Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 27 April 2021
Pittsburgh Woman Charged with Theft of Government MoneyRead the Press Release
PITTSBURGH, PA- One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a theft charge, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Alexis Riley, 25, as the sole defendant.
According to Indictment, from October 2019 through September 2020, Riley did knowingly and willfully embezzle, steal, purloin and convert to her own use, money of the United States belonging to the United States Postal Service, in excess of $1,000.
The law provides for a total sentence of not more than 10 years’ imprisonment, a fine of not more than $250,000,00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The United States Postal Service, Office of the Inspector General, conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Indicted for Violating Federal Import and Export LawsRead the Press Release
PITTSBURGH, PA - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal import and export laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Leon Madorsky, age 62, as the sole defendant.
According to the Indictment, on October 29, 2020, Madorsky filed false information associated with the overseas shipping of five semi-automatic pistol slides.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $10,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
Homeland Security Investigations, the United States Postal Inspection Service, and the U.S. Department of Commerce – Bureau of Industry and Security – Office of Export Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Man Charged with Federal Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Jaimere Dehonney, age 24, as the sole defendant.
According to the Indictment, Dehonney possessed with the intent to distribute and distributed a mixture and substance containing detectable amounts of heroin and fentanyl.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $1,000,000.00, a term of supervised release of at least three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Indicted on Firearms ViolationRead the Press Release
PITTSBURGH - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Vaughn Parker, 39, as the sole defendant.
According to the Indictment, on or about April 1, 2021, Parker was found to be in possession of a firearm and ammunition. His prior felony conviction makes it unlawful for him to possess a firearm.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants. The defendant is currently being detained at Allegheny County Jail
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Admits to Identity Theft as Part of Scheme to Steal Federal Income Tax RefundsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Luis Veras-Velasquez, 37, formerly of Philadelphia, PA, pleaded guilty to the charge of aggravated identity theft before United States District Court Judge Gerald J. Pappert related to a scheme to steal income tax refunds.
On April 23, 2015, a federal grand jury returned an Indictment against the defendant, alleging that he engaged in a scheme to obtain tax refunds using stolen identities. According to the Indictment, Veras-Velasquez possessed numerous documents containing the names, dates of birth, and social security numbers of victim taxpayers. Internal Revenue Service records show that more than 20 of those identities were used to seek tax refunds without the knowledge or authorization of the taxpayer named on the return. Before he could answer to these charges in federal court, the defendant fled to Dominican Republic, where he remained for five years. Then in September 2020, Veras-Velasquez boarded a flight from the Dominican Republic to Mexico and was subsequently arrested.
“Veras-Velasquez’ scheme victimized honest taxpayers in two ways: first, by stealing their identities; and second, by trying to rip off the federal government,” said Acting U.S. Attorney Williams. “Now, he will face the consequences – even after attempting to evade justice overseas for five years – as will anybody else who attempts to carry out a similar scheme.”
“Investigating refund fraud and identity theft is a top priority for the Agents in my office,” said Thomas Fattorusso, Special Agent in Charge of IRS Criminal Investigation. “This individual demonstrated a flagrant disregard for the integrity of the United States tax system and caused harm to those individuals whose identities he stole. The defendant thought he could flee the country after he committed his crimes, but he could not outrun justice.”
“Homeland Security Investigations remains committed to investigating those who use stolen identities to steal money from the United States by filing false tax returns and claiming fraudulent tax refunds,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “The defendant’s guilty plea should serve as a reminder that attempting to defraud the federal government will result in serious consequences.”
If convicted, the defendant faces a mandatory sentence of two years in prison.
The case was investigated by the Internal Revenue Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney David J. Ignall.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parkersburg Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man pleaded guilty today to distribution of child pornography.
According to court documents, Timothy Paul Rapson, 39, admitted to distributing child pornography on December 31, 2019 using a peer-to-peer file sharing program. The investigation further revealed that Rapson possessed over 73,000 images and videos of prepubescent child pornography.
Rapson pleaded guilty to distribution of prepubescent minor child pornography and faces up to 20 years in prison when sentenced on July 26, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and praised the investigative work of the Parkersburg Police Department. Assistant United States Attorney Julie M. White is handling the prosecution.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-000175.
###
Panama investigation leads to local child pornography pleaRead the Press Release
BROWNSVILLE, Texas – An 18-year-old Brownsville man has admitted to possessing thousands of images and videos of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Irbenis Mederos Jr. pleaded guilty today to possession of child pornography.
On Sep. 28, 2020, authorities discovered the sexual exploitation of a minor child via social media. It was determined she was an eight-year-old U.S. citizen residing in Panama.
The investigation led to an IP address in Brownsville belonging to Mederos. Law enforcement conducted a search at his residence and seized a cellphone. Forensic analysis resulted in the discovery of 1,229 images and 110 videos of child pornography, approximately 55 of which were of the minor female in Panama. Several others also depicted child pornography involving infants and toddlers.
U.S. District Judge Fernando Rodriguez accepted the plea and set sentencing for Aug. 2. At that time, Mederos faces up to 20 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations (HSI) in Panama conducted the investigation along with HSI-Rio Grande Valley Child Exploitation Investigation Task Force.
Assistant U.S. Attorney Nikki Piquette is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Owner of 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 STEVEN CIOFFI, 35, of Trumbull, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment, followed by one year of supervised release, for a federal tax offense.
According to court documents and statements made in court, Cioffi owned 50 percent of Nepperhan Restaurants Group, Inc., doing business as ReNapoli Pizza, in Old Greenwich, Connecticut, and Pinocchio Pizza in Pound Ridge, New York. He also owned 25 percent of Odell Pizza, Inc., doing business as Amore Cucina and Bar in Stamford, Connecticut. Cioffi’s business partner, Bruno DiFabio, owned the other interests in these entities, as well as other pizza restaurants.
Cioffi and DiFabio 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. Cioffi and DiFabio 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,” Cioffi, DiFabio and others facilitated the manipulation of net income reported to the IRS and the underpayment of withholding taxes to the IRS.
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. Judge Bolden ordered Cioffi to make full restitution.
On September 24, 2018, Cioffi pleaded guilty to one count of aiding and assisting in the filing of a false tax return.
Cioffi, who is released on a $40,000 bond, is required to report to prison on August 2, 2021.
On October 25, 2018, DiFabio pleaded guilty to one count of conspiracy to file false income tax returns and payroll tax returns. When he pleaded guilty, he agreed that the tax loss attributable to his conduct in the scheme was $816,954.
On June 4, 2019, Idalecia Lopes Santos, the businesses’ bookkeeper, pleaded guilty to one count of tax evasion, and on January 25, 2021, James Guerra, the businesses’ accountant, pleaded guilty to one count of willful failure to collect and pay over withholding taxes.
DiFabio and Guerra await sentencing. On March 30, 2021, Lopes Santos was sentenced to three years of probation.
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.
Once wanted felon sentenced for illegal gun possessionRead the Press Release
CORPUS CHRISTI, Texas – A 42-year-old Corpus Christi resident has been ordered to federal prison for possession of a firearm as a convicted felon, announced Acting U.S. Attorney Jennifer B. Lowery.
Mark Villarreal pleaded guilty Jan. 13.
Today, U.S. District Judge Drew B. Tipton ordered him to serve an 85-month sentence to be immediately followed by three years of supervised release.
On Sep. 30, 2020, authorities observed a vehicle stalled on the roadway in Corpus Christi and pulled over to help. As they moved the vehicle out of the road and into a parking lot, authorities noticed it had two different license plates and no registration sticker.
They identified Villarreal and discovered an active warrant for his arrest. As they took him into custody, they found a .40 caliber Smith and Wesson SD40, semi-automatic pistol in his waistband.
Villarreal was previously convicted of multiple felonies to include assault of a family member. As such, he is prohibited per federal law of possessing firearms or ammunition.
Villarreal will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.
Northeast Philly Tax Preparer Charged with 29 Counts of Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Eric Amaefuna, 65, of King of Prussia, PA, was charged by Indictment with 29 counts of aiding and assisting in the preparation of false income tax returns.
According to the Indictment, the defendant was the owner of American Financial Stewardship (AFS), a tax preparation business on Bustleton Avenue in Northeast Philadelphia. The Indictment alleges that Amaefuna prepared false and fraudulent IRS Personal Income Tax 1040 Forms for client taxpayers for at least tax years 2014 through 2016. The defendant added attachments to the 1040 Forms that were also false, in that they claimed false or inflated employee business expenses, inflated state and local taxes, false or inflated miscellaneous deductions, and losses that were entirely fictitious or falsely inflated. These falsities resulted in the filing of personal income tax returns claiming refunds due to the client taxpayers which they were not entitled to receive.
“Our nation’s taxing system relies upon tax preparers to apply our tax laws honestly in order to help clients accurately report income and pay their fair share of federal taxes, not bend or ignore the rules to suit their client’s needs,” said Acting U.S. Attorney Williams. “As alleged, the defendant manipulated his clients’ tax filings at the expense of honest taxpayers who take seriously their legal obligation to file complete and accurate federal income taxes each year. As we approach this year’s tax filing deadline, this is an important reminder.”
“Filing a tax return is one of the most significant financial transactions an average American taxpayer makes each year,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Taxpayers should be particular in selecting a return preparer and have confidence knowing that person will prepare an accurate tax return. IRS Criminal Investigation wants to make sure taxpayers do not pay good money for bad advice.”
If convicted, the defendant faces a maximum possible sentence of 87 years in prison, and a $7,250,000 fine.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Carolina Woman Sentenced for Production and Distribution of Child PornographyRead the Press Release
A North Carolina woman was sentenced Monday to 50 years in prison followed by 20 years of supervised release for production and distribution of child pornography.
Alyson Brooke Saunders, 25, of Greensboro, pleaded guilty to one count of production of child pornography and one count of distribution of child pornography on Nov. 5, 2020. According to court documents, in or about January and February 2019, while employed at a day care facility in the Middle District of North Carolina, Saunders admitted to using five minor victims in her care to create sexually explicit images and videos, including some in which she also engaged in hands-on sexual abuse of some of the children. The defendant then sent these images and videos to an online co-conspirator, with the knowledge that he intended to post them on the internet.
“The defendant in this case exploited her position as a caregiver to produce sexually explicit images of vulnerable young children with the purpose of providing the images to a co-conspirator,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Thanks to a proactive investigation by our law enforcement partners and the department’s continued commitment to combatting child sexual exploitation, the defendant was apprehended and received a significant penalty for her heinous crimes.”
“When people in positions of trust and responsibility exploit children it not only steals the child’s innocence, it can also teach them not to trust any more, which can cause lifelong trauma,” said Special Agent in Charge Ronnie Martinez of Homeland Security Investigations (HSI) North Carolina. “Thanks to the great work done by HSI and its law enforcement partners, this predator will no longer be able to victimize children or spread those disturbing images”
HSI in Winston-Salem investigated the case with assistance from the North Carolina State Bureau of Investigations.
Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Newport News Trafficker Pleads Guilty to Receiving over 200 Kilograms of CocaineRead the Press Release
NEWPORT NEWS, Va. – A Newport News man pleaded guilty today to conspiring with members of an international drug trafficking organization to possess and distribute more than 200 kilograms of cocaine.
According to court documents, Darrell King, II, 45, was a kilogram dealer of cocaine in the Tidewater area. Between June and October 2016, King received four deliveries of cocaine that arrived in hidden compartments of tractor-trailers driven cross-country from California. During this time, King and his co-conspirators used various locations, including an auto-repair garage operated by a co-conspirator in Newport News, to receive deliveries and provide money for the purchase of multi-kilogram quantities of cocaine. King or his co-conspirators attended the unloading of cocaine from the tractor-trailers and brought King’s money, which they had counted and vacuum sealed, to be sent back to their California suppliers.
In June 2016, King received a delivery of 70 kilograms of cocaine at his home in Hayes, Virginia. In August 2016, he received two additional deliveries, totaling 105 kilograms of cocaine, at the Newport News garage. On October 20, 2016, King was scheduled to receive a fourth shipment of cocaine at the garage. That day, law enforcement executed search warrants and seized approximately 54 kilograms of cocaine and almost $1 million of King’s money, which was intended to pay for the cocaine being delivered.
King pleaded guilty to conspiracy to distribute and possess with the intent to distribute more than five kilograms of cocaine. King is scheduled to be sentenced on September 8, and he faces a mandatory minimum sentence of 10 years in prison and a maximum penalty of life. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Five of King’s co-conspirators—Marvin O’Neal Carter, 50, Michael Stephen Kuna, 42, of Canada, brothers Hilario Rodriguez, 50, and Daniel Rodriguez, 49, both of California, and Christopher Passione, 34, of Pennsylvania—were sentenced previously in 2017 to terms ranging from 9 to 27 years in prison based on their roles in the conspiracy.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Kenneth Ferguson, Acting Chief of Hampton Police Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Special Assistant U.S. Attorney Amy Cross and Assistant U.S. Attorneys Bibeane Metsch and Brian Samuels are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 4:19-cr-77, 4:16-cr-76, and 4:18-cr-44.
New York Man Sentenced to over Eight Years on Federal Drug ChargeRead the Press Release
PORTLAND, Maine: A Brooklyn, New York man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute cocaine base and heroin, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge Jon D. Levy sentenced Akeem Cruz, aka “Vybe” and “Mello,” 31, to 100 months in prison and four years of supervised release. Cruz pleaded guilty on August 22, 2019.
According to court records, from about the summer of 2015 until September 2017, Cruz and others conspired to distribute and possess with the intent to distribute cocaine base and heroin transported from outside Maine for distribution in Portland and Lewiston. Cruz’s distribution involved more than 100 grams of heroin.
All of Cruz’s charged co-conspirators have been sentenced. Melquan Jordan, 31, of Brooklyn, was sentenced to 10 years in prison; Lamale Lawson, 29, of Brooklyn, was sentenced to 84 months in prison; Edward Canty III, 31, of Brooklyn, was sentenced to 66 months in prison; Christopher Rickett, 33, of Portland, was sentenced to three years of probation; and Sierrha Frisbie, 29, of Portland, also was sentenced to three years of probation.
The Portland and South Portland Police Departments; the Maine Drug Enforcement Agency; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.
New York Man Pleads Guilty to Trafficking Exotic African CatsRead the Press Release
WASHINGTON – A New York man pleaded guilty today to violating the Lacey Act and the U.S. Animal Welfare Act based on his trafficking of African wild cats in interstate commerce.
According to court documents, Christopher Casacci, 38, of Amherst, was doing business as “ExoticCubs.com,” through which he advertised, imported and sold exotic African cats. Between February and June 2018, Casacci imported and sold dozens of caracals (Caracal caracal) and servals (Leptailurus serval), for $7,500 to $10,000 each. According to filings, Casacci claimed that he was a big cat rescue organization in an attempt to avoid prohibitions against possessing and selling wild animals. Casacci also falsified transport documents to hide the true species of the cats, instead calling the animals domestic crossbreeds, such as Bengal cats or Savannah cats.
Caracals, also known as the “desert lynx,” are wild cats native to Africa, and typically grow to approximately 45 pounds. Servals, also wild cats native to Africa, grow to approximately 40 pounds. All of the animals were sold while still kittens, and despite their size and wild nature, Casacci marketed them “house pets.” Both species are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and their commercial possession and sale is restricted under New York state law.
People and businesses dealing in animals are required to comply with humane care standards under the Animal Welfare Act. Casacci failed to do so and failed to secure the necessary license from the U.S. Department of Agriculture. Casacci was charged with violating the Animal Welfare Act for selling animals without a license showing minimum compliance with humane treatment standards.
Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York made the announcement.
Casacci was previously indicted for his actions in January of 2020. The investigation was conducted by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, under the direction of Special Agent in Charge Ryan Noel, and the New York State Department of Environmental Conservation, Bureau of Environmental Crimes Investigation.
The case is being prosecuted by Trial Attorney Patrick Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango.
New York Man Charged with Possessing Crack CocaineRead the Press Release
PITTSBURGH, PA- A resident of Watertown City, New York has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Demensio McCall, age 29, as the sole defendant.
According to the Indictment, on April 8, 2021, McCall possessed with intent to distribute more than 28 grams of crack cocaine.
The law provides for a mandatory minimum of five years in prison to a maximum sentence of 40 years in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The defendant remains incarcerated pending the resolution of the case.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Orleans Man Pleads Guilty to Armed Robbery SpreeRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JARRELL FOX, age 21, of Harahan, pled guilty on April 26, 2021 to two counts of brandishing a firearm during and in relation to a crime of violence, Hobbs Act Robbery, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department conducted an investigation concerning armed robberies that occurred at various businesses located in New Orleans, Louisiana, during September and October 2019. On September 25, 2019, FOX robbed the Family Dollar located at 11901 North I-10 Service Road, while brandishing a firearm. On October 10, 2019, FOX robbed a Subway restaurant located at 3502 South Carrollton Avenue, while brandishing a firearm.
NOPD detectives identified FOX from surveillance camera footage recovered from the stores. A search of FOX’s cellular telephone records revealed that FOX communicated with his girlfriend about the need to commit robberies due to financial problems. FOX’s telephone records also placed him in the vicinity of the September 25th Family Dollar robbery. Additionally, law enforcement located the firearm brandished during the commission of the robbery and the clothing worn during the robbery while executing a search warrant at FOX’s residence.
The Honorable Jay C. Zainey, United States District Court Judge of the Eastern District of Louisiana, will sentence FOX on July 27, 2021. FOX faces a mandatory minimum sentence of 84 months for each count of the Indictment. The sentences will run consecutive. The maximum sentence that can be imposed for each count is life imprisonment. FOX also faces a fine up to $250,000.00. for each count, a period of supervised release up to 5 years, and a mandatory special assessment of $100.00.
U.S. Attorney Duane A. Evans praised the work of the Bureau of Alcohol, Tobacco, and Firearms, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter. This prosecution is being handled by Assistant United States Attorney Brittany L. Reed.
Meridian Man Pleads Guilty to Tax EvasionRead the Press Release
BOISE – Scott Koritansky, 54, of Meridian, pleaded guilty to income tax evasion, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Sentencing is set for July 27, 2021 before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
According to court documents, from 2004 through 2010, Koritansky earned combined income totaling over $500,000 but did not pay any taxes those years. The Internal Revenue Service (IRS) conducted an investigation and notified Koritansky that he owed taxes for calendar years 2004 through 2010. Koritansky took numerous steps to conceal his income and evade his tax obligations. For example, Koritansky never maintained his own bank account but deposited his business income into the accounts of others and directed them to make purchases on his behalf and pay his own personal expenses using funds in the bank accounts of these third parties. The expenditures included rent payments, private school tuition payments, and checks made out to cash.
Tax evasion is punishable by up to five years in federal prison, up to three years of supervised release, and a fine of up to $250,000.
This case was investigated by IRS Criminal Investigation and Idaho State Tax Commission.
# # #
Mercer County Man Sentenced to 125 Months in Prison for Armed Robbery Spree of Businesses in TrentonRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 125 months in prison for nine robberies and two attempted robberies of businesses in Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Derrick T. Beckett, Jr., 23, of Trenton, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, and one count of attempted Hobbs Act robbery. Judge Thompson imposed sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From July 20, 2017, to Feb. 28, 2018, Beckett committed nine robberies and two attempted robberies of businesses in Trenton. Beckett approached employees of the businesses, brandishing what appeared to be a firearm, but was later determined to be a BB-gun, and demanded money. On multiple occasions Beckett threatened and engaged in violence, both threatening to shoot some victims, and pistol-whipping others when they failed to comply. Beckett stole cash and fled the victim businesses on foot, where he was sometimes met and assisted by a getaway driver.
In addition to the prison term, Judge Thompson sentenced Beckett to three years of supervised release and ordered restitution of $9,100.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s conviction and sentence. She also thanked officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, for their assistance.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Maryland Man Sentenced to Seven Years’ Imprisonment for Armed Pharmacy RobberyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gerard Gaffney, age 19, of Mount Ranier, Maryland, was sentenced on April 26, 2021, to 84 months’ imprisonment by Chief U.S. District Court Judge John E. Jones for his role as the driver in a 2019 armed robbery of a Rite Aid pharmacy in Dauphin County.
According to Acting United States Attorney Bruce D. Brandler, Gaffney and his codefendants drove to the Rite Aid on Union Deposit Road on March 28, 2019, with plans to rob it. With Gaffney waiting outside in the getaway car, three masked robbers entered the pharmacy and pointed weapons at the heads of staff, forcing them to surrender drugs from the pharmacy before escaping to the getaway car sitting outside. Police responded to reports of the armed robbery and pursued the getaway car as it sped away from police. The car crashed and three of the occupants were apprehended, including Gaffney. Police recovered bottles of pharmaceuticals stolen from the Rite Aid. They also recovered a stolen firearm from codefendant, David Marable.
Marable had previously entered a guilty plea to the robbery and brandishing a firearm in furtherance of the robbery and was sentenced 10 years imprisonment.
The case was investigated by the Federal Bureau of Investigation, the Lower Paxton Police Department, and the Swatara Police Department. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
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.
# # #
Man Sentenced to 57 Months for Laundering Funds from Lottery Fraud Scheme Targeting the ElderlyRead the Press Release
TUCSON, Ariz. – Omar Stephenson, 32, a Jamaican-born man living in Snellville, Georgia, was sentenced yesterday by United States District Judge James A. Soto to 57 months in prison. Stephenson is one of four co-defendants who have been charged in connection with a lottery fraud scheme. Stephenson previously pleaded guilty to Conspiracy to Commit Money Laundering.
Starting in 2015 through mid-2019, Stephenson participated in a scheme where Jamaican-based scammers called elderly victims in the United States, claiming the victims had won a lottery. To receive their winnings, the victims were told they must first pay money for taxes and fees. Stephenson’s role in this scheme was to launder the fraudulent proceeds for fellow co-conspirators in Jamaica. The loss suffered by the victims exceeded $900,000.
As part of his sentence, Stephenson will also be required to pay restitution. A separate hearing is scheduled for June 2 to determine the amount of that restitution.
The U.S. Attorney’s Office encourages the public to be wary of similar scams and to verify with law enforcement and family members before sending money after a phone solicitation.
The Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and Homeland Security Investigations conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-00917-JAS-1
RELEASE NUMBER: 2021-029_Stephenson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Man Sentenced for Attempted Robbery of ATMRead the Press Release
NEW ORLEANS, LA – JUSTIN PIERCE, age 22, a resident of Slidell, was sentenced for conspiracy to commit bank larceny, announced U.S. Attorney Duane A. Evans. PIERCE was sentenced to 18 months in prison, 1 year of supervised release, and a $100 special assessment. He was also ordered to pay $39,324 in restitution to Capital One Bank for damage caused to the ATM machine.
According to court records, on or about February 5, 2020, PIERCE and others attempted to break into an ATM located in the drive-through of a Capital One Bank using sledgehammers, crowbars, chains, and a truck. Just prior to this robbery attempt, PIERCE and others were observed in the same truck attempting to break into an ATM at Hancock Whitney Bank.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorneys G. Dall Kammer and Rachal Cassagne.
* * *
Lewiston Man Sentenced to Federal Prison for Stealing GunsRead the Press Release
COEUR D’ALENE – Jonathan Leo Pope, 25, of Lewiston, was sentenced in U.S. District Court to 46 months in federal prison for possession of stolen firearms, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye also ordered Pope to serve three years of supervised release following his prison sentence and to pay $5,800 in restitution to the victims of his offense. Pope pleaded guilty to the charge on June 10, 2020.
According to court records, on November 5, 2019, Pope entered the home of a Lewiston couple while they were away on vacation. During the burglary, Pope stole twelve firearms and coins. A day later, Lewiston Police detectives arrested Pope after identifying him as one of the burglars. Pope admitted to entering the home, stealing guns and coins, and helped officers recover the firearms. At the time of the burglary, Pope was prohibited from possessing firearms because of a 2015 conviction for possession of a controlled substance in Nez Perce County.
Multiple law enforcement agencies contributed to the successful prosecution of this case including the Nez Perce County Prosecutor’s Office, Lewiston Police Department, Clarkston Police Department, Whitman County Sheriff’s Office, and Asotin County Sheriff’s Office, who are all part of the Quad Cities Drug Task Force, as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives who is not part of the task force but participates with it on a regular basis. The Quad Cities Drug Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in Lewiston and Moscow, Idaho, and Clarkston, Asotin, and Pullman, Washington.
# # #
Las Cruces man pleads guilty to cyberstalking and ramming gates at White SandsRead the Press Release
ALBUQUERQUE, N.M. – Anthony Clark Davila Garza, 39, of Las Cruces, New Mexico, pleaded guilty in federal court on April 6 to cyberstalking and destruction of government property.
According to the plea agreement and other court records, on April 1, 2018, Davila Garza used a vehicle to ram and severely damage metal entry gates at White Sands Missile Range, a United States Army facility in Doña Ana County, New Mexico. Davila Garza also admitted in his plea that on Aug. 19, 2019, he posted a threat on Facebook, making specific reference to certain individuals. When one of the individuals responded to ask why Davila Garza would make such a threat, Davila Garza contacted the individual by making a voice call through Facebook’s Messenger feature and reiterated the threat.
Davila Garza faces up to five years in prison for cyberstalking and up to ten years for destruction of government property. He will remain in custody pending sentencing, which has not been scheduled.
The FBI investigated this case. Assistant U.S. Attorney Aaron O. Jordan is prosecuting the case.
Jury Finds Convicted Felon Guilty of Possessing a FirearmRead the Press Release
LITTLE ROCK—After a two-day trial, a federal jury has found Jack Lee Guffey, 60, guilty of being a felon in possession of a firearm. The jury returned their verdict following 45 minutes of deliberating on Tuesday afternoon after trial began on Monday and continued with testimony on Tuesday. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Guffey, of Shirley, at a later date.
On January 21, 2018, Guffey was driving his black Dodge pickup truck in Clinton when he almost struck the unmarked vehicle of a Van Buren County Sheriff’s Deputy with his truck. That deputy radioed for help, and other officers arrived behind the truck and observed Guffey cross the center line seven times. Officers initiated a traffic stop and conducted field sobriety tests, which Guffey failed. Guffey was arrested for driving while intoxicated, and during an inventory search of his vehicle, officers located a loaded High Point 9mm handgun in the truck as well as drug paraphernalia. Guffey was a convicted felon at the time of the incident, and at trial, his longtime friend testified that she had given him the firearm.
Because Guffey is a felon, it is illegal for him to possess a firearm. A grand jury indicted Guffey on one count of being a felon in possession of a firearm in November 2020. He has prior convictions for aggravated robbery, second degree battery, escape, commercial burglary and theft of property, possession of drug paraphernalia, and residential burglary.
The statutory penalty for being a felon in possession of a firearm is not more than 10 years’ imprisonment, not more than three years of supervised release, and not more than a $250,000 fine. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Drug Enforcement Administration and the Van Buren County Sheriff’s Office and the Clinton Police Department.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Judges sentences member of Four Corners Gang for possession with intent to distribute fentanylRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Jacquez Staples to 15 months in prison today. The 26-year-old St. Louis, Missouri resident pleaded guilty to one count of possession with intent to distribute fentanyl.
ln 2019, an investigative team that included agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department's Intelligence/Gang Unit began an investigation of individuals who belonged to the "Four Corners Gang." Members of this gang were known to law enforcement as street-level distributors of firearms and narcotics, primarily in Dellwood. Investigators identified Staples and his co-defendant as members of the gang.
On August 15, 2019, the investigative team utilized a confidential informant and an undercover ATF agent to arrange the purchase of narcotics from Staples and his co-defendant. Under the direction and surveillance of investigators, the confidential informant and the undercover agent purchased from Staples and his co-defendant 73 capsules and a baggie which contained an off-white powder for $800.The crime lab determined the powder contained fentanyl. Staples was the driver of the vehicle when the controlled purchase occurred.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and St. Louis County Police Department investigated the case. Assistant United States Attorney Paul D’Agrosa is handling the case.
#####
Islam Said Sentenced to 10 Years for Concealing ‘10 Most Wanted’ Suspect from ArrestRead the Press Release
An Irving man has been sentenced to 10 years in federal prison for helping a capital murder suspect evade capture for more than a decade, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Islam Yaser-Abdel Said, the 32-year-old son of FBI “10 Most Wanted” suspect Yaser Said, pleaded guilty in January to one count of conspiracy to conceal a person from arrest, one count of concealing a person from arrest, and one count of conspiracy to obstruct an official proceeding. Mr. Said pleaded open to the charges against him, with no assurances from the government as to the sentence prosecutors would recommend to the judge. He was sentenced Tuesday afternoon by U.S. District Judge Reed C. O’Connor in Fort Worth.
“Islam Said prioritized the whims of his father, an alleged killer, over justice for his own sisters. Thanks to the dogged work of the FBI and its law enforcement partners, however, Mr. Said’s efforts were ultimately in vain,” U.S. Attorney Prerak Shah said following Mr. Said’s guilty plea. “We are grateful to the many agents and officers who worked to apprehend Mr. Said, along with his father and uncle. Sarah and Amina deserve justice.”
“Islam Said made it possible for his father, Yaser Said, to evade justice for the brutal murder of his daughters for more than a decade,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Along with our partners, the FBI is thankful for the dedication and relentless pursuit that led to the capture of Amina and Sarah’s killer and those that provided him harbor.”
In plea papers, Islam Said admitted to sheltering his father from arrest in an attempt to subvert the administration of justice.
The elder Mr. Said had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, he shot the girls to death inside his taxicab and abandoned their bodies. He was captured 12 years later by the FBI’s Violent Crimes Task Force, and is currently in state custody.
In pleading guilty, Islam Said admitted that evidence proved he committed the crimes charged in the superseding indictment filed in November 2020.
Mr. Said harbored his father, Yaser, inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017. After the maintenance worker reported the sighting to the FBI, an agent was dispatched to interview Islam, but Islam refused to cooperate.
He later harbored his father inside a home in Justin, Texas that belonged to his cousin. On Aug. 25, 2020, FBI agents observed Mr. Said and his uncle deliver grocery bags to the residence, then followed the men to a shopping center 20 miles away, were they dumped trash retrieved from the home.
Islam’s uncle, Yassein Abdulfatah Said (Yaser’s 59-year-old brother), was convicted in February of conspiring with Islam to conceal Yaser from arrest, among other crimes. Yassein’s sentencing is set for June 4 at 9 a.m. in Fort Worth.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany H. Eggers and Errin Martin are prosecuting the case.
Inmate admits to trying to obtain unemployment benefitsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sedequa M. Graham, an inmate at Federal Corrections Institution Hazelton in Bruceton Mills, West Virginia, was sentenced today to an additional six months of incarceration after admitting to attempting mail fraud, Acting U.S. Attorney Randolph J. Bernard announced.
Graham, 25, pleaded guilty today to one count of “Attempting Mail Fraud.” Graham is incarcerated at the Secure Female Facility Hazelton. She admitted to obtaining names, birth dates, and social security numbers of others without their knowledge. She then attempted to send that information via the postal service to obtain unemployment benefits. The crime occurred in August and September 2020 in Preston County.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Inmate Sentenced for Having Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. - An inmate at the Federal Correctional Institution (FCI) McDowell was sentenced today for possessing a weapon at the correctional facility. Corey Fair, 27, of Indiana, was sentenced to 12 months in prison to run consecutively to the sentence he currently is serving.
According to court documents, on January 26, 2020, Fair possessed a handcrafted weapon known as a shank. A staff member at the prison found the five and one-half inch piece of metal sharpened on one end in Fair’s pocket during a random search. The staff member then recovered the weapon. Fair admitted that the shank was designed and intended to be used as a weapon.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
The Federal Bureau of Prisons conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:20-cr-000202.
###
Indiana Resident Indicted on Child Sex Trafficking and Child Porn Production ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Hammond, Indiana, has been indicted by a federal grand jury in Pittsburgh on charges of attempted sex trafficking, sex trafficking and sexual exploitation of a child, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Roderick King, age 31, as the sole defendant.
According to the three-count Indictment, from in and around July 2017 to November 2020, King knowingly attempted to and engaged in sex trafficking of a female minor, who is known to the Grand Jury, causing her to engage in commercial sex acts. In addition, the Indictment charges the defendant with two counts of producing material depicting the sexual exploitation of the same minor victim from in and around July 2017 to April 2019.
The law provides for a maximum total sentence of not less than 15 years to life in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations, Human Trafficking and Child Exploitation Group, and special agents with the Pennsylvania Office of the Attorney General Child Predator Section, with the assistance of Butler Township Police Department, Butler City Police Department, Butler City School District, and Butler County Children and Youth Services, conducted the investigation leading to the Indictment in this case.
This prosecution is part of Operation T.E.N. (Trafficking Ends Now), an umbrella coalition for law enforcement, community and non-profit partners in the 25 counties in the Western District of Pennsylvania, formed and led by the United States Attorney’s Office for the Western District of Pennsylvania.. This coordinated effort aims to end human trafficking through education and improved cooperation among law enforcement partners, victim service providers and community members, thereby enhancing the Office’s ability to empower victims of human trafficking to become thriving survivors.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indiana Felon Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH - A resident of Edinburgh, Indiana, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal firearms and narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Superseding Indictment named Abdullah Woods, age 29, as the sole defendant.
According to the Superseding Indictment, on December 7, 2020, Woods was found to be in the possession of a firearm and ammunition. Woods is prohibited from possessing a firearm or ammunition due to a prior conviction. The Superseding Indictment further alleged that on that same date, Woods was found to be in possession with the intention of distributing cocaine base and cocaine. The Superseding Indictment also alleged that Woods possessed the firearm in furtherance of the drug trafficking crime.
The law provides for a maximum total sentence of not less than five years in prison, a fine of not more than $5,000,000.00, a term of supervised release of at least four years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Imperial, PA Daycare Operator Named in 16-Count Tax IndictmentRead the Press Release
PITTSBURGH, Pa. - A resident of Imperial, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of failing to account for and pay over payroll taxes to the Internal Revenue Service, Acting United States Attorney Stephen R. Kaufman announced today.
The 16-count Indictment named Rebecca Lynn Boyce, 42, as the sole defendant.
According to the Indictment, Boyce operates Cutie Patootie Daycare, a childcare center in Imperial, Pennsylvania. The Indictment alleges that for each quarter during 2015 through 2018, Boyce withheld payroll taxes from employees of Cutie Patootie but failed to pay over these funds to the Internal Revenue Service and failed to account for the withholdings by filing quarterly Forms 941.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Trampas Quint Wolford, of Cabins, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Wolford, 57, pleaded guilty today to one count of “Distribution of Methamphetamine.” Wolford admitted to selling methamphetamine in March 2019 in Grant County.
Wolford faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Gang members sentenced for assaulting federal officersRead the Press Release
HOUSTON – The final Houston area man charged with the assault and robbery of undercover agents during a drug operation in early 2019 has been ordered to federal prison, announced Acting U.S. Attorney Jennifer B. Lowery.
Morgan Kanu-Bradley, 20, Spring, pleaded guilty Nov. 18, 2019, as did Avery James, 22, and DeAnthony Doucet, 23, both of Baytown. They were each convicted on two counts of assaulting federal agents, three counts of robbery - including a conspiracy count - and one count of possession of a firearm during and in furtherance of a crime of violence. All are identified members of a gang in Baytown known as the “Gas Gang.”
Today, Chief U.S. District Judge Lee H. Rosenthal ordered Kanu-Bradley to serve a total of 144 months in federal prison to be immediately followed by three years of supervised release. Doucet and James were previously sentenced to respective terms of 130 and 120 months in prison to be followed by three years of supervised release.
The court heard that Kanu-Bradley was the most violent of the group and had a lack of remorse for his actions. The defense disagreed and asked for a lower sentence. Judge Rosenthal said she could not do that because of the extremely violent nature of the offense, noting that Kanu-Bradley had punched and beat the victim.
“The blatant disregard for human life that was shown when Kanu-Bradley beat and held an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) special agent at gunpoint while robbing him deserves nothing less than the maximum allowable sentence,” said ATF Special Agent in Charge Fred Milanowski. “While our agent suffered severe injuries, the community is safer with this criminal off the street.”
On Feb. 17, 2019, undercover federal agents had arranged to purchase narcotics from Doucet at a hotel in Houston. There, Kanu-Bradley, James and Doucet held the agents at gunpoint and stole the money they had for the transaction as well as and one of their firearms and phone. The men also beat and stomped on one of agents while he was held at gunpoint.
Afterwards, Kanu-Bradley, James and Doucet all fled the scene. Other authorities on the scene pursued and arrested them.
One of the undercover officers received bruises and a laceration to his face which required stitches.
Kanu-Bradley, James and Doucet have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the Organized Crime Drug Enforcement Task Force (OCDETF) operation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety and police departments in Baytown and Houston. 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. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Richard Bennett and Jimmy Leo prosecuted the case.
Four People Admit Roles in Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – Four individuals have pleaded guilty to conspiracy to commit bank fraud and related crimes, Acting U.S. Attorney Rachael A. Honig announced today.
Miguel Ortiz, 22, Victor Emilio Mejia Adames, 21, and Tiffany Diaz Fermin, 24, all of Paterson, pleaded guilty by videoconference before U.S. district Judge Kevin McNulty, to conspiracy to commit bank fraud. Brando Mancebo, 21, formerly of Paterson, pleaded guilty by videoconference before Judge McNulty to possession of stolen mail and conspiracy to commit bank fraud. Ortiz and Adames pleaded guilty today; Fermin and Mancebo pleaded guilty last week.
According to documents filed in this case and statements made in court:
Ortiz, Adames, Fermin, Mancebo and others conspired to break into U.S. Postal Service collection boxes in Bergen, Hudson, and Morris counties and steal mail. They agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, even though they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.
The conspiracy to commit bank fraud charges to which Ortiz, Adames, and Fermin pleaded guilty carries a maximum term of five years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greater. The possession of stolen mail charge to which Mancebo pleaded guilty carries a maximum term of five years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greater. The conspiracy to commit bank fraud charge to which Mancebo pleaded guilty carries a maximum term of 30 years in prison and a maximum fine of $1 million, or twice the gross profit to the defendant or loss the victim, whichever is greater.
Acting U.S. Attorney Honig credited inspectors of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.
Former White House Adviser Arrested for Stealing $218,000 from Charter Schools He FoundedRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging SETH ANDREW with wire fraud, money laundering, and making false statements to a financial institution, in connection with a scheme in which ANDREW stole $218,005 from a charter school network that he founded. ANDREW was arrested this morning in New York, New York, and will be presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Seth Andrew abused his position as a founder of a charter school network to steal from the very same schools he helped create. Andrew is not only alleged to have stolen the schools’ money but also to have used the stolen funds to obtain a savings on a mortgage for a multimillion-dollar Manhattan apartment. Thanks to the FBI’s diligent work, Andrew now faces federal charges for his alleged scheme.”
FBI Assistant Director William F. Sweeney Jr. said: “Locking into the lowest interest rate when applying for a loan is certainly the objective of every home buyer, but when you don’t have the necessary funds to put down, and you steal the money from your former employer to make up the difference, saving money in interest is likely to be the least of your concerns. We allege today that Andrew did just that, and since the employer he stole from was a charter school organization, the money he took belonged to an institution serving school-aged children. Today Andrew himself is learning one of life’s most basic lessons – what doesn’t belong to you is not yours for the taking.”
As alleged in the Complaint unsealed today[1]:
In 2005, SETH ANDREW helped create “School Network-1,” a series of public charter schools then based in New York City. In the Spring of 2013, ANDREW left School Network-1 and accepted a job in the United States Department of Education and, thereafter, as a senior adviser in the Office of Educational Technology at the White House. While employed at the Department of Education, and at the White House, ANDREW was paid by School Network-1. In November 2016, ANDREW left his role in the White House and, shortly thereafter, in January 2017, ANDREW officially severed his relationship with School Network-1.
School Network-1 comprises several charter schools throughout United States including several in New York City. Pursuant to an agreement with the New York State Board of Regents, School Network-1’s New York-based charter schools must maintain an “escrow account” that may be accessed only if the school dissolves. Three such escrow accounts, for three New York City-based School Network-1 schools, were opened by ANDREW and other School Network-1 employees at “Bank-1” in 2009, 2011, and 2013. As to each of those three accounts – Escrow Account-1, Escrow Account-2, and Escrow Account-3 – ANDREW was a signatory and had access to the funds in them. However, pursuant to the charter agreement, the funds in the Escrow Accounts were reserved in case the school dissolved, and the funds could not be moved by ANDREW, or anyone, without proper authorization.
After he severed his relationship with School Network-1, on March 28, 2019, ANDREW entered a Bank-1 branch in New York City and closed both Escrow Account-1 and Escrow Account-2. Bank-1 provided ANDREW a bank check in the amount of $71,881.23 made payable to “[School Network-1] Charter School” (“Check-1”) and a second bank check in the amount of $70,642.98 to “[School Network-1] Harlem Charter” (“Check-2”). Check-1 and Check-2 represented the funds that were in Escrow Account-1 and Escrow Account-2, respectively.
The same day that ANDREW closed Escrow Account-1 and Escrow Account-2, ANDREW entered a Manhattan branch of a different FDIC-insured bank (“Bank-2”) and opened a business bank account in the name of “[School Network-1] Charter School” (“Fraud Account‑1”). To open that account, ANDREW represented to a Bank-2 employee that he was a “Key Executive with Control of” School Network-1 Charter School, which was a lie. ANDREW then deposited Check-1 into the account but, that day, ANDREW did not deposit Check-2.
Five days later, on April 2, 2019, ANDREW used an ATM machine in Baltimore, Maryland, to deposit Check-2 into Fraud Account-1. It appears ANDREW waited to deposit Check-2 because it was made payable to “School Network-1 Harlem Charter” and not “School Network-1 Charter School.” Had he tried to deposit Check-2 when he opened Fraud Account-1 it would not have been honored by Bank-2.
At the time ANDREW deposited Check-1 and Check-2 into a Bank-2 bank account, ANDREW was contemplating obtaining a mortgage from Bank-2 to purchase a residential property. At that time, Bank-2 offered certain customers, as a promotion, more favorable mortgage interest rates if those customers maintained a certain amount of funds in Bank-2 accounts. Specifically, for every $250,000 on deposit, up to a total of $1 million, Bank-2 would lower that qualifying customer’s mortgage interest rate by 0.125%. Thus, in total, if a qualifying customer maintained $1 million or more of his/her funds in Bank-2 accounts that customer would receive a 0.5% interest rate deduction on a Bank-2 mortgage. But to take advantage of the interest rate deduction promotion, Bank-2 required that the funds a customer deposited be funds owned by the customer or, in some instances, a business the customer owned, controlled or was lawfully associated with. Bank-2 did not permit a customer to utilize money owned by someone else to gain the benefit of the interest rate deduction promotion.
By April 2019, because of the $142,524 ANDREW deposited in Bank-2, using the money he stole from two charter schools, ANDREW deposited a total of approximately $1,007,716 with Bank-2, and therefore became eligible to receive a 0.5% interest rate deduction – the largest deduction a customer could receive from Bank-2’s promotion. Without the $142,524 deposited stolen funds, ANDREW would have been eligible for only a 0.375% interest rate deduction. On August 21, 2019, ANDREW purchased a residential property located in New York, New York, for approximately $2,368,000. To effectuate that purchase, ANDREW, and his spouse, obtained a mortgage from Bank-2 in the amount of $1,776,000 with an interest rate of 2.5% – taking full advantage of the promotion Bank-2 offered.
On October 17, 2019, ANDREW closed out Escrow Account-3 and received a check (“Check-3”) made payable to “[School Network-1] Endurance” in the amount of $75,481.10.
On October 21, 2019, ANDREW deposited Check-3 into an account that he opened at a third bank (“Fraud Account-2”). Approximately one month later, ANDREW obtained a check from Bank-2 for $144,473.29, which constituted the funds stolen from Escrow Account-1 and Escrow Account-2, and ANDREW ultimately deposited those funds into Fraud Account-2. Five days later, ANDREW rolled the funds in Fraud Account-2 into a certificate of deposit. That certificate of deposit matured on May 20, 2020, which earned ANDREW $2,083.52 in interest. ANDREW then transferred the funds from the certificate of deposit – including the funds stolen from the Escrow Accounts – into a bank account held in the name of a particular civic organization that ANDREW currently controls, thereby concealing the money’s association with School Network-1, and depositing the stolen money into an account under ANDREW’s complete control.
* * *
ANDREW, 42, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of money laundering, which carries a maximum sentence of 20 years in prison, and one count of making a false statement to a bank, which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Ryan B. Finkel is in charge of the prosecution.
The charges in the Complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Supervisor at Fairfield Post Office Sentenced for Stealing Cash from MailRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JESSICA GILES, 38, of West Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to two years of probation, the first three months of which Giles must spend in home confinement, for stealing cash from the mail while working for the U.S. Postal Service. Judge Chatigny also ordered Giles to pay a $2,400 fine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, between October 2019 and May 2020, while she was employed as a supervisor at the U.S. Post Office in Fairfield, Giles used the flashlight feature on her phone to examine the content of various envelopes that had been placed in the mail. When she believed that an envelope contained U.S. currency, she opened the envelope, stole the cash that was found inside and, on multiple occasions, tore up and disposed of the envelope. Recorded surveillance video also revealed that Giles stuffed approximately 19 envelopes into her pants to remove them to a more private location for further examination.
On November 3, 2020, Giles pleaded guilty to theft of mail by a postal employee.
This investigation was conducted by the U.S. Postal Service Office of Inspector General and was prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
Individuals who believe they are a victim of mail theft may file a complaint by calling 888-USPS-OIG, or by visiting https://www.uspsoig.gov/form/file-online-complaint.
Former Northville Public Schools Assistant Superintendent Pleads Guilty to Obstructing a Federal InvestigationRead the Press Release
A former Assistant Superintendent of the Northville Public Schools (NPS) pleaded guilty to obstructing a federal investigation, Acting United States Attorney Saima S. Mohsin announced today.
Mohsin was joined in the announcement by Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation (FBI).
Deanna Barash, 46, of Auburn Hills, stands convicted of obstructing a federal grand jury investigation. The FBI and the U.S. Attorney’s Office were conducting the investigation after they learned that Barash, then the Assistant Superintendent of NPS, approved a contract for NPS to purchase educational materials from a third-party without disclosing to NPS that she had a financial relationship with this party. After Barash left NPS, school officials learned about the contract and made Barash aware that they were reporting her actions to authorities. Barash then deleted certain emails between herself and the third-party from her private email account. In an interview, Barash lied to federal investigators about her actions. She originally claimed that she deleted the email messages only as part of her regular routine, but later admitted she deleted the messages because she learned she was under investigation and was attempting to keep investigators from seeing them.
Acting United States Attorney Mohsin stated, “Safeguarding the integrity of our public schools’ expenditures is of the utmost importance. We will continue to work with school systems when there are concerns of corruption or fraud related to the disbursement of their funds. Today’s guilty plea underscores our office’s commitment to hold people accountable for interfering with these and other federal investigations.”
“Deanna Barash used her position as the assistant superintendent of Northville Public Schools for her own financial gain, and then attempted to avoid accountability by destroying evidence of her wrongdoing,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to preserving the public’s confidence in government at every level and will hold accountable any public official who undermines that confidence.”
Barash faces a maximum sentence of ten years in prison and a fine of up to $250,000 for violating of Title 18, United States Code, Section 1503, obstructing a federal grand jury investigation. Her sentencing is scheduled for August 25, 2021 at 11am..
Mohsin thanked the Northville Public Schools for its cooperation in the matter.
The investigation of this case was conducted by the of the FBI and the United States Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Former Minister of Industry and Member of Parliament of Barbados Sentenced for Laundering BribesRead the Press Release
A former Minister of Industry and elected member of Parliament of Barbados was sentenced today to two years in prison for his role in a scheme to launder bribe payments from a Barbadian insurance company through bank accounts in New York.
Donville Inniss, 55, a U.S. lawful permanent resident who resided in Tampa, Florida, and Barbados, was convicted by a federal jury of two counts of money laundering and one count of conspiracy to commit money laundering on Jan. 16, 2020. According to the evidence presented at trial, in 2015 and 2016, Inniss took part in a scheme to launder into the United States approximately $36,000 in bribes that he had received from high-level executives of the Insurance Corporation of Barbados Limited (ICBL). In exchange for the bribes, Inniss leveraged his position as the Minister of Industry to enable ICBL to obtain two insurance contracts from the Barbados government to insure over $100 million worth of government property. To conceal the bribes, Inniss arranged to receive them through a U.S. bank account in the name of his friend’s dental company, which had an address in Elmont, New York.
“Donville Inniss engaged in a bribery and money laundering scheme to line his own pockets at the expense of the people of Barbados,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “International corruption undermines trust in governments, threatens our national security, and prevents the free market from functioning fairly for law-abiding people and companies. Today’s sentence sends a strong message that the Department is committed to prosecuting corrupt officials like Inniss who seek to use the U.S. financial system to hide their bribe payments.”
“In accepting bribes and laundering the payments through banks on Long Island, Inniss not only abused the public trust that was placed in him by the people of Barbados, he also stained the U.S. banking system with the proceeds of his corrupt scheme,” said Acting U.S. Attorney Mark J. Lesko of the Eastern District of New York. “The defendant’s sentence today reflects the seriousness of his crimes.”
In addition to the prison sentence, the court also ordered Inniss to pay $36,536.73 in forfeiture.
The FBI investigated the case.
Assistant Chief Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sylvia Shweder and David Gopstein for the Eastern District of New York prosecuted the case. Assistant U.S. Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Justice Department’s Office of International Affairs also provided assistance in this matter. The department appreciates the cooperation provided by its law enforcement colleagues in Barbados during this investigation.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Member of Barbados Parliament Sentenced to 24 Months in Prison for Money Laundering SchemeRead the Press Release
Donville Inniss, a former member of Parliament in Barbados, was sentenced today in federal court in Brooklyn by United States District Court Judge Kiyo A. Matsumoto to 24 months in prison for laundering bribe payments from a Barbados-based insurance company through banks on Long Island. The Court also ordered Inniss to pay $36,536.73 in forfeiture. Inniss was convicted in January 2020, following a one-week trial.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“In accepting bribes and laundering the payments through banks on Long Island, Inniss not only abused the public trust that was placed in him by the people of Barbados, he also stained the U.S. banking system with the proceeds of his corrupt scheme,” stated Acting U.S. Attorney Lesko. “The defendant’s sentence today reflects the seriousness of his crimes.”
“Donville Inniss engaged in a bribery and money laundering scheme to line his own pockets at the expense of the people of Barbados,” stated Acting Assistant Attorney General McQuaid. “International corruption undermines trust in governments, threatens our national security, and prevents the free market from functioning fairly for law-abiding people and companies. Today’s sentence sends a strong message that the Department is committed to prosecuting corrupt officials like Inniss who seek to use the U.S. financial system to hide their bribe payments.”
Between August 2015 and April 2016, Inniss accepted approximately $36,000 in bribes from high-level executives of Insurance Corporation of Barbados Limited (ICBL) and laundered that money through banks on Long Island. In exchange for the bribes, Inniss leveraged his position as the Minister of Industry, International Business, Commerce and Small Business Development of Barbados to enable ICBL to obtain two contracts from the Barbados government to insure over $100 million worth of government property. Inniss concealed the bribes by arranging to receive them through a Long Island bank account in the name of a friend’s dental company in Elmont, New York. ICBL executives transferred the funds to the dental company using an invoice falsely claiming that the payments were for consulting services. During the time of the charged conspiracy, Inniss was a legal permanent resident of the United States residing in Tampa, Florida and Barbados.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sylvia Shweder and David Gopstein, and Assistant Chief Gerald M. Moody, Jr., of the Department of Justice Criminal Division’s Fraud Section are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Forfeiture Unit is handling forfeiture matters.
The Defendant:
DONVILLE INNISS
Age: 55
Tampa, Florida and BarbadosE.D.N.Y. Docket No. 18-134 (S-2) (KAM)
Former DRWC Bookkeeper Charged with Stealing $2.6 MillionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Angela DiPietro-Sabatine, 57, of Pennsauken, NJ, was arrested and charged by Indictment with ten counts of wire fraud, one count of bank fraud, three counts of aggravated identity theft, and aiding and abetting, all stemming from her alleged theft of more than $2.6 million dollars from her former employer, the Delaware River Waterfront Corporation (DRWC). DRWC is non-profit, quasi-governmental entity whose mission is to design, develop, and manage the central Delaware River waterfront from Oregon to Allegheny Avenues for the benefit of Philadelphia residents.
According to the Indictment, when the defendant was employed at DRWC as the Accounting Administrator, her duties included managing the accounts payable and receivable, bank reconciliations, and general ledger work. The Indictment alleges that the defendant used the non-profit’s computerized accounting software, located in its offices in Philadelphia, to create false expense items for legitimate vendors of DRWC – invoicing services that were never rendered. DiPietro-Sabatine then generated DRWC checks for these false expense items, manipulated the computerized accounting software to change the payee on the check from the legitimate vendor to herself, and forged the signatures of DRWC’s authorized signatories, the President and Vice President, on these unauthorized checks made payable to herself. It is alleged that the defendant then spent the stolen proceeds on personal expenses, including gambling and luxury vacations. The Indictment alleges that this scheme occurred over the course of at least seven years, resulting in the theft of more than $2.6 million from DRWC.
“The alleged conduct in this case shows a pattern of deception and dishonesty that went on for the better part of a decade,” said Acting U.S. Attorney Williams. “Organizations must be able to rely on the honesty of employees who handle money, and this is especially important when the entity has a mission meant to benefit the public. As alleged, DiPietro-Sabatine went to great lengths to hide her criminal conduct from her employer; our Office thanks DRWC for coming forward and cooperating fully with the investigation so we can hold this defendant responsible for her actions.”
“The FBI is committed to tracking down those who abuse their positions of trust for personal gain,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Embezzlement from non-profits like DRWC erodes citizens' faith in their leaders, and bringing those engaging in economic crimes to justice will continue to be one of the FBI’s top criminal investigative priorities. Today’s indictment sends the message that the FBI will work tirelessly to protect non-profits and other government entities from fraud, waste and abuse.”
If convicted, the defendant faces a maximum possible sentence of 230 years in prison, a six year mandatory minimum sentence, a $4,250,000 fine, and restitution of more than $2.6 million.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Boston Police Officer Pleads Guilty to Overtime FraudRead the Press Release
BOSTON – A former Boston Police Officer pleaded guilty today in federal court in Boston in connection with committing over $20,000 in overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Officer James Carnes (retired), 57, of Canton, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 10, 2021.
In September 2020, Carnes and eight other Boston Police Officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $200,000 between May 2016 and February 2019.
Carnes admitted that between July 2016 and February 2019, he submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4-8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Carnes admitted that while he had claimed to have worked from 4-8 p.m., he and, allegedly, the other members of his unit routinely left at 6 p.m., or earlier. For the kiosk shift, Carnes admitted that while he and other members submitted overtime slips claiming to have worked eight-and-one-half hours, he and, allegedly, other members of the unit only worked three to four hours of those shifts.
From 2016 through 2018, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Attorney for Municipalities in Puerto Rico Sentenced for BriberyRead the Press Release
A former attorney for three municipalities in Puerto Rico was sentenced today to 10 years in prison after he was convicted of four counts of bribery with respect to programs receiving federal funds.
Alejandro Carrasco, 64, of San Juan, was convicted by a federal jury of four counts of bribery with respect to programs receiving federal funds on Dec. 11, 2019. According to evidence introduced at trial, at various times between July 2009 and June 2012, Carrasco was an attorney providing legal services to the Puerto Rican Municipalities of Barceloneta, Rio Grande, and Juncos. During that time, he accepted bribes, disguised as legal fees, from a contractor in exchange for agreeing to assist the contractor in obtaining contracts with the three municipalities.
The evidence introduced at trial revealed that, in total, Carrasco accepted more than $180,000 in bribes in exchange for helping the contractor obtain more than approximately $2.3 million in municipal contracts. The evidence also revealed that Carrasco urged the contractor to bribe other public officials in the municipalities.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Special Agent in Charge Rafael Riviere of the FBI’s San Juan Field Office made the announcement.
The FBI’s San Juan Field Office investigated the case.
The U.S. Attorney’s Office for the District of Puerto Rico indicted the case. Trial Attorneys James I. Pearce and Nicole R. Lockhart of the Criminal Division’s Public Integrity Section prosecuted the case.
Final defendant pleads guilty in case involving 58 firearms stolen from sporting goods storeRead the Press Release
DAYTON – Three Dayton men have admitted in federal court that they conspired to steal 58 firearms from Target World in Sharonville in June 2018.
Lamont Hancock, 22, pleaded guilty in U.S. District Court in Dayton yesterday afternoon. Miyauhn Vineyard, 21, pleaded guilty in January 2021 and Michael Sanford, 26, pleaded guilty in February 2021.
According to court documents, on June 17, 2018, the co-conspirators parked in an adjacent parking lot and cut off an exterior door lock to the store. The individuals then smashed display cases in the retail area of the store and stole 58 firearms.
Two days later, the ATF recovered 10 of the firearms through a third-party sale.
Each of the defendants pleaded guilty to conspiring to steal firearms from a federal firearms licensee, a crime punishable by up to five years in prison.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
# # #
FBI Electronics Technician Charged with Child Pornography CrimesRead the Press Release
NASHVILLE, Tenn. – April 27, 2021 – An Antioch, Tennessee man employed by the FBI as an electronics technician was charged today with sexual exploitation of children and receipt of child pornography. Justin D. Carroll, 38, was arrested by FBI agents this morning when he arrived to work at the Nashville FBI office. He will appear before a U.S. Magistrate Judge later today.
The announcement was made by Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee and Special Agent in Charge (SAC) Douglas Korneski of the FBI Memphis Field Office.
“I commend the leadership of the FBI for their quick and decisive action in this matter,” said Acting U.S. Attorney Stewart. “Once the suspect was identified as an FBI support employee, agents took swift action to prevent the continued victimization of this child and others. We will continue to work vigorously with our FBI partners to hold this individual accountable.”
“Once the FBI became aware of the alleged crime, an investigation was immediately initiated and investigated with all expediency, which culminated in today’s arrest,” said SAC Korneski. “Anyone who commits a federal crime should know that the FBI will investigate to the fullest extent allowable by law, particularly when they are one of our employees.”
According to the criminal complaint, Carroll was identified as the user of an email address which was connected to the facilitation and exchange of sexually explicit images and videos between Carroll and a 14-year-old female in Rhode Island.
The investigation began in March when a package was received at the Nashville FBI Office and although addressed to the building address, no recipient was indicated on the label. The package had a return address that listed the name and Rhode Island address of an individual who was later identified as a 14-year-old female. The nature of the package prompted a response from FBI bomb technicians and once opened, the package contained a teddy bear and candies.
Further investigation determined that the 14-year-old female met Carroll in an online chat room in the summer of 2020 and their communications continued over multiple communication platforms and eventually transitioned to Google Hangout and email, including her school email account. Messages sent by Carroll consisted primarily of descriptions of intercourse and professions of love and included sexually explicit photos and videos exchanged between Carroll and the minor female. All communications sent from and received by Carroll were determined to have been sent from his personal devices. Carroll had previously provided the minor female with his mailing address, listing the Nashville FBI Office’s street address.
The investigation also identified other accounts with which Carroll engaged or attempted to engage in sexually explicit conversations with minors and the investigation remains active.
If convicted, Carroll faces a minimum of 15 years and up to 50 years in prison.
This investigation is being conducted by the FBI. Assistant U.S. Attorney Carrie Daughtrey is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Essex County Man Admits Gun Possession and Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm and distributing methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Kevon Anderson, 25, of Newark, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of gun possession by a convicted felon and one count of narcotics trafficking.
According to documents filed in this case and statements made in court:
On Sept. 10, 2019, Anderson was arrested by Newark Police Department officers and found to be in possession of a .38 caliber Smith and Wesson Bodyguard handgun and seven rounds of .38 caliber ammunition. Anderson was also carrying 19 rounds of 9-millimeter ammunition, and he had several ecstasy (methamphetamine) pills intended for distribution. Anderson had been convicted of a felony in 2018 for resisting arrest.
The charge of being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a fine of up to $250,000. The narcotics trafficking charge carries a maximum penalty of 20 years in prison and a fine of up to $1 million. Sentencing is scheduled for Sept. 15, 2021.
Acting U.S. Attorney Honig credited the officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark.
Essex County Man Admits Drug Conspiracy and Distribution of Crack in Stephen Crane VillageRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing and conspiring with others to distribute more than 28 grams of cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Nasir Williams, 24, of Newark, pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count each of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine case and distribution of 28 grams or more of cocaine base.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville, New Jersey. From at least February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated there.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, law enforcement officers determined that numerous individuals, including Williams, conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village. On Jan. 15, 2020, in Stephen Crane Village, Nasir Williams sold approximately 31 grams of cocaine base to an individual while under surveillance by law enforcement.
The conspiracy and distribution charges to which Williams pleaded guilty both carry a statutory mandatory minimum term of five years in prison, a maximum of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Sept. 21, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Cassye Cole of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Dayton man sentenced to more than 6 years in prison for illegal gun possessionRead the Press Release
DAYTON – Jamichael Thompson, 28, of Dayton, was sentenced in U.S. District Court to 78 months in prison for illegally possessing a firearm as a convicted felon.
According to court documents, on Aug. 5, 2019, FBI Task Force officers discovered two firearms in Thompson’s car during a probable cause search.
Thompson possessed an AR-15 with 29 rounds of ammunition and a stolen 9mm pistol.
Thompson has a previous federal conviction for illegally possessing a firearm as a felon. He was convicted of the same crime in December 2017.
The defendant pleaded guilty in this case in February 2021.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) announced the sentence imposed yesterday afternoon by U.S. District Judge Michael J. Newman. Assistant United States Attorney Elizabeth R. Rabe and Assistant Deputy Criminal Chief Laura I. Clemmens are representing the United States in this case.
# # #
Clayton County Sheriff Victor Hill indicted for federal civil rights violationsRead the Press Release
ATLANTA – Clayton County Sheriff Victor Hill has been indicted on federal civil rights charges for ordering his employees to use excessive force against four pretrial detainees at the Clayton County Jail in 2020. The indictment alleges that Hill, without any legal justification, ordered his employees to strap the detainees into a restraint chair and keep them there for hours in violation of their constitutional rights. The indictment further alleges that Hill deprived the detainees of their due process rights because such use of force was unreasonable, amounted to punishment, and caused the detainees physical pain and bodily injury.
“While the vast majority of our law enforcement officers perform their duties bravely, professionally, and with honor, those few who abuse their power must be held accountable,” said Acting U.S. Attorney Kurt R. Erskine. “Our constitution prohibits law enforcement officers from using unreasonable force. Without justification, Sheriff Hill allegedly ordered four detainees to be strapped into restraint chairs for hours. In so doing, he caused pain and injury to the detainees in his care. Sheriff Hill’s actions, as alleged by the Grand Jury, deprived the citizens he was sworn to protect of their civil rights. Such abuses of power not only harm the victims, they also erode the community’s trust in law enforcement.”
“Badges and guns don't come with the authority to ignore the Constitution. They come with the responsibility to protect it from anyone who would violate it, especially another public servant,” said Assistant Special Agent in Charge Christopher Macrae, FBI Atlanta. “Sheriff Hill is alleged to have abused his privileges and abandoned his responsibilities and the FBI is committed to restoring trust in law enforcement by holding him accountable.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: The Clayton County Sheriff’s Office’s (CCSO’s) “Inmate Restraint Chair Policy,” which was approved by Hill, states that “a restraint chair may be used by security staff to provide safe containment of an inmate exhibiting violent or uncontrollable behavior and to prevent self-injury, injury to others or property damage when control techniques are not effective.” Consistent with the Fourteenth Amendment’s Due Process Clause, the policy emphasizes that use of a restraint chair “will never be authorized as a form of punishment.”
Victim J.A.
On February 25, 2020, a victim identified as J.A. was accused of assaulting two women during a dispute at a Clayton County grocery store several weeks earlier. He was arrested by Forest Park (Georgia) Police Department officers and CCSO deputies without incident. At the time, J.A. was unarmed, was not under the influence of drugs, and offered no resistance. A short time later, J. A. was booked into the Clayton County jail as a pretrial detainee. During the booking process, J.A. was escorted by a group of deputies and correction officers to the fingerprinting area where Hill allegedly confronted J.A.
Hill asked J.A. what he had been doing in Clayton County on the day of the alleged assault. J.A. replied, “It’s a democracy, sir. It’s the United States.” Hill responded, “No, it’s not. Not in my county.” When J.A. asked whether he was entitled to a fair and speedy trial, Hill allegedly replied, “Roll that chair around here. You stay out of Clayton County, you understand me? You sound like a dummy.” When J.A. asked again whether he was entitled to a fair and speedy trial, Hill allegedly stated, “You entitled to sit in this chair, and you’re entitled to get the hell out of my county and don’t come back. That’s what you’re entitled to. You sound like a damn jackass. Don’t you ever put your hand on a woman like that again. You’re fortunate that wasn’t my mother or grandmama or you wouldn’t be standing there. Now, sit there and see if you can get some damn sense in your head.”
According to the indictment, during J.A.’s interaction with Hill, J.A. was surrounded by law enforcement personnel, was handcuffed most of the time, and never posed a threat to anyone. Despite those facts, J.A. was strapped into a restraint chair and left there for hours per Hill’s orders.
Victim C.H.
On April 26, 2020, C.H., who had just turned 17 years old, allegedly vandalized his family home during an argument with his mother. Shortly thereafter, a CCSO deputy apprehended C.H. near his home without incident and turned C.H. over to the custody of the Clayton County Police Department (CCPD). Clayton County records indicate C.H. was unarmed, was not under the influence of drugs, and offered no resistance.
According to the indictment, the deputy, a CCSO supervisor, then spoke with Hill on the phone, texted Hill a photograph of C.H. handcuffed and seated in a CCPD vehicle, and had the following text exchange with Hill:
Hill: How old is he?
Deputy: 17
Hill: Chair
A few hours later, early on April 27, 2020, C.H. was booked into the Clayton County jail as a pretrial detainee pending trial on charges stemming from the incident at his home. Although C.H. had been compliant with law enforcement during and after his arrest and never posed a threat to anyone, he was allegedly strapped into a restraint chair and left there for hours per Hill’s orders.
Victim J.H.
Also on the morning of April 27, 2020, J.H. was arrested by the Jonesboro Police Department following a domestic disturbance. At the police station after his arrest, J.H. fell out of a chair after allegedly pretending to pass out. J.H. was transported to a hospital for evaluation. While being treated at the hospital, J.H. refused treatment and left the building. When Jonesboro police officers re-apprehended J.H. outside his grandmother’s house that afternoon, J.H. did not cooperate or comply with officer’s commands and had to be carried down some steps and placed into a patrol vehicle. Clayton County records indicate that J.H. was unarmed, was not under the influence of drugs, and offered no resistance. In the patrol vehicle, J.H. again appeared to feign unconsciousness but offered no resistance.
Shortly thereafter, still during the afternoon of April 27, 2020, J.H. was booked into the Clayton County jail as a pretrial detainee pending trial on charges stemming from the domestic disturbance. Upon J.H.’s arrival at the jail, although J.H. was not combative and never posed a threat to anyone, J.H. was allegedly strapped into a restraint chair and left there for several hours per Hill’s order. During his time in the restraint chair, J.H. was not allowed to go to the restroom and urinated on the restraint chair due the length of his confinement.
According to the indictment, while C.H. and J.H. were both strapped in restraint chairs near each other, Hill allegedly confronted them. Referring to C.H., Hill allegedly said, “You know what he did yesterday? He went and destroyed his mother’s house yesterday. That’s what this asshole right here did.” Addressing both C.H. and J.H., Hill then allegedly stated, “Now, I’m going to tell you something. If I hear about you (C.H.) messing up your mama’s house again, if I hear about you (J.H.) fighting cops and faking and going to the Southern Regional and then walking out and pulling out the I.V., I’m a sit your ass in that chair for sixteen hours straight. Do you understand me? I need to hear from both of y’all that y’all not gonna show y’all’s ass in my county no more.”
Victim G.H.
In April 2020, G.H. and a CCSO deputy had a payment dispute over some landscaping work G.H. did for the deputy in Butts County, Georgia. The work and dispute were unrelated to the deputy’s employment with CCSO. After learning about the dispute, Hill allegedly called G.H. on April 23, 2020. During the call, Hill allegedly identified himself as the Clayton County Sheriff and asked G.H. why he was harassing his deputy. G.H. replied that Hill should tell his deputy to pay his bill and added, “you can go f--- yourself.” Unsure whether the caller had actually been the Clayton County Sheriff, G.H. used FaceTime to call back several times until Hill answered and removed a face mask he was wearing. After the FaceTime calls, Hill allegedly texted G.H., warning him not to call or text anymore. G.H. responded via text, “So this is Victor Hill correct[?” According to the indictment, Hill responded with a second text warning for G.H. not to call or text him anymore. Although G.H. did not call or text again, Hill allegedly instructed a CCSO deputy to swear out an arrest warrant against G.H. for harassing communications.
The next day, April 24, 2020, Hill allegedly texted G.H., “[T]his is Sheriff Victor Hill. We have a warrant for your arrest. Would you like to turn yourself in, or have my Deputies find you?” G.H. did not respond. The next morning, April 25, 2020, Hill again allegedly texted G.H., “My Deputies are actively looking for you. We have not and will not agree for you to turn yourself in when you want to. Turn yourself in today.” Meanwhile, Hill allegedly sent an armed fugitive squad to Butts County in an attempt to arrest G.H. on the misdemeanor arrest warrant.
After retaining a lawyer, G.H. turned himself in at the CCSO during the evening of April 27, 2020. Clayton County records indicate that G.H. was unarmed, was not under the influence of drugs, and offered no resistance. Shortly thereafter, G.H. was booked into the Clayton County jail as a pretrial detainee pending trial on the harassing communications charges. Surveillance footage from the jail shows G.H. interacting with jail personnel for more than half an hour, during which time he appeared cooperative and compliant before Hill arrived and confronted him. According to the indictment, immediately upon Hill’s arrival, although G.H. was surrounded by law enforcement personnel, remained compliant, and never posed a threat to anyone, G.H. was immediately strapped into a restraint chair and left there for several hours per Hill’s orders.
Victor Hill, 56, of Hampton, Georgia, was arraigned before U.S. Magistrate Judge Russell G. Vineyard. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Brent Alan Gray and Bret R. Hobson are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cincinnati political consultant charged with embezzling $1.4M from Congressional campaignRead the Press Release
CINCINNATI – A political and media consultant has been charged federally with wire fraud and falsification of records related to the embezzlement of more than $1.4 million from a United States Congressional campaign.
A bill of information was filed today against James R. Schwartz II, 41, of Cincinnati. The United States also filed a plea document in this case today, which will be considered by the court at a future plea hearing.
According to court documents, from approximately 2011 through 2019, Schwartz worked as a consultant on behalf of a Congressional campaign through his companies Fountain Square Group LLC and Prime Media LLC. Schwartz also served as the de facto treasurer for the campaign.
The bill of information details that Schwartz embezzled funds from the Congressional campaign by writing checks to himself and his companies from the campaign that were for more money than he and his companies had actually earned. He allegedly concealed the embezzled funds by misrepresenting the amounts paid to him and his companies in reports to the Federal Election Commission. It is alleged that Schwartz fabricated bank statements and other documents in submissions to the Federal Election Commission in order to conceal his embezzling.
Committing wire fraud and falsifying records in a federal investigation are crimes punishable by up to 20 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
A bill of information is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
# # #
Chinese National Sentenced to 14 Years in Prison for Laundering Drug Proceeds on Behalf of Traffickers in MexicoRead the Press Release
CHICAGO — A federal judge in Chicago today sentenced a Chinese national to 14 years in prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.
XIANBING GAN schemed in 2018 to have approximately $534,206 in narcotics proceeds picked up in Chicago and transferred to various bank accounts in China, with the money ultimately intended for drug traffickers in Mexico. Unbeknownst to Gan, a purported money courier who picked up the drug proceeds in Chicago was an undercover law enforcement agent.
Gan, 51, is a Chinese national who facilitated the money transfers while residing in Guadalajara, Mexico. U.S. authorities arrested him in November 2018 at Los Angeles International Airport during a layover on a flight from Hong Kong to Mexico. He has remained in U.S. custody since then.
A federal jury in Chicago last year convicted Gan on three counts of money laundering and one count of operating an unlicensed money transmitting business. U.S. District Judge Thomas M. Durkin imposed the sentence today after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“The defendant was part of a recent phenomenon in which a relatively small network of Chinese money brokers based in Mexico have come to dominate international money laundering markets,” Assistant U.S. Attorneys Sean J.B. Franzblau and Richard M. Rothblatt argued in the government’s sentencing memorandum. “Like defendant, many of these brokers are also engaged in legitimate business, and use that business as cover for and to further money laundering activity. It does not matter that defendant never personally distributed narcotics – drug distribution and money laundering are two-sides of the same malignant coin.”