphand has prior felony convictions for felony fleeing from a law enforcement officer, sale of marijuana and possession of a firearm by a convicted felon. As a convicted felon, it is contrary to federal law for Laphand to possess any ammunition.
Laphand was charged with and pled guilty to possession of ammunition by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.