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28 June 2021
Owner of Two Pharmacies Pays $300,000 to Resolve Controlled Substances Act ViolationsRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Lisa G. Johnston announced today that Jawed Ali Khan Sherwani, Beckley Pharmacy and Bee Well Pharmacy have agreed to pay $300,000 in civil monetary penalties to resolve allegations that the pharmacies violated the Controlled Substances Act (CSA) by filling illegitimate prescriptions. Beckley Pharmacy has two locations in the Beckley, West Virginia area. Bee Well Pharmacy is located in South Charleston, West Virginia. Sherwani is a pharmacist who owns and operates the pharmacies. The settlement provides that from on or about March 1, 2015 to in or about March 2020, both Beckley Pharmacy locations and Bee Well Pharmacy violated the CSA by filling prescriptions the pharmacies knew or should have known were not issued for a legitimate medical purpose. Bee Well Pharmacy also agreed to surrender its Drug Enforcement Administration (DEA) registration which will result in the pharmacy being unable to fill prescriptions for controlled substances. As part of the settlement, Beckley Pharmacy has entered into a Memorandum of Agreement with DEA which imposes heightened regulatory and reporting obligations but will allow both Beckley Pharmacy locations to retain their respective DEA registrations. The CSA prohibits the distribution or dispensing of a controlled substance without a valid prescription. A valid prescription for a controlled substance must be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of his or her practice. Based on the investigation, the United States maintains that the pharmacists at the Beckley Pharmacy locations and Bee Well Pharmacy knew or had reason to know that patients had presented illegitimate prescriptions that should not have been filled.
“There has been a tremendous amount of damage caused by prescription drug abuse in the Southern District of West Virginia,” said Acting United States Attorney Lisa G. Johnston. “In response, we have made it a priority to target different components of the opioid supply chain for their contributing roles to the crisis. Pharmacies must keep accurate records and maintain strong controls when handling controlled substances. Those that fail to do so open the door to the potential diversion of drugs, the illegal distribution, and abuse of these drugs.”
Assistant United States Attorneys Alan G. McGonigal and Gregory P. Neil handled the case. The Drug Enforcement Administration (DEA) Diversion Group and the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG) investigated the case.
Congress passed the CSA to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer or sell controlled substances must comply with strict inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including pharmacies, maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting and distribution of controlled substances.
The settlement is a result of the United States Attorney’s Healthcare Fraud Abuse, Recovery and Response Team (ARREST), an innovative approach linking civil and criminal enforcement efforts together in a comprehensive attack on the opioid epidemic and healthcare fraud.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Owner and Principal of Investment Firm Found Guilty of Insider Trading and Investment Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that, following a two-week trial presided over by U.S. District Judge Edgardo Ramos, and approximately one hour of deliberations, DONALD BLAKSTAD, the owner and principal of a California-based investment firm, was found guilty on all counts for committing insider trading and a securities offering fraud scheme. BLAKSTAD’s offenses yielded more than $7 million in criminal profits.
U.S. Attorney Audrey Strauss said: “As a unanimous jury found, Donald Blakstad used his connections to a company insider to gather inside information that he and his associates then traded on, raking in more than $6 million in illegal profits. In addition, Blakstad defrauded investor clients out of more $1 million, funds he purported would be invested but he instead misappropriated, in some cases for personal expenses. Now Donald Blakstad awaits sentencing for his crimes.”
According to the allegations contained in the Indictment and the evidence presented at trial:
BLAKSTAD was a stock trader and the owner and principal of an investment fund known as Midcontinental Petroleum Inc. (“Midcontinental Petroleum”), which purported to be in the business of soliciting investments in the energy industry. Martha Bustos was a former certified public accountant who worked in the finance department at Illumina, Inc. (“Illumina”), a San Diego-based biotechnology company whose securities trade on NASDAQ. By virtue of her employment at Illumina, Bustos had access to material nonpublic information about Illumina’s financial condition, including its earnings.
On several occasions, from 2016 through 2018, BLAKSTAD obtained inside information about Illumina’s financial condition from Bustos before Illumina publicly announced its earnings and financial results. As BLAKSTAD knew, Bustos owed a duty to keep inside information about Illumina confidential.
BLAKSTAD, aware of Bustos’s breach of duty to Illumina, used this inside information to make profitable trades in Illumina securities shortly before Illumina’s earnings announcements. At times, BLAKSTAD tipped his associates so that they could trade Illumina stock and options based on the inside information. At other times, in order to avoid detection, BLAKSTAD arranged for his associates to purchase Illumina securities for BLAKSTAD’s benefit in accounts controlled by his associates.
Following the public announcement of Illumina’s earnings, BLAKSTAD and his associates sold the Illumina securities at a significant profit, sometimes exceeding more than 2,000 percent. In total, BLAKSTAD and his associates made more than $6 million in profits from purchasing and selling Illumina securities.
In addition, from at least in or about 2015 through at least in or about 2019, BLAKSTAD devised and operated a securities offering fraud to fraudulently obtain more than a $1 million from a number of investors. BLAKSTAD fraudulently induced victim investors to make up-front, lump-sum investments for securities issued by Midcontinental Petroleum, which funds BLAKSTAD then misappropriated, in substantial part.
To facilitate the scheme, BLAKSTAD made false and misleading representations to investor victims regarding how their investment funds would be utilized. During the scheme, at BLAKSTAD’s direction, victims transmitted their funds, including by wire transfer, into bank accounts that were controlled by BLAKSTAD. Once he obtained these investor funds, BLAKSTAD did not use them for the purposes he had represented to investors. Instead, BLAKSTAD diverted a substantial portion of victims’ funds to himself and to co-conspirators. For example, BLAKSTAD used the funds to pay for a variety of personal expenses and for purposes that were unrelated to the business of Midcontinental Petroleum.
BLAKSTAD also made a series of false and misleading statements to victims designed to avoid detection, perpetuate the scheme, and keep the victim funds he received as a result of the fraud.
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BLAKSTAD, 62, of San Diego, California, was convicted on all counts of the Indictment. He was convicted of one count of conspiracy to commit securities fraud, two counts of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud for his participation in the insider trading scheme. He was also convicted of one count of conspiracy to commit securities fraud and wire fraud and one count of wire fraud for his participation in the securities offering fraud scheme. The securities fraud counts and the conspiracy to commit wire fraud count each carry a maximum sentence of 20 years in prison. The conspiracy to commit securities fraud and the conspiracy to commit securities fraud and wire fraud counts each carry a maximum term of five 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 Court.
BLAKSTAD is scheduled to be sentenced before Judge Ramos, who presided over the trial, on October 28, 2021, at 11:00 a.m.
Bustos pled guilty in June 2019 for her participation in the insider trading scheme. Bustos, who is cooperating with the Government, has yet to be sentenced.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation. Ms. Strauss also thanked the Securities and Exchange Commission, which brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Unit. Assistant U.S. Attorneys Edward A. Imperatore and Jared Lenow are in charge of the prosecution.
Oklahoma Man Charged with Receipt and Distribution of an Obscene Visual Presentation of Sexual Abuse of ChildrenRead the Press Release
A Grand Jury in the Northern District of Oklahoma has charged a former dependent of an United States Armed Forces member with two counts of receipt and distribution of an obscene visual presentation of sexual abuse of a minor child under the Military Extraterritorial Jurisdiction Act (MEJA), announced Acting U.S. Attorney Clinton J. Johnson.
On Thursday, June 24, 2021, Derek Ray Flaming, 35, of Salina, Oklahoma, appeared for his initial appearance in the Northern District of Oklahoma on two counts of Receipt and Distribution of an Obscene Visual Representation of Sexual Abuse of Children in violation of 18 U.S.C. Sections 1466A(a)(1) and 3261(a)(1).
“My office is committed to protecting minor children from all manner of alleged abuse, neglect, and exploitation,” said Acting U.S. Attorney Clinton J. Johnson. “Derek Flaming has been charged with knowingly receiving and distributing an obscene picture of a minor child engaging in sexually explicit conduct while residing in South Korea with a member of the United States Armed Forces.”
According to the indictment, during 2016 and 2017, Flaming was the dependent of an United States Armed Forces member stationed at United State Army Garrison (USAG) – Youngsan, within the Republic of Korea. During this time, Flaming received and later distributed an image depicting a minor child engaged in sexually explicit conduct.
MEJA gives U.S. courts jurisdiction to prosecute crimes committed outside the United States by, among others, dependents of United States Armed Forces Dependents residing with members of the armed forces stationed outside the United States.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the U.S. Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
An indictment is a charging instrument alleging violation of the law. Defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Army Criminal Investigative Command, the CEOS High Technology Investigative Unit, U.S. Marshals’ Northern Oklahoma Violent Crime Task Force and U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case is being prosecuted by CEOS Trial Attorney Ralph Paradiso and Assistant U.S. Attorney Aaron Jolly of the Northern District of Oklahoma.
Nine Face Federal Drug and Firearms ChargesRead the Press Release
BINGHAMTON, NEW YORK – Nine defendants were arrested and charged with federal drug conspiracy and drug possession charges, conspiracy to commit money laundering and federal firearms offenses, announced Acting United States Attorney Antoinette T. Bacon, Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and Acting New York State Police Superintendent Kevin P. Bruen.
The following defendants were arrested from June 17, 2021 through June 26, 2021:
Tushaun Merritt, 44, of Michigan, was arrested in the District of Nevada on an indictment filed in the Northern District of New York. He is charged in an Indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Demarrio Shell, 47, of Michigan, was arrested in the District of Nevada on an indictment filed in the Northern District of New York. He is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, Possession with Intent to Distribute Methamphetamine, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Michael Hawkins, 38, of Michigan, was arrested in the Western District of Michigan on an indictment filed in the Northern District of New York. He is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, Possession with Intent to Distribute Methamphetamine, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
David Wemmer, 51, of Spencer, New York, is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Heroin, and Conspiracy to Commit Money Laundering. If convicted he faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Jennifer Patton, 40, of Spencer, New York, is charged in an indictment with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, and Possession with Intent to Distribute Methamphetamine. If convicted she faces at least 10 years and up to life in prison, a fine of up to $10,000,000 and a supervised release term of at least 5 years and up to life.
Brandon Vanorman, 45, of Spencer, New York, is charged in a criminal complaint with Possession with Intent to Distribute Methamphetamine and Cocaine. If convicted he faces between 5 and 40 years in prison, a fine of up to $5,000,000 and a supervised release term of at least 4 years and up to life.
Philip Acciarito, 34, of Owego, New York, is charged in a criminal complaint with Possession of a Firearm by a Convicted Felon. If convicted he faces up to 10 years in prison, a fine of up to $250,000.00, and a period of supervised release of up to 3 years.
David Cobb, 32, of Spencer, New York, is charged in a criminal complaint with Possession of a Firearm by a Convicted Felon. If convicted he faces up to 10 years in prison, a fine of up to $250,000.00, and a period of supervised release of up to 3 years.
Eini Raupers, 44, of Spencer, New York, is charged in a criminal complaint with Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine and Cocaine. If convicted, she faces up to 20 years in prison, a fine of up to $1,000,000 and a supervised release term of at least 3 years and up to life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The charges in the indictments and complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Several of the defendants appeared in Binghamton, New York, before United States Magistrate Judge Miroslav Lovric. Others appeared in front of magistrates in the District of Nevada and the Western District of Michigan. To date, they are all currently detained pending further proceedings.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation (IRS-CI), the United States Postal Inspection Service (USPIS), the New York State Police Violent Gang and Narcotics Enforcement Team (NYSP VGNET, Troop C and E), the New York State Police Special Investigations Unit (SIU), the Broome County Special Investigations Unit Task Force (BCSIUTF), the Tioga County District Attorney’s Office, the Elmira Police Department, the Michigan Jackson Narcotics Enforcement Team (JNET), with the assistance of the Tioga County Sheriff’s Office, the Owego Police Department and the Sayre Police Department and is being prosecuted by Assistant U.S. Attorney Kristen Grabowski, with the assistance of the United States Attorney’s Offices in the Eastern and Western Districts of Michigan, the Western District of New York and the District of Nevada.
New York Man Sentenced to One Year in Prison for Role in Defrauding Banks in $9 Million Shotgun Loan SchemeRead the Press Release
NEWARK, N.J. – A Freeport, New York, man was sentenced today to 12 months and one day in prison for participating in a conspiracy to carry out a $9 million scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a scheme known as “shotgunning,” Acting U.S. Attorney Rachael A. Honig announced.
Yorce Yotagri, 54, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit bank fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Yotagri was a business partner of Jorge Flores of Oakdale, New York, and Jose Piedrahita of Freeport, two conspirators also charged in the indictment. From 2010 through February 2018, Yotagri, Flores, Piedrahita, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOC) from banks on residential properties in New Jersey and New York.
In August 2016, Yotagri lived at a property in Freeport. A quitclaim deed was prepared that facilitated the transfer of ownership of the property to Yotagri and Piedrahita even though Piedrahita did not own the property.
In September 2016, with the Freeport property now in the names of Yotagri and Piedrahita, the conspirators applied for a $290,000 HELOC from a victim bank in Yotagri’s and Piedrahita’s names using the property as collateral. Piedrahita’s contact information appeared on the HELOC application on the Freeport property, which also contained inflated income and assets for Piedrahita. On Dec. 2, 2016, based on the false representations contained in the application, the victim bank issued a HELOC to Piedrahita for $290,000. Piedrahita then disbursed the $290,000 to himself, Yotagri, and Flores. The HELOC funds were never repaid.
In January 2017, Flores called another victim bank and applied for a second HELOC in Piedrahita’s name for $250,000 – again using the Freeport property as collateral. This time Flores’ email address and phone number appeared on the HELOC application on the Freeport property. To demonstrate to the second victim bank that the property was unencumbered by any senior mortgages, Flores and Piedrahita sent several fraudulent documents to the victim bank to conceal the existence of or amounts owed on senior mortgages. The false documents the defendants submitted included a series of false payoff letters and fake checks from other banks, all submitted to deceive the victim bank into believing that the remaining value of the senior mortgages on the Freeport property was far less than what was actually owed.
On March 22, 2017, the second victim bank issued a HELOC to Piedrahita for $250,000. Piedrahita then disbursed nearly the entirety of the HELOC funds to himself and Yotagri. The funds obtained by Piedrahita and Yotagri from the HELOC were not repaid and were overdrawn, causing losses to the second victim bank totaling approximately $290,000.
At the time the applications for the two HELOCS were made, there was not sufficient equity in the Freeport property to support the $540,000 in HELOC applications made by Flores, Piedrahita, and Yotagri.
The overall scheme, which included HELOC loans for approximately 17 different properties, resulted in over $9 million in losses to the victim banks.
In addition to the prison term, Judge Vazquez sentenced Yotagri to three years of supervised release and ordered him to pay restitution of $580,048.
Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), Northeast Region, under the direction of Special Agent in Charge Robert W. Manchak; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA-OIG.
The charges and allegations against Yotagri’s co-defendants contained in the indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
New Orleans Men Plead Guilty to Their Roles in a Federal Drug ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on June 21, 2021, that TAURUS RUSSELL, a/k/a “Scrappy,” age 44, a resident of New Orleans, plead guilty to a three-count Superseding Bill of Information. In Count 1, RUSSELL is charged with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846. In Counts 2 and 3, RUSSELL is charged with use of communication facilities to further a drug trafficking crime in violation of Title 21, United States Code, Section 843(b).
According to court documents, RUSSELL conspired with other members of a drug trafficking organization to distribute and possess with the intent to distribute cocaine hydrochloride and cocaine base. Additionally, RUSSELL used a communication facility, the telephone, to facilitate the distribution and possession with intent to distribute cocaine base.
United States District Court Judge Susie Morgan will sentence RUSSELL on October 13, 2021. For Count 1, RUSSELL faces a mandatory minimum term of imprisonment of 5 years, with a possible maximum sentence of 40 years, a fine of up to $5,000,000.00, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.00. For Counts 2 and 3, RUSSELL faces a maximum term of imprisonment of 4 years, a fine of up to $250,000.00, a period of supervised release of up to 1 year, and a mandatory special assessment fee of $100.00.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
The case was investigated by the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office. This case is being prosecuted by Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Muscatine Woman Sentenced to Federal Prison for Drug Conspiracy ChargeRead the Press Release
DAVENPORT, IOWA – A Muscatine woman, Kayla Jean Crabtree, was sentenced on June 22, 2021, by United States District Court Chief Judge John A. Jarvey to 180 months in prison for Conspiracy to Distribute a Controlled Substance. Following her prison term, Crabtree was ordered to serve five years of supervised release and pay $100.00 to the Crime Victims’ Fund.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
According to court documents, Crabtree, age 34, was identified as a drug trafficking suspect in approximately January of 2019. When attempting a traffic stop on Crabtree for an outstanding arrest warrant based on a parole violation, Crabtree fled by striking into police squad cars that were blocking her path. When apprehended, a glass methamphetamine pipe and functioning compact digital scale were found on her. A search warrant was executed on Crabtree’s vehicle and officers found approximately 70 grams of methamphetamine, drug packaging materials, and $3,389.25 cash. As part of the investigation, law enforcement learned Crabtree was involved with the distribution of over 1.5kg of ice methamphetamine. Crabtree pleaded guilty to the conspiracy charge on January 28, 2021 and admitted to being involved in an ice methamphetamine distribution conspiracy beginning by as early as January 1, 2019, and continuing until April 23, 2019, when Crabtree was arrested.
The Muscatine County Sheriff’s Department investigated the case and the United States Attorney’s Office for the Southern District of Iowa prosecuted this matter.
Monroe County Man Pleads Guilty to Distributing A Designer DrugRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Fausto Hernandez, age 43, of Tobyhanna, Pennsylvania, pleaded guilty today before U.S. District Court Judge Robert D. Mariani to distributing a “designer drug” which is a controlled substance analog.
According to Acting United States Attorney Bruce D. Brandler, Hernandez admitted to distributing a “designer drug” known as “4-choroethcathinone,” a controlled substance analog which mimics the effects of other drugs, in the Monroe County area in June and July 2019.
Under federal law, such “designer drugs” are controlled substance analogues, which are chemically similar to controlled substances in Schedule I or II, to the extent they are intended for human consumption, and are treated as controlled substances.
This matter was investigated by the Drug Enforcement Administration and the Pocono Mountain Regional Police Department. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Judge Mariani ordered that a presentence report be completed for Hernandez. Sentencing will be scheduled at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
The charge carries a maximum sentence of up to twenty years in in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mobile Man Sentenced to Eighty Months in Prison in Firearm CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that United States District Judge Jeffrey Beaverstock sentenced defendant Hannibal Moore, 37, to 80 months imprisonment after a federal jury found him guilty at trial in December 2020 on a charge of being a felon in possession of a firearm. As part of his sentence, the judge ordered that the defendant receive substance abuse treatment as directed by the U.S. Probation Office, pay a special assessment of $100, and be supervised by federal probation officers for 3 years after finishing his prison term.
The jury heard two days of evidence during the trial, which began on December 7, 2020. According to the evidence introduced at trial, Moore was staying with his then-girlfriend at her home in Mobile. Moore had been arrested the day prior in Hoover, Alabama, for a domestic violence incident involving the same woman. The woman’s ex-husband was concerned for her well-being and went to her house to check on her. Once there, he encountered Moore, who refused to leave the home. The ex-husband could see visible bruising to the woman’s face. The ex-husband did leave but returned to the home about two hours later with a friend. The friend had a key to the woman’s house, because he had changed the locks on the house the day prior, at her request. The friend was similarly concerned about the woman’s welfare and used his key to go into the house. As he entered the house, he was shot by Hannibal Moore. The man did survive his injury.
Moore had previously been convicted of the same offense, being a felon in possession of a firearm, in Birmingham on May 26, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Mobile Police Department investigated the case. Assistant United States Attorney Kacey Chappelear prosecuted the case on behalf of the United States.
Meth trafficking on Northern Cheyenne Indian Reservation sends Ashland man to prison for 10 yearsRead the Press Release
BILLINGS – An Ashland man who admitted trafficking methamphetamine on the Northern Cheyenne Indian Reservation was sentenced today to 10 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Robert Joseph Speelman, 48, pleaded guilty on Jan. 27 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on Jan. 21, 2020, a Bureau of Indian Affairs canine officer, while on patrol on the Northern Cheyenne Indian Reservation, saw Speelman, a known drug user and dealer on the reservation, sitting in his truck on the side of the road. Speelman had outstanding tribal warrants. A cursory search by the officer in a subsequent arrest resulted in the recovery of a small amount of meth. There also was a rifle mounted above the back window. The truck was impounded and searched, which resulted in the recovery of about 68 grams of meth, $179 in cash and two more firearms.
Assistant U.S. Attorney Lori H. Suek prosecuted the case, which was investigated by the Bureau of Indian Affairs.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Metairie Man Pleads Guilty to a Federal Drug Trafficking ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on June 15, 2021, that COREY DUNN, age 48, a resident of New Orleans, Louisiana, pled guilty to a one count Superseding Bill of Information. In Count 1, DUNN is charged with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine hydrochloride, and 28 grams or more of a mixture or substance containing a detectable amount of cocaine base in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846.
According to court documents, DUNN conspired with other members of a drug trafficking organization to distribute and possess with the intent to distribute cocaine hydrochloride and cocaine base beginning in October 2018 until August 2019.
United States District Court Judge Susie Morgan will sentence DUNN on September 30, 2021. DUNN faces a mandatory minimum term of imprisonment of 5 years. The maximum sentence the Court may impose is a term of imprisonment of 40 years. DUNN also faces the imposition of a fine up to $5,000,000.00, a period of supervised release of at least 4 years, and a mandatory special assessment fee of $100.00.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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
The case was investigated by the Drug Enforcement Administration and Jefferson Parish Sheriff’s Office. This case is being prosecuted by Brittany Reed of the Violent Crime/Strike Force Unit.
Man caught attempting to pass counterfeit currency sentenced to federal prisonRead the Press Release
A man who purchased printers and counterfeiting materials at Wal-Mart in in an attempt to create and pass off counterfeit notes in order to defraud a victim was sentenced today to two years in federal prison.
Peter Hobart, age 23, from Lisbon, Iowa, received the prison term after a guilty plea to dealing in counterfeit currency.
In a plea agreement, Hobart admitted he intended to defraud a victim by attempting to pass counterfeit currency in exchange for the victim’s Dodge Charger in addition to other vehicles, including a Jeep and water skis. At sentencing, the victim testified that he abandoned the transaction. Shortly thereafter, while on the phone, Hobart threatened to put a bullet in the victim if the victim did not return to complete the transaction. Hobart stated he knew all about the victim and could kill his family.
Hobart was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hobart was sentenced to 24 months’ imprisonment and fined $100. He was ordered to make $650.16 in restitution to the victim. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hobart being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the United States Secret Service, the Pocahontas Police Department, and the Emmetsburg Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3037.
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Man Who Tried to Breach Cockpit, then Opened Emergency Exit and Jumped from Departing Plane at LAX Faces Federal ChargeRead the Press Release
LOS ANGELES – A Mexican national, who was aboard a SkyWest Airlines flight taxiing to the runway at Los Angeles International Airport Friday evening, allegedly approached the cockpit – banging on the cockpit door and trying to enter the restricted space – before opening an emergency exit and jumping to the tarmac, according to a federal criminal complaint made public today.
Luis Armando Victoria Dominguez, 33, of La Paz, Mexico, was charged with interference with flight crew members and attendants. Victoria Dominguez, who suffered a broken leg when he fell to the tarmac and later underwent surgery, is expected to make his initial appearance later this week in United States District Court.
The complaint alleges that Victoria Dominguez was a passenger on United Airlines flight 5365, operated by SkyWest Airlines, that was scheduled to fly from Los Angeles to Salt Lake City. Soon after the plane pushed back from the gate, Victoria Dominguez “sprinted” to the front of the aircraft past a seated flight attendant and “began banging on the cockpit door and manipulating the locked doorknob,” according to an FBI affidavit that was filed with the complaint.
When he failed to gain entry to the cockpit, Victoria Dominguez pushed past the flight attendant and went to the emergency exit on the right side of the plane, where he managed to partially open the door, causing the emergency slide to partially deploy, the affidavit states. While a nearby passenger attempted to restrain him, Victoria Dominguez managed to get away and jump from the aircraft, missing the emergency slide.
“Once Victoria Dominguez landed on the tarmac, he began crawling away from the aircraft. His right leg appeared broken,” the affidavit states.
A criminal 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 criminal complaint naming Victoria Dominguez was signed by a United States magistrate judge on Sunday and docketed by the court this afternoon.
The charge of interference with flight crew members and attendants carries a statutory maximum penalty of 20 years in federal prison.
The FBI is investigating this matter and received substantial assistance from the Los Angeles Airport Police Department.
Assistant United States Attorney Solomon Kim of the General Crimes Section is prosecuting this case.
Man Who Sold Murder Weapon Pleads Guilty to Federal Firearms ChargeRead the Press Release
A Wichita Falls man who sold a weapon to a murderer has been convicted of a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Devin DeAndre Mullins, 21, pleaded guilty on Friday to possession of a firearm by a convicted felon.
According to court documents, Mr. Mullins – who had been convicted of felony robbery in 2018 – admitted that he possessed a lime green 9mm Keltec pistol, which he later sold to a man named Gage Gillentine. Shortly thereafter, Mr. Gillentine used that gun to fatally shoot his girlfriend, 19-year-old Klowie Moore, inside a hotel room in Graham, Texas.
The pistol used in the murder, seized at the scene of the crime, matched photographs of a pistol Mr. Mullins posted to his social media accounts.
In a text message to a friend a few weeks before the murder, Mr. Mullins stated “Fin sell a pistol.” The following day, Mr. Gillentine messaged Mr. Mullins, “yo can bring that gun rn.”
In a noncustodial interview after the murder, Mr. Gillentine admitted to law enforcement that he purchased the murder weapon from Mr. Mullins.
Mr. Mullins now faces up to 10 years in federal prison. (Mr. Gillentine has been charged by the state in connection to the killing.)
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Texas Rangers conducted the investigation with the assistance of the Graham Police Department and the Young County Sheriff’s Office. Assistant U.S. Attorney Rob Boudreau is prosecuting the federal case against Mr. Mullins.
The case was brought under Project Guardian, the Justice Department's signature initiative to reduce gun violence and enforce federal firearms laws.
Maine Man Pleads Guilty to Wire FraudRead the Press Release
CONCORD - David Keene, 38, of North Berwick, Maine pleaded guilty in federal court to wire fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, John Doe is a minor child known to Keene. In July 2020, Doe’s legal guardian reported to the Rochester Police Department that Keene had used Doe’s Social Security Number (“SSN”) to open many accounts and incur significant debt. Credit reports showed that the accounts were opened between December 2016, when Doe was seven years old, and August 2019, when Doe was ten years old. Documents and records showed that Keene used Doe’s SSN to acquire, among other things, utility services and several credit cards. Keene also used Doe’s SSN to obtain loans to purchase a snowmobile, motorcycle, and multiple cars. For example, one of the loans was for $56,648.50 to purchase a BMW SUV. Overall, Keene fraudulently obtained at least $227,828 in money and property that he was not entitled to receive.
Keene is scheduled to be sentenced on October 7, 2021.
“Those who misuse Social Security numbers to commit fraud are committing a serious federal crime,” said Acting U.S. Attorney Farley. “We work closely with our law enforcement partners to protect the integrity of the Social Security system and to identify and prosecute those who use other people’s identities to commit fraud. By coordinating with our law enforcement partners, we are holding criminals accountable for their conduct and obtaining justice for crime victims.”
“This guilty plea demonstrates our commitment to hold accountable those who intentionally misuse the Social Security numbers of others for their own personal gain,” said Jermaine Jack, Acting Special Agent-in-Charge of the Social Security Administration Office of the Inspector General, Boston Field Division. “I want to thank the Rochester and the Strafford Police Departments, and the Stafford County Attorney’s Office, as well as Special Assistant U.S. Attorney Alexander S. Chen for their efforts in investigating and prosecuting this case.
This matter was investigated by the Social Security Administration’s Office of the Inspector General, Rochester Police Department, and Strafford Police Department, with assistance from the Strafford County Attorney’s Office. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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Las Vegas Man Indicted for Distribution of Fentanyl Resulting in DeathRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man has been indicted by a federal grand jury for distributing fentanyl that caused the death of another person.
According to the indictment and allegations made at the initial court appearance, Gabriel Ulloa, 29, distributed fentanyl to the 27-year-old victim, who believed he was buying Oxycodone pills from Ulloa. The victim died as a result of ingesting the drugs.
Classified as a Schedule II controlled substance, fentanyl is a synthetic opioid drug that is approximately 80-100 times more potent than morphine and 50 times more potent than heroin. A few milligrams of fentanyl, which is equivalent to a few grains of table salt, may be deadly.
Ulloa is charged with one count of distribution of a controlled substance. Ulloa made his initial appearance on June 25, 2021 before U.S. Magistrate Judge Brenda Weksler, who scheduled a jury trial for August 23, 2021. If convicted, Ulloa faces a statutory minimum penalty of 20 years imprisonment, and a statutory maximum penalty of life imprisonment and a $10,000,000 fine.
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI), and Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration (DEA) made the announcement.
This case was investigated by the Las Vegas Metropolitan Police Department Major Violators Narcotics Crimes Bureau, Overdose Response Team, HSI, DEA, and the Henderson Police Department.
This case was part of the Southern Nevada’s High Intensity Drug Trafficking Areas program that enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
Assistant U.S. Attorney Kimberly Sokolich is prosecuting the case.
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Jury finds Webster aviation company liable for violating FAA regulationsRead the Press Release
HOUSTON – Ascent Aviation Solutions LLC and its owner have been ordered to pay nearly $240,000 in penalties for violating safety regulations, announced acting U.S. Attorney Jennifer B. Lowery.
Michael King had been operating the Webster-based company as a direct air carrier without the necessary Federal Aviation Administration (FAA) certification. A direct air carrier is one who provides, or offers to provide, air transportation and who maintains control over the operational functions performed in providing the transportation. In order to operate as a direct air carrier, one must hold an FAA-issued certificate after demonstrating they meet the requisite requirements.
The jury heard that Ascent used what is known in the industry as a “dry lease” to circumvent the FAA requirements for direct air carriers. Under such lease, the lessee simply leases the equipment and is responsible for all aspects of operational control of the plane.
Authorities learned of the illegal charter operation and checked one of the flights. At that time, they found evidence of a sham lease agreement between themselves and an unsuspecting third party.
That party did not have operational control of the plane. Testimony revealed he only paid Ascent to fly him from one city to another. The jury heard Ascent retained operational control of the aircraft meaning Ascent, not the passenger, handled all flight logistics including hiring the pilots.
Further investigation revealed King and Ascent had operated 14 unregulated charter flights which all had the potential to endanger public safety.
The jury ultimately found King and his company liable for violating 14 FAA regulations, including one for the careless and reckless operation of a plane. They were ordered to pay $239,872.
The FAA conducted the investigation. Assistant U.S. Attorneys Ariel N. Wiley, Julie Redlinger and Keith Wyatt represented the United States during the proceedings.
Jury convicts Westerville man of sexually exploiting a five-year oldRead the Press Release
COLUMBUS, Ohio – A United States District Court jury has convicted Christopher M. Sammons, 28, of four counts related to creating child pornography of his sexual abuse of a five-year old. Sammons faces at least 15 years in prison.
The jury reached the verdict late Friday, June 25 following a trial that began on June 21 before U.S. District Judge Sarah D. Morrison.
According to court documents and trial testimony, on March 11, 2019, an undercover FBI agent in Little Rock, Arkansas, received a message from Sammons regarding sexual interest in children.
Throughout their conversations, Sammons encouraged the undercover agent to “just make some homemade stuff” when discussing the availability of child pornography.
Sammons detailed sexually abusing a then five-year-old victim and also offered to “share her next time if you’re interested in a long-term thing.” Sammons sent the agent child pornography files and suggested plans for he and the agent to exchange videos of them sexually abusing minors.
Based on IP address information, the investigative lead was forwarded to FBI Columbus and a Task Force Officer here began communicating with Sammons. Sammons told the task force officer he had been sexually abusing the victim for a year.
The jury convicted Sammons of one count of sexually exploiting a minor (punishable by 15 to 30 years in prison), two counts of making a notice for child pornography (15 to 30 years in prison) and one count of distributing child pornography (five to 20 years in prison).
Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati District; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced today’s verdict. Senior Litigation Counsel Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Legal Director of Ohio Attorney General Dave Yost’s Human Trafficking Initiative, represented the United States in this case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Jury Convicts Georgia Resident on Dog Fighting ChargesRead the Press Release
WASHINGTON – A federal jury convicted a Georgia resident on federal charges stemming from violations of the Animal Welfare Act.
Kizzy Solomon, aka Kizzy Andrews, 44, of Camilla, was found guilty on June 22 of 15 counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture following a two-day trial that began on June 21 in federal court. Solomon is facing a maximum of five years in prison and a $250,000 fine per count and three years of supervised release.
Each defendant faces a maximum sentence of one to five years in prison and fines of $100,000 to $250,000, or both. Sentencing for certain defendants is scheduled for July 21-22 before U.S. District Judge Leslie Gardner. There is no parole in the federal system.
“The successful conclusion of this case highlights the division’s efforts to combat animal cruelty since we took responsibility for combating this vicious and cruel crime in 2014,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “We will continue to prosecute significant and major offenders to maximize the impact of these cases on this illegal industry.”
“Dog fighting is an atrocious crime that often serves as a breeding ground for other illegal behavior,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will vigorously prosecute individuals found abusing and using animals for illegal fighting and gambling. I want to thank the law enforcement agencies involved at the local and federal level for helping us obtain justice in this case, sending a message that dog fighting will not be tolerated in the Middle District of Georgia.”
“Individuals who support and facilitate the cold-hearted practice of dog fighting will face the fullest extent of criminal sanctions for their actions,” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our law enforcement partners to investigate and assist in the criminal prosecution of those who support the appalling abuse of these animals.”
According to court documents and evidence presented at trial, federal agents executed a search warrant at Solomon’s Camilla property on Sept. 12, 2018, seizing 27 pit bull-type dogs housed on chains, in poor living conditions. All but the puppies had scarring and injuries consistent with use in dog fighting. Agents also seized a large amount of dog fighting equipment in plain view throughout the primary living spaces of the house. Most notably, there was a large dog treadmill on which various dogs’ fighting histories, including whether they had perished during the fights, was written in print.
11 co-defendants previously entered guilty pleas to various offenses related to their participation in an animal fighting venture:
Leslie Meyers aka Les Meyers, 44, of Tallahassee, Florida;
Alonza Jordan, 48, of Americus, Georgia;
Germany Brockington aka Rat and Gator, 34, of Ambrose, Georgia;
Kevin Charles aka Trinidad, 45, of Jackson, Georgia;
Maurice Glover, 48, of Douglas, Georgia;
Orlando Johnson aka OJ and Juiceman, 35, of Americus, Georgia;
Shadon Johnson, 37, of Fitzgerald, Georgia;
Terry Driggers, 71, of Hoboken, Georgia;
Starlin Morgan, 39, of Plains, Georgia;
Kentre Gibson aka Gipp, 40, of Douglas, Georgia; and,
Timothy White, 51, of Patterson, Georgia.
Each defendant faces a maximum sentence of one to five years in prison and fines of $100,000 to $250,000, or both. Sentencing for certain defendants is scheduled for July 21-July 22 before U.S. District Judge Leslie Gardner. There is no parole in the federal system.
The case was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Sumter County Sheriff’s Office and Decatur County Animal Control.
Assistant U.S. Attorney Jim Crane for the Middle District of Georgia and Environment and Natural Resources Division Trial Attorney Ethan Eddy are prosecuting the case.
Jury Convicts Camilla, Georgia, Resident on Dog Fighting ChargesRead the Press Release
ALBANY, Ga. – A federal jury convicted a Camilla, Georgia, resident on federal charges stemming from violations of the Animal Welfare Act.
Kizzy Solomon, a/k/a Kizzy Andrews, 44, of Camilla, was found guilty on Tuesday, June 22 of 15 counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture following a two-day trial that began on Monday, June 21 in Albany federal court. Solomon is facing a maximum of five years in prison and a $250,000 fine per count, and three years of supervised release. Eleven co-defendants previously entered guilty pleas to various offenses related to their participation in an animal fighting venture:
Leslie Meyers aka Les Meyers, 44, of Tallahassee, Florida;
Alonza Jordan, 48, of Americus, Georgia;
Germany Brockington aka Rat and Gator, 34, of Ambrose, Georgia;
Kevin Charles aka Trinidad, 45, of Jackson, Georgia;
Maurice Glover, 48, of Douglas, Georgia;
Orlando Johnson aka OJ and Juiceman, 35, of Americus, Georgia;
Shadon Johnson, 37, of Fitzgerald, Georgia;
Terry Driggers, 71, of Hoboken, Georgia;
Starlin Morgan, 39, of Plains, Georgia;
Kentre Gibson aka Gipp, 40, of Douglas, Georgia; and,
Timothy White, 51, of Patterson, Georgia.
Each defendant faces a maximum sentence of one to five years in prison and fines of $100,000 to $250,000, or both. Sentencing for certain defendants is scheduled for July 21-22, 2021 before U.S. District Judge Leslie Gardner. There is no parole in the federal system.
“Dog fighting is an atrocious crime that often serves as a breeding ground for other illegal behavior. Our office will vigorously prosecute individuals found abusing and using animals for illegal fighting and gambling,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “I want to thank the law enforcement agencies involved at the local and federal level for helping us obtain justice in this case, sending a message that dog fighting will not be tolerated in the Middle District of Georgia.”
“The successful conclusion of this case highlights the Division’s efforts to combat animal cruelty since we took responsibility for combating this vicious and cruel crime in 2014,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “We will continue to prosecute significant and major offenders to maximize the impact of these cases on this illegal industry.”
“Individuals who support and facilitate the cold-hearted practice of dog fighting will face the fullest extent of criminal sanctions for their actions,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our law enforcement partners to investigate and assist in the criminal prosecution of those who support the appalling abuse of these animals.”
According to court documents and evidence presented at trial, federal agents executed a search warrant at Solomon’s Camilla property on September 12, 2018, seizing twenty-seven pit bull-type dogs housed on chains, in poor living conditions. All but the puppies had scarring and injuries consistent with use in dog fighting. Agents also seized a large amount of dog fighting equipment in plain view throughout the primary living spaces of the house. Most notably, there was a large dog treadmill on which various dogs’ fighting histories, including whether they had perished during the fights, was written in print.
The case was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Sumter County Sheriff’s Office and Decatur County Animal Control.
Assistant U.S. Attorney Jim Crane and Department of Justice Trial Attorney Ethan Eddy are prosecuting the case.
Iron Youth Member Sentenced to Federal Prison for Unlawfully Possessing a Machine GunRead the Press Release
SAN ANTONIO – A federal judge sentenced 19-year-old Iron Youth member and Smiley resident Caleb Nathaniel Oliver today to 18 months imprisonment for unlawfully possessing a machine gun.
In addition to the prison term, U.S. District Judge David A. Ezra ordered that Oliver be placed on supervised release for a period of three years after completing his prison term.
“The U.S. Attorney’s Office will continue to dedicate resources to the pursuit of those individuals who violate federal law by illegally possessing firearms, such as the machine gun in this case,” said U.S. Attorney Ashley C. Hoff. “I am proud of the collective efforts of our law enforcement partners who work so tirelessly to root out violent extremism and keep the public safe from harm.”
On March 18, 2021, Oliver pleaded guilty to the charge and admitted that he purchased a fully automatic machine gun from an undercover officer for $1,000 on February 5, 2021. Court documents reflect that Oliver is a member of the group called Iron Youth, a racially motivated violent extremist group that advocates violence in the furtherance of its objectives. Beginning in September 2020, Oliver had several meetings with undercover officers to discuss the purchase of the machine gun.
"Without the teamwork of the FBI Joint Terrorism Task Force and our local and state law enforcement partners in arresting this subject, we may have had yet another event of mass violence,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “The FBI is committed to doing everything we can to protect our community from violent extremists, regardless of ideology or motivation.”
The FBI conducted this investigation with assistance from the Wilson County Sheriff’s Office, Gonzales County Sheriff’s Office and Texas Rangers. Assistant U.S. Attorneys William R. Harris and Mark Roomberg prosecuted this case.
This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
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Huntington Man Sentenced to Six Years in Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Michael Stanley Wright, 34, of Huntington, was sentenced today to 72 months in federal prison for possession with intent to distribute methamphetamine and fentanyl.
According to court documents, on March 4, 2020, law enforcement officers searched Wright’s house located on Washington Avenue in Huntington and seized approximately 194.3 grams of methamphetamine mixture and approximately 4.7 grams of fentanyl. Wright also had methamphetamine and fentanyl on his person when he was searched following his arrest. In addition to the controlled substances, law enforcement officers also seized two firearms - a Colt, Model CF1911, .45 caliber pistol and a Taurus, “Judge” .45/.410 revolver – and approximately $5,536 in cash, which was money Wright had made from selling drugs. Wright admitted that he intended to sell the fentanyl and methamphetamine.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney Cremeans and Greg McVey handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00103.
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Huntington Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 30 months in prison for a federal drug crime. Aaron Howell, 46, previously pled guilty to possession with the intent to distribute heroin and methamphetamine.
According to court documents, Howell previously admitted that on November 12, 2020, he was being transported to the Huntington Police Department and removed heroin and methamphetamine from his person and left it in the back of the police cruiser.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00006.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Shawn E. Gilkerson, 40, of Huntington, pleaded guilty today to conspiracy to distribute heroin.
According to court documents, from at least December 2018, to on or about October 15, 2020, Gilkerson worked with other persons to sell heroin in Huntington. At first, Gilkerson and Lynndell Nicola Boling ran drugs to customers for their source of supply. Later, they began meeting a drug runner at the Greyhound bus station who was working for their source. The runner would provide them with approximately 500 grams to 800 grams of heroin to sell. Gilkerson and Boling received heroin in this manner several times. During a search of their residence, law enforcement officers seized over 300 grams of heroin and $17,960 in cash that was made from selling heroin. A Ruger 9-millimeter pistol seized during that search was used by Gilkerson to protect the heroin and drug proceeds. Boling pleaded guilty earlier this year and is awaiting sentencing.
Gilkerson faces a mandatory minimum sentence of 10 years and up to life in prison when he is sentenced on September 27, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00188.
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Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal drug charge.
According to court documents, on October 14, 2020, Cecil Monroe Bowman, 66, was pulled over by the West Virginia State Police. After giving Troopers consent to search his vehicle, Troopers found 23 grams of heroin under the driver’s seat. Bowman admitted he intended to sell the heroin.
Bowman pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on September 27, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00081.
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Houlton Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
BANGOR, Maine: A Houlton man pleaded guilty today in federal court in Bangor to conspiring to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately May 2018 and July 2018, Hayden Fogg, 34, was part of a drug distribution operation based out of Florida and operating in northern Maine. A co-conspirator obtained large quantities of methamphetamine from Florida and had it transported to Maine. Fogg sold the drug in the Houlton area while other members of the conspiracy sold it in Bangor and Howland.
Fogg faces up to 20 years in prison and a $1 million fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
Guatemalan Woman Sentenced for Document FraudRead the Press Release
A woman who used a false identification document and someone else’s name and social security number was sentenced today to five years of probation.
Xiomara Lopez-Martinez, age 26, a citizen of Guatemala illegally present in the United States and residing in Decorah, Iowa, received the sentence after an April 21, 2021 guilty plea to one count of unlawful use of an identification document.
In a plea agreement, Lopez-Martinez admitted she used someone else’s name and Social Security number, and also a fraudulent Social Security card, when she completed employment and tax forms in October 2017 and October 2018 at a business in Decorah. In September 2020, the victim of the identity theft from Texas contacted the Winneshiek County, Iowa, Sheriff’s Office and informed them that someone was using her name and Social Security number to work in Decorah and that the IRS had contacted her about paying back taxes on this employment. On December 2, 2020, immigration agents arrested Lopez-Martinez at her place of employment in Decorah where she initially identified herself to immigration agents using the victim’s name.
Lopez-Martinez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lopez-Martinez was sentenced to five years of probation.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Homeland Security Investigations, and the Winneshiek County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2002.
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Former Waterloo Medicaid Provider Sentenced to More than Five Years in Federal Prison for Defrauding Elderly VictimRead the Press Release
A Waterloo woman who used a power of attorney to defraud a disabled elderly widow of nearly $500,000 was sentenced on June 25, 2021, to more than five years in federal prison. Kimberly Ann Henny, age 54, received the prison term after an August 5, 2020 guilty plea to one count of wire fraud.
Evidence presented at Henny’s sentencing showed that Henny operated Healing Harvest Ministries (“HHM”) in the Waterloo/Cedar Falls area. HHM was a charitable and religious organization that provided services to Medicaid recipients. In 2014, however, the Iowa Medicaid program discovered that HHM lacked required accreditation, suspended HHM, and ordered Henny to repay over $200,000 in Medicaid moneys. An FBI agent testified at Henny’s sentencing hearing about other irregularities at HHM, including alleged “exorcisms” performed on clients and failures to pay wages and withhold taxes.
Henny admitted that, between 2014 and 2016, she stole $494,724.12 from her victim, an elderly widow who lived in an assisted living facility and later a nursing home. Henny’s victim had dementia, was legally blind, and had difficulty hearing. United States District Court Judge C.J. Williams, who sentenced Henny, observed at Henny’s sentencing that Henny’s victim was “highly vulnerable” and perhaps one of the most vulnerable victims he had seen in a case.
As part of her fraud scheme, Henny used a power of attorney to gain access to her victim’s bank accounts and annuities. The victim already had a power of attorney in favor of one of the victim’s children, who lived out of state. In 2015, however, knowing that the victim clearly lacked the capacity to understand her actions due to severe cognitive and physical disabilities, Henny obtained a power of attorney over her victim’s finances. Henny then began transferring and spending the victim’s funds for her own purposes. The power of attorney form required Henny to act loyally for the victim’s benefit and not to make any gifts to herself, but Henny used the power attorney to drain her victim’s accounts and cash out her annuities, and then to make purchases for Henny’s own benefit, including a vacation, hair and spa expenses, and for rent and furniture.
In November 2018, state authorities arrested Henny on related criminal charges. The next month, Henny entered into a stipulation in a divorce proceeding, which Judge Williams found was a “sham divorce,” that awarded Henny $90,000 in retirement benefits. Over a four-month period in 2019, Henny transferred the $90,000 to other accounts she controlled, including a prepaid debit card, and then spent the funds. In addition, after she pled guilty in federal court, Henny understated to the probation office certain COVID-19 related unemployment benefits she was receiving from the government.
Henny was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Henny was sentenced to 70 months’ imprisonment. She was ordered to make $494,724.12 in restitution to her victim’s children. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Henny was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
In 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation, the Iowa Medicaid Fraud Control Unit, and the Waterloo Police Department. The United States Department of Labor, Office of Inspector General, assisted the investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2035.
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Former Member of Baltimore’s Safe Streets Program Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland –Ronald Alexander, age 50 of Baltimore, pleaded guilty today to conspiracy to distribute fentanyl, heroin, and powder and crack cocaine. While he was participating in the narcotics conspiracy, Alexander was employed by “Safe Streets,” an organization whose purpose is to reduce violence and crime in Baltimore through intervention. While he was engaged in the distribution of fentanyl and other dangerous narcotics, Alexander used his affiliation with Safe Streets to evade law enforcement in Baltimore, including on one occasion to avoid arrest when police seized from him a large quantity of fentanyl.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Alexander’s plea agreement, law enforcement obtained judicial authorization to intercept communications to and from cellular telephones used by Alexander from May through July 23, 2020. Alexander’s conversations revealed that he operated a “drug shop” in the vicinity of Spaulding Avenue and Palmer Avenue in Northwest Baltimore. Alexander and co-defendant Thomas Corey Crosby corresponded every week or two concerning the sale of narcotics, including heroin and fentanyl. After these conversations, which were often very brief, the pair would meet. Most meetings took place at a gas station located at the intersection of Druid Park Avenue and Liberty Heights in Baltimore, where Crosby supplied drugs to Alexander. Investigators conducted surveillance of many of these meetings and obtained surveillance video from the gas station.
“Ronald Alexander was an armed drug dealer who sold fentanyl and other dangerous drugs here in Baltimore,” said Acting U.S. Attorney Jonathan F. Lenzner. “Moreover, he shamefully used his employment with Safe Streets to evade law enforcement and avoid arrest when caught with fentanyl. Community outreach programs play an important role in deterring youth from a life of crime. Alexander had the opportunity to uplift his community but instead chose to pollute it with deadly narcotics that he sold to benefit only himself.”
As detailed in his plea agreement, on August 5, 2020, a Baltimore Police officer conducted a traffic stop of Alexander after Alexander rolled through a stop sign. During the encounter, Alexander used his affiliation with Safe Streets and the Baltimore City Mayor’s Office to try to deter further police investigation. Alexander called an associate afterwards, and said, “Yeah. Police hopped on me. Told me to get off the phone. You know they scared, you know they scared of the Mayor Office, I said man I work for Safe Streets from the Mayor Office. I was just coming from one of my participant house, in need with this, it was in need of food due to the pandemic. He say oh, ok ok.”
On August 9, 2020, Alexander received a call from Crosby arranging to meet at the gas station. At the gas station, Crosby was seen entering Alexander’s vehicle and the two had a brief conversation. Crosby then placed an item in the center console area of Alexander’s vehicle and then got out of the car. Alexander pulled away from the gas station and investigators performed a traffic stop and searched Alexander’s vehicle, recovering what was later determined to be 100 grams of fentanyl from a bag found in the center console. Alexander again informed law enforcement that he worked for Safe Streets and provided law enforcement with a letter from the Baltimore City Mayor’s Office. When asked about the bag in the center console, Alexander stated that he had taken the drugs from a member of the community as part of his work with the Safe Streets program in an attempt to prevent crime. According to court documents, law enforcement seized the drugs, but permitted Alexander to leave without being arrested. After the traffic stop, Alexander called Crosby and they met again at the same gas station. After the meeting, Crosby disposed of his cell phone, which investigators had obtained authorization to intercept and track.
On August 14, 2020, search warrants were executed at locations related to the investigation, including Alexander’s residence in the 1200 block of North Augusta Avenue and a second residence where Alexander sometimes stayed in the unit block of North Culver Street, both in Baltimore. Alexander was located at his residence. There, law enforcement seized a 9mm semi-automatic pistol and six cartridges of ammunition, a digital scale and drug packaging material, suspected cutting agents, and Safe Streets apparel. At the residence on North Culver Street, investigators located 80 grams of a heroin and fentanyl mixture, more than 100 grams of powdered caffeine, and a digital scale.
Alexander was prohibited from possessing a firearm and ammunition as the result of a 2001 conviction in the United States District Court for the District of Maryland for conspiracy to distribute and possess with intent to distribute heroin. Alexander was sentenced to 20 years in federal prison in that case and was released from the Bureau of Prisons in approximately May 2018.
Thomas Corey Crosby, age 51, of Woodlawn, Maryland, previously pleaded and was sentenced to 10 years in federal prison, for conspiracy to distribute controlled substances, specifically, 40 grams or more of fentanyl. Judge Russell also ordered Crosby to forfeit $134,499 in cash, seized during a search of his residence on August 14, 2020.
Alexander and the government have agreed that, if the Court accepts the plea, Alexander will be sentenced to between 11 and 13 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for September 17, 2021 at 11 a.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta and Daniel A. Loveland, Jr., who are prosecuting the case.
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Florida man admits to fraud charge involving nearly $5 millionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Phillip W. Conley, of Jacksonville, Florida, has admitted to a fraud charge, Acting U.S. Attorney Randolph J. Bernard announced.
Conley, 38, pleaded guilty to one count of “Securities Fraud.” Conley admitted to scheming approximately 18 individuals in excess of $5 million from 2014 to 2019. The victims were from all over the United States, including West Virginia and Maryland.
Conley operated a company by the name of Alpax, LLC, portraying himself as an investment advisor living and working out of Morgantown and Kingwood, West Virginia, Washington, D.C., and Virginia. He developed a scheme to defraud investors by convincing the victims to give him and his companies money for him to invest for returns for the victims. He gave the victims a false sense of security by mailing them false dividend statements, claiming a positive rate of return for their investments. Conley fraudulently obtained approximately $5.2 million dollars from 18 victims, but invested little or none of that money and spent much of it on private jet flights, expensive meals, clothes, jewelry, housing and living expenses for himself, returning only about $210,000 to the victims.
Conley faces up to 20 years of incarceration and a fine of up to $5 million. 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.
As a part of the plea agreement, Conley agreed to the forfeiture of any property purchased from the proceeds of the crimes, including a money judgment of $4,868,744.60.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Five More Defendants Plead Guilty in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS –U.S. Attorney Duane A. Evans announced additional guilty pleas related to a test score-fixing scheme at a United States Coast Guard exam center, bringing the total number of defendants convicted in this matter to 26.
On June 10, 2021, maritime industry worker ALONZO WILLAIMS pleaded guilty to conspiracy to defraud the United States. In a factual basis filed into the record, WILLIAMS admitted that he acted as an intermediary in the scheme to bribe a Coast Guard employee to enter false scores for another mariner. WILLIAMS also acknowledged that he had his own exam scores fixed.
Additionally, on June 24, 2021, ALEXIA LOVETT, FREDRICK NETTLES, STINSON PAYNE, and SHUNMANIQUE WILLIS each admitted to participating in the scheme by using false exam scores to obtain unearned licenses.
The exams at issue tested mariners’ knowledge and training to safely operate under the authority of merchant mariner licenses, which were legally required to work various positions on vessels. As alleged in the indictment, Coast Guard credentialing specialist DOROTHY SMITH entered the false scores in this scheme. The indictment alleges that SMITH accepted bribes and used a network of intermediaries. U.S. Attorney Evans reiterated that the indictment’s allegations against SMITH are merely charges and her guilt must be proven beyond a reasonable doubt.
The Honorable Barry W. Ashe presided over the guilty pleas and set sentencing dates of September and October 2021. The maximum penalty for each defendant is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the United States Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
Felon Pleads Guilty to Possession of Ghost Guns and Conspiracy to Commit Wire FraudRead the Press Release
Greenbelt, Maryland – Anthony Pelt, age 53, of Oxon Hill, Maryland, pleaded guilty today to conspiracy to commit wire fraud as well as being a felon in possession of a firearm and ammunition.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his plea agreement between March 2018 and July 2019, Pelt and a co-conspirator obtained the names, addresses, and bank information of over ten victim retailers to manufacture fraudulent checks in the names of the victim retailers.
As part of the scheme to defraud, Pelt and a co-conspirator returned merchandise for cash after purchasing items with bogus drivers’ licenses and fraudulently manufactured checks.
Over the course of the conspiracy, Pelt and his co-conspirator made over 75 transactions and caused a loss of over $224,000 in losses to victim retailers. Pelt obtained at least $154,000 as part of the conspiracy.
As stated in the plea agreement, on February 22, 2019, law enforcement officers executed a search warrant at Pelt’s residence and a storage unit controlled by Pelt in Oxon Hill, Maryland. Officers recovered Pelt’s cell phone, a machine used to create fraudulent checks, several receipts, stock checks, as well as a large cache of items purchased from victim retailers. Law enforcement seized over 67 items from Pelt’s Oxon Hill, Maryland storage facility including 18 cases of vinyl flooring, 39 white arabesque polished marble floor and wall tiles, eight cases of carpet tile, various home improvement items, and checks used at victim retail stores.
Law enforcement also seized two ghost guns from Pelt’s possession (firearms lacking a known manufacturer and serial number), an AR-style .223 caliber rifle and a 9mm handgun. Additionally, officers found Pelt in possession of one 8-round 9mm magazine, one 30-round 5.56X45 magazine, approximately 117 rounds of 9mm ammunition, and approximately 241 rounds of 5.56X45 ammunition. Prior to February 22, 2019, Pelt was previously convicted of a crime punishable by imprisonment for a term exceeding one year, and his civil rights had not been restored.
Officers also matched several of Pelt’s clothing items to the clothing seen in surveillance footage during the fraudulent transactions.
A subsequent forensic review of Pelt’s cell phone revealed evidence of check fraud including photographs of checks, account numbers, and routing numbers that were used to make transactions at victim retail stores.
As part of his plea agreement, Pelt will be required to pay $224,000 in restitution.
Pelt faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a maximum of 10 years in prison followed by three years of supervised release for being a felon in possession of a firearm. U.S. District Judge George J. Hazel has scheduled sentencing for September 20, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and the Maryland State Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dwight Draughon and Erin B. Pulice who are prosecuting the case.
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Federal Grand Jury B Indictments Announced – JuneRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the June 2021 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Rocky Carmello Breck. Kidnapping in Indian Country (Count 1), Obstruction of Justice by Threatening Physical Force Against a Witness (Count 2), Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 3), Carrying, using, and brandishing a firearm during and in relation to a crime of violence (Count 4), Witness tampering (Count 5 – 9). Breck, 25, of Broken Arrow, allegedly attempted to kidnap a female victim on June 6, 2021. He furthered brandished a firearm and used it to assault the victim by hitting her in the head. Breck reportedly used physical force or the threat of physical force against the victim to prevent communication to law enforcement. Breck is a citizen of the Muscogee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The FBI and Broken Arrow Police Department are the investigative agencies.
Jarrett Brooks. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Brooks, 25, of Tulsa, faces federal charges after using a loaded firearm to strike a male victim across the jaw on May 21,2021. This crime occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.
Ethan Michael Ciccone. Aggravated Sexual Abuse by Force and Threat in Indian Country (Count 1) and First Degree Burglary in Indian Country (Count 2). Ciccone, 25, of Vinita, allegedly broke into the house of a female victim on June 7, 2021. Upon entering the house, he engaged in sexual acts using force and threatening the victim. Ciccone is a citizen of the Cherokee Nation, and the alleged crime occurred within the Cherokee Nation Reservation. The FBI and Vinita Police Department are the investigative agencies.
Jason Sun Bear Costes. Assault with Intent to Commit Murder in Indian Country (Count 1), Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 2), and Robbery in Indian Country (Count 3). Costes, 21, of Sand Springs, faces federal charges after using an axe to assault a male victim on July 2, 2016. He is further alleged to have taken an automobile, wallet, and credit card by force after the axe attack. Costes is a citizen of the Cheyenne River Sioux Tribe, and the alleged crime occurred within the Muscogee Nation Reservation. Costes committed the crime as a juvenile. The FBI and Sand Springs Police Department are the investigative agencies.
Brittiny Linn Dick. Sexual Exploitation of a Child (Count 1); Attempted Coercion and Enticement of a Minor (Count 2). On May 7, 2012, Dick, 30, of Vinita, is alleged to have enticed and coerced a young child to engage in sexually explicit conduct for the purpose of producing child sexual abuse material, also known as child pornography. The alleged crimes occurred within the Cherokee Reservation. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
Jason Lenn Dufoe. First Degree Burglary in Indian Country. Dufoe, 42, of Bartlesville, broke into a home by opening a door and window to enter. It is alleged Dufoe had the intent to commit crime. Dufoe is a non-Indian, and the crime occurred within the Cherokee Nation Reservation. The FBI and Bartlesville Police Department are the investigative agencies.
Gabriel Escobedo-Escalera. Unlawful Reentry of a Removed Alien. Ebscobedo-Escalera, 22, an alien, was founded in the United States after deportation from Paso Del Norte, Texas, on August 17, 2019. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation.
Christopher W. Harjo. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Harjo, 24, of Tulsa, is charged with assaulting a victim by stabbing him with a sharp object. Harjo is a citizen of the Muscogee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.
Zachary Ray Harris. Arson in Indian Country. Harris, 27, faces federal charges after reportedly set a building on fire in Tulsa on May 30, 2021. Harris is a citizen of the Cherokee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The Tulsa Fire Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Allan Michael Hunter. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1); Possession of a Firearm with an Obliterated Serial Number (Count 2). Hunter, 30, allegedly assaulted an individual by pointing a firearm at the victim on June 21, 2021. Additionally, Hunter possessed a Jiminez Arms 9mm semi-automatic pistol with an altered and obliterated serial number. The defendant is a citizen of the Chickasaw Nation, and the alleged crime occurred within the Muscogee Nation. The Bureau of Alcohol, Tobacco, Firearms and Explosive and the Tulsa Police Department are the investigative agencies.
Zatayvia Johnson. Assault with Intent to Commit Murder in Indian Country. Johnson, 19, of Tulsa, faces federal charges for shooting a victim with a firearm with intent to commit murder on March 31, 2021. The defendant is non-Indian, and the alleged crime occurred within the Muscogee Nation Reservation. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies.
Johnie Bernell Looney. Kidnapping in Indian Country (Count 1) and Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country (Count 2). Looney, 41, of Tulsa, unlawfully seized and kidnapped a female victim, his former intimate partner, on May 16, 2021. He is further charged with assaulting the female victim by strangulation. Looney is a citizen of the Cherokee Nation, and the alleged crime occurred within the Cherokee Nation Reservation. The FBI and Tulsa Police Department conducted the investigation.
Darian Resean Morris. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1) and Kidnapping in Indian Country (Count 2). Morris, 27, of Tulsa, faces charges after unlawfully seizing and kidnapped a Muscogee female victim on June 3, 2021. He reportedly used a knife to cause bodily harm and admitted his intent to kill her. Morris is non-Indian, and the alleged crime occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.
Earl Hardy Morrow and Kory Edwin Morrow. Distribution and Receipt of Child Pornography.(Counts 1 and 2); Possession of Child Pornography (Count 3) (superseding). From Feb. 20 to Feb. 27, 2020, Early Morrow, 39, of Broken Arrow, allegedly distributed and received child sexual abuse material. From Nov. 5, 2019 to Feb. 27, 2020, Kory Morrow, 41, of Broken Arrow, allegedly distributed and received child sexual abuse material. Both men are also charged with possessing child sexual abuse material, including images involving at least one prepubescent minor and a minor who had not attained 12 years of age from Nov. 5, 2019 to Feb. 27, 2020. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies.
David Mitchell Myall. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. Myall, 40, of Salina, is charged with assaulting a victim with a knife on May 21, 2021. Mitchell is non-Indian, and the alleged crimes occurred on the Cherokee Nation Reservation. The FBI and Salina Police Department are the investigative agencies.
Roberto Carlos Rosales-Rojas. Unlawful Reentry of Removed Alien. Rosales-Rojas, 32, was found in the United States after having been deported on Nov. 6, 2012, near Calexico, California. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and Tulsa Police Department is the investigative agency.
Chloe Louise Stith; David William Morris; Breanna Lynn Sloan; Morgan Lee Bowman; Sarah Michelle Humbard; Megan Louise Detherage; Ariel Sue Paige Divine. Tampering with a Witness, Victim, and Informant Conspiracy (Count 1);Tampering with a Witness, Victim, and Informant by Threatening Physical Force (Counts 2-6); Tampering with a Witness, Victim, and Informant by Use of Physical Force (Counts 7-10); Tampering with Documents and Proceedings by Corruptly Altering, Destroying, Mutilating, and Concealing a Record, Document, and Other Object (Count 11) (second superseding). The defendants all reside in Missouri. Stith, 21, of Carthage; Morris, 33; Sloan, 22, of Joplin; Bowman, 25; Humbard, 24, of Joplin; Detherage, 27, of Joplin; and Divine, 29, of Webb City, are charged with conspiring with one another and others to tamper with witnesses/informants by threatening the use force and actually using force (assault and kidnapping) to prevent those individuals from communicating with law enforcement officials about the murder of Jolene Campbell Walker, a citizen of the Osage Nation. Ms. Walker was initially reported missing, and on July 15, 2020, her remains were discovered in Mayes County within the Muscogee Nation Reservation. Several defendants also allegedly altered and destroyed evidence with the intent to impair its integrity and availability for use in an official proceeding. The defendants carried out their conspiracy from July 5, 2020 through the date of the superseding indictment, June 23, 2021. The indictment goes on to charge defendants with specific offenses each carried out as part of the conspiracy. The FBI, Muscogee Creek Nation Lighthorse Police Department are the investigative agencies.
Kailee Sweezy. Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country. Sweezy, 20, of Bartlesville, is charged with strangling and attempting to strangle an intimate partner on June 9, 2021. Sweezy is a non-Indian, and the alleged crime occurred within the Cherokee Nation Reservation. The FBI and Bartlesville Police Department are the investigative agencies.
Wayne Harley White. Sexual Abuse of a Minor in Indian Country (Count 1); Abusive Sexual Contact with a Minor in Indian Country (Count 2). Between January 15, 2011 and April 3, 2012, White, 56, allegedly sexually abused a victim between the ages of 12 and 16 years of age. White is non-Indian, and the alleged crimes were committed within the Cherokee Nation Reservation. The FBI and Delaware County Sheriff’s Office are the investigative agencies.
Eleven Members of the Pagan’s Motorcycle Club Charged with Narcotics Distribution, Firearms Offenses, and Violent Crimes in Aid of RacketeeringRead the Press Release
NEWARK, N.J. – Two high-ranking members of the Pagan’s Motorcycle Club were arrested today for assault in aid of racketeering, Acting U.S. Attorney Rachael A. Honig announced.
Luis Arocho, aka “LuRoc,” 43, of Keansburg, New Jersey, and Maurice Guzman, aka “Dawg,” 51, of Newark, are charged by complaint with one count of aggravated assault in aid of racketeering. They are scheduled to appear by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre.
“Today’s arrests are the latest in a long-running investigation into the illegal activities of the Pagan’s Motorcycle Club,” Acting U.S. Attorney Honig said. “We have now charged 11 members of this outlaw gang with various weapons, drug-trafficking and violent crimes. Together with our federal, state, and local partners, we remain fully committed to combatting violent crime in New Jersey and prosecuting the members of the criminal organizations who are responsible for it.”
“This investigation has dealt a significant blow to the Pagans motorcycle gang,” Special Agent in Charge of the DEA’s New Jersey Division Susan A. Gibson said. “The use of violence, weapons, and intimidation was standard for this criminal organization, and law enforcement made it clear that their behavior would not be tolerated. It is a bad day for the Pagans when the combined forces of DEA, ATF, New Jersey State Police and Union County detectives come after you. These arrests made New Jersey safer and this investigation demonstrated the determination of DEA and our amazing partners to pursue the most violent criminal gangs who choose to violate the law.”
“I can say without question that our collective efforts have disrupted and dismantled the daily illegal activities of the Pagans outlaw motorcycle gang, by strategically removing their most violent and most egregious firearm and drug trafficking members and associates,” ATF Newark Field Division Acting Special Agent in Charge Toby C. Taylor said. “This collaborative investigation will undoubtedly make communities safer throughout our state and beyond.”
“The success and scale of this investigation is a testament to the impact a collaboration between law enforcement agencies can have on the safety and security of our communities,” Acting Union County Prosecutor Lyndsay V. Ruotolo said. “Thanks to the hard work and dedication of investigators and prosecutors in this long-term effort, which occurred during the height of the COVID-19 pandemic, dangerous actors, along with mass quantities of narcotics and firearms, have been removed from our streets.”
“Long-term operations of this magnitude require a tremendous amount of work and patience by cooperating detectives, and while the full scope and impact of this investigation may yet be fully realized, its success continues a year after it began,” Col. Patrick J. Callahan, Superintendent of the New Jersey State Police, said. “I commend the hard work and dedication of all the agencies involved. Their efforts have led to the arrests of violent offenders and the seizure of weapons and drugs, which has undoubtedly made our communities safer.”
According to documents filed in these cases and statements made in court:
On April 24, 2018, Arocho, Guzman, and other associates of the Pagans assaulted an associate of the Hells Angels Motorcycle Club at a gas station in Newark. The Pagans and the Hells Angels have a long-standing rivalry. The victim was beaten with an axe handle, punched, and kicked by the Pagans assailants, resulting in significant injuries. Both Arocho and Guzman are high-ranking leaders in the Pagans’ organization.
Acting U.S. Attorney Honig also announced that a federal grand jury returned an indictment today charging Nicholas Bucciarelli, aka “Booch,” 56, of Brooklawn, New Jersey, with aggravated assault in aid of racketeering, brandishing a firearm in furtherance of a crime of violence, and possession of firearms by a convicted felon, arising from his commission of a gang-related gunpoint assault in which an associate of the Pagans was assaulted for breaking the organization’s rules. Nicholas Marino, aka “Lefty,” 75, of Williamstown, New Jersey, Anthony D’Alessandro, aka “Fugit,” 55, of Williamstown, New Jersey, and Michael Dorazo, aka “Cage,” 42, of Gloucester City, New Jersey, were previously charged by federal criminal complaint for their roles in the assault. At the time of their arrests, Bucciarelli was the sergeant at arms for the Pagans’ Camden County membership chapter, Marino and D’Alessandro served as the president and sergeant at arms, respectively, for the Pagans’ Gloucester County membership chapter, and Dorazo was a member of the Pagans. Bucciarelli was also indicted for distributing five grams or more of methamphetamine.
These charges were filed as part of a multi-agency investigation into the Pagan’s Motorcycle Club – an outlaw motorcycle gang known to engage in illegal activity, including narcotics trafficking, weapons trafficking, and violent crimes. The Pagans have established membership chapters in numerous states and U.S. territories, including multiple active chapters in New Jersey. This investigation involved court-authorized wiretaps, the use of multiple undercover law enforcement agents, and execution of multiple search warrants at physical locations in multiple jurisdictions. Through the investigation, law enforcement seized 10 firearms and more than 800 grams of methamphetamine.
The U.S. Attorney’s Office previously announced the arrest of Keith Richter, aka “Conan” – the national president of the Pagans – in connection with his illegal possession of a firearm on Feb. 20, 2021. Those charges remain pending.
Law enforcement officials also previously arrested the following individuals in connection with the investigation. (Each of the defendants is charged by federal criminal complaint; the specific charges and corresponding penalties are listed in the chart below.)
Larry Ortiz, aka “Savage,” 31, of Elizabeth, New Jersey, and Junius Aquino, aka “Jayo,” 38, of Vauxhall, New Jersey, were charged with aggravated assault in aid of racketeering and discharging a firearm in furtherance of a crime of violence for their roles in a gang-related shooting. On Oct. 28, 2020, Ortiz and Aquino shot at an associate of a rival gang while driving on the New Jersey Turnpike. The shooting was committed as part of an ongoing dispute between the Pagans and the Hells Angels Motorcycle Club.
Aquino was also charged in a separate criminal complaint with possession of ammunition by a convicted felon in connection with a shooting that occurred three days later. On Oct. 31, 2020, Aquino shot at an occupied vehicle in Elizabeth. Law enforcement officers recovered seven .40 caliber shell casings from the shooting scene. On Nov. 5, 2020, law enforcement executed a search warrant at Aquino’s residence and recovered, among other items, multiple .40 caliber rounds of ammunition and approximately 50 grams of cocaine. After law enforcement officers recovered the cocaine from Aquino’s residence, Aquino was charged with possession with intent to distribute cocaine. At the time of Aquino’s arrest, he was the vice president of the Pagans’ Elizabeth membership chapter.
Ortiz was also charged with possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On Nov. 17, 2020, law enforcement officers executed a search warrant at Ortiz’s residence and recovered approximately 300 grams of methamphetamine and a loaded firearm. At the time of his arrest, Ortiz was the president of the Pagans’ Jersey City membership chapter.
Daniel Hooban, aka “Jersey,” 33, of Bayonne, New Jersey, was charged with possession of a firearm by a convicted felon; possession with intent to distribute a quantity of cocaine; and possession of a firearm in furtherance of a drug trafficking crime. On June 29, 2020, law enforcement officers executed a search warrant at Hooban’s residence and recovered approximately 30 grams of cocaine and a loaded firearm. At the time of Hooban’s arrest, he was the sergeant at arms for the Pagans’ Jersey City membership chapter.
Glen Turner, aka “Glenny,” 73, of Marcus Hook, Pennsylvania, was charged with possession with intent to distribute 50 grams or more of methamphetamine. Turner is a long-time member of the Pagans. On Dec. 10, 2020, law enforcement officers executed a search warrant at Turner’s residence and recovered approximately 450 grams of methamphetamine.
Acting U.S. Attorney Honig credited a joint task force comprised of special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Gibson; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Taylor; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Ruotolo; and the New Jersey State Police, under the direction of Col. Callahan, with the investigation leading to these charges.
Acting U.S. Attorney Honig also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr.; the Suffolk County District Attorney’s Office, under the direction of District Attorney Timothy D. Sini; the Elizabeth Police Department, under the direction of Chief Giacomo Sacca; special agents of the FBI Cherry Hill Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; and the West Deptford Police Department, under the direction of Chief John Chambers, for their assistance with this investigation.
These cases are 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 government is represented by Assistant U.S. Attorneys Robert Frazer, R. Joseph Gribko, and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the complaints and indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
21-288 ###
Defendant/Docket Number
Position
Charges
Penalties
Keith Richter,
aka “Conan”
Mag. No. 21-10099
National President
Possession of a firearm by a convicted felon
10 year statutory maximum
Luis Arocho
aka “LuRoc”
Mag. No. 21-9365
Mother Club Member, New Jersey
Aggravated assault in aid of racketeering
20 year statutory maximum
Maurice Guzman
aka “Dawg”
Mag. No. 21-9365
President of Presidents, New Jersey
Aggravated assault in aid of racketeering
20 year statutory maximum
Larry Ortiz,
aka “Savage”
Mag. Nos. 20-8455, 21-9041
President, Jersey City Chapter
Discharging a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering;
Possession with intent to distribute 50 grams or more of methamphetamine;
Possession of a firearm in furtherance of a drug trafficking crime
10 year mandatory minimum; up to life
20 year statutory maximum
10 year mandatory minimum; up to life
5 year mandatory minimum; up to life
Junius Aquino,
aka “Jayo”
Mag. Nos. 20-1188, 21-9041
Vice president, Elizabeth Chapter
Discharging a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering;
Possession with intent to distribute cocaine;
Possession of ammunition by a convicted felon;
10 year mandatory minimum; up to life
20 year statutory maximum
20 year statutory maximum
10 year statutory maximum
Daniel Hooban,
aka “Jersey”
Mag. No. 20-9262
Sergeant at arms, Jersey City Chapter
Possession of a firearm in furtherance of a drug trafficking crime
Possession with intent to distribute cocaine;
Possession of a firearm by a convicted felon;
5 year mandatory minimum; up to life
20 year statutory maximum
10 year statutory maximum
Nicholas Marino,
aka “Lefty”
Mag. No. 20-12328
President, Gloucester County Chapter
Brandishing a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering
7 year mandatory minimum; up to life
20 year statutory maximum
Anthony D’Alessandro,
aka “Fugit”
Mag. No. 20-12328
Sergeant at arms, Gloucester County Chapter
Brandishing a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering
7 year mandatory minimum; up to life
20 year statutory maximum
Nicholas Bucciarelli,
aka “Booch”
TBD
Sergeant at arms, Camden County Chapter
Brandishing a firearm in furtherance of a crime of violence;
Assault with a dangerous weapon in aid of racketeering;
Possession of firearms by a convicted felon
Possession with intent to distribute 5 grams or more of methamphetamine
7 year mandatory minimum; up to life
20 year statutory maximum
10 year statutory maximum
5 year mandatory minimum; up to 40 years
Michael Dorazo,
aka “Cage”
Mag. No. 20-12328
Member
Possession of firearms by a convicted felon
10 year statutory maximum
Glen Turner,
aka “Glenny”
Mag. No. 20-13551
Member
Possession with intent to distribute 50 grams or more of methamphetamine
10 year mandatory minimum; up to life
Eau Claire Man Sentenced to 10 Years for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Zachary Tepsa, 33, Eau Claire, Wisconsin was sentenced on Friday, June 25 by Chief U.S. District Judge James D. Peterson to 10 years in federal prison for distributing 5 grams or more of methamphetamine. This prison term will be followed by 4 years of supervised release. Tepsa pleaded guilty to this charge on January 27, 2021.
On March 12, 2019, officers with the West Central Drug Task Force purchased 12.9 grams of pure methamphetamine from Tepsa through a confidential informant in Eau Claire. At the time, Tepsa was on state supervision for a prior conviction for delivery of methamphetamine. Through further investigation, law enforcement discovered that Tepsa was involved in extensive methamphetamine trafficking in western Wisconsin.
In imposing the sentence and discussing the severity of Tepsa’s drug trafficking, Judge Peterson said that Tepsa was a significant player and had people dealing underneath him. Additionally, Judge Peterson emphasized the need to protect the community from Tepsa’s drug dealing.
Tepsa is currently serving two state prison sentences for delivering methamphetamine and for fleeing or eluding an officer in a vehicle, with a projected release date in May 2023. Judge Peterson ordered this federal sentence to run concurrently with those state prison sentences.
The charge against Tepsa was the result of an investigation conducted by the West Central Drug Task Force, Chippewa and Eau Claire County Sheriff’s Departments, Eau Claire Police Department, Eau Claire District Attorney’s Office, and the Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Steven P. Anderson.
East St. Louis Woman Charged in $800,000 Unemployment Insurance ScamRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury in East St. Louis, Illinois, has returned a 7-count indictment charging Talfanita M. Cobb, 49, of East St. Louis, with participating in a scheme that fraudulently obtained more than $800,000 in unemployment insurance benefits from three states. The indictment charges Cobb with conspiracy, mail fraud, and aggravated identity theft. Some of the money allegedly came from federal pandemic unemployment compensation funds.
“The COVID-19 pandemic has caused tremendous pain and suffering in our country,” said
U.S. Attorney Steven D. Weinhoeft. “So many Americans have lost their lives, and many thousands more face severe economic hardship after losing their jobs. For those most affected, the federal government has approved special funds. It is reprehensible that unscrupulous individuals would take advantage of these new programs to line their own pockets. These individuals should take note: we will investigate and prosecute them to the fullest extent of the law.”According to the indictment, Cobb’s co-conspirators used stolen identities to apply for unemployment insurance benefits in Arizona, Ohio, and Texas. Each application allegedly listed
Cobb’s address in East St. Louis as the address of the applicant. The applications were approved, and unemployment benefits were issued to the individuals whose names and identities had been stolen. Some of the funds were allegedly deposited directly into a bank account controlled by Cobb.
After a short time, however, the co-conspirators were able to acquire debit cards, which the states issued in the names of the identity theft victims and allegedly mailed to Cobb in
East St. Louis.The indictment alleges that, after she received the unemployment debit cards in the mail, Cobb went to various ATMs in the Metro East and withdrew funds from the cards. She is accused of transferring some of the funds to a co-conspirator using Bitcoin and keeping a percentage of the money for herself.
Inspector in Charge William Hedrick of the United States Postal Inspection Service’s
Chicago Division stated, “Individuals who use the U.S. Mail to steal public benefit money designated for citizens suffering unemployment as a result of a pandemic must be held accountable. The Postal Inspection Service and its law enforcement partners are committed to investigating and prosecuting those who wish to exploit relief funding for their own personal benefit.”An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Defendant Sentenced for Mail Theft and Possession of Stolen Mail, including Stimulus ChecksRead the Press Release
Assistant U. S. Attorney Vivian Sapthavee (619) 546-7696
NEWS RELEASE SUMMARY – June 28, 2021
SAN DIEGO – Theodore Bennett was sentenced in federal court today to 18 months in custody for mail theft and possession of stolen mail.
Bennett pleaded guilty in December 2020, admitting that on four different occasions in the summer of 2020, he pried open at least 94 post office boxes with a flathead screwdriver and prybar at post offices in San Diego and Imperial Counties. According to his plea agreement, he stole dozens of pieces of mail containing credit cards plus $6,500 in checks that belonged to individuals, business, and non-profit organizations and included Economic Impact Payments (stimulus checks) issued by the U.S. Department of Treasury.
At the time of his arrest, law enforcement agents discovered hundreds of pieces of stolen mail in Bennett’s possession, including the stolen stimulus checks. Bennett was eventually linked to at least three Post Office break-ins in the Southern District of California.
“Every American has the right to receive every piece of mail sent to them,” said Acting U.S. Attorney Randy Grossman. “When mail is stolen, particularly envelopes containing desperately-needed income during a pandemic, the impact on victims can be devastating. When you see someone raiding a mailbox or notice suspicious activity involving the mail, please immediately report this to the U.S. Postal Inspection Service and local law enforcement. Our office will vigorously investigate and prosecute these matters with our law enforcement partners.
Grossman commended Assistant U.S. Attorney Vivian Sapthavee and former Assistant U.S. Attorney Nicholas Hernandez, as well as the law enforcement officers in multiple agencies who investigated this case.
“Postal inspectors work aggressively to combat mail theft,” said Eric Shen, Acting Inspector in Charge of the Los Angeles Division. “In collaboration with U.S. Border Patrol Agents and the Treasury Inspector General for Tax Administration, we were able to prevent countless others from being victimized by this individual, who could have caused even more financial damage and personal inconvenience.”
DEFENDANT Case Number 20-CR-2650-AJB
Theodore Bennett Age: 33 Residence: Imperial County, CA
SUMMARY OF CHARGES
Mail Theft, 18 U.S.C. §1708 (Three Counts)
Possession of Stolen Mail, 18 U.S.C. §1708 (One Count)
Maximum Penalty: Five years in prison (per count); supervised release
AGENCY
U.S. Postal Inspection Service
U.S. Border Patrol
U.S. Dept. of Treasury
Convicted Felon Sentenced to 15 Years for Illegal Gun PossessionRead the Press Release
Memphis, TN – Floyd Wallace, 34, has been sentenced to 180 months in federal prison for being a convicted felon in possession of a firearm. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on July 4, 2019, Memphis Police officers conducted a traffic stop on a Honda Accord for an expired Mississippi license plate. The driver had a revoked driver’s license for failure to satisfy fines/costs/taxes on a prior criminal conviction.
The front seat passenger, later identified as Floyd Wallace, attempted to flee the vehicle but was quickly detained by officers. Wallace then told officers that he had a gun in his pocket. Officers also retrieved from Wallace’s person, a Taurus 9mm pistol, loaded with six live rounds in the magazine and one live round in the chamber; one bag of marijuana; and a digital scale.
At the time of the stop, Wallace had outstanding felony and misdemeanor warrants. With three prior violent felony convictions, two counts of aggravated robbery and one count of aggravated assault, Wallace was determined to be an Armed Career Criminal and sentenced to the mandatory minimum of 15 years. As a result of his prior felony convictions, he is prohibited by federal law from possessing firearms or ammunition.
Wallace, a member of the Travelling Vice Lords gang, was on probation for aggravated stalking and aggravated assault at the time of this offense.
On June 24, 2021, U.S. District Judge Thomas L. Parker sentenced Wallace to 180 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 Project Safe Neighborhoods (PSN), the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The (PSN) Program is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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."
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Charleston Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
CHARLESTON, W.Va. – A Charleston woman pleaded guilty today to distributing methamphetamine while on supervised release for a previous federal conviction.
According to court documents, Tiffany Shaffer, 32, admitted that on October 5, 2020, she distributed 53.88 grams of pure methamphetamine to a confidential informant in return for $1500 in United States currency. Shaffer also admitted, as part of her relevant conduct of ongoing drug dealing, that she distributed methamphetamine several other times in September, October, and December 2020, in and around the Dunbar area. Shaffer conducted the recent drug sales while on supervised release for a 2017 federal conviction on a firearms charge for which she was sentenced to four years in prison and three years of supervised release.
Shaffer faces a mandatory minimum sentence of five years in prison and up to 40 years in prison when she is sentenced on September 22, 2021. She also faces consecutive prison time as a result of violating her supervised release.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00076.
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Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of AmmunitionRead the Press Release
A man who possessed ammunition after having prior convictions for felonies and domestic abuse assaults, and who was subject to no contact orders, pled guilty today in federal court in Cedar Rapids.
Daryl Harden, age 41, from Cedar Rapids, Iowa, was convicted of one count of being a prohibited person in possession of ammunition. At the plea hearing, Harden admitted that, on January 11, 2020, he knowingly possessed five rounds of ammunition after having been convicted of six crimes punishable by more than one year of imprisonment, after having been convicted of nine misdemeanor crimes of domestic violence, and while he was subject to two no contact orders.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Harden remains in custody of the United States Marshal pending sentencing. Harden faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 20-46.
Follow us on Twitter @USAO_NDIA.
Burlington County Man Sentenced to 28 Months in Prison for Interfering with Law Enforcement Officers during Civil DisorderRead the Press Release
TRENTON, N.J. – A Burlington County, New Jersey, man was sentenced today to 28 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a civil disorder in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Killian F. Melecio, 20, of Columbus, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to smash store fronts, loot stores, and attack multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Justin Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.
In addition to the prison term, Judge Martinotti sentenced Melecio to three years of supervised release. Spry and Dockery have previously pleaded guilty. Spry is scheduled to sentenced on Aug. 3, 2021, and Docker is scheduled to be sentenced Sept. 21, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Acting Police Director James Slack; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations remaining against Kadeem Dockery and Justin Spry are merely accusations, and they are presumed innocent unless and until proven guilty.
Birmingham Man Sentenced to 60 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced today for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and U.S. Marshal Martin Keely.
United States District Judge Madeline H. Haikala sentenced Lionel Caffey, 27, to 60 months in prison for being a felon in possession of a firearm. Caffey pleaded guilty to the charge in December 2020.
On April 28, 2020, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force went to a Birmingham hotel to arrest Caffey on an outstanding state warrant for attempted murder. According to testimony at his sentencing, Task Force officers encountered Caffey after he walked out of his third-floor hotel room. Caffey fought with officers and reached for his waistband during the struggle. One officer felt a pistol in Caffey’s waistband and alerted the other officers. Caffey broke free from the officers and kicked in the door of another third-floor hotel room. He then attempted to jump out of a closed window at the back of that room, but the window did not break. At that point, officers were able to gain control of him. Even after being cuffed, Caffey continued to reach for his waistband. The pistol was found on the floor in the room where he was handcuffed.
“Convicted felons who possess firearms are among those who are most likely to commit a violent crime,” U.S. Attorney Escalona said. “Prosecuting the drivers of violence in our communities is a top priority of my office.”
The United States Marshals Service Gulf Coast Regional Fugitive Task Force investigated the case. Assistant U.S. Attorney Alan Baty prosecuted the case.
Behavioral Health Specialist Sentenced to 15 Years in Federal Prison for Enticing a Minor Hopsital Patient for Sex, and Attempting to Obstruct His ProsecutionRead the Press Release
EAST ST. LOUIS, Ill. – Ricardo D. Minor, 40, of Cahokia, Illinois, will be spending 15 years in federal prison for enticing a minor to have sex with him. Minor was sentenced to 180 months’ imprisonment for enticement of a minor; traveling with intent to have sex with a minor; and attempting to obstruct his prosecution. Minor will also serve ten years of supervised release after release from prison.
According to court documents, the crimes occurred between June 14, 2017 and September 3, 2017, while Minor was working as a Behavioral Health Specialist at a local hospital and the victim was a patient. Minor admitted that he used his cell phone and internet to contact the victim to have sex with him on several occasions in homes in Collinsville, Illinois, and Cahokia, Illinois. Minor was also a driver for Uber and would take the victim with him on trips to have sex. The Court also heard evidence regarding other allegations of criminal and inappropriate sexual contact by Minor, including with patients receiving therapy at the same hospital.The obstruction charge was based upon Minor’s activity between August 2017 and November 27, 2017.
During this time, he attempted to obstruct his prosecution by contacting the victim and witnesses to get them to lie regarding his criminal conduct. One witness was asked to call the family of the victim to get the family not to pursue charges.The Court in sentencing Minor said that his conduct was “reprehensible” and noted that the 15-year sentence of imprisonment was needed to deter further criminal conduct.
After the sentencing U.S. Attorney Steven D. Weinhoeft said, “This case is so egregious because the defendant preyed on a vulnerable victim who he knew was receiving behavioral health treatment.” He cautioned parents that, “The case serves to highlight how important it is for parents to monitor their children’s internet and cell phone usage because sexual predators rely on their cell phones to gain access to victims.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May
2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation andabuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Collinsville Police Department, the St. Louis County
Police
Department and the FBI. Assistant United States Attorney Angela Scott prosecuted the case.Beech Grove Man Charged with Arson for Fire at Amtrak FacilityRead the Press Release
INDIANAPOLIS – A Beech Grove man was arrested today in Indianapolis on federal criminal charges related to his alleged setting fire to two buildings at the Amtrak Facility in Beech Grove, early morning on May 2, 2021.
According to court documents, on the night of May 1, 2021, Casey Sage, 34, trespassed onto the grounds of the Amtrak facility, which is located at 202 Garstang Street in Beech Grove. Surveillance video captured Sage as he moved around the Amtrak facility rail yard. Then, in the early morning hours of May 2, 2021, Sage entered two storage buildings in the rail yard containing various flammable or hazardous chemicals and other materials. Sage ignited each building and its contents using railroad flares he picked up at the site. Both buildings quickly erupted in flames, and video surveillance captured several explosions and flying debris as first responders arrived and fought the flames. The buildings and their contents were destroyed, and Amtrak has estimated that the fires resulted in approximately one million dollars in damages.
“Mr. Sage committed a violent and dangerous criminal act,” said Acting U.S. Attorney John E. Childress. “By burning down two buildings containing flammable and hazardous materials, Sage not only destroyed public property, he exposed first responders and Amtrak employees to a substantial risk of serious injury. We are grateful for our law enforcement partners’ quick response to the scene and their speedy efforts to investigate this case.”
“Today’s actions represent our commitment to pursuing every avenue possible to seek justice and hold accountable those who perpetrate extremely dangerous crimes like arson,” said Basil Demczak, the Special Agent in Charge of Amtrak Office of Inspector General’s Central Field Office. “These crimes not only put Amtrak’s property at risk but could have jeopardized the lives of Amtrak employees and first responders. We appreciate the seamless collaboration with the U.S. Attorney's Office as well as the sustained professionalism exhibited by our investigative staff and partner agencies throughout the investigation.”
Sage is charged with Arson. If convicted, Sage faces 5 to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Amtrak’s Office of the Inspector General, Amtrak Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Beech Grove Fire Department, Beech Grove Police Department, Homeland Security Investigations, and the Federal Bureau of Investigations.
Assistant United States Attorneys William L. McCoskey and Adam Eakman, are prosecuting this case for the government.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bank Employee Pleads Guilty to Defrauding Her Employer of Nearly $1.7 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that GANGADAI RAMPERSAUD AZIM, a/k/a “Julie Azim,” pled guilty today to a more than decade-long conspiracy to commit bank fraud, defrauding her employer, a Manhattan-based bank, by misappropriating approximately $1.7 million. AZIM pled guilty before U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Audrey Strauss said: “As she admitted today, Gangadai Azim betrayed her position as a trusted bank employee to defraud the bank and misappropriate nearly $1.7 million in client funds over the course of more than a dozen years. Now Azim awaits sentencing for her crime.”
According to the allegations in the Complaint, court filings, and statements made during plea proceedings:
Between August 2008 and January 2021, AZIM, a long-time employee of a New York, New York-based bank (“Bank-1”), stole approximately $1.7 million from her employer. Over the course of approximately 12 years, AZIM executed hundreds of wire transfers of Bank-1 funds to co-conspirators and related companies, who then sent portions of the ill-gotten funds to AZIM’s personal bank account.
In furtherance of her scheme to defraud Bank-1, AZIM repeatedly made false entries in Bank-1’s systems, misappropriating funds paid to Bank-1 by its clients to satisfy outstanding loan obligations and then extending the maturity dates of those loan obligations, making it appear as though the loan obligations had not yet been paid. When even the fraudulently extended maturity dates came due, AZIM originated new, fraudulent loans to help conceal the scheme. AZIM utilized the proceeds of those fraudulent loans to satisfy the loans for which she had previously stolen the client payments. Over the course of the approximately 12 years, AZIM caused approximately 200 improper wire transfers of Bank-1’s funds, each for an amount under $10,000, to be sent to third party accounts, including those of co-conspirators and related companies, which then returned portions of those funds to AZIM. In doing so, AZIM abused her position at Bank-1 and enriched herself at the expense of her employer.
* * *
AZIM, 58, of Richmond Hill, New York, pled guilty to one count of conspiring to commit bank fraud, in violation of 18 U.S.C. §1349, which carries a maximum sentence of 30 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
AZIM is scheduled to be sentenced by Judge Failla on October 19, 2021, at 3:30 p.m.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Katherine Reilly is in charge of the prosecution.
Associate of Former Fall River Mayor Sentenced for Extorting Marijuana Vendors and Making False StatementsRead the Press Release
BOSTON – An associate and co-conspirator of the recently convicted former Mayor of Fall River, Jasiel F. Correia II, was sentenced today in federal court in Boston for extortion and lying to federal agents about his role in assisting Correia to obtain money and property from local marijuana vendors.
Antonio Costa, 52, of Fall River, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to three years of probation, with the first 15 months to be in home confinement with electronic monitoring, and ordered to complete 100 hours of community service to benefit the city of Fall River. Costa was also ordered to pay a $10,000 fine and $107,550 in forfeiture. In September 2019, Costa pleaded guilty to two counts of extortion conspiracy, two counts of extortion and one count of false statements.
Costa conspired with Correia and others to obtain cash bribes and other payments from local marijuana vendors in exchange for non-opposition letters and community host agreements. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River. Costa facilitated the bribe payments between two marijuana vendors and Correia in return for non-opposition letters. In one instance, Costa kept between $20,000 and $30,000 for himself and kept all of the approximately $77,550 paid by another vendor in cash and marijuana. In addition, Costa gave Correia a Rolex watch in return for the City’s activation of a water line to a commercial building owned by Costa.
On May 14, 2021, Correia was convicted by a federal jury of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. He is awaiting sentencing which is scheduled for Sept. 20, 2021.
Acting United States Attorney Nathaniel R. Mendell; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Glenn A. Cunha, Massachusetts Inspector General made the announcement. Assistant U.S. Attorneys Zachary Hafer and David Tobin of Mendell’s Criminal Division prosecuted the case.
Arizona Man Pleads Guilty to Submitting 70 Fraudulent Loan Applications in $4 Million Covid-19 Relief Wire Fraud SchemeRead the Press Release
DENVER – Michael Lain, 56, of Queen Creek, Arizona, pleaded guilty today to wire fraud in front of U.S. District Judge William J. Martinez. His sentencing hearing has been set for December 3, 2021.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
From March through June 2020, defendant Michael Lain submitted fraudulent EIDL applications to the SBA on behalf of more than 70 LLCs seeking both loans and grants from the program. In these applications, Lain made false statements about the LLCs’ number of employees, gross revenues, and cost of goods sold during the 12 months prior to January 30, 2020. He also falsely agreed to use the funds solely as working capital for the LLCs when he intended to use the funds for other purposes, including the purchase of a new home. Seventy of his EIDL applications were approved and funded by the SBA out of its Denver Finance Center. Because of his false statements, Lain’s LLCs received $3,830,400 in EIDL proceeds and $336,000 in Economic Injury Disaster Grant (EIDG) proceeds. As part of his plea agreement, Lain has agreed to pay restitution and also to repay $294,900 that he received as a result of fraudulent PPP applications he also submitted to the SBA.
“Anyone who uses lies and deceit to defraud the generosity of the American taxpayer can expect to find the U.S. Attorney’s Office and its law enforcement partners standing guard,” warned Deputy U.S. Attorney J. Chris Larson. “Taxpayers want these funds to be used as intended -- to save businesses hit hard by the pandemic, not to line the pockets of criminals.”
“Today’s announcement should serve as a strong deterrent to anyone contemplating committing COVID-19 related fraud,” said Marc DellaSala, Special Agent in Charge, Secret Service Denver Field Office. “Actions taken by the Secret Service, our financial partners and the U.S. Attorney’s Office are ensuring that Small Business Administration Economic Injury Disaster Loans are getting to the individuals whose livelihoods have suffered during the global health crisis. The Secret Service is determined to protect the United States financial infrastructure against individuals and organizations attempting to profit with taxpayer funded stimulus at the expense of America’s small businesses.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “SBA OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The United States Secret Service and the Small Business Administration-Office of Inspector General investigated this case in connection with their work on the Colorado-based EIDL Fraud Task Force. Assistant United States Attorneys Pegeen Rhyne and Patricia Davies are handling the prosecution.
CASE NUMBER: 21-cr-00175-WJM
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36th Street Bang Squad Member Sentenced for Gang-Related Attempted MurdersRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 30 years in prison for his role in a gang-related racketeering conspiracy that engaged in multiple murders, attempted murders, and drug trafficking.
According to court documents, Eric Nixon, 25, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On January 2, 2017, Nixon and another gang member engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News. On February 26, 2017, Nixon shot a rival gang member in the head during a drive-by shooting in Newport News, because the rival had disrespected the gang on social media. The rival gang member survived the shooting after undergoing brain surgery.
On December 10, 2019, after a seven-week jury trial, Nixon was convicted on six counts of crimes in aid of racketeering, including racketeering conspiracy, two attempted murders, using a firearm in each crime, and having another person unlawfully purchase a firearm for him.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. In addition to Hunt and Nixon, five co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing on various dates through August 2.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Ferguson, Interim Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorneys Howard Zlotnick and Brian Samuels and Special Assistant U.S. Attorney Amy Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.
26 June 2021
Syracuse Man Admits Role in Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Luis Carrasquillo, age 35, of Syracuse pled guilty to conspiracy to distribute controlled substances, and distribution of a mixture of heroin and fentanyl, as well as cocaine, announced Acting United States Attorney Antoinette T. Bacon, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his guilty plea, Carrasquillo admitted that he conspired with Waldemar Colon and Isidro De Los Santos to sell heroin mixed with fentanyl, and cocaine from De los Santos’s apartment on Gifford Street in Syracuse as part of a conspiracy that existed from December 2018 through January 31, 2019. Carrasquillo also pled guilty to aiding and abetting the sale of a mixture of heroin and fentanyl, as well as a separate quantity of cocaine on December 6, 2018.
On January 31, 2019, ATF Special Agents assisted by DEA and the Syracuse Police Department-Special Investigations Division executed a federal search warrant at Isidro De Los Santos’s residence and recovered over twenty-one ounces (608 grams) of heroin mixed with fentanyl in two packages. A federal search warrant executed at the adjacent apartment of another involved defendant, Anthony Moreno, on the same day resulted in the seizure of over 18 ounces (521grams) of cocaine.
Sentencing for Luis Carrasquillo is scheduled for October 21, 2021 in Syracuse, at which time Carrasquillo faces a maximum sentence of up to 20 years in prison, a fine of up to $1,000,000.00, and term of post-imprisonment supervised release of at least three-years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Isidro De Los Santos pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and was sentenced on November 13, 2020 to serve a sentence of nine years (108 months) in prison, and a 5-year term of supervised release.
Anthony Moreno pled guilty to conspiracy to possess with intent to distribute controlled substances, and on November 17, 2020 was sentenced on to serve 51 months in prison, followed by a 5-year term of supervised release.
Waldemar Colon pled guilty to conspiracy to possess with intent to distribute controlled substances, and distribution of controlled substances, and is awaiting sentencing scheduled for August 11, 2021.
This case was investigated by the United State Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Syracuse Police Department-Special Investigations Division, and the United States Drug Enforcement Administration (DEA), and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
25 June 2021
Wichita Man Sentenced for Distributing Thousands of Child Porn ImagesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced to 155 months for distributing child pornography, Acting United States Attorney Duston J. Slinkard announced.
Devan Navarette, 26, pleaded guilty to one count of Distribution of Child Pornography in February 2021. In his plea, he admitted to operating a Dropbox account to share files of child pornography with other users. Dropbox discovered Navarette’s activities and reported him to the National Center for Missing and Exploited Children. Investigators found thousands of images depicting children, including prepubescent children, made to engage in sex acts. As part of his sentence, Navarette will also pay $57,000 in restitution to victims.
Slinkard commended Homeland Security Investigations, the Kansas Internet Crimes Against Children Task Force, the Wichita Police Department and the Sedgwick County Sheriff’s Office for their work on the case.
Assistant U.S. Attorney Jason Hart prosecuted the case.
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