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Thursday 6 May 2021
Summerville Tax Return Preparer Indicted for Preparing False Income Tax ReturnsRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a 17-count indictment charging Earl Wayne Ravenell, 46, of Summerville, for preparing false income tax returns.
Ravenell is charged with 16 counts of willfully aiding and assisting in the preparation of false and fraudulent tax returns and one count of making and subscribing a false tax return. The maximum penalty Ravenell could receive per count is three years imprisonment and a fine of $250,000.
The case was investigated by the Internal Revenue Service. Assistant United States Attorney Dean H. Secor is prosecuting the case.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Snow Hill Man Sentenced to 18 Years for Methamphetamine TraffickingRead the Press Release
WILMINGTON, N.C. – A Snow Hill man was sentenced today to 216 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute Fifty (50) Grams or More of Methamphetamine and Distribution of Fifty (50) Grams or More of Methamphetamine. In addition, he was fined $10,900.00 by the court.
According to court documents, Roderick Derrell Jones, a/k/a “Coffee” and “Base,” 41, distributed a total of over ninety (90) grams of crystal methamphetamines during three controlled purchases in April and May of 2020. The methamphetamine seized during those deals was either 99% or 100% pure.
Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) also learned that Jones was seeking assistance with a planned armed robbery. Jones had commented that he would be willing to put a gun to the head of an infant child in order to extract more money from the intended victim. ATF utilized an informant to meet with Jones in order to divert his attention from an actual victim, and instead arrested him when he was in route to another planned armed robbery. He was found in possession of a firearm that day.
Jones was previously convicted in State Court in 1997 of Common Law Robbery and in 2002 of Second-Degree Rape and of Robbery with a Dangerous Weapon. He was also convicted of three counts of Indecent Exposure between 2016 and 2018.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Kinston Police Department and the ATF investigated the case and Assistant U.S. Attorney Laura S. Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00061-M-1.
Slidell Woman Sentenced to 34 Months for Wire Fraud and Aggravated Identity Theft ViolationsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that RACHEL E. LIPPS (“LIPPS”), age 40, of Slidell, LA was sentenced to 34 months imprisonment by the Honorable Susie Morgan for thirty-three counts of wire fraud, in violation of Title 18, United States Code, Section 1343 and a single count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. For Counts 1-33, the Court imposed 10 month concurrent sentences to be served consecutively to a 24 month sentence LIPPS received for Count 34. Additionally, the Court ordered that LIPPS serve 3 year (Counts 1-33) and 1 year (Count 34) terms of supervised release, all to run concurrently. LIPPS was ordered to pay $3400 in special assessment fees and restitution in the amount of $473,978.53.
According to court documents, between January 2013 and October 2017, LIPPS served as a part-time bookkeeper for Business A. Business A was a Louisiana corporation domiciled in Slidell, Louisiana. LIPPS was entrusted with the daily accounting and her job functions included accessing and utilizing QuickBooks software to issue payroll checks and pay vendors on behalf of Business A. Using QuickBooks, LIPPS fraudulently printed and cashed checks made payable to herself and several of her creditors. On or about July 22, 2014, LIPPS forged the signature of Business A’s co-owner on a check despite not having the authority to do so. In all, LIPPS stole $473,978.53 from Business A and its owners.
This matter was handled by the Federal Bureau of Investigation and the Saint Tammany Parish Sheriff’s Office. United States Attorney Duane A. Evans is prosecuting the case.
Seven Members of Violent Gang Charged with Racketeering and Firearms OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), Raymond P. Donovan, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Kevin P. Bruen, Acting Superintendent of the New York State Police (“NYSP”), announced today the unsealing of an eleven-count Indictment charging JAYQUAN SMITH, a/k/a “Six,” RASHIEN JACKSON, a/k/a “Pop,” JAMES BELL, a/k/a “Dex,” DAQUAN MURPHY, a/k/a “Fritz,” JONATHAN ODENTHAL, a/k/a “White Boy,” HASSAN SIMMONS, a/k/a “Hart,” and DERICK MURPHY, a/k/a “Yogi,” with racketeering and firearms offenses, as well as violent crimes in aid of racketeering, in connection with their membership and association with the 800 YGz gang (the “800 YGz”). DAQUAN MURPHY was taken into custody yesterday. DERICK MURPHY and SMITH were already in federal custody on separate charges. BELL and JACKSON were in state custody on separate charges. The defendants will be presented this afternoon before U.S. Magistrate Judge Katharine H. Parker in Manhattan federal court. SIMMONS and ODENTHAL remain at large. The case has been assigned to U.S. District Judge Alison J. Nathan.
U.S. Attorney Audrey Strauss said: “As alleged in today’s indictment, members and associates of a violent street gang wreaked havoc in the Bronx for many years, committing numerous acts of violence against rival gang members. Thanks to the hard work of our law enforcement partners, the defendants now face federal charges for these serious crimes.”
DEA Special Agent in Charge Raymond P. Donovan said: “These defendants are charged with participating in the activities of the 800 YGz gang and committing numerous acts of violence. Their alleged criminal conduct has been a scourge on communities in the Bronx for years. I applaud the New York Drug Enforcement Task Force and U.S. Attorney’s Office Southern District of New York on their teamwork and diligence throughout this impactful investigation.”
NYPD Commissioner Dermot Shea said: “The kind of street violence these defendants were allegedly willing to carry out threatens the fabric of life for everyone in our city. This federal prosecution puts an end to it, strengthened by the joint work of our NYPD officers, federal partners and prosecutors from the United States Attorney’s Office in the Southern District of New York.”
New York State Police Acting Superintendent Kevin P. Bruen said: “This case involves members of a gang that engaged in numerous alleged acts of violence, with absolutely no regard for the consequences of their actions. I want to commend our partners for their cooperation and hard work to hold these subjects accountable and remove this threat from our neighborhoods.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[[1]]:
JAYQUAN SMITH, a/k/a “Six,” RASHIEN JACKSON, a/k/a “Pop,” JAMES BELL, a/k/a “Dex,” DAQUAN MURPHY, a/k/a “Fritz,” JONATHAN ODENTHAL, a/k/a “White Boy,” HASSAN SIMMONS, a/k/a “Hart,” and DERICK MURPHY, a/k/a “Yogi,” are members and associates of the 800 YGz, a racketeering enterprise that operates principally in the New York City metropolitan area. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, 800 YGz members and associates committed, conspired, attempted, and threatened to commit acts of violence; distributed and possessed with intent to distribute narcotics, including crack cocaine and marijuana; engaged in wire fraud; and obtained, possessed, and used firearms.
On or about July 8, 2019, BELL shot at rival gang members, injuring two individuals, in the Bronx, New York.
On or about March 27, 2020, JACKSON shot at rival gang members in the Bronx, New York.
On or about September 16, 2020, JACKSON slashed a rival gang member in the Bronx, New York.
On or about November 21, 2020, SMITH shot at rival gang members in the Bronx, New York.
On or about December 21, 2020, SMITH shot at rival gang members in the Bronx, New York.
On or about August 28, 2020, JACKSON possessed a firearm during and in relation to a drug trafficking offense.
A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the New York Drug Enforcement Task Force, comprising agents and officers of the DEA, NYPD, and NYSP. Ms. Strauss also thanked the NYPD’s 48th Precinct for its assistance with the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jim Ligtenberg and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTY
Count One
Racketeering Conspiracy
18 U.S.C. § 1962(d)
All defendants
Life imprisonment
Count Two
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
JAMES BELL
Twenty years’ imprisonment
Count Three
Firearms Offense
18 U.S.C. §§ 924(c) and 2
JAMES BELL
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Four
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
RASHIEN JACKSON
Twenty years’ imprisonment
Count Five
Firearms Offense
18 U.S.C. §§ 924(c) and 2
RASHIEN JACKSON
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Six
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
RASHIEN JACKSON
Twenty years’ imprisonment
Count Seven
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
JAYQUAN SMITH
Twenty years’ imprisonment
Count Eight
Firearms Offense
18 U.S.C. §§ 924(c) and 2
JAYQUAN SMITH
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Nine
Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
JAYQUAN SMITH
Twenty years’ imprisonment
Count Ten
Firearms Offense
18 U.S.C. §§ 924(c) and 2
JAYQUAN SMITH
Life imprisonment
Mandatory minimum of ten years’ imprisonment
Count Eleven
Firearms Offense
18 U.S.C. §§ 924(c) and 2
RASHIEN
JACKSON
Life imprisonment
Mandatory minimum of five years’ imprisonment
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Savannah prison inmate pleads guilty to distribution of child pornographyRead the Press Release
SAVANNAH, GA: A Savannah man has admitted he distributed child pornography from inside a state prison transitional center after serving a sentence for failing to register as a sex offender.
Melton Andrew Padgett Jr., 47, of Savannah, pled guilty in U.S. District Court to one count of Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Padgett to a possible statutory sentence of up to 40 years in federal prison, along with substantial financial penalties, followed by a period of supervised release of five years to life.
There is no parole in the federal system.
“This defendant is a shocking example of a child predator who shared videos of child exploitation even as his sentence for a previous offense was nearing its end,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to be vigilant in removing such criminals from our community.”
As described in court documents and testimony, Georgia’s Internet Crimes Against Children Task Force in March 2020 received a cyber tip from the National Center for Missing and Exploited Children that led investigators to Padgett. In his guilty plea, Padgett admitted sharing videos of child exploitation through a social media messaging service. At the time Padgett shared these images of child pornography Padgett was completing a state term of imprisonment and was being housed in the Coastal Transitional Center in Savannah. Padgett has prior convictions for child molestation and failing to register as a sex offender.
“This predator has not gotten the message that he cannot continue to prey upon our children or share these disturbing images with others involved in this depravity,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this strengthen the resolve and the commitment that HSI and its law enforcement partners have to protect our children and our communities.”
The case was investigated by Homeland Security Investigations and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Sacramento Man Sentenced to 10 Years in Prison for Unlawfully Possessing a GunRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Billy Paul Dunn, 48, of Sacramento, today to 10 years in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Dunn has been previously convicted of six felony offenses as well as misdemeanor crimes of violence for threats with intent to terrorize, assault with a deadly weapon, and battery on a non-cohabitating spouse. Dunn was released from state custody on Post Release Community Supervision in October 2019. In August 2020, Dunn was arrested with a loaded gun.
This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento County Probation Department with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant U.S. Attorney Justin Lee prosecuted the case.
This case is brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Rancho Cordova Man Indicted a Second Time for Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Kevin Lester Wise, 64, of Rancho Cordova, charging him with being a felon in possession of a firearm and possession of an unregistered silencer, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, a federal search warrant of Wise’s residence resulted in the discovery of a Ruger .22 caliber rifle and a silencer. Wise had previously attempted to unlawfully import another silencer from China. In 1990, Wise was convicted in Sacramento County for unlawful assault by an officer while he was serving as a deputy sheriff. In 2013, Wise was convicted in federal court in the Eastern District of California for a being a felon in possession of a firearm. As a convicted felon, Wise is prohibited from owning firearms, including silencers.
This case was the product of an investigation by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Wise faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Quincy Man Charged with Child Pornography OffenseRead the Press Release
BOSTON – A Quincy man was arrested on May 3, 2021 and charged with receipt of child pornography.
Andre Tilahun, 27, was charged in a criminal complaint with one count of receipt of child pornography. Following an initial appearance yesterday, Tilahun was detained pending a detention hearing scheduled for May 7, 2021.
According to the charging documents, in April 2021, investigators executed a search warrant at Tilahun’s home and seized a laptop belonging to Tilahun. A forensic examination of the laptop revealed that Tilahun received images depicting child pornography on the Kik Messenger platform. It is also alleged that Tilahun participated in a Kik chatroom where participants shared child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was provided by the Quincy Police Department and Weymouth Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Previously Convicted Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Daniel Provencal, age 47, of Denton, Maryland, pleaded guilty today to possession of child pornography. Provencal acknowledged that, at the time he committed the crime, he was on supervised release for a 2006 federal conviction for distribution of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Caroline County State’s Attorney Joe Riley.
According to his guilty plea, between January and October 2020, Provencal possessed and repeatedly distributed child pornography on a social media provider, using multiple electronic devices and usernames. Specifically, Provencal used an Internet-based messaging application to distribute depictions, including photos and videos, of minors engaged in sexually explicit conduct. The child pornography included videos and images of prepubescent minors and videos and images that depicted sadomasochistic conduct.
On January 24, 2020 and January 31, 2020, the messaging application sent CyberTips to the National Center for Missing and Exploited Children (NCMEC) reporting two usernames that had uploaded child pornography. Investigators learned that the IP address used to login to each of the accounts was the same and was assigned to Provencal at his residence in Denton.
Law enforcement executed a search warrant at Provencal’s residence on October 15, 2020, recovering two cellphones, numerous micro SD cards, a laptop computer, notebook computer, and three tablets. Law enforcement also seized from Provencal’s bedroom a piece of paper that had 26 account usernames and passwords listed, including the two usernames which the messaging application had reported to NCMEC.
A subsequent forensic review of Provencal’s devices revealed that they each contained child pornography. In total, the devices contained at least 5,000 child pornography videos. In addition, at least one video depicts sadistic or masochistic conduct, namely a prepubescent girl bound and in bondage. The forensic review also revealed that Provencal repeatedly, on multiple devices, distributed child pornography images and videos to other users on the messaging application and engaged in explicit chats in which he discussed his sexual attraction to minors.
As detailed in his plea agreement, upon his release from prison, Provencal must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Provencal and the government have agreed that, if the Court accepts the plea agreement, Provencal will be sentenced to 126 months in federal prison. Provencal also faces 12 to 18 months in prison for violating his supervised release, which may be imposed concurrent or consecutive to the sentence in this case. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Maryland State Police, and the Caroline County State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Previously Convicted Felon from Philadelphia Convicted After Trial in Federal Court of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jesse Golden, 30, of Philadelphia, PA, was convicted today after a three-day trial of illegally possessing a firearm and ammunition as a convicted felon.
In September 2019, the defendant was Indicted following an investigation by the Philadelphia Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. In May 2019, a Philadelphia Police officer saw a video on the social media platform Instagram in which the defendant was sitting in a car with another individual and brandishing a distinctive painted-black revolver. Investigators determined that Golden had multiple prior felony convictions, so they obtained a search warrant for the defendant’s residence. During the execution of that warrant they found an unloaded revolver and 100 rounds of ammunition the same caliber as the firearm. The revolver they found matched the look (including the paint job) of the firearm in the Instagram video. Evidence presented at trial showed that testing performed on the gun found DNA that matched the defendant’s DNA.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in a city like Philadelphia, where gun violence is prevalent,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, Jesse Golden illegally possessed a gun and flagrantly displayed it, a video of which wound up on social media. Now, Golden is facing a mandatory minimum of fifteen years in prison if the Court declares him an armed career criminal, and he could face as much as life in prison. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like Golden off the streets for a long, long time.”
“A felon in possession of a firearm always presents a great danger to our community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division “The public is very fortunate that the Philadelphia Police Department was able to interdict the defendant before harm could come to anyone. We are committed to making our community safer by working with our local, state and federal partners in identifying and removing armed criminals from our streets.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David Ignall.
Pottsville Man Sentenced to One Year and One Day Imprisonment for Destruction of Government Property and Firearm OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 4, 2021, Joshua Keller, age 30, of Pottsville, Pennsylvania, was sentenced to one year and one day imprisonment followed by a two-year term of supervised release by U.S. District Court Judge Robert D. Mariani, for destruction of government property and lying during the purchase of a firearm. Judge Mariani also ordered Keller to pay $39,393 in restitution.
According to Acting U.S. Attorney Bruce D. Brandler, Keller had pled guilty to one count of destruction of government property and one count of lying during the purchase of a firearm. While under the influence of methamphetamine, Keller vandalized two GSA vehicles in a Virginia parking lot by repeatedly striking them with a tire iron and spraying down the inside of the vehicles with a fire extinguisher. In a separate incident, Keller purchased a firearm for an individual in exchange for methamphetamine.
The case was investigated by the GSA Office of Inspector General. Assistant United States Attorney Scott R. Ford prosecuted the case.
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Philadelphia Man Pleads Guilty to Transporting Multiple Kilos of Cocaine to Western PARead the Press Release
PITTSBURGH, PA -- A former resident of Philadelphia, PA, pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Jermaine Kyle Clark, 43, pleaded guilty to two counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that as a result of an Allegheny County District Attorney Narcotics Enforcement Team (DANET) investigation into drug-trafficking activity within Allegheny County, DANET investigators, in February of 2019 using a Confidential Source (CS), orchestrated a controlled purchase of 5 kilograms of cocaine from the CS’s Philadelphia-based cocaine source of supply, Jermaine Clark, aka Fats.
Clark, in conjunction with his guilty plea, admitted that he and co-defendant Suggs traveled from Philadelphia to Pittsburgh to conduct the drug transaction, using two vehicles, a Chevrolet Traverse and Subaru Tribeca, which both contained after-market, hydraulically controlled "traps" or compartments near the rear of the vehicles.
On February 24, 2019, Clark and Suggs met with the CS at a local restaurant and, on February 25, 2019, Clark and the CS agreed to meet to conduct the drug transaction at a location in North Braddock. Investigators conducted surveillance in the vicinity of where the drug transaction was to occur and observed the Chevy Traverse, driven by Clark, and Subaru Tribeca, driven by Suggs, arrive. The Court was further informed that investigators located 5 kilograms of cocaine in the Chevrolet Traverse’s trap and $8,060, behind the passenger seat in the Subaru as well as 18 kilograms of cocaine in the Subaru’s trap.
Judge Conti scheduled sentencing for Sept. 2, 2021 at 11:00 a.m. The law provides for a maximum total sentence of not less than ten years and up to life in prison, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Mr. Clark remain in custody.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), conducted the initial investigation and the arrest on February 25, 2019, and the Federal Bureau of Investigation conducted the investigation that led to the federal prosecution of Clark.
Owner of Several Connecticut and New York Pizza Restaurants Sentenced to Prison for Tax OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRUNO DiFABIO, 51, of Ridgefield, was sentenced today by U.S. District Judge Victor A. Bolden to 30 days of imprisonment, followed by three years of supervised release, for a federal tax offense.
According to court documents and statements made in court, DiFabio has had various ownership interests in several pizza restaurants in Connecticut and New York, including Pinocchio Pizza LLC, doing business as Pinocchio Pizza in New Canaan, Connecticut; Top Oven Restaurant Corp., doing business as Pinocchio Pizza in Wilton, Connecticut; DiFabio Brothers Pizza Corp., doing business as Amore Pizza in Scarsdale, New York; Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut; Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut; and Homefield Restaurant Corp., doing business as Pinocchio Pizza in Pound Ridge, New York.
DiFabio and his business partner in some restaurants, Steven Cioffi, engaged in a practice whereby cash was removed from the cash register and not deposited into the restaurant’s operating bank account. The businesses’ outside bookkeeper and accountant used the bank records to determine business gross receipts. When cash was removed from the register and not deposited into the business bank account, the cash would not be reported to the Internal Revenue Service. DiFabio and Cioffi also knew that certain employees had their wages paid in cash, and that a certain number of the employees were paid either a portion or the entirety of their wages “off the books.” By paying various expenses in cash and “off the books,” DiFabio, Cioffi and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
As a result of the scheme, the loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years was $816,954. DiFabio has paid approximately $125,000 in restitution to date, and he has agreed to provide additional assets, including interests in his home and businesses, to make full restitution.
On October 25, 2018, DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns.
DiFabio, who is released on a $100,000 bond, is required to report to prison on July 12, 2021.
On September 24, 2018, Cioffi pleaded guilty to one count of aiding and assisting in the filing of a false tax return. The loss to the IRS in income taxes and employment taxes for the 2013 through 2015 tax years attributable to Cioffi’s conduct in this scheme was $122,177.59. On April 27, 2021, Judge Bolden sentenced him to 30 days of imprisonment and ordered him to make full restitution.
On June 4, 2019, Idalecia Lopes Santos, the businesses’ bookkeeper, pleaded guilty to one count of tax evasion. On March 30, 2021, she was sentenced to three years of probation.
On January 25, 2021, James Guerra, the businesses’ accountant, pleaded guilty to one count of willful failure to collect and pay over withholding taxes. He awaits sentencing.
This investigation has been conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Owner of Lighthouse Properties Pleads Guilty to Wire FraudRead the Press Release
LYNCHBURG, Va. – A Forest, Virginia, man, who owned and operated Lighthouse Properties of Virginia Inc., [LHP], pleaded guilty yesterday in connection with an embezzlement scheme in excess of $550,000.
According to court documents, Timothy Darrell Penick, 38, owned and operated LHP since approximately 2011. LHP provided real estate management services to clients, including homeowners’ associations and property owners. Beginning in June 2018, Penick devised a scheme to defraud multiple LHP clients. He obtained authorization from clients to directly access client bank accounts and would then transfer funds from those accounts to other accounts in LHP’s name. Penick was the only authorized owner and signer on these LHP accounts. Penick used these funds for purposes that were not authorized by the clients and did not benefit the client.
To conceal the misuse of client funds, Penick created fraudulent bank account statements that omitted transactions from the client accounts into the LHP accounts. These fraudulent bank statements would then be used to create financial packets provided to clients and client representatives.
“Penick violated his clients’ trust when he defrauded them. This behavior is a serious federal crime and simply won’t be tolerated,” said Acting U.S. Attorney Bubar. “I’m proud of the work of our state and federal law enforcement partners that brought Penick to justice and will provide the victims in this case with restitution for the crimes committed against them.”
“Mr. Penick manipulated his clients and went to great lengths to conceal his criminal activity. With this plea, Mr. Penick accepts responsibility for his actions and the clients have the justice they deserve,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division. “We are grateful for the partnership of the Campbell County Sheriff's Office and the United States Attorney's Office's - Western District of Virginia in this investigation.”
Penick pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on September 7, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Campbell County Sheriff’s Office and Federal Bureau of Investigation are investigating the case.
Assistant U.S. Attorney Michael Baudinet is prosecuting the case.
Oswego County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Gary Goodale, age 40, of Fulton, New York, pled guilty today before Senior United States District Judge Thomas J. McAvoy to one count of receipt of child pornography and three counts of possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). The terms of Goodale’s plea agreement call for a sentence of at least 35 years, and up to 50 years of imprisonment, to be followed by a lifetime term of supervised release. Sentencing is set for September 8, 2021.
As part of his guilty plea, Goodale admitted that he used his personal computer to receive images of child pornography over the internet, and that he possessed child pornography on three electronic devices. A forensic review of Goodale’s cellular telephone and two portable electronic storage devices revealed that all three contained numerous image files depicting child pornography. Goodale admitted that the images he possessed include sexually explicit photographs of two minors that he produced himself.
Goodale was previously convicted on December 8, 1999, in Oswego County Court for Sodomy in the First Degree in violation of New York Penal Law, Section 130.50(3), which makes it unlawful to engage in deviate sexual intercourse with another person who is less than eleven years old, and was sentenced at that time to 8 years imprisonment.
Goodale’s case was investigated by Homeland Security Investigations, Syracuse Office with assistance from the New York State Police Troop D Computer Crimes Unit, the Oswego County District Attorney’s Office and the Fulton Police Department, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Orange Park Senior Sentenced to 27 Months in Federal Prison for Possessing Images and Videos of Child Sex AbuseRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Robert Lee Martin (66, Orange Park) to 27 months in federal prison, followed by 10 years of supervised release, for possessing images and videos depicting the sexual abuse of children.
Martin had pleaded guilty on February 6, 2020.
According to court documents, special agents from Homeland Security Investigations executed a federal search warrant at Martin’s home in November 2018, after receiving a cyber tip that an image depicting child sexual abuse had been uploaded over the internet from the residence. Martin was at the home and told the HSI agents that he has a problem and that he has been “fighting it forever.” Martin explained that he keeps a laptop computer at his friend’s house that he uses to “look at the stuff,” referring to child exploitation materials. Subsequent seizure and forensic examination of this computer revealed that it contained more than 700 images and 8 videos depicting minors being sexually abused, including very young children.
“This child predator is now securely behind bars and our community is safer as a result thanks to the law enforcement partnership between HSI Jacksonville and the Clay County Sheriff’s Office,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips.
This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Operation Targeting Illegal Fishing in the Bahamas Nets Conviction of Florida Keys Man and Vessel TransferRead the Press Release
Miami, Fl. – Henry J. Danzig, 57, of Tavernier, was sentenced today in U.S. District Court in Key West by United States Magistrate Judge Lurana S. Snow, for illegally harvesting commercial quantities of demersal finfish from the vicinity of Cay Sal Bank, in the Commonwealth of the Bahamas, and transporting the fish into the United States in violation of the Lacey Act. Demersal finfish are those that live and feed on ocean bottoms.
Magistrate Judge Snow sentenced Danzig to a period of probation of one year and a $25 special assessment. In addition, Danzig was ordered to make restitution to the Commonwealth of the Bahamas for his illegal harvesting activities, by forfeiting a newly constructed and outfitted 30’ Contender Tournament boat, which will be employed by the Royal Bahamas Defense Force to prevent, deter, and eliminate illegal and unreported fishing within the archipelagic waters of the Bahamas.
According to the Information to which the defendant pled guilty on April 26, 2021, a Joint Factual Statement filed by the parties, and statements in court, on May 9, 2020, Danzig, and four others were intercepted by the U.S. Coast Guard in the Atlantic Ocean outside of Tavernier, in the Florida Keys, while they were returning from Bahamian waters. Danzig and his companions were aboard Danzig’s 39’ Contender fishing vessel, the “Bodacious.” On boarding the vessel, the Coast Guard and found and seized 167 reef fish, totaling approximately 529 pounds. At the time, Bahamian waters were closed due to the Covid-19 pandemic.
Additional investigation revealed that Danzig was co-owner of the City Hall Café, in Tavernier, FL, through which some illegally sourced Bahamian fish had been sold on prior occasions.
The Lacey Act, Title 16, United States Code, Section 3372(a)(2), prohibits the import, export, transport, sale, receipt, acquisition, or purchase of any fish in foreign commerce which was taken, possessed, transported, or sold in violation of any foreign law.
Statute Law of the Bahamas, Revised Edition 2010, Fisheries Resources (Jurisdiction & Conservation), Chapter 244, Part V, Section 70(1), in effect at the time of the conduct at issue, prohibited the export of any fishery product or resource from the Bahamas, except under and in accordance with the terms of a license granted by the Government of the Bahamas, and after presentation of the product or resource to a fisheries inspector.
According to the Joint Factual Statement, neither Danzig nor those associated with him in the charged conduct possessed a lawfully issued license from the Bahamas, to take, export or sell any fishery product or resource fish from Bahamian waters.
Operation Bahamarama is a joint enforcement effort by National Oceanic and Atmospheric Administration (NOAA) National Marine Fisheries Service (NMFS) Office for Law Enforcement (OLE), the United States Coast Guard (USCG) and the Florida Fish and Wildlife Conservation Commission (FWCC) to specifically target Illegal, Unreported, and Unregulated (IUU) fishing to and from the waters of the United State Exclusive Economic Zone (EEZ) and in conformity with the Port States Measure Agreement (PSMA), an international agreement designed to target IUU fishing. In conjunction with the Commonwealth of the Bahamas and the Bahamas Defense Force (BDF), air and marine assets, and intelligence gathering efforts were instrumental in the success of this particular mission. Information had been received by NOAA Special Agents regarding Florida-origin IUU fishing in the Bahamas, resulting in enforcement efforts focused on known violators.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Manny Antonaras, Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, made the announcement.
“The U.S. Attorney’s Office is committed to helping protect the fishery resources of our neighbors in the Bahamas from poachers and others who seek to profit at the expense of scarce natural resources,” said Acting U.S. Attorney Gonzalez. “We will prosecute those who violate conservation laws intended to promote and secure sustainable fisheries.”
“Preventing illegal, unreported and unregulated (IUU) fishing is a high priority for NOAA OLE,” said Manny Antonaras, Assistant Director of NOAA’s Office of Law Enforcement, Southeast Division. “OLE will continue to cooperate with The Bahamas to help combat IUU fishing through bilateral enforcement operations, setting an example for effective fisheries enforcement cooperation.”
Mr. Gonzalez commended the coordinated investigative efforts of the NOAA Office for Enforcement, the U.S. Coast Guard, and the Florida Fish & Wildlife Conservation Commission which brought the matter to a successful conclusion. The criminal case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 20-cr-10011.
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Omaha Man Convicted of Possessing Crack with the Intent to DistributeRead the Press Release
Acting United States Attorney Jan W. Sharp announced that a federal jury in Omaha, Nebraska, returned a guilty verdict today against Skyler F. Sanders, age 34, of Omaha, for Possession with Intent to Distribute 28 Grams or More of a Mixture or Substance Containing Cocaine Base (Crack). As a result of this conviction, Sanders is facing a mandatory minimum sentence of 5 years imprisonment and a maximum possible sentence of 40 years. There is no parole in the federal system. Senior United States District Judge Joseph F. Bataillon presided over the 3-day trial. Judge Bataillon scheduled sentencing for August 16, 2021, at 1:00 PM.
On October 3, 2019, law enforcement officers with the Federal Bureau of Investigation, Douglas County Sheriff’s Office, and the Omaha Police Department were conducting surveillance of Sanders’s residence in Omaha. Law enforcement had search warrants for Sanders’s DNA and cellular phone for a separate investigation. When law enforcement attempted to make contact with Sanders, Sanders ran from them and during the short foot pursuit, a special agent saw Sanders reach into his pocket and then throw something. Sanders fell as he was going over a chain link fence and surrendered to law enforcement. Officers searched the vicinity of where Sanders was seen throwing something and found a bag of powder cocaine and a bag of crack cocaine over a wood privacy fence about 5-10 feet from where Sanders was seen throwing something. These items were collected and found to be a little over 17 grams of powder cocaine and a little over 30 grams of crack cocaine. The crack cocaine was packaged in 9 separate individual bags.
This case was investigated by the Omaha Police Department, the Douglas County Sheriff’s Office, and the Federal Bureau of Investigations.
Novi Man Charged in Unemployment Insurance Fraud SchemeRead the Press Release
DETROIT – A Novi man was charged in a criminal complaint with aggravated identity theft, mail fraud, wire fraud, and money laundering in a scheme to defraud the State of Michigan’s (SOM) Unemployment Insurance Agency (UIA), announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General and Timothy Kolar, Administrator of the Michigan Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
Charged is Terrell Dwayne Mason, 39.
The criminal complaint alleges that Mason defrauded the State of Michigan’s Unemployment Insurance Agency by unlawfully using the identities of inmates in state and federal prison to file claims for Pandemic Unemployment Assistance benefits. To date, the investigation has shown that Mason allegedly filed over 40 fraudulent claims. Mason allegedly used his relationship with a State of Michigan Unemployment Insurance employee to process the bad claims through the state’s UI system. The complaint further alleges that the claims resulted in payments of over $300,000 and would have paid over $800,000 if not detected by law enforcement.
Mason, who is on supervised release after serving a prison sentence for a prior federal conviction for conspiracy to commit wire and mail fraud, was tracked to and arrested by the United States Marshals Service in Oklahoma on a warrant for allegations he violated the terms of his release. Proceedings to address Mason’s alleged violations of supervised release are pending before United States District Judge Robert H. Cleland.
The criminal complaint is a result of an investigation by the United States Department of Labor – Office of Inspector General and the Federal Bureau of Investigation. This case is being prosecuted by Assistant U.S. Attorney Mark Chasteen.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
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Newark Parking Authority Employee Sentenced to 30 Months in Prison for Narcotics Distribution and Illegally Possessing FirearmsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for being a felon in possession of two firearms, and for distributing heroin and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Aughkay L. Green, a/k/a “K-Boogie,” 50, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a three-count indictment charging him with possession of heroin and cocaine base with intent to distribute and with being a felon in possession of numerous firearms and ammunition.
According to documents filed in this case and statements made in court:
On Jan. 12, 2017, Green sold 25 bricks – later determined to be 38 grams – of heroin to “Individual 1,” for $1,200. On March 22, 2017, Green sold Individual 1 48.9 grams of crack cocaine for $2,250. Green was under law enforcement surveillance and observed to be dressed in his Newark Parking Authority uniform.
On April 1, 2017, Green, accompanied by an unidentified male associate, met Individual 1 in Irvington, New Jersey, where Green’s associate provided Individual 1 with: (1) a Smith and Wesson Model 21 .44 caliber handgun; (2) a Smith and Wesson Model 15 .38 handgun, and (3) 50 rounds of hollow-point .44 caliber ammunition marked “44 REM MAG FC.” Green’s associate received $1,360 from Individual 1, and subsequently provided Green with proceeds from the sale and discussed using these proceeds for the purchase of narcotics.
In addition to the prison term, Judge Hayden sentenced Green to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
Newark Man Sentenced to 110 Months in Prison for Hobbs Act RobberyRead the Press Release
CAMDEN, N.J. – A Newark man was sentenced today to 110 months in prison for his role in robbing a barbershop, Acting U.S. Attorney Rachael Honig announced.
Philip Hedgespeth, 45, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of Hobbs Act robbery, one count of possessing a firearm in furtherance of a crime of violence and one count of possessing a firearm as a previously convicted felon. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On May 1, 2018, Hedgespeth entered the Cache Barbershop located in Newark and brandished a firearm at an employee and customer, demanding cash from them. The customer was an off-duty Newark police officer, who attempted to stop Hedgespeth and prevent the robbery. Hedgespeth escaped and jumped into a waiting vehicle. Newark police engaged in a motor vehicle chase with the suspects, which ended when the suspects’ vehicle became disabled on McCarter Highway. Hedgespeth then attempted to flee the scene on foot but was apprehended after a brief chase.
In addition to the prison term, Judge Kugler sentenced Hedgespeth to five years of supervised release.
Acting U.S. Attorney Honig credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Organized Crimes and Gangs Unit in Newark.
New Yorker Sentenced in Eastern District of Texas for Nationwide Identity Theft and Fraud SchemeRead the Press Release
SHERMAN, Texas - A Huntington, New York, man has been sentenced to federal prison in connection with an identity theft scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Daniel Brian Rink, 37, pleaded guilty on June 24, 2020, to conspiracy to commit bank fraud and was sentenced to 51 months in federal prison today by U.S. District Judge Amos L. Mazzant, III. He was also ordered to pay $230,783 in victim restitution.
“Identify theft is not a victimless crime. Indeed, it often causes great hardship to its victims, and could lead to years of trying to repair one’s finances, reputation, and credit,” said Acting U.S. Attorney Nicholas J. Ganjei. “This sentence sends a clear message that the fraudulent use of victims’ identities will be aggressively prosecuted in the EDTX.”
According to information presented in court, Dallas-Fort Worth Airport police officers discovered drugs in Rink’s luggage on Oct. 7, 2018. Police also found fraudulent identification cards that contained Rink’s photograph as well as credit cards and Sam’s Club membership cards that matched the names on the identification cards. Further investigation revealed Rink had applied for credit accounts using the names on the fraudulent identification cards. He then used those cards to purchase various items, including computers, iPhones, and prepaid gift cards.
On Nov. 15, 2018, Rink rented a 2018 Audi Q3 from Enterprise Rent-a-Car by using one victim’s Illinois identification card and paying for the rental with another victim’s credit card. A few days later, the card issuer notified the Port of Portland, Oregon, Police Department that the credit card had been used to rent a hotel room at the Portland Airport. Investigators located the Audi in the hotel parking lot and Rink inside the hotel. Rink was in possession of the false Illinois identification, another fictitious Illinois identification card that contained his photograph, victim credit cards, and gift cards. His hotel room contained more fictitious identification cards with his photograph, fraudulent credit cards, cellular phones, and a gaming system. Text and picture message exchanges on Rink’s phone included victims’ personal and credit information; discussions about the credit limit amounts they opened in victims’ names in Oregon and Colorado; and sharing of victims’ personal identification used to open and use credit in the victims’ names.
In addition, the investigation revealed that Rink’s co-conspirators used device-making equipment to manufacture fraudulent state identification documents and credit cards, provided other conspirators with fraudulent documents, and directed those conspirators to different cities throughout the United States, including Frisco and Plano, Texas, to open instant credit accounts to purchase merchandise. After purchasing the items, the conspirators would ship the illegally obtained goods to New York, where they were resold for cash. Conspirators used fraudulently obtained credit cards to rent vehicles to travel during their commission of the offense.
In all, Rink and his associates caused a loss of more than $1 million to various lenders and individual victims. On Dec. 11, 2019, a federal grand jury in the Eastern District of Texas, returned a 35-count indictment against Rink and 17 others.
This case was investigated by Homeland Security Investigations, DFW Airport Police Department, and the Port of Portland, Oregon Police Department, and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
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New York and Florida Resident Charged with $3.8 Million Paycheck Protection Program Fraud SchemeRead the Press Release
NEWARK, N.J. – A dual New York and Florida resident was charged for his role in fraudulently obtaining federal Paycheck Protection Program (PPP) loans totaling $3.8 million, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division announced today.
Gregory J. Blotnick, 34, of New York City and West Palm Beach, Florida, is charged by complaint with eight counts of wire fraud affecting a financial institution and six counts of money laundering. Blotnick is scheduled to have his initial appearance by videoconference on May 20, 2021, before a U.S. Magistrate Judge.
“The funds made available through the Paycheck Protection Program are intended to help businesses and their workers get through the financial hardships caused by the COVID-19 pandemic, not to enrich the unscrupulous few who, like this defendant, lie to obtain those funds for their own personal profit,” Acting U.S. Attorney Honig said. “We will continue to protect the viability of important federal programs like these by working quickly to identify, investigate, and prosecute the individuals who see a time of national crisis as an opportunity to commit fraud.”
“Not only did Blotnick fraudulently obtain almost $4 million in relief funds reserved for those suffering serious financial harm from the tragic COVID-19 pandemic, he also lied about how he would use those funds, placing millions of dollars in losing stock trades,” said Acting Assistant Attorney General McQuaid said. “The Justice Department and its law enforcement partners remain committed to aggressively pursuing and holding accountable fraudsters who treat COVID relief programs like a personal piggy bank.”
“There are many small businesses out there that are suffering who are relying on the CARES Act to keep them and their employees afloat as we continue to feel the financial hardships brough on by this pandemic,” Michael Montanez, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “As alleged in the Complaint, Mr. Blotnick took advantage of the emergency financial assistance by lying and submitting fraudulent applications for loans he did not deserve. IRS Criminal Investigation will work with our law enforcement partners to root out corrupt individuals who try to illegally obtain CARES Act assistance they are not entitled to receive.”
“As the Federal government moves to support small businesses during this critical time, members of the Federal Home Loan Bank system play an integral role in the Paycheck Protection Program,” Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), said. “The charges announced today serve as a reminder that those who mislead lenders and seek to defraud the CARES Act will be held accountable. We are proud to work with the Department of Justice and our federal law enforcement partners during this unprecedented crisis.”
“These charges demonstrate our commitment to hold accountable those who attempt to defraud pandemic-related assistance programs designed to aid businesses and employees in these challenging times,” said Special Agent in Charge John F. Grasso, Social Security Administration Office of the Inspector General (SSA-OIG). “We will continue to collaborate across agency lines to combat this self-serving type of fraud. I want to thank the Federal Housing Finance Authority OIG, IRS Criminal Investigation, Federal Deposit Insurance Corporation OIG, and the U.S. Attorney’s Office for their efforts to bring this individual to justice.”
“These charges reflect greed and a selfish attempt to increase personal wealth on the backs of Americans suffering from the ongoing pandemic,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region, said. “As with this case, we will continue to vigorously investigate financial crimes and we appreciate the cooperation of our fellow law enforcement partners.”
According to documents filed in this case and statements made in court:
Blotnick submitted eight fraudulent PPP loan applications to several lenders on behalf of seven purported businesses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
Blotnick submitted eight fraudulent PPP loan applications to several lenders on behalf of seven purported businesses. The applications allegedly contained fraudulent representations to the participating lenders, including documentation of federal tax returns. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020. Blotnick also fabricated the existence of employees listed in purported payroll expense sheets submitted to the various financial institutions.
Based on Blotnick’s alleged misrepresentations, the lenders approved Blotnick’s PPP loan applications and provided Blotnick’s purported business with approximately $3.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Blotnick then transferred most of the proceeds into a brokerage account and lost most of it through stock trading.
The eight counts of wire fraud affecting a financial institution each carry a maximum penalty of 20 years in prison and a $250,000 fine; the six counts of money laundering each carry a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.
Acting U.S. Attorney Rachael Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Manchak; special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Montanez; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New York Man Pleads Guilty to Controlled Substance OffenseRead the Press Release
BOSTON – A Bronx, N.Y. man pleaded guilty on May 4, 2021 in connection with his role in a conspiracy to distribute a controlled substance in 2019.
Jason Jimenez, 27, pleaded guilty to one count of unlawful use of a communications facility. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Sept. 9, 2021.
On July 10, 2019, Jimenez was arrested after making admissions to investigators in connection with a drug transaction. He was indicted in August 2019 as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charge of unlawful use of a communications facility provides for a sentence of up to four years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department and North Andover Police Department. Assistant U.S. Attorney Evan Panich of Mendell’s Office is prosecuting the case.
New York City Man Charged with Nearly $4 Million COVID-19 Relief Fraud Scheme and Money LaunderingRead the Press Release
A criminal complaint was filed in the District of New Jersey today charging a dual-resident of New York and Florida with fraudulently obtaining and laundering nearly $4 million in funds from the COVID-19 relief Paycheck Protection Program (PPP).
According to court documents, Gregory J. Blotnick, 34, of New York City and West Palm Beach, used a variety of false representations to fraudulently obtain more than $3.8 million in federal COVID-19 PPP funds. To obtain the loan money, Blotnick submitted eight falsified loan applications to numerous lenders on behalf of five of Blotnick’s businesses, including his New York City-based hedge fund management firm, Brattle Street Capital LLC and related entities. To obtain the PPP loans, Blotnick submitted false information, including the number of his employees, federal tax returns for his businesses, and his payroll documentation, and he certified that he would use the loan money only for business-related purposes. After fraudulently obtaining the loans, Blotnick laundered and misused the loan proceeds by, among other things, transferring those proceeds to brokerage accounts and placing more than $3 million in losing stock trades.
“Not only did Blotnick fraudulently obtain almost $4 million in relief funds reserved for those suffering serious financial harm from the tragic COVID-19 pandemic, he also lied about how he would use those funds, placing millions of dollars in losing stock trades,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Justice Department and its law enforcement partners remain committed to aggressively pursuing and holding accountable fraudsters who treat COVID-19 relief programs like a personal piggy bank.”
“The funds made available through the Paycheck Protection Program are intended to help businesses and their workers get through the financial hardships caused by the COVID-19 pandemic, not to enrich the unscrupulous few who, like this defendant, lie to obtain those funds for their own personal profit,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “We will continue to protect the viability of important federal programs like these by working quickly to identify, investigate, and prosecute the individuals who see a time of national crisis as an opportunity to commit fraud.”
“As the federal government moves to support small businesses during this critical time, members of the Federal Home Loan Bank system play an integral role in the Paycheck Protection Program,” said Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG). “The charges announced today serve as a reminder that those who mislead lenders and seek to defraud the CARES Act will be held accountable. We are proud to work with the Department of Justice and our federal law enforcement partners during this unprecedented crisis.”
“These charges demonstrate our commitment to hold accountable those who attempt to defraud pandemic-related assistance programs designed to aid businesses and employees in these challenging times,” said Special Agent in Charge John F. Grasso of the Social Security Administration OIG (SSA-OIG) New York Field Division. “We will continue to collaborate across agency lines to combat this self-serving type of fraud. I want to thank the Federal Housing Finance Authority OIG, IRS Criminal Investigation, Federal Deposit Insurance Corporation OIG, and the U.S. Attorney’s Office for their efforts to bring this individual to justice.”
“These charges reflect greed and a selfish attempt to increase personal wealth on the backs of Americans suffering from the ongoing pandemic,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region. “As with this case, we will continue to vigorously investigate financial crimes and we appreciate the cooperation of our fellow law enforcement partners.”
Blotnick is charged with eight counts of wire fraud and six counts of money laundering. The defendant is scheduled for his initial court appearance on May 20. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud, and a maximum of 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FHFA-OIG, IRS-CI, SSA-OIG and the FDIC-OIG are investigating the case.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
New Orleans Man Sentenced to Twelve Months and One Day in Prison for Being A Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CHARLES EDWARD BANKS (“BANKS”), age 38, of New Orleans, Louisiana was sentenced to imprisonment on May 4, 2021 by U.S. District Court Judge Wendy B. Vitter for charges relating to possession of a firearm.
BANKS pled guilty on November 12, 2019, to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, on March 17, 2018, NOPD officers obtained a search warrant for BANKS’s vehicle and found a silver and black 9mm Ruger pistol. A criminal inquiry revealed that BANKS had a least one prior conviction that carried a penalty of at least one year in prison. BANKS indicated that at the time he possessed the firearm, he knew he had been convicted of a felony.
Judge Wendy B. Vitter sentenced BANKS to twelve (12) months and one (1) day in the Bureau of Prisons, followed by 2 years of supervised release. BANKS also must pay a $100 special assessment fee.
The U.S. Attorney's Office praised the work of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The prosecution of the case was conducted by Assistant United States Attorney Kathryn McHugh.
Mother, Son Who Sold Drugs on Dark Web Sentenced to Combined 18 Years in PrisonRead the Press Release
An Arlington mother-son duo who shipped methamphetamine through the U.S. Mail has been sentenced to a combined 18 years in federal prison, announced Acting U.S. Attorney Prerak Shah.
Mary Jane McIntyre, 61, pleaded guilty in December to possession of a controlled substance with intent to distribute; she was sentenced Thursday by U.S. District Judge Mark T Pittman to 72 months in federal prison. Her son, Sean Alexander Harris, 29, pleaded guilty in December to a similar charge; he was sentenced last month by U.S. District Judge Reed O’Connor to 144 months in federal prison.
According to court documents, in March 2020, the North Texas Parcel Task Force intercepted a package thought to originate from a dark web narcotics vendor. The package – stamped with the label of a fictious company, Forever Stylist, Inc., purportedly based in Lewisville, Texas – contained several grams of a substance that field-tested positive for methamphetamine.
Investigators traced the package back to Mr. Harris, who they later observed depositing parcels of narcotics at various postal centers across the metroplex. They also identified Mr. Harris’ mother, Ms. McIntyre, on post office surveillance camera mailing parcels for her son.
The ensuing investigation identified more than 8,400 packages containing an estimated total of more than 75 pounds of methamphetamine posted between October 2019 and October 2020.
In plea papers, Mr. Harris admitted he sold narcotics over the dark web to buyers across the country.
“Suspects mistakenly believe they can remain hidden in the shadows of the dark web,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Postal Inspectors’ objectives are to rid the mail of illicit drug trafficking, preserve the integrity of the mail and, most importantly, provide a safe environment for postal employees and the American public. The sentencing handed down today should serve as a reminder to other perpetrators engaged in this type of criminal activity that we will ensure they are brought to justice. We thank the USPS-OIG and DEA for their partnership, in addition to the U.S. Attorney’s Office who remain a steadfast protector of the public.”
The U.S. Postal Inspection Service, U.S. Postal Service Office of Inspector General, and the Drug Enforcement Administration’s Dallas Field Division conducted the investigation. Assistant U.S. Attorney Robert Boudreau is prosecuting the case.
Monmouth County Business Owner Sentenced to One Year in Prison for Tax Evasion and Failing to Pay Employment Payroll TaxesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, business owner was sentenced today to 12 months and one day in prison for tax evasion and failure to pay the IRS over $540,000 in employment taxes, Acting U.S. Attorney Rachael A. Honig announced today.
Wilson Salas-Molina, 41, of Howell, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of payroll tax evasion and one count of failure to collect, account for, and pay over payroll taxes. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
Salas-Molina was the owner and operator of US Contractor Inc. (aka Wilson Contractors Inc., aka WC Contractor Inc.), a roofing business located in Monmouth County. From 2012 to 2018, Salas-Molina was required to withhold and pay over to the IRS the employment taxes for US Contractor employees. Salas-Molina cashed checks he received from roofing clients at a check cashing service and paid his 14 employees in cash to conceal his payment of wages and his failure to report, account for, and pay over employment taxes to the IRS. The scheme resulted in a failure to withhold and pay over $540,000 in employment taxes to the IRS.
In addition to the prison term, Judge Sheridan sentenced Salas-Molina to three years of supervised release and ordered Salas-Molina to pay $541,181 in restitution to the IRS.
Acting U.S. Attorney Honig credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Man Pleads Guilty to Applying for a Paycheck Protection Program Loan under False PretensesRead the Press Release
A former Tulsa resident who fraudulently applied for a Paycheck Protection Program forgivable loan guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act pleaded guilty today in federal court, announced Acting U.S. Attorney Clint Johnson.
Adewale Matthew Abel, 51, pleaded guilty to making a false statement to a financial institution. He is scheduled to be sentenced on Aug. 10, 2021.
“Stopping COVID-related fraud continues to be a priority for the Department of Justice. In the past year, this office has charged six defendants, including Mr. Abel, for fraudulent schemes related to Paycheck Protection Program forgivable loans,” said Acting U.S. Attorney Clint Johnson. “I appreciate the diligent work of Assistant U.S. Attorneys Kristin Harrington and Victor Régal who make up my Coronavirus Anti-Fraud Team. Today’s conviction reflects their resolve to hold fraudsters accountable for stealing taxpayer-funded resources needed by America’s small businesses.”
From May 3, 2020, to May 11, 2020, Abel made false statements to Stride Bank on an application for a Paycheck Protection Program loan in the approximate amount of $300,000 for a company, Pinnacle Industry LLC, that Abel claimed to own and operate. On a borrower application, Abel falsely claimed the company had a payroll of $120,000; employed 20 people; was in operation on Feb. 15, 2020 and had employees for whom it paid salaries and payroll taxes; and would use the loan funds to retain workers and maintain payroll or make mortgage interest payments, lease payments and utility payments as specified under the Paycheck Protection Program Rule. He then signed the application, certifying that information provided in the application and supporting documents was true and accurate.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorneys Kristin Harrington and Victor A.S. Régal are prosecuting the case.
Overall, the Justice Department has charged at least 120 defendants with fraud related to the Paycheck Protection Program (PPP), a provision of the $2.2 trillion CARES Act aimed at helping small businesses keep workers on their payrolls. The Department has also charged approximately 140 defendants with unemployment insurance fraud.
To learn more about the Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
MS-13 Member Pleads Guilty to Racketeering Conspiracy Involving Murder and Attempted MurderRead the Press Release
A Maryland man pleaded guilty today to conspiracy to participate in a racketeering enterprise by murdering a suspected rival gang member and attempting to murder two other victims, in connection with his MS-13 gang activities.
According to his plea agreement and other court documents, from March 2016, Moises Alexis Reyes-Canales, aka Sicopita, 23, of Annapolis, was a member and associate of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. Specifically, Reyes-Canales admitted that he participated in the murder of a suspected rival gang member and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.
“Reyes-Canales and his co-defendants committed murder, attempted murders, and other violent crimes on behalf of MS-13, causing lasting harm to victims and the Annapolis community,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Through the diligent efforts of law enforcement and department prosecutors, these defendants will no longer harm and intimidate the Annapolis community. We will continue our relentless pursuit of MS-13 gang members, both in the United States and internationally.”
“The violence perpetrated by Reyes-Canales and his fellow MS-13 members was brutal and tragic and is totally unacceptable,” said Acting U.S. Attorney Jonathan F. Lenzner of the District of Maryland. “The U.S. Attorney’s Office in Maryland and our local and state partners are working together to remove these violent gang members and to keeping our communities safe from the violent threat of MS-13. We continue to work with our counterparts here and abroad to bring to justice these transnational gangs. We need the continued help of members of our communities in order to carry on our work against MS-13.”
“This case illustrates that gang organizations are driven by greed and profit no matter the cost to innocent lives or our communities,” said Special Agent in Charge James Mancuso for the Homeland Security Investigations’ (HSI) Baltimore Field Office. “It is HSI’s priority to investigate crimes related to transnational gang violence, a duty we diligently and systematically discharge with the help of our federal, state, local and international law enforcement partners.”“ATF is committed to focusing our efforts on identifying and investigating those who use violence and firearms to intimidate and brutalize others,” said Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division. “The strong partnerships ATF has with our federal, state, and local law enforcement partners, as well as prosecutors, are crucial in targeting these offenders and dismantling the violent gangs who try to take over communities.”
Co-defendants Marlon Cruz-Flores, 25, and Manuel Martinez-Aguilar, aka “El Lunatic” and “Zomb,” 22, both of Annapolis, previously pleaded guilty to the racketeering conspiracy and gun charge. Cruz-Flores was sentenced to 38 years in prison and Martinez-Aguilar was sentenced to 24 years. Co-defendant Fermin Gomez-Jimenez, 23, of Annapolis, pleaded guilty to conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence and is scheduled to be sentenced on May 18. Co-defendant David Diaz-Alvarado, 20, of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant, Juan Carlos Sandoval-Rodriguez, 23, of Annapolis, was convicted on Oct. 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after an 11-day jury trial for the murder of Victim 1. He faces a mandatory sentence of life in prison at his sentencing which will be scheduled at a later date. All of the defendants remain detained.
Reyes-Canales and the government have agreed that, if the court accepts the plea terms, Reyes-Canales will be sentenced to 35 years in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for Reyes-Canales on Sept. 19.
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.
HSI, ATF, the Anne Arundel Police Department, the Annapolis Police Department and the Anne Arundel State’s Attorney Office investigated the case.
Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Zachary Stendig of the District of Maryland are prosecuting the case.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and HSI both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving MurderRead the Press Release
BOSTON – A member of the MS-13 gang pleaded guilty yesterday in federal court in Boston to racketeering charges and admitted to participating in a 2018 murder in Lynn.
Jonathan Tercero Yanes, a/k/a “Desalmado,” 24, a national of El Salvador, pleaded guilty to racketeering conspiracy. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Sept. 15, 2021.
MS-13 is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala. MS-13 members follow certain core rules and principles, including that members attack and attempt to kill members of rival gangs, and members do not act as informants or cooperate with law enforcement.
MS-13 is organized in Massachusetts and elsewhere in the form of so-called “cliques” or smaller groups that operate under the larger mantle of MS-13. Tercero Yanes was a member of the Sykos Locos Salvatrucha clique of MS-13. Achieving promotion in MS-13 generally requires the commission of a significant act of violence.
Tercero Yanes was indicted in 2018 following an investigation into the murder of a teenage boy whose body was found in a park in Lynn on Aug. 2, 2018. The injuries to the victim’s body indicated that the victim had been stabbed dozens of times. As part of his plea, Tercero Yanes admitted that on or about July 30, 2018, he participated in that murder while a member of the MS-13 gang.
Tercero Yanes is the 4th defendant in this case to plead guilty and accept responsibility for his participation in murder. The remaining defendants in this case are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Based upon his conviction for RICO conspiracy involving murder, Tercero Yanes faces a sentence of up to life in prison, up to three years of supervised release and a fine of up to $250,000. Tercero Yanes will also be subject to deportation upon the completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan Blodgett; Suffolk County District Attorney Rachel Rollins; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Michael Mageary made the announcement.
Local repairman sent to prison for defrauding customersRead the Press Release
HOUSTON – A 36-year-old resident of Sugar Land has been ordered to federal prison following his conviction arising out of a mail fraud conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Mark Ricky Mitchell pleaded guilty Jan. 16.
Today, U.S. District Judge Kenneth M. Hoyt handed Mitchell a 33-month sentence to be immediately followed by three years of supervised release. The court included a condition of supervised release that prohibits Mitchell from engaging in any machine repair business without prior approval. He was further ordered to pay $1,148,156.98 in restitution.
At the time of his plea, Mitchell admitted he devised a scheme to defraud customers of his machine part repair shop located in Houston. He would make numerous false claims to his customers - that he had facilities in close proximity which would reduce turnaround time, how fast parts could be repaired and that he would provide a quote before beginning work.
Once he obtained possession of the victims’ parts, Mitchell demanded payment for fraudulent charges before he would return the parts. The charges were significantly more than Mitchell had originally quoted for work that was never performed nor authorized.
The victims suffered a loss of approximately $700,000 as a result of Mitchell’s scheme.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin prosecuted the case.
Local President of "We Build the Wall" Faces New Federal IndictmentRead the Press Release
PENSACOLA, FLORIDA – Brian G. Kolfage, of Miramar Beach, Florida, has been indicted by a federal grand jury for crimes related to the filing of his 2019 income taxes, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida today. Kolfage, who faces a separate federal indictment out of the Southern District of New York for fraud and money laundering related offenses, now also faces one count of filing a false tax return and one count of wire fraud related to the electronic filing of his tax return in Northern Florida.
The indictment alleges that between January 2019 and July 2020, Kolfage engaged in a scheme to defraud the government in relation to his 2019 federal income tax returns. The charges allege that Kolfage received hundreds of thousands of dollars from multiple organizations during 2019, including We Build the Wall, Inc., which were deposited into his personal bank account. Kolfage is alleged to have failed to report this income to the Internal Revenue Service.
“The United States relies on the payment of taxes to defend our country and maintain its operations,” stated Acting United States Attorney Coody. “We will investigate and prosecute those who falsely misrepresent their income – whether by traditional evasion or failing to disclose charitable contributions diverted to their personal gain.”.
“IRS-CI is working diligently to stop those who, regardless of their resume or social status, violate the integrity of our nation’s tax system,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “We take our mission seriously. IRS Special Agents are particularly interested in cases where someone for his own personal benefit has taken what belonged to others. We encourage everyone to practice due diligence when donating their hard-earned money.”
Kolfage will make his initial appearance on this indictment on May 27, 2021, at 2:00 pm Central Time, at the United States Courthouse in Pensacola, Florida. If convicted, he faces up to 20 years’ imprisonment.
The charges contained in the indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Office of Agricultural Law Enforcement of the Florida Department of Agriculture and Consumer Services. The case is being prosecuted by Assistant United Sates Attorneys David L. Goldberg and Lazaro P. Fields.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Leader of Drug Trafficking Organization Sentenced to 24 YearsRead the Press Release
RALEIGH, N.C. – An Elm City man was sentenced today to 288 months in prison for conspiracy to distribute heroin, cocaine base (crack), and marijuana.
According to court documents, Marquavious Harold Carr, 31, was named in an 11-count indictment on June 13, 2018. He was charged with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, 28 grams or more of cocaine base (crack), a quantity of cocaine, and a quantity of marijuana (Count One); distribution of a quantity of heroin (Counts Two and Three); possession with intent to distribute a quantity of heroin, and aiding and abetting (Count Four); distribution of a quantity of cocaine, and aiding and abetting (Count Five); and possession with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of cocaine, and aiding and abetting (Count Eight).
On February 5, 2019, Carr pleaded guilty to Counts One and Eight.
The investigation established that Carr was the leader of a conspiracy to distribute cocaine, cocaine base (crack), heroin, and marijuana between August 2017 and June 2018 in Nash, Edgecombe, and Wilson counties. Carr and seven other individuals were convicted in federal court for their participation in the conspiracy.
Carr, who was a high-ranking member of the Crips street gang, directed and controlled the activities of the drug trafficking organization even while he was incarcerated in the North Carolina Division of Adult Corrections (NCDAC).
The investigation showed that on November 10, 2010, Carr was convicted of Voluntary Manslaughter in Wilson County and was sentenced to a term of imprisonment of 92 to 120 months. He was released to post-release supervision on May 20, 2017.
On September 13, 2017, agents observed a vehicle committing traffic violations. Officers initiated a traffic stop and smelled an odor of marijuana. Carr, who was driving, stepped out of the vehicle and dropped a digital scale. The scale had a small amount of white residue, which Carr attempted to wipe off with his t-shirt, but the residue tested positive for cocaine.
On November 28, 2017, officers went to a house on Mill Branch Road in Rocky Mount to execute a search warrant. Officers saw a cooperating defendant meeting with Carr outside. Upon seeing officers, the cooperating defendant threw a “brick” (approximately 1 gram) of heroin to the ground.
Carr drove away from the residence, and in the process, he struck a deputy with the Nash County Sheriff’s Office. Carr continued to flee at a high rate of speed, forcing at least one other vehicle off the road. Carr eventually lost control of his vehicle and crashed into a utility pole. Carr ran from the vehicle, but he was apprehended after a short chase.
A search of Carr’s vehicle revealed 500 bindles (7.37 grams) of heroin. Carr was also found in possession of $1,223.00. In the driveway where Carr and the cooperating defendant were meeting, officers located additional heroin, 13.7 grams of crack cocaine, 13.7 grams of cocaine, 17 grams of marijuana, as well as pills.
The Defendant’s post-release supervision was revoked, and he returned to NCDAC custody. But Carr then used recorded jail telephones to continue directing and controlling the drug trafficking organization.
Agents reviewed dozens of telephone calls in which Carr directed the distribution of drugs and the collection of thousands of dollars of currency. Carr also gave instructions to co-conspirators regarding firearms.
In total, Carr was responsible for the distribution of more than 400 grams of heroin, more than 850 grams of cocaine base (crack), more than two kilograms of cocaine, and more than 700 grams of marijuana. He received enhancements for leadership and reckless endangerment.
The Defendant’s co-defendants have all previously been sentenced.
- Rodney Durrell Thomas: 156 months’ imprisonment.
- Shaquandra McAllister: 42 months’ imprisonment.
- Travis Kwymaine Ruffin: 54 months’ imprisonment.
- Marcus Antwan Wiley: 57 months’ imprisonment.
- Marquice Quashawn McCoy: 70 months’ imprisonment.
- Michael Speight: 60 months’ imprisonment.
- De’Andre Anthony Lucas: 15 months’ imprisonment. This prosecution is part of Operation Tri County Hookup 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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Drug Enforcement Administration, the Nash County Sheriff’s Office, the Wilson Police Department, and the State Bureau of Investigation investigated the case and Assistant U.S. Attorneys Dena J. King and Scott A. Lemmon prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-cr-00235-D.
Latin Dragons Nation Member Sentenced to 240 Months ImprisonmentRead the Press Release
HAMMOND- Jonathan Arevalo, 28, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon to 240 months imprisonment following his guilty plea to conspiracy to participate in racketeering activity as a member of the Latin Dragons Nation street gang, announced Acting U.S. Attorney Bell.
According to documents in the case, Arevalo has been associated with the Latin Dragons Nation since approximately 2009, and he engaged in drug trafficking and possessed a firearm as a member of the gang. In 2012, Arevalo gave another Latin Dragon member access to a firearm, which was used to kill another individual in Chicago. In 2015, in Chicago, Arevalo was involved in a drive-by shooting incident which resulted in the death of a passenger in his vehicle when the rival gang returned fire.
In this case, a total of 19 members and associates have been charged with racketeering conspiracy for their participation in Latin Dragons Nation activity. Of those, 15 defendants have pled guilty and 7 are awaiting sentencing.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Kevin F. Wolff, Maria N. Lerner and Michael J. Toth, with prior assistance from former Assistant U.S. Attorney Joseph A. Cooley.
Knoxville Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
KNOXVILLE, Tenn. – On May 6, 2021, Dios E. Tate, 31, currently of Knoxville, entered a guilty plea to one count of aggravated identity theft in the United States District Court for the Eastern District of Tennessee at Knoxville. Sentencing is scheduled for September 9, 2021, at 10:00 a.m., before the Honorable Thomas A. Varlan, United States District Judge.
Tate faces a mandatory term of two years in Federal prison, as well as a fine of up to $250,000, and supervised release of one year.
As part of the written plea agreement, Tate admitted that on November 16, 2020, he used the social security number of another person to obtain a Tennessee identification card from the Knox County Clerk issued in a name other than his own.
This prosecution is the result of an ongoing operation by the Tennessee Highway Patrol, the Federal Bureau of Investigation, and the Social Security Administration – Office of Inspector General to identify people who have unlawfully used social security numbers of other persons to obtain a false Tennessee identification cards.
Assistant United States Attorney TJ Harker represented the United States.
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Justice Department Reaches Agreement with Two Community Colleges to Improve Access for Students with DisabilitiesRead the Press Release
The Justice Department announced today the signing of two agreements with community colleges to remove barriers experienced by students with disabilities, including veterans. The agreements, reached with Central Texas College of Killeen (CTC), located in Killeen, Texas, and Tidewater Community College (TCC), located in Virginia Beach, Virginia, are part of the department’s commitment to ensure that educational institutions comply with the Americans with Disabilities Act (ADA). Both colleges have high populations of servicemembers who have returned from active duty.
Under the agreements announced today, CTC and TCC will remove barriers to accessibility in facilities, such as classrooms, dormitories, libraries, technology centers and places of recreation. The agreements require CTC and TCC to make physical modifications so that parking, entrances, restrooms, service counters, drinking fountains and routes to and within buildings are accessible to people with disabilities. The colleges also must ensure that assembly areas, such as auditoriums, have the required wheelchair and companion seating. The agreements further require these colleges to implement a plan for the accessibility of sidewalks and curb cuts within their borders.
“College students, including returning servicemembers, should not face barriers in education due to their disabilities,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the rights of all students with disabilities, many of whom are veterans who have made great sacrifices while serving our country.”
“The Western District of Texas is proud to be the home of many veterans and the location of numerous colleges and universities,” said U.S. Attorney Ashley Hoff for the Western District of Texas. “Protecting the rights of veterans and students with disabilities is a priority in this district. We remain committed to ensuring that educational facilities are accessible to servicemembers and Texans with disabilities.”
“Through the protections enshrined in the Americans with Disabilities Act, it is essential that we work together to remove barriers to education and uphold the civil rights of every member of our community,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We must ensure that all individuals with disabilities, including veterans who have sacrificed so much for our country, have equal opportunity and equal access to educational services.”
People interested in finding out more about the CTC agreement, the TCC agreement, or the ADA can call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov. For more information about the department’s Servicemembers and Veterans Initiative, please visit www.servicemembers.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
Jury Convicts KC Man of $1 Million Conspiracy to Steal 1,400 Cell Phones in Dozens of BurglariesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been convicted in federal court for his role in a $1 million conspiracy to steal more than 1,400 cell phones in dozens of commercial burglaries across several states, as well as for obstruction of justice.
Bryan C. Kirkendoll II, also known as “B Boy” and “Blockboy,” 31, was found guilty on Wednesday, May 5, of one count of participating in a conspiracy, three counts of transporting stolen property across state lines, two counts of witness tampering, and one count of transmitting threats in interstate commerce.
Co-defendant Viktor Chernetskiy, 31, of Kansas City, Mo., a naturalized citizen from Ukraine, pleaded guilty on June 17, 2020, to his role in the conspiracy and to one count of transporting stolen property across state lines. Chernetskiy is scheduled to be sentenced on June 3, 2021.
Kirkendoll and Chernetskiy participated in a conspiracy to steal electronic devices – primarily cell phones – from stores in Missouri, Kansas, Iowa, Illinois, and Oklahoma, then transport them across state lines in order to sell them. Kirkendoll and Chernetskiy committed 48 burglaries from Nov. 21, 2018, to June 14, 2019, in which they stole approximately 1,401 electronic devices (primarily cell phones) with a total financial loss of approximately $1,008,742.
In each instance, the stores were burglarized after hours; Kirkendoll and Chernetskiy wore hooded sweatshirts, caps, and gloves to conceal their identity and limit the trace evidence left behind during the burglaries. They pried the doors open with a large screwdriver or crowbar; in many instances, they broke the glass windows out of the doors, and then went through the opening. Once inside, they looked for phones that were not secured within a safe or other secure location, and loaded those phones into a plastic bin, trash bag, or other bag. In some instances, they also cut retractable security cables from store demonstration phones and took those as well. There was at least one instance where it appeared that they tried (unsuccessfully) to pry open a safe.
While he was on bond, Kirkendoll used intimidation and threats toward a victim-witness in this case to interfere with his pending criminal trial. In February 2020, Kirkendoll posted threatening messages on Facebook directed at the victim-witness, including, “U on borrowed time … Rats get Klapped snitch. (sic)” Kirkendoll also harassed the victim-witness from Feb. 13-19, 2020, in an attempt to dissuade that person from testifying at his trial.
Kirkendoll’s bond was revoked, and he was arrested in February 2020 for his threats toward the victim-witness. Kirkendoll remains in federal custody.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for almost three hours before returning the guilty verdict on Wednesday, May 5, to U.S. Chief District Judge Beth Phillips, ending a trial that began Monday, May 3.
Under federal statutes, Kirkendoll is subject to a sentence of up to five years in federal prison without parole on the conspiracy count, up to 10 years in federal prison without parole on each of the three counts of transporting stolen property across state lines, up to 23 years in federal prison without parole for both counts of witness tampering, and up to five years in federal prison without parole for transmitting threats. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Matthew Blackwood. It was investigated by the Missouri State Highway Patrol and the FBI.
Jamestown Woman Pleads Guilty to Allowing an Alleged Drug Dealer to Conduct His Drug Trafficking Operation Out of Her ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Chelsey Hunt, 29, of Jamestown NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to maintaining a drug-involved premises. The charge carries a maximum penalty of 20 years in prison, and a fine of $500,000.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who are handling the case, stated that between January and December 2018, the defendant rented the second floor of a residence on Linden Avenue in Jamestown. While living there with her children, Hunt, in violation of the terms of her lease, allowed co-defendant Douglas Beardsley to live in the attic. Beardsley conducted his methamphetamine and heroin trafficking operation from the attic. Hunt took an active role in assisting the operation, such as helping with Beardsley’s customers and informing about police activity around the residence. The defendant also sold small amounts of narcotics for Beardsley and purchased narcotics for her personal use as well.
Charges remain pending against Douglas Beardsley. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing will be scheduled at a later date.
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Jury Convicts South Dakota Woman of Health Care Fraud and Identity TheftRead the Press Release
Acting United States Attorney Bob Murray announced today that HOLLI TELFORD LUNDAHL, age 64 of Oelrichs, South Dakota was convicted by a jury on charges of three counts of health care fraud and two counts of aggravated identity theft after a one-week trial in the United States District Court for the District of Wyoming. Lundahl is scheduled to be sentenced by U.S. District Court Judge Nancy Freudenthal in Cheyenne on July 12, 2021. Lundahl may be sentenced to not more than 10 years in prison for each health care fraud count and must be sentenced to a mandatory 2-year prison term for each identity theft count. The 2-year identity theft prison sentences must be consecutive to any prison term imposed for the health care fraud counts but may be imposed concurrent to one another. A fine of up to $250,000 could be imposed for each count.
In March 2020, Holli Lundahl was indicted on the charges which included three overlapping schemes to defraud Wyoming Medicaid by submitting false claims for long-term care provided to Lundahl’s sibling, and the unlawful possession and use of identity information of two individuals in furtherance of two of the charged schemes.
The evidence at trial showed that Wyoming Medicaid operates a long-term care program designed to keep beneficiaries out of nursing homes and other institutional settings. This program includes limited payments for certain direct support services provided to beneficiaries by properly qualified and enrolled workers. Lundahl enrolled her niece in this program as a caregiver for Lundahl’s sister using the niece’s name, social security number, and other identifying information. Lundahl then submitted claims to Wyoming Medicaid for direct support work using the niece’s name when the niece had not provided any services. Lundahl’s niece did not know her identity was being used and had never been to Wyoming before testifying at trial. The false information provided by Lundahl caused Wyoming Medicaid money to be paid in the niece’s name into a credit union account controlled by Lundahl.
Evidence at trial also proved that Lundahl advertised for a direct support worker in Lusk. When a young woman responded to the ad, Lundahl convinced the woman to give her social security number and other identification information to Lundahl to be hired for the job. The woman worked one day, was paid cash for her time, and was not asked to return. The young woman did not know that she was enrolled with Medicaid or that her information was used for that purpose. However, Lundahl then used the young woman’s information to submit false claims to Wyoming Medicaid for direct support work that the woman did not perform. The false information provided by Lundahl caused Wyoming Medicaid money to be paid in the young woman’s name into a credit union account controlled by Lundahl.
Finally, evidence at trial proved that Lundahl enrolled herself as a direct support worker when she had a power of attorney for her sister and therefore could not be enrolled under Medicaid’s long-term care rules. Lundahl then submitted claims to Wyoming Medicaid for direct support work when she was not eligible to be paid for this work. As a result, Wyoming Medicaid money was paid to Lundahl when she was not eligible to receive that money.
“I applaud my litigation team, the court and the Wyoming Medicaid Fraud Control Unit for stopping this blatant abuse of the system,” said Acting United States Attorney Bob Murray. “Identifying and preventing Medicaid fraud continues to be one of our highest priorities and we remain steadfast in ensuring that Medicaid dollars are preserved for those who most need them.”
The case was investigated by the Wyoming Medicaid Fraud Control Unit and prosecuted by Senior Assistant Attorney General Travis Kirchhefer of the Wyoming Attorney General’s Office and Assistant United States Attorney Eric Heimann.
Suspected fraud against Medicaid can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) and the agency’s website https://oig.hhs.gov/fraud/report-fraud/. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit their website at http://ag.wyo.gov/medicaid-fraud-control-unit.
Iowa City Man Sentenced to Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa – On Tuesday, May 4, 2021, United States District Court Chief Judge John A. Jarvey sentenced Tremayne Lamar Clemons, age 29, of Coralville, to 30 months in prison for Unlawful Drug User in Possession of Firearms announced Acting United States Attorney Richard D. Westphal. Clemons was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
The investigation of Tremayne Lamar Clemons began on December 25, 2019, when law enforcement responded to the scene of a shooting in the 900 block of Boston Way in Coralville. The following day officers conducted a search warrant at Clemons’s residence -- a residence some people involved in the shooting the day before were seen exiting just prior to the shooting. During the search, law enforcement located three firearms, boxes of ammunition, and drug paraphernalia. Clemons admitted to possessing the firearms found. He also admitted to using controlled substances. On December 31, 2019, Clemons possessed two additional firearms at a retail store in Coralville. Clemons admitted to being an unlawful user of controlled substances at the time of his possession of the five firearms.
This matter was investigated by the Iowa Division of Criminal Investigation and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Investigation into White Supremacists and Drug Traffickers Yields Guilty PleasRead the Press Release
TEXAS – One member of the Aryan Circle (AC) pleaded guilty today to his role in a violent assault of a man in October 2016, as well as conspiring to sell firearms to a convicted felon, and a Mexican national pleaded guilty on Monday, April 19, to conspiring with members of the AC and others to sell methamphetamine, announced Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas and Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division today.
Rodney Shane Holt, aka “Turbo,” 48, of Tyler, Texas pleaded guilty to assault resulting in serious bodily injury in aid of racketeering, as well as conspiracy to sell firearms to a convicted felon. Holt committed the assault as part of his membership in the AC, a gang that operates in Texas and other states throughout the country. Eulalio Torres-Cadenas, aka “Yayo,” 43, of Mexico, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, namely 500 grams or more of a mixture or substance containing methamphetamine.
“Today’s pleas demonstrate the unfortunate truth that violence and the drug trade go hand-in-hand,” said Acting U.S. Attorney Nicholas J. Ganjei. “The Department of Justice and its state and local partners will continue to take a hard line against organized criminal gangs and their enablers.”
According to court documents, Torres-Cadenas supplied an Aryan Circle member with between 1.5 and 5 kilograms of methamphetamine over a number of occasions in 2016, in the area of Houston, Texas. The AC member went on to distribute the methamphetamine to buyers in Louisiana, including other AC members. The drug conspiracy that Torres-Cadenas pleaded to was uncovered as part of Operation Noble Virtue, an investigation into the AC that has targeted AC leadership.
Holt’s offense conduct included planning and participating in the events surrounding a violent beating of another AC member who wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Holt and other AC members carried out the attack in order to “X,” or remove the AC member from the gang, because it violated the AC’s rules to join another organization. Holt’s offense conduct also included several sales of high caliber firearms to convicted felons.
The AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Sentencing dates have not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) District Attorney’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Trial Attorneys Bethany Lipman, Rebecca Dunnan, and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas are prosecuting the case.
Hogansburg Man Pleads Guilty to Marijuana ChargesRead the Press Release
ALBANY, NEW YORK – Tyren Terrance, age 26, of Hogansburg, New York, pled guilty today to conspiring to distribute, and possessing with intent to distribute, 100 kilograms or more of marijuana. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Terrance admitted that on August 20, 2020, he and a co-conspirator used two pickup trucks to transport 10 hockey bags containing approximately 200 kilograms of marijuana through the Northern District of New York with the intent to distribute the drugs in the New York City area.
As a result of his conviction, Terrance faces at least 5 years and up to 40 years in prison, and a term of post-release supervision of at least 4 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. Sentencing is scheduled for September 2, 2021 before Chief United States District Judge Glenn T. Suddaby.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
Grand Island Man Sentenced to 180 Months for MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Dale Roberson, age 37 of Grand Island, Nebraska, was sentenced today in federal court for Conspiracy to Distribute Methamphetamine. Senior United States District Judge Richard G. Kopf sentenced Roberson to 180 months’ imprisonment. After completing his term of imprisonment, Roberson will be required to serve a 10-year term of supervised released. There is no parole in the federal system.
As of early 2018, Roberson was distributing large amounts of methamphetamine to people in the Grand Island area and continued doing so into May 2020. Many of the transactions occurred at Roberson’s Grand Island residence. Police surveillance captured short-term traffic occurring at Roberson’s residence during portions of this time period.
Investigators found social media communication between Roberson and others discussing the exchange of methamphetamine, money, drug use, and trips to other states to obtain drugs.
During a search of Roberson’s residence, officers found methamphetamine, a firearm, ammunition, and drug paraphernalia including items used to redistribute methamphetamine to others.
This case was investigated by the Grand Island Police Department and the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations and the Federal Bureau of Investigation.
Félix Verdejo-Sánchez and Luis Antonio Cádiz-Martínez Indicted for Carjacking and Kidnapping Resulting in Death, and Intentionally Killing an Unborn ChildRead the Press Release
SAN JUAN, Puerto Rico – Today, a federal grand jury returned an indictment charging Félix Verdejo-Sánchez and Luis Antonio Cádiz-Martínez for federal crimes arising from the murder of Keishla Rodríguez Ortiz, announced United States Attorney W. Stephen Muldrow, Federal Bureau of Investigation Special Agent in Charge Rafael Riviere-Vázquez, and Domingo Emanuelli, Secretary of the Puerto Rico Department of Justice. The FBI is in charge of the investigation with the close collaboration and support of the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, and the Puerto Rico Department of Justice.
Félix Verdejo-Sánchez and Luis Antonio Cádiz-Martínez are facing one count of carjacking resulting in death, in violation of Title 18, United States Code, Sections 2119(3) and (2); one count of kidnapping resulting in death, in violation of Title 18, United States Code, Sections 1201 (a)(1) and 2; and one count for killing an unborn child, in violation of Title 18, United States Code, Section 1841and 2, also known as the “Unborn Victims of Violence Act of 2004” or “Laci and Conner’s Law.” In addition to these charges, Félix Verdejo-Sánchez is facing one count for using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
The indictment includes a Notice of Special Findings concerning relevant facts and factors that make the case eligible for the death penalty:
- Each defendant intentionally killed the victim (Keishla Rodríguez Ortiz).
- Each defendant committed the offense in an especially heinous, cruel, or depraved manner in that it involved serious physical abuse to the victim.
- Each defendant committed the offense after substantial planning and premeditation to cause the death of the victim.
- Félix Verdejo Sánchez procured the commission of the offense by payment, or promise of payment, of anything of pecuniary value.
- Luis Antonio Cádiz-Martínez committed the offense as consideration for the receipt, or in the expectation of the receipt, of anything of pecuniary value.
“Keishla Rodríguez-Ortiz was taken from a family that loved her, and she and her child were denied the most fundamental right of life, and the joy of knowing what that life could have been,” said United States Attorney Muldrow. “We hope that this process brings some measure of solace to Keishla’s family. This case also underscores the message of cooperation with law enforcement that I have been repeating to the community – If you have knowledge of criminal activity, even if you are a participant in that activity, do the right thing and come forward to authorities. The prosecutors and the law enforcement agencies that have worked tirelessly, and who continue to assist in the ongoing investigation of this case, are to be commended.”
“The FBI is proud to have worked alongside our colleagues of the Puerto Rico Police Bureau and the U.S. Attorney’s Office for the District of Puerto Rico on this case,” said Rafael Riviere-Vázquez, Special Agent in Charge of the FBI San Juan Field Office. “Our hearts go out to the grieving families and as always we urge citizens to speak up and report criminal activity by calling 787-987-6500 or leaving a tip online at Tips.FBI.gov”.
“I recognize the teamwork and efforts of the seven prosecutors and the chief prosecutor assigned to this case alongside the Puerto Rico Police Bureau,” said Domingo Emanuelli, Secretary of the Puerto Rico Department of Justice. “The message is clear and forceful. Whoever violates the law, threatens the safety, and lives of women, will pay.”
“We continue to work hand in hand with our partners at the local, state, and federal level to bring justice to Keishla. Our aim is to get to the bottom of this case and to process those responsible for this crime,” said Alexis Torres, Secretary of the Department of Public Safety. “We owe it to Keishla, to her family and to the people of Puerto Rico. Rest assured that the DSP will not rest until justice is served in this case and all others in our jurisdiction.”
The case is being prosecuted by Assistant United States Attorney Jonathan Gottfried, Chief of the Violent Crimes and National Security Section at the U.S. Attorney’s Office and Assistant U.S. Attorney Jeanette Collazo.
The statutory penalties for violations of the kidnapping and carjacking statutes include life imprisonment or the death penalty, and life imprisonment for the intentional killing of an unborn child. Verdejo-Sanchez is also facing up to a sentence of life for the firearm violation, which must be imposed consecutively to any other related offense of conviction.
The public is reminded that an indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty beyond a reasonable doubt.
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Fresno Man Pleads Guilty to Mail Theft and Unemployment Benefit Fraud SchemeRead the Press Release
FRESNO, Calif. — Garrett Scott Wheelen, 30, of Fresno, pleaded guilty today to mail fraud and possession of stolen mail, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August and November 2020, Wheelen perpetrated a mail fraud scheme to defraud the State of California by submitting fraudulent Pandemic Unemployment Assistance (PUA) claims to California’s Employment Development Department (EDD). PUA is a federal unemployment insurance program, established by the federal CARES Act and administered by EDD, that provides unemployment benefits to people impacted by the COVID-19 pandemic.
Wheelen used personally identifiable information (PII) and other information associated with real people to submit fraudulent unemployment insurance and PUA claims to EDD. The claims were submitted for his own benefit and included information relating to employment and mailing addresses that were not associated with the claimants. EDD approved at least some of the claims and caused Bank of America to mail debit cards containing unemployment benefits to an address under Wheelen’s control.
Additionally, Wheelen engaged in a scheme that involved stealing U.S. mail and harvesting bankcards, financial information, checks, and PII for use in fraudulent activity. For example, on Sept. 4, 2020, he was in possession of California State driver’s licenses, credit cards, and checks that he had stolen from U.S. mail. At least some of this mail came into his possession when he broke into a mail truck in Fresno on Aug. 11, 2020.
This case is the product of an investigation by the U.S. Postal Inspection Service, the California EDD’s Investigation Division, and the Reedley Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Wheelen is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 30. Wheelen faces a maximum statutory penalty of 25 years in prison and a $500,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fraudster Who Scammed More Than 100 Elderly Victims of More Than $775,000 Through Lottery Scheme Sentenced to Eight Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Keno Romario Brown, age 26, of Hyattsville, Maryland, to eight years in federal prison, followed by three years of supervised release, for conspiracy to commit mail and wire fraud, wire fraud, and mail fraud, in connection with a scheme to defraud more than 100 elderly victims through an advance fee scheme, specifically, by falsely representing that the victims had won a lottery or sweepstakes and demanding taxes or other fees before the victims could receive the prize. Judge Hazel ordered Brown to pay restitution in the amount of $775,225.48. After trial, a federal jury convicted Brown on March 12, 2020.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Timothy Thibault of the FBI’s Washington Field Office Criminal Division; and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
Acting U.S. Attorney Jonathan F. Lenzner stated, “Keno Brown perpetrated a heartless scheme targeting more than 100 elderly victims. He will now serve eight years in federal prison. The Department of Justice is committed to bringing fraudsters who prey upon the elderly to justice. I encourage anyone who believes they may be a victim of a fraud or scam to contact the Department of Justice’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“Brown callously preyed on some of the most vulnerable members of our communities,” said Timothy Thibault, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “This sentence demonstrates that the FBI and our law enforcement partners will relentlessly pursue and hold accountable those who commit the unconscionable crime of elder fraud.”
“This investigation is another example of how the U.S. Postal Inspection Service, with its law enforcement partners, holds scammers who prey upon our most vulnerable citizens accountable.” Postal Inspector in Charge Peter R. Rendina continued, “We also encourage anyone who believes that they are a potential victim and/or has receive similar suspicious callings to contact the U.S. Postal Inspection Service at 877-876-2455.
According to the evidence presented at his seven-day trial, in April 2013, Brown and two co-conspirators began contacting victims, falsely telling them that they were representatives of Company 1 or Company 2, which sponsored a lottery or sweepstakes. Brown and his co-conspirators misrepresented to victims that they had won a prize sponsored by Company 1 or Company 2, but in order to collect the prize, the victims had to pay advance fees and taxes to Brown or his co-conspirators. The conspirators directed the victims to send the advance fees and taxes electronically, or through an interstate mail carrier to “runners” who received the fraudulent proceeds and provided them to Brown and his co-conspirators. Evidence was presented that Brown used physical abuse to control at least one of the runners.
The trial evidence proved that to launder the fraud proceeds, Brown and a co-conspirator obtained debit cards using the personal information of elderly individuals without their knowledge or consent, and deposited that fraud proceeds onto those debit cards, among other methods.
The evidence proved that during the course of the conspiracy, Brown and other members of the conspiracy successfully defrauded over 100 elderly victims.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the U.S. Postal Inspection Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Dana J. Brusca, who prosecuted the case.
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Four sentenced for roles in ransom schemeRead the Press Release
McALLEN, Texas – Four U.S. citizens have been ordered to federal prison for conspiracy to harbor a Guatemalan woman and hostage taking, announced Acting U.S. Attorney Jennifer B. Lowery.
Alvaro Hernandez, 22, McAllen, Ramiro Basaldua II, 35, Pharr, Rebecca Arevalo, 22, Donna, and Sarai Elizondo, 22, Pharr, had previously pleaded guilty.
Today, U.S. District Judge Randy Crane ordered Hernandez and Basaldua to serve 60 and 110 months in prison, respectively. The sentences will be immediately followed by three years of supervised release. In handing down Basaldua’s sentence, Judge Crane considered his criminal history including prior felony convictions for aggravated robbery and possession of a controlled substance.
Elizondo and Arevalo were previously sentenced to 57 and 46 months, respectively.
In March 2017, a 19-year-old Guatemalan woman illegally entered the United States in hopes of reuniting with her brother in California. She had to stay in various alien stash homes in the Rio Grande Valley area. Eventually, Hernandez and Arevalo picked her up in Edinburg and took her to the Texas Inn hotel in McAllen.
From March 22 to March 27, 2017, Hernandez, Basaldua, Elizondo and Arevalo held the victim in the hotel room against her will. During that time, the men threatened her life and made calls to her brother for a ransom to spare her. Elizondo and Arevalo also attempted to make the victim look more “American” by fixing her hair, eyebrows and nails.
The victim’s brother sent a total of $4,400 to pay the ransom for her release. The victim was later released at a park in McAllen.
All four have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case..
Four Union County Men Charged with Conspiracy to Distribute NarcoticsRead the Press Release
NEWARK, N.J. – Four Union County, New Jersey, men were charged for their roles in conspiracies to distribute and possess with intent to distribute narcotics, Acting U.S. Attorney Rachael A. Honig and Acting Union County Prosecutor Lyndsay V. Ruotolo announced today.
Tyshawn Jones, 45; Walter Gibbs, 50; Rodney McCrae, 51; and Syhid Ellison, 37; all of Elizabeth, New Jersey, are charged by complaint with conspiracy to distribute and possess with intent to distribute heroin and fentanyl. Each defendant is also charged with additional narcotics offenses. Jones, McCrae, and Ellison were arrested this morning and are scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Edward S. Kiel. Gibbs remains at large.
According to the documents filed in this case and statements made in court:
From August 2020 through May 2021, the defendants sold heroin and fentanyl in an open-air narcotics market around Third Street between Court Street and Magnolia Avenue in Elizabeth. Through numerous controlled purchases of drugs, surveillance, and the analysis of telephone records, the investigation uncovered evidence that the defendants conspired with each other and others to distribute heroin and fentanyl. The defendants sold heroin that is frequently mixed with fentanyl, a potent, synthetic opioid that is approximately 50 times stronger than heroin.
Each count charged in the complaint carries a maximum penalty of 20 years in prison and a fine of at least $1 million.
Acting U.S. Attorney Honig credited investigators of the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Ruotolo; special agents and task force officers with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Elizabeth Police Department, under the direction of Police Chief Giacomo Sacca; and investigators of the Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael H. Robertson, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the Violent Crimes Unit and Assistant U.S. Attorney Kimberly Mitchell of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Four Sentenced in Mail Theft Scheme Involving Stolen Checks, Driver’s LicensesRead the Press Release
LYNCHBURG, Va. – A case involving four people, who between June 2018 and January 2019, conspired to cash checks stolen from residential mailboxes, concluded today in the U.S. District Court.
According to court documents, Justin Rosser and Kristen Knowles stole mail from residential mailboxes, altered any personal or business checks they found, and either cashed them at a bank themselves or enlisted the help of others, Amanda Thomas and Gloria Beckham, to cash the forged checks at their direction. On occasion, members of the group presented stolen driver’s licenses to the banks to cash the checks. In all, Rosser and Knowles stole approximately $8,000. Knowles was later involved in the theft and cashing of additional checks in the fall and early winter of 2019, that netted her an additional $1,000.
On March 4, 2021, Rosser was sentenced to 36 months in prison. On April 19, 2021, Knowles was sentenced to 33 months in prison and Beckham was sentenced to 12 months and 1-day. Yesterday the last remaining defendant, Thomas, was sentenced to 6 months imprisonment.
The United States Postal Inspection Service and Campbell County Sheriff’s Office investigated the case with the assistance of the Amherst County Sheriff’s Office, Bedford County Sheriff’s Office, Town of Bedford Police Department, City of Lynchburg Police Department, Appomattox County Sheriff’s Office, Campbell County Commonwealth’s Attorneys’ Office, Amherst County Commonwealth’s Attorneys’ Office, Bedford County Commonwealth’s Attorneys’ Office, Appomattox County Commonwealth’s Attorneys’ Office, Lynchburg Commonwealth’s Attorneys’ Office.
Assistant U.S. Attorney Coleman Adams prosecuted the case.