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9 June 2021
Nacogdoches Felon Sentenced for Federal Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Nacogdoches man has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Marcus Bernard Tutt, 42, pleaded guilty on Jan. 27, 2021, to possession with intent to distribute methamphetamine and use of a firearm during a drug trafficking crime and was sentenced to 222 months in federal prison today by U.S. District Judge Michael J. Truncale.
“Methamphetamine abuse has a tremendously negative effect on our local communities, touching upon every facet of our daily lives” said Acting U.S. Attorney Nicholas J. Ganjei. “Ensuring the health and safety of East Texas begins with prosecutions like this case, and you can expect EDTX to maintain its aggressive posture in prosecuting meth trafficking.”
According to information presented in court, on Nov. 25, 2019, Tutt was stopped by a trooper with the Texas Department of Public Safety for a traffic violation and was arrested for driving without a valid license. During a subsequent search of Tutt’s vehicle, the trooper located 100 grams of methamphetamine and a revolver. Tutt has numerous prior felony convictions, including possession of a controlled substance, credit card abuse, unlawful possession of a firearm by a felon, attempted obstruction, forgery, aggravated assault with a deadly weapon, and multiple convictions for delivery of a controlled substance. As a convicted felon, Tutt is prohibited from owning or possessing firearms or ammunition. Tutt was indicted by a federal grand jury on August 19, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety and the Angelina County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Montgomery Resident Convicted on All Counts at Trial in Financial Fraud CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announces that a federal jury in Montgomery, Alabama found defendant Tiffany Culliver Franklin, 41, of Montgomery, guilty on all charges in a financial fraud case. Chief United States District Judge L. Scott Coogler presided over the trial, which started on June 7, 2021 and ended the following day. Franklin is scheduled to be sentenced in the fall of 2021.
On April 7, 2021, a federal grand jury for the Middle District of Alabama charged Franklin with violations of 18 U.S.C. §§ 656 (theft or embezzlement by a bank employee) and 1344(1) (bank fraud), which carry a maximum potential sentence of 30 years, and 18 U.S.C. § 1343 (wire fraud), which carries a maximum potential sentence of 20 years.
The jury heard evidence that between June 2015 and July 18, 2017, Franklin was a vault teller with Branch Banking and Trust Company (BB&T), working at a local branch in Montgomery. An internal audit revealed that the vault drawers under Franklin’s control were short $202,000. Franklin gave a written statement to a bank investigator in which she expressed remorse for her conduct and admitted to embezzling $202,000 from the bank.
The jury also heard evidence that from January 2012 to December 2014, Franklin was employed as a personal banker at a Wells Fargo branch in downtown Montgomery. In October 2014, Franklin used her Wells Fargo credentials to create and obtain a debit card to make numerous ATM check deposits into and immediate cash withdrawals from an elderly customer’s account. A Wells Fargo investigator interviewed Franklin, who admitted that she had issued the debit card in the elderly customer’s name and had been using ATMs to deposit checks from her own bank account into the customer’s Wells Fargo account.
Finally, the jury heard evidence that from September 2017 to June 2018, Franklin worked as a bookkeeper at Goodwyn Middle School (GMS) in Montgomery. Evidence introduced at trial established that during her time as GMS’s bookkeeper, Franklin stole at least $13,216 in money and property that belonged to GMS. She stole $6,995 in money taken in by GMS that should have been deposited into the school’s bank account. Franklin also diverted for her personal benefit $675 taken in by GMS through gate receipts at various athletic events and $3,074 taken in by GMS from various classroom teachers. Moreover, Franklin withdrew from and failed to redeposit into GMS’s bank account $2,400 meant for use at various GMS athletic events. Finally, Franklin used a GMS-issued Walmart Community Card to make unauthorized purchases of various personal items, including Walmart gift cards. In September 2019, during an interview with investigators from the Alabama Attorney General’s Office, Franklin confessed to stealing GMS’s money and gambling with it at casinos.
The United States Secret Service and the Alabama Attorney General’s Office investigated the case. Assistant United States Attorneys Sinan Kalayoglu and Justin Roller are prosecuting the case.
Middletown Man Sentenced to Six Months of Home Confinement for Damaging Former Employer's Computer NetworkRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced today that Levii Delgado, 36, of Middletown, was sentenced today to six months of home confinement and over $13,000 in restitution by the Honorable Leonard P. Stark, Chief United States District Judge for the District of Delaware. Delgado pled guilty in February 2021 to one count of causing damage to a protected computer.
According to court documents, Delgado worked as an Information Technology (IT) administrator at a medical center that provides care to under-served communities. The medical center terminated Delgado’s employment in August 2017. Following that termination, Delgado was no longer authorized to access the medical center’s computer network and his credentials that had allowed him to access the medical center’s network were disabled. Four days after his termination, Delgado connected a personal laptop to the medical center’s computer network through an administrator account that Delgado continued to use without authorization. Once Delgado gained unauthorized access to the computer network, he caused the deletion of the medical center’s employee user accounts, the disabling of its computer accounts, and the deletion of its file server. Delgado’s actions prevented the medical center’s employees from logging into their computers and accessing patient files necessary to conduct operations. As a result, the medical center’s ability to see and treat its patients was impaired.
No patient information was compromised or accessed as a result of Delgado’s actions.
U.S. Attorney Weiss stated, “The defendant abused his knowledge of his former employer’s computer network to deliberately disrupt the medical center’s capability to conduct business. As a result, the defendant directly impeded that entity’s ability to provide medical care to the communities it serves, putting patients at risk. My office is committed to prosecuting any individual who thinks attacking a former employer’s computer network is an acceptable reaction to getting fired.”
“What Mr. Delgado did was not only intentional, reckless and petty, but also caused a severe disruption in medical care in an underserved community,” said Rachel Byrd, Acting Special Agent in Charge of the FBI Baltimore Field Office. “Computer intrusion is a crime and the FBI, and our law enforcement partners, will continue to pursue those who compromise, mishandle or disrupt computer networks.”
This case was investigated by the FBI-Baltimore Division’s Cyber Task Force and was prosecuted by Assistant U.S. Attorney Jesse S. Wenger.
Cyberattacks are on the rise. A private sector entity that is a victim of a cyber incident can receive assistance from government agencies, which are prepared to investigate the incident, mitigate its consequences, and help prevent future incidents. Federal Government agencies work together to leverage their collective response expertise, apply their knowledge of cyber threats, preserve key evidence, and use their combined authorities and capabilities to minimize asset vulnerability and bring malicious actors to justice. Private sector entities are encouraged to report a cyber incident to the FBI at 1-800-CALLFBI (225-5324) or file a complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Middleboro Financial Advisor Charged with Theft of Clients' Retirement AssetsRead the Press Release
BOSTON – A Middleboro financial advisor was arrested and charged today with defrauding elderly clients and stealing retirement assets.
Paul R. McGonigle, 65, was charged with three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft. McGonigle made his appearance today before U.S. District Court Magistrate Judge Donald L. Cabell.
According to the charging document, McGonigle served as a financial advisor for the victims. Beginning in July 2018, McGonigle allegedly caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses. To carry out his scheme, McGonigle allegedly posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Massachusetts Insurance Fraud Bureau provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Michigan Man Admits Defrauding Business Opportunity Buyers of More Than $5 MillionRead the Press Release
CAMDEN, N.J. – A Michigan man today admitted defrauding victims of more than $5 million in connection with the sale of medical-related business opportunities, Acting U.S. Attorney Rachael A. Honig announced.
Vijay Reddy, 45, of Milan, Michigan, pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit wire fraud and one count of wire fraud.
According to documents filed in this case and statements made in court:
From December 2015 through November 2020, Reddy and his conspirators, David Weinstein and Kevin Brown, advertised business opportunities for sale on various websites. They purported to sell “blocks” of contracts with medical providers who allegedly wanted to outsource their medical billing, collections, appeals, answering, credentialing, or transcription functions. The buyers would then provide the contracted services to the medical providers and earn a profit. The conspirators promised to deliver a specified number of providers and pledged that their proprietary marketing efforts would provide a guaranteed client base to the buyers.
To induce buyers to purchase the business opportunities, the conspirators created fake references purporting to be buyers who vouched for their prior business purchases from the conspirators. In fact, the references were Reddy, Weinstein, and their friends and family members, and they used aliases and disguised phone numbers to speak with potential buyers.
After agreeing to purchase the blocks of medical providers, victims entered contracts with companies represented by Weinstein or Reddy and wired down payments ranging from $15,000 to $240,000 to accounts controlled by Weinstein or Brown. The remainder of each purchase price was payable when the conspirators fulfilled the contract by delivering the agreed-upon number of providers.
After receiving the down payments, Weinstein and Reddy typically delivered to each victim only a small number of medical providers. Despite not fulfilling the contracts of any of the buyers identified by law enforcement, the conspirators continued to sell blocks of medical providers to new buyers and refused to provide refunds for their failures to satisfy the terms of the contracts. The conspirators also periodically sold batches of previously signed contracts and disclaimed further responsibility for those contracts to insulate themselves from complaints or legal action from disgruntled buyers.
Brown acted as the business broker for most of the transactions and received a commission for the sales he brokered. Reddy or Weinstein acted as the seller and signed the contracts with the victims. At least 77 victims sent more than $5 million to accounts controlled by the conspirators. The conspirators spent the victims’ money on personal expenses, including a travel, jewelry, real estate, a wedding and a college education, and other business investments.
The wire fraud and wire fraud conspiracy counts are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater. As part of his plea agreement, Reddy agreed to make restitution $5 million. Sentencing is scheduled for Oct. 20, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Diana V. Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations in the criminal complaints against Weinstein and Brown are merely accusations, and they are presumed innocent unless and until proven guilty.
Man Charged for Alleged Involvement in a 2019 Delaware County MurderRead the Press Release
A Delaware County man faces a murder conspiracy charge in federal court after his state case was dismissed in March due to lack of jurisdiction, announced Acting U.S. Attorney Clint Johnson.
Cody Buzzard, 27, was charged Tuesday by Criminal Complaint with conspiracy to murder in Indian Country. The crime was committed on the Cherokee Nation reservation.
A Complaint is a temporary charge alleging violation of the law. Defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which time the United States would have the burden of proving the defendant’s guilt.
On Aug. 1, 2019, the Delaware County Sheriff’s Office responded to a 911 call reporting a shooting near Jay. Deputies discovered Jerry Wayne Tapp deceased in his front yard. It appeared that Tapp sustained multiple gunshot wounds to his body and that a second victim had sustained a gunshot wound to her arm. According to the affidavit accompanying the Complaint, the victim told investigators that she heard a noise outside the home early on Aug. 1 and thought that Tapp had forgotten his keys to the house. She then turned on the light and opened the door. She heard gunfire and felt a sudden pain in her right wrist then shut and locked the front door, crawled to another room, and called 911. The witness explained that she saw a white 4-door car that did not belong to the victims and Tapp’s truck before shutting the door. When officers arrived both vehicles were gone. During a crime scene investigation, OSBI agents discovered approximately 12, .22 caliber spent casings in the yard.
In the affidavit, Cody’s brother Dakota Buzzard and father James Buzzard are implicated as being possible participants in the murder conspiracy.
At 9:30 am the day of the crime, Dakota was located by deputies from the McDonald County Sheriff’s Office while driving a white 4-door Altima matching the victim’s description. OSBI agents later found four .22 caliber spent casings inside the vehicle and a .22 caliber rifle and bullets located behind a section of drywall in another individual’s residence who allegedly hid the firearm for the Buzzards. During the investigation, the shell casings found at the scene of the crime were identified as having been fired by the .22 caliber rifle.
Witnesses to events following the murder claimed they overheard conversations stating that someone had been killed, that Dakota and his brother Cody had killed someone, that Cody was disposing of a pickup, and that James Buzzard had allegedly spoken about being involved.
On Aug. 6, 2019, investigators obtained Cody’s Facebook records after a search warrant was served. The day before the shooting Cody allegedly made inquiries using Facebook about getting a vehicle and firearm. He allegedly indicated that he “had business to tend to,” and he was going to “take care of a problem.”
The FBI, Oklahoma State Bureau of Investigation (OSBI), Delaware County Sheriff’s Office, and McDonald County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorneys Ben Tonkin and Victor Régal are prosecuting the case.
Malden Woman Sentenced for Stealing Social Security Benefits and Bank EmbezzlementRead the Press Release
BOSTON – A Malden woman was sentenced today for stealing Social Security benefits and embezzling over $27,000 from a bank.
Materesa Jose, 53, was sentenced by U.S. District Court Judge Leo T. Sorokin to time served (one day in prison) and three years of supervised release. Jose also was ordered to pay $27,605 in restitution. On Feb. 9, 2021, Jose pleaded guilty to one count of theft of public funds and one count of bank embezzlement.
While an employee of Eastern Bank, Jose, through a series of checks and electronic fund transfers, stole approximately $27,605 from the bank between September 2017 and July 2018. The majority of the stolen funds consisted of Social Security benefits. The account from which she stole the money belonged to an individual who had died in 2015.
Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Lawrence Resident Sentenced to 30 Years in Prison for Child Exploitation OffensesRead the Press Release
BOSTON – A Lawrence resident was sentenced today for sexually exploiting two children under four years of age.
Jakob Nieves, who also goes by the name Dakota, 21, was sentenced by U.S. District Court Judge Denise J. Casper to 30 years in prison and five years of supervised release. In August 2020, Nieves pleaded guilty to two counts of sexual exploitation of children, one count of distribution of child pornography and one count of possession of child pornography.
As part of an investigation into the use of Kik messenger for the trade of child pornography, an undercover agent communicated with Nieves via Kik. During the course of those communications, Nieves told the agent about the ways that she sexually abused two children known to her, and sent the undercover agent images and videos that Nieves had produced, which depicted Nieves sexually abusing one of those children.
On Aug. 14, 2019, when agents searched Nieves’s home, she admitted to distributing images and videos of child pornography to a user she met in a Kik group geared toward individuals interested in pedophilia. Forensic analysis of Nieves’ cell phone revealed pornographic images and videos of two children known to Nieves, both of whom were under the age of four, as well as thousands of child pornography images depicting at least 175 victims personally unknown to Nieves.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Anne Paruti, Deputy Chief of the Major Crimes Unit and Mendell’s Project Safe Coordinator, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Lawrence Man Sentenced for Fentanyl OffensesRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for distributing and possessing fentanyl.
Jose A. Ventura, 39, was sentenced by U.S. District Court Judge William G. Young to time served (approximately two months in prison), five months of home confinement and three years of supervised release. In November 2019, Ventura pleaded guilty to one count of distribution of and possession with intent to distribute fentanyl.
On July 16, 2019 in Lawrence, investigators witnessed Ventura sell approximately 10 grams of fentanyl in a street-level drug transaction. When investigators subsequently approached Ventura, he threw five additional bags of fentanyl on the ground. The total amount of fentanyl attributable to Ventura was nearly 15 grams.
Ventura was indicted as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Drug Enforcement Administration, the Massachusetts State Police, the Lawrence Police Department and the North Andover Police Department. Assistant U.S. Attorney Lindsey Weinstein of Mendell’s Narcotics & Money Laundering Unit prosecuted the case.
KC Man Charged with Drug Trafficking, Illegal Firearms After 911 CallRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man who called 911 to aid his mother was charged in federal court today after police officers responded to their residence and found evidence of drug trafficking and illegal firearms.
Michael Cummings II, 39, was charged with possessing methamphetamine with the intent to distribute and with possessing firearms in furtherance of drug trafficking in a complaint filed in the U.S. District Court in Kansas City, Mo. Cummings remains in federal custody pending a detention hearing on June 14.
According to an affidavit filed in support of today’s federal criminal complaint, police officers were called to Cummings’s residence on Monday night, June 7, when Cummings called 911 for emergency medical assistance for his mother. Emergency personnel attempted lifesaving measures on Cummings’s mother but she was unresponsive, and pronounced dead at approximately 12:04 a.m. on Tuesday, June 8.
Officers saw a loaded Heckler & Koch .40-caliber handgun on the dining room table, next to a pile of cash, and an SKS-style assault rifle with a magazine leaning against the wall of a stairwell. Officers arrested Cummings, who is a convicted felon, for illegally possessing the firearms.
Officers then obtained a warrant and searched the residence. In addition to the two firearms, officers also seized $618 found on the table and under the couch cushion.
In one bedroom, officers found a Pioneer Arms 7.62 x 39mm AKM-47-style pistol in the closet, a baggie that contained .24 grams of a fentanyl/heroin compound, baggies that contained a total of 351.37 grams of methamphetamine, two plastic baggies that contained a total of 28.1 grams of crack cocaine, a baggie that contained marijuana, and approximately $3,512 in cash.
In another bedroom, officers found a Ruger .22-caliber pistol on a shelf.
In another bedroom, officers found a Smith and Wesson AR-15 style assault rifle in the closet and a safe that contained $175,100 in cash and a Ruger revolver that had previously been reported as stolen.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Convicts New Jersey Man of Attempted Possession of Nearly Two Kilograms of FentanylRead the Press Release
BOSTON – A New Jersey man was found guilty by a federal jury in Boston on Friday, June 4, 2021 in connection with attempting to retrieve narcotics from two Stoughton storage units.
Carlos Miguel Concepcion-Guilam, 30, was convicted following a three-day trial of one count of attempted possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge William G. Young scheduled sentencing for Oct. 5, 2021.
On June 19, 2019, staff at a storage facility in Stoughton opened a storage unit to auction its contents and found drug paraphernalia inside. During a search of that unit and a second, related storage unit, nearly two kilograms of fentanyl, nearly a kilogram of cocaine and drug-distribution paraphernalia including cutting agents, blenders and packaging materials were recovered. Agents began surveilling the units to identify the owner of the drugs.
On June 20, 2019, Concepcion-Guilam arrived at the storage facility and opened the door to the unit that previously had contained nearly three kilograms of narcotics. After seeing that the drugs had been seized, he sprinted away from the storage facility and attempted to flee in his vehicle. Concepcion-Guilam deliberately crashed his vehicle into a marked police cruiser before he was arrested.
The charge of attempted possession with intent to distribute 400 grams or more of fentanyl provides for a mandatory minimum sentence of 10 years and up to a lifetime in prison, five years and up to a lifetime of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Stoughton Police Chief Donna McNamara made the announcement today. Special assistance was provided by the Massachusetts State Police. Assistant U.S. Attorneys Stephen Hassink, Lauren Graber and Benjamin Tolkoff of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Jury Convicts Cedar Rapids Man of Child Sexual Exploitation OffensesRead the Press Release
A man who sexually exploited two girls and committed child pornography offenses was convicted by a jury today after a two-and-a-half-day trial in federal court in Cedar Rapids.
Nathan Nosley, age 30, of Cedar Rapids, was convicted of sexual exploitation of children, distribution of child pornography, receipt of child pornography, three counts of possession of child pornography, and accessing child pornography.
The evidence at trial showed that, between 2018 and 2020, Nosley persuaded, induced, and enticed two girls to produce and send him pornographic images of themselves. Nosley also distributed child pornography to others, used cell phone apps to receive child pornography, used a cell phone to access child pornography, and possessed child pornography on a cell phone, on a memory card, and in an e-mail account.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Nosley remains in custody of the United States Marshal pending sentencing. Nosley faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 150 years’ imprisonment, a $1,750,000 fine, $188,700 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, the Iowa State Patrol, and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-101.
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Indiana man pleads guilty to sex trafficking conspiracyRead the Press Release
ALBUQUERQUE, N.M. – Matthew “Stacks” Woods, 32, of Indiana, pleaded guilty in federal court on June 8 to conspiracy to commit sex trafficking by means of force, threats, fraud and coercion and aiding and abetting. Woods will remain in custody pending sentencing.
Woods and his co-conspirators, Cornelius “Chip” Galloway, and Marcus “Taylor Made” Taylor, were charged in a superseding indictment on Dec. 3, 2019, with seven counts of sex trafficking, conspiracy to commit sex trafficking and attempted sex trafficking. The charges included two counts of sex trafficking of minors.
In his plea agreement, Woods admitted to his part in the conspiracy to recruit, maintain, advertise, and transport victims for the purpose of prostitution. The victims were expected to work when they were told, with no say over their hours, fees or the locations in which they were to perform sex acts. The victims were not allowed to keep any of the money paid for their services.
According to the plea, Galloway was the leader of the organization, Taylor transported the victims, and Woods physically punished victims for non-compliance.
Woods faces 15 to 18 years in prison, up to lifetime supervised release, and will be required to register as a sex offender. His sentencing date has not been set.
Galloway pleaded guilty on March 17, 2020, and was sentenced on Aug. 4, 2020, to 17 years in prison followed by 10 years of supervised release. Taylor pleaded guilty on May 21, 2020 and was sentenced on May 21, 2021 to eight years in prison followed by 10 years supervised release. Both are required to register as sex offenders.
The Homeland Security Investigations and the Albuquerque Police Department investigated this case with assistance from the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Jack E. Burkhead and Letitia C. Simms are prosecuting the case.
Harrison County woman sentenced for methamphetamine and heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stephanie Cottrill, of Shinnston, West Virginia, was sentenced today to 77 months of incarceration for methamphetamine and heroin distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Cottrill, age 38, pleaded guilty in September 2020 to one count of “Conspiracy to Possess with Intent to Distribute and Distribute Methamphetamine and Heroin.” Cottrill admitted to working with others to distribute methamphetamine and heroin from November 2019 to January 2020 in Ritchie County.Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Drug Enforcement Administration and the Ritchie County Sheriff’s Office investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Guatemalan National Charged with Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national was indicted today in federal court in Boston with illegal reentry after deportation.
Franklin Vasquez Ramirez, 39, was charged with one count of unlawful reentry of a deported alien. Ramirez will make an initial appearance in Boston at a later date.
According to the indictment, in December 2020, law enforcement encountered Ramirez in Ashland and determined him to be illegally present in the United States. Ramirez was previously deported in November 2010.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 10 years in prison, three years of supervised released and a fine of up to $250,000. Ramirez will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Greenville Man Faces Federal Child Pornography ChargesRead the Press Release
Bowling Green – A federal grand jury in Bowling Green returned an indictment today charging a Greenville, Kentucky man with the possession, receipt, distribution, and production of child pornography.
According to court documents, Corey Stephens, 29, of Greenville, Kentucky, possessed, received, distributed, and produced child pornography. According to a previously filed criminal complaint, on May 16, 2021, a Homeland Security Investigations (HSI), Special Agent acting in an undercover capacity encountered an individual on the KIK messenger application who posted an image of child pornography to a group.
HSI traced the message to Corey Stephens’s Greenville, Kentucky home, and HSI and Kentucky State Police executed a federal search warrant there on May 20, 2021.
Stephens is charged with four counts: possessing, receiving, distributing, and producing child pornography. If convicted at trial, Stephens faces not less than 15 years and not more than 90 years in prison for the crimes charged. There is no parole in the federal system. The case is next scheduled for arraignment on June 24, 2021, at 10 A.M. before U.S. Magistrate Judge H. Brent Brennenstuhl of the U.S. District Court for the Western District of Kentucky.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Assistant Special Agent in Charge Harley R. Shuler of the Department of Homeland Security Investigations made the announcement.
The Department of Homeland Security Investigations and the Kentucky State Police investigated the case.
Assistant U.S. Attorney Madison Sewell, Branch Chief of the Bowling Green U.S. Attorney’s Office, is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Georgia Man Charged with Robbing Two Asheville Banks Is Arrested by the FBIRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Johnny Jermaine Davis, 37, of Kennesaw, Georgia, who is charged with robbing two Asheville area banks, was arrested by the FBI today in Georgia.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief David Zack of the Asheville Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to the filed criminal complaint, on February 25, 2021, at approximately 3:02 p.m., an individual later identified as Davis entered a BB&T bank branch located at 1653 Hendersonville Road in Asheville and approached the teller area. The charging document alleges that Davis pulled a handgun, pointed it at a bank teller, yelled “Don’t move,” and then jumped behind the counter. Davis then allegedly ordered three bank employees to lie down on the ground, as he began taking cash from the bank’s drawers. Davis allegedly proceeded to flee the scene with $8,950 in cash.
According to allegations in court documents, on May 20, 2021, at approximately 4:46 p.m., Davis entered the Wells Fargo bank branch located at 800 Merrimon Avenue, in Asheville. As with the previous robbery, Davis allegedly approached the teller counter, pointed a firearm at a bank teller, jumped over the counter and ordered the bank employees to lie down on the ground. Allegedly, Davis then emptied the bank’s cash drawers and fled the scene with $831 in cash.
The criminal complaint charges Davis with bank robbery, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
The charges contained in the criminal complaint are allegations, and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the FBI and the Asheville Police Department for their investigation of the case, and thanked the Hendersonville Police Department, the Acworth Police Department and the Rome Police Department in Georgia for their invaluable assistance.
Assistant United States Attorney, Don Gast, of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Georgia CPA Indicted for Promoting Syndicated Conservation Easement Tax Scheme Involving Fraudulent Charitable DeductionsRead the Press Release
A federal grand jury sitting in Atlanta, Georgia, returned an indictment today charging an Atlanta certified public accountant with one count of conspiracy to defraud the United States; 24 counts of wire fraud; 32 counts of aiding or assisting in the preparation of false federal tax returns; and five counts of filing false federal tax returns relating to a wide-ranging, abusive tax shelter scheme.
According to the indictment, between 2014 and 2019, Herbert E. Lewis conspired with others to market, promote, and sell fraudulent tax shelter transactions in the form of syndicated conservation easement (SCE) donations. The SCE tax shelters allegedly enabled high-income taxpayers to purchase membership interests in purported real estate investment funds. According to the indictment, the funds served no legitimate business purpose, but instead were used to generate large fraudulent tax deductions for its participants based on the donated value of the conservation easements.
To further promote the scheme, the indictment alleges that Lewis allowed clients to purchase units in a given SCE shelter after year’s end and that he advised clients to backdate checks and subscription agreements. Lewis then prepared tax returns for these same clients claiming the non-cash charitable deductions generated by the conservation easement donations despite knowing that they were not entitled to claim the charitable deductions. In total, the conservation easement donations allegedly generated hundreds of millions of dollars in tax deductions that were passed through to the SCE shelters and client taxpayers.
For his part, Lewis allegedly received more than $1 million in commissions for selling the SCE shelters. The indictment also alleges that Lewis filed false individual income tax returns that failed to report a substantial portion of his commission income on his individual tax returns.
If convicted, Lewis faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, five years in prison for conspiring to defraud the United States, three years in prison for each count of filing a false tax return, and three years in prison for each count of aiding and assisting in the preparation of a false tax return. He also faces a period of supervised release, monetary penalties, and restitution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division, Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia, and IRS Commissioner Charles P. Rettig made the announcement.
IRS-Criminal Investigation and the U.S. Postal Inspection Service are investigating the case.
Tax Division Trial Attorneys Brittney Campbell, Grace Albinson, Casey Smith, and Parker Tobin, along with Assistant U.S. Attorney Thomas Krepp of the Northern District of Georgia, are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Local Men Indicted on Drug and Gun Law Violations following Allegheny County Police InvestigationRead the Press Release
PITTSBURGH, PA – Two residents of Clairton and two residents of Pittsburgh have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The five-count Indictment named Jamiel Green, a/k/a Jamiel Clifford, age 24, formerly of Mitchell Avenue, Pittsburgh, PA, Deonte Reddick age 20, formerly of Large Avenue, Clairton PA, Hazeon Kidd, age 20, of Hays Street, Pittsburgh PA and Tyrieke Hammonds age 24, of Large Avenue, Clairton PA, as the defendants.
According to the Indictment, on or about May 13, 2021, Green was in possession of a firearm. It is in violation of federal law for a felon to possess a firearm. As to Count Two, Hammonds was charged with illegal drug user in possession of a firearm. Counts Three and Four charged Kidd with possession with intent to distribute a substance containing fentanyl and cocaine as well as illegal drug user in possession of a firearm. Reddick was charged with being an illegal drug user in possession of a firearm in Count Five.
As to Counts One, Two, Four and Five, the law provides for a maximum sentence of ten years’ imprisonment, a fine of $250,000, or both. As to Count Three, the law provides for a maximum of 20 years in prison, a $1,000,000 fine 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 Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County 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.
Former State Regional Officer of Latin Kings Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former Regional Officer of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering charges.
Michael Cotto, a/k/a “King Gordo,” 26, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 54 months in prison and three years of supervised release. On Jan. 21, 2021, Cotto pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Cotto, a former member of the New Bedford Chapter, admitted to his role in the drug distribution activity of the Latin Kings in New Bedford, and a variety of violent acts committed in furtherance of the Latin Kings. This includes a February 2018 beating, known as a “termination,” of an individual who was suspected of cooperating with law enforcement. The victim was found by police bleeding from his injuries and transported to the hospital.
Cotto also admitted to conspiring in August 2018 to “terminate” a leader of the Fitchburg Chapter who was suspected of cooperating with law enforcement. On intercepted phone calls, Cotto discussed an elaborate ruse to trick this leader into attending a meeting at which he would be ambushed and beaten by other Latin Kings members.
In a December 2018 surveillance video, Cotto was captured participating in a group assault of another individual and observed striking the victim with a baseball bat.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Cotto is the 28th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Seattle resident pleads guilty to arson at Seattle Police East PrecinctRead the Press Release
Seattle – A former Seattle resident, who prior to his arrest resided in Tacoma, pleaded guilty today in U.S. District Court in Seattle to arson for setting fire to the outside of the Seattle Police East Precinct during the occupied protest known as ‘CHOP’, announced Acting U.S. Attorney Tessa M. Gorman. Isaiah Thomas Willoughby, 36, faces up to five years in prison when sentenced by U.S. District Judge John C. Coughenour on October 4, 2021.
According to the plea agreement, in the early morning hours of June 12, 2020, Willoughby was wearing distinctive clothing when he was captured on surveillance video near debris piled next to the wall of the Seattle Police East Precinct. Willoughby admits he used a small gas can, to pour gasoline on the debris. Willoughby steps away from the debris pile for a moment, then reappears with something that he lights on fire and tosses on the debris pile. The pile begins to burn, and Willoughby is seen walking away. The fire scorched the side of the building, but was extinguished by those nearby using fire extinguishers, and pulling the flaming debris away from the building.
After the Seattle Police Department released pictures of the arson suspect, various people recognized Willoughby and noted that the distinctive sweatshirt came from a clothing line he represents. Relatives of Willoughby reported to police that he was in Seattle in the Capitol Hill Organized Protest Zone (CHOP) at the time of the fire. Following the fire, Willoughby took steps to remove posts from his social media accounts that may have linked him to the arson. However, at least some of his Facebook posts remain, noting his anger at police and his knowledge of the East Precinct building.
Willoughby has been in custody at the Federal Detention Center at SeaTac since his arrest on July 14, 2020.
Under the terms of the plea agreement the government will recommend a 3-year prison term. The defense is free to recommend any sentence allowed by law. Judge Coughenour is not bound by any recommendation and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Former Postal Employee Charged with Delay of U.S. MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MILES J. DUPERON, age 29, of Slidell, was charged on June 7, 2021 in a one-count bill of information with delay of U.S. Mail matter by postal employee, in violation of 18 U.S.C. ' 1703(a).
According to the bill of information, on or about July 2019 through January 21, 2020, DUPERON unlawfully delayed U.S. mail, which was intended to be conveyed by mail.
If convicted, DUPERON faces a maximum term of imprisonment of five years, a fine of up to $250,000.00 or the greater of twice the gross gain to defendant or loss to victim, up to three years supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of Inspector General in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Former Member of the Latin Kings Department of Correction Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Massachusetts Department of Correction Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering charges.
Vincent Dzierwinski, a/k/a “King Vice,” was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 30 months in prison and three years of supervised release. On March 4, 2021, Dzierwinski pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
As detailed in court filings, the Latin Kings carry disputes and related gang violence into jails and prisons where Latin Kings members are incarcerated. Dzierwinski participated in three violent incidents in Massachusetts Department of Correction facilities from 2016 through 2019, while he was incarcerated on various state court sentences. These incidents involved participating in beatings and multiple incidents where victims were stabbed by other Latin Kings members. Following Dzierwinski’s release from his state court sentences, he has been held in federal custody.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Dzierwinski is the 29th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Managers at Major Property Management Firm Plead Guilty to Defrauding U.S. Air ForceRead the Press Release
An Arizona man and a Texas woman have pleaded guilty to major fraud against the United States, and conspiracy to commit wire fraud, respectively, for their roles in a scheme to defraud the U.S. Air Force in connection with privatized military housing contracts between approximately 2013 and 2016.
Rick Cunefare, 61, of Glendale, Arizona, and Stacy M. Cabrera, 47, of Converse, Texas, pleaded guilty to their roles in the scheme. Cunefare was a regional manager for Company 1. He directly supervised the Company 1 community managers who were responsible for overseeing day-to-day operations at the military housing communities at Lackland Air Force Base (AFB), Travis AFB, Vandenberg AFB, Tinker AFB, and Fairchild AFB. He was responsible for reviewing and approving quarterly maintenance reports and for ensuring that the data in the quarterly maintenance reports were submitted to the Air Force with performance incentive fee request letters.
According to court documents, Company 1 managed housing communities created under the Military Privatized Housing Initiative (MHPI) at Lackland AFB, Travis AFB, Vandenberg AFB, Tinker AFB, Fairchild AFB and other U.S. military installations. The MHPI was a program designed to attract private sector financing, expertise, and innovation to provide necessary housing for military servicemembers, their families, and other dependents faster and more efficiently than traditional military construction processes would allow. Company 1’s revenue from the management of these communities was based, in part, on meeting performance maintenance objectives that were set forth in Company 1’s contracts with the U.S. Air Force. For example, if Company 1 completed 95% of routine maintenance requests within three business days on a quarterly basis, it was eligible for a performance incentive fee. Company 1 kept maintenance records in a computer system called Yardi and used data from Yardi to generate quarterly maintenance reports, which it submitted to the U.S. Air Force in support of requests for performance incentive fees.
According to court document, Cunefare and others conspired to manipulate and falsify information maintenance reports from 2013 to 2015 so that the reports falsely reflected that Company 1 had met performance maintenance objectives, when in reality, as Cunefare and his co-conspirators well knew, it had not. This allowed Company 1, acting through the co-conspirators to submit requests to the Air Force for payment of performance incentive fees to which it was not entitled. Specifically, in quarters in which Company 1 did not legitimately meet the maintenance performance objectives, Cunefare gave written and oral instructions to community managers and others that resulted in the community managers and others manipulating and falsifying maintenance information to reflect that Company 1 had met its objectives. These actions had the effect of falsely inflating Company 1’s maintenance performance objectives, resulting in Company 1 receiving approximately $2.5 million in performance incentive fees. Cunefare admitted that the false information deceived the U.S. Air Force into believing that Company 1 was properly maintain the housing communities, when in reality Company 1 was unable to keep up with maintenance issues at many of the military housing communities, parts of which had fallen into disrepair.
On April 21, Cabrera pleaded guilty to her role in the scheme. According to court documents, from approximately 2013 to 2016, Cabrera was the Company 1 community manager at Lackland AFB. She personally, and through subordinates acting on her instructions, falsified maintenance records in order to generate quarterly maintenance reports that falsely reflected that Company 1 had met maintenance-related performance objectives. She then caused these reports to be submitted to other managers at Company 1, who then knowingly used the false reports to substantiate Company 1’s requests for performance bonuses. According to court documents, Company 1 fraudulently obtained approximately $1 million in performance bonuses as a result of Cabrera’s conduct. Cabrera acted on instructions from Cunefare and others.
“The defendants defrauded the U.S. Air Force and put corporate profits ahead of the well-being of servicemembers and their families,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to protecting our military families from deceit and mistreatment and ensuring the integrity of Department of Defense programs.”
“As the lead investigative agency for the Department of the Air Force, AFOSI is resolute in safeguarding our personnel and their families from harm,” said Special Agent in Charge Blair A. Holmstrand of the U.S. Air Force Office of Special Investigations (AFOSI). “The collaboration between DCIS, AFOSI, and the Department of Justice has been significant, and we are looking forward to seeing the final results of the hard work put forth by all agencies involved.”
“As the investigation arm of the DoD Inspector General, the Defense Criminal Investigative Service (DCIS) is charged with investigating those who seek to fraudulently enrich themselves at the expense of the taxpayer,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “The safety and well-being of our service members and their families is paramount to readiness. This outcome demonstrates not only the outstanding partnership between AFOSI, the Justice Department and DCIS, but also our ability to keep our warfighters ready by holding wrongdoers accountable for their actions.”
Cunefare is scheduled to be sentenced at a later date and faces a maximum penalty of 10 years in prison and a $250,000 fine. Cabrera is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
AFOSI and DCIS are investigating the case.
Trial Attorneys Michael P. McCarthy and Siji Moore of the Justice Department’s Fraud Section are prosecuting the case.
The Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption matters.
Former Ft. Bragg Employee Sentenced for Conspiracy and Theft of Government PropertyRead the Press Release
NEW BERN, N.C. – A man was sentenced today to 17 months in prison for conspiracy to steal government property and stealing government property. On September 14, 2020, Morris Cooper pled guilty to the charges.
According to court documents and other information presented in court, Cooper was a purchasing agent assigned to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC, and entrusted to purchase HVAC parts for DPW’s HVAC maintenance section. He was named in an indictment filed on August 20, 2019, which charged that Cooper used his position as purchasing agent in the DPW on Ft. Bragg to receive cash and gifts for both him and his wife, Beverley Cooper, from vendors in return for steering contracts for supplies to those vendors. Additionally, he at times inflated the prices for items under those contracts beyond market price, increasing both the profits to the vendor and the cash payment made to Cooper and/or his wife. Beverley Cooper was also charged with conspiring to steal government property and aiding and abetting Cooper to do so and was sentenced to 5 years probation. Both Cooper and Beverley Cooper earlier entered pleas of guilty to conspiracy to steal government property in violation of 18 U.S.C. §§ 371, and Cooper additionally entered a plea of guilty to the substantive charge of stealing government property in violation of 18 U.S.C. § 641. They were ordered to pay $6,300,000 in restitution and an order of forfeiture was entered in the amount of $1,283,135.15, the amount they agree they personally profited from the conspiracy.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. “Today’s judgment evinces the ongoing fight against fraud, waste and abuse in the government and particularly that perpetrated by and with the assistance of government personnel.”
“Bribery and fraud have no place in the government contracting system,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “This sentencing shows that we will not allow this sort of subterfuge to occur and those that do attempt it will be caught.”
“We hope this case sends a stark warning about the consequences of violating the public trust for personal gain and compromising the integrity of the Department of Defense,” said Special Agent in Charge Christopher Dillard, DCIS, Mid-Atlantic Field Office. “The Defense Criminal Investigative Service, along with our law enforcement partners, remains committed to rooting out fraud and corruption and safeguarding the valuable resources entrusted to the Department of Defense by the American taxpayer.”
The Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigative Division, Major Procurement Fraud Unit, with assistance from the Federal Bureau of Investigation and the Inspector General for Afghanistan Reconstruction, investigated the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-328-1-FL.
Former Digital Marketing Executive Sentenced to over 6½ Years in Federal Prison for Embezzling More Than $22 Million from EmployerRead the Press Release
LOS ANGELES – A former executive at a Hollywood-based digital marketing company that represents influencers on Instagram and YouTube was sentenced today to 79 months in federal prison for embezzling more than $22 million from his employer and then using the stolen money for personal expenses and cryptocurrency gambling.
Dennis Blieden, 31, of Cincinnati, but who formerly lived in Santa Monica, was sentenced by United States District Judge André Birotte Jr., who also ordered him to pay $22,669,979 in restitution.
Blieden pleaded guilty in November 2019 to one count of wire fraud and one count of aggravated identity theft.
From October 2015 to March 2019, Blieden was the controller and vice president of accounting and finance for StyleHaul Inc., a digital company once based in Hollywood. As part of his job, Blieden had control over the company’s bank accounts. He abused this authority to wire company money to his personal bank account, then, used the stolen money to pay for personal expenses, gambling debt, and to fund his cryptocurrency accounts.
To conceal his scheme, Blieden made fraudulent entries in StyleHaul’s accounting records, falsely representing that the illegal wire transfers he made were authorized payments of money due to StyleHaul clients. Blieden also falsely indicated on one of StyleHaul’s bank accounts that wire transfers to Blieden’s personal bank account were “equity” draws that the company owed him. Furthermore, Blieden created fictitious wire transfer letters that purported to be from Western Union and were designed to make it appear that he had caused wire transfers from StyleHaul to pay money it purportedly owed to a client.
Blieden also disguised his fraud by creating a fictitious lease in May 2018 for the rental of a condominium in Rosarito Beach, Mexico, which bore a forged signature of a StyleHaul executive. He illicitly transferred $230,000 of StyleHaul’s funds by falsely representing that the condominium was being rented for business purposes for StyleHaul’s clients and employees.
Blieden, who has entered and won professional poker tournaments, also frequently engaged in online gambling with cryptocurrency he purchased with embezzled money.
“(Blieden)…breached the trust and obligations owed to the young and perhaps unsophisticated YouTube, Instagram, and other social media influencers and creators, who earned money through their work on said platforms, that were needed to support their families,” prosecutors wrote in their sentencing memorandum. “Those clients relied upon defendant to do his job, when instead, he stole millions (of dollars) from them.”
The FBI investigated this matter.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.
Federal Jury Convicts Three Individuals of Kidnapping and Multiple Bank RobberiesRead the Press Release
Memphis, TN – After a four-day federal jury trial, Antonio Johnson 44, Travis Jackson 37, and Shalundra Johnson, 39 have been found guilty of kidnapping and multiple bank robberies. Acting U.S. Attorney Joseph C. Murphy Jr., announced the conviction today.
According to information presented in court, on September 14, 2018, at approximately 2:15 a.m., an employee of Trustmark Bank on Elvis Presley Blvd., got off work from her second job and arrived home. As the victim walked into her home, a male with a firearm grabbed her and pushed her inside of the residence. The victim was zip-tied and taken to the bank to complete the robbery where approximately, $73,400 was taken. Travis Jackson’s DNA was recovered from the zip-ties used to restrain the victim.
On December 7, 2018, at approximately 7:18 p.m., an employee of the First Tennessee Bank on Elvis Presley Blvd arrived home from work. While in her driveway, an unknown male wearing a mask approached her vehicle. The unknown male forced the victim at gunpoint to the passenger seat of her vehicle and drove her to a location near the bank. The victim was then zip-tied and taken to the bank to complete the robbery; approximately, $110,435 was taken. Again, Travis Jackson’s DNA was recovered from the zip-ties used to restrain the victim and from other zip-ties recovered from the scene. Travis Jackson’s cell phone records placed him at the bank at the time of the robbery. Cell phone records also placed Antonio Johnson at the scene of the victim’s house and at the bank at the time of the kidnapping and the robbery. A tracking device was placed on the victim's vehicle for the gunman to determine where she lived.
On April 4, 2019, at approximately 6:15 p.m., an employee of First South Financial Credit Union on East Shelby Drive, arrived at her home in Horn Lake, Mississippi. Armed men entered the victim’s home, zip-tied the victim’s hands, and demanded keys to the bank. The victim, along with her three-year-old child, were then forced into her personal car and driven away. Eventually, the victim was taken to the bank for the robbery.
Approximately, $425,000 was taken in the robbery. Shalundra Johnson placed a tracking device on the victim's vehicle for the gunmen to determine where the victim lived. Cell phone records, tracking device information, and evidence recovered from the respective defendant’s residences proved the involvement of the defendants in the robbery.
Travis Jackson is scheduled to be sentenced on September 3, 2021. Jackson was convicted of three counts of bank robbery, three counts of firearm possession, one count of kidnapping an adult, and one count of kidnapping a child. Jackson faces a mandatory minimum of 41 years in federal prison.
Both Antonio Johnson and Shalundra Johnson are scheduled to be sentenced September 8, 2021. Antonio Johnson was convicted of two counts of bank robbery, two counts of firearms possession, one count of kidnapping of adult, and one count kidnapping of a child. Johnson faces a mandatory maximum sentence of 34 years imprisonment. Shalundra Johnson was convicted of one count of bank robbery and one count of kidnapping of an adult. Shalundra Johnson faces up to 20 years in federal prison. There is no parole in the federal system.
This case was investigated by the FBI’s Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Memphis Police Department, Desoto County (MS) Sheriff’s Department and Horn Lake, MS Police Department.
Assistant U.S. Attorneys Marques Young and Kevin Whitmore prosecuted this case on behalf of the government.
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Federal Indictment Charges 19 in Alleged Conspiracy to Traffic Pound Quantities of Methamphetamine from Mexico into Inland EmpireRead the Press Release
RIVERSIDE, California – Law enforcement authorities today arrested 12 defendants charged in a federal grand jury indictment alleging they conspired to traffic large quantities of methamphetamine from their suppliers in Mexico into and throughout the Inland Empire.
The 19-count indictment charges a total of 19 defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine, an offense that carries a mandatory minimum 10-year prison sentence and a statutory maximum penalty of life imprisonment.
During this morning’s takedown, 12 of the federal defendants were arrested. Three other defendants were already in federal or state custody on unrelated charges, and federal prosecutors will seek to have them brought into federal court. Four defendants are fugitives.
The defendants arrested today are expected to make their initial appearances this afternoon in the United States District Court in Riverside and downtown Los Angeles.
According to the indictment returned on May 5 and unsealed today, from April to August 2020, lead defendants Timoteo Gomez, 48, of Riverside, and Javier Rodriguez, a.k.a. “Harvey,” 54, of Riverside, purchased methamphetamine from their suppliers in Mexico as well as Los Angeles and Riverside counties. Other alleged members of the conspiracy would further distribute methamphetamine in the Inland Empire.
The indictment details the conspirators’ efforts in April 2020 to smuggle 46.6 pounds (21.2 kilograms) of methamphetamine from Mexico across the U.S port of entry at Calexico and into Riverside County. In May 2020, another co-conspirator allegedly attempted to drive a load of 90.4 pounds (41 kilograms) of methamphetamine into the United States from Mexico through the San Ysidro port of entry.
In total, law enforcement seized more than 150 pounds (68 kilograms) of methamphetamine and $31,035 in cash during this investigation.
The indictment also charges some of the defendants with conspiracy to import methamphetamine, possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, being a felon in possession of ammunition, and attempted international money laundering.
Two additional defendants were charged in separate indictments in March in connection with this case, bringing the number of defendants charged so far to 21. Both were arrested in April on charges of possession with intent to distribute methamphetamine and are currently in federal custody. One has pleaded guilty and the other is awaiting trial.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI’s Inland Empire Safe Streets Task Force investigated this matter. The Task Force is a joint federal and state gang task force that includes the FBI; the Drug Enforcement Administration; IRS Criminal Investigation; the Riverside County Sheriff’s Department; and the Riverside Police Department. The FBI’s Safe Streets Task Force received assistance during the investigation from the San Bernardino County Sheriff’s Department; U.S. Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service.
The investigation leading to these federal charges focused on the criminal activities of the Riverside-based Casa Blanca Rifa criminal street gang to combat drug trafficking and associated violence in Riverside and the surrounding community.
Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office is prosecuting this case.
Farmington Man Pleads Guilty to Fentanyl Trafficking and Firearm ChargesRead the Press Release
CONCORD - Thomas Blanchette, 45, of Farmington, pleaded guilty in federal court to conspiracy to distribute fentanyl and unlawful possession of a firearm, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Blanchette conspired with others between approximately 2016 and December 20, 2018 to distribute fentanyl. As part of the conspiracy, on November 17, 2017, a New Hampshire State Police (“NHSP”) trooper made a motor vehicle stop of co-conspirator Christopher Stearns’ vehicle after observing several motor vehicle violations. Blanchette and his wife, co-conspirator Amy Blanchette, were passengers in the vehicle, along with another individual. The trooper subsequently seized the vehicle and executed a search warrant and seized 176 grams of fentanyl from a box near the rear passenger seat where Amy Blanchette had been seated. Arrest warrants were obtained for Blanchette, Stearns and Amy Blanchette.
On January 2, 2018, DEA agents observed Stearns and Thomas Blanchette in Stearns’ vehicle travel to the area of Lawrence, Massachusetts and return to New Hampshire a short time later. A NHSP trooper stopped the vehicle and arrested Stearns and Thomas Blanchette on the outstanding arrest warrants. The NHSP subsequently executed a search warrant on Stearns’ vehicle and seized over 28 grams of fentanyl.
On December 20, 2018, DEA agents executed federal arrest warrants for Thomas and Amy Blanchette at their residence. A search of the residence resulted in the seizure of quantities of fentanyl, cocaine, and several firearms. Thomas Blanchette was prohibited from owning firearms due to a felony conviction in 2010.
Blanchette is scheduled to be sentenced on September 15, 2021. Amy Blanchette pleaded guilty on October 19, 2020 and is awaiting sentencing. Christopher Stearns also pleaded guilty and has been sentenced.
“Fentanyl traffickers continue to cause significant damage to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “When drug dealers are armed, they pose an enhanced risk to public safety. We will continue to work closely with our law enforcement partners to identify and prosecute the drug traffickers who are threatening the quality of life in the Granite State.”
This matter was investigated by the Drug Enforcement Administration, the New Hampshire State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Executive of Venture Capital Funds Sentenced in Manhattan Federal Court to over Four Years in Federal Prison for Securities and Wire FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MARC LAWRENCE was sentenced in Manhattan federal court to 55 months in prison for securities fraud and wire fraud in connection with his participation in a scheme to perpetrate a Ponzi-like investment scheme through a number of corporate entities (collectively referred to as “Downing”). LAWRENCE, the President of Downing entities, and his co-defendant DAVID WAGNER, the Chairman and CEO of Downing entities, solicited almost $10 million from approximately 40 Downing investors through materially false and misleading statements. LAWRENCE previously pled guilty to these charges, and was sentenced today before U.S. District Judge Alvin K. Hellerstein. WAGNER was previously sentenced by Judge Hellerstein to 72 months in prison.
Manhattan U.S. Attorney Audrey Strauss said: “ Marc Lawrence and his co-defendant fraudulently induced employee-investors to invest over $8 million in return for sales, operations, and management expertise in profitable business operations. Unfortunately for their investors, Downing generated virtually no returns, and was little more than a vehicle for Lawrence and Wagner to syphon employee-investor funds to pay Wagner’s personal expenses or pay off other investors in Ponzi-like fashion. Lawrence’s sentence of over four years in federal prison signifies the seriousness of his conduct and the consequence that assuredly awaits those who commit Ponzi-like frauds.”
According to the Indictment filed in Manhattan federal court:
From at least in or about December 2013 through at least in or about 2017, WAGNER, the Chief Executive Officer of Downing, and MARC LAWRENCE, the President of several Downing entities, solicited investments in Downing, a purported venture capital firm that would invest in healthcare start-ups referred to as “portfolio companies” and provide sales, operations, and management expertise to the portfolio companies in order to bring their products to market and generate returns for Downing investors, who also worked for Downing (the “employee-investors”). WAGNER and LAWRENCE, and others acting at their direction, solicited almost $10 million in investments in Downing from employee-investors located across the United States, including in the Southern District of New York, as a requirement of employment with Downing.
After making the required investment of between $150,000 and $250,000 in Downing and starting their employment at Downing, employee-investors soon learned, among other things, that contrary to representations made by WAGNER and LAWRENCE, and others acting at their direction, Downing did not have access to millions of dollars in funding, often could not make payroll, had virtually no products to sell, and that employee-investments were the overwhelming source of funding. Employee-investors also learned that WAGNER and LAWRENCE had misrepresented the companies in Downing’s portfolio, their product readiness, and ability to generate revenue. While the particular formulation of these misrepresentations shifted over time, WAGNER and LAWRENCE systematically sought and obtained employee-investor money through materially false and misleading statements.
Beginning in or about May 2016, after several employee-investors had brought lawsuits against WAGNER and LAWRENCE, and several Downing entities, alleging claims based on, among other things, fraud, WAGNER and LAWRENCE continued the scheme by recruiting employee-investors into a new company called Cliniflow Technologies, LLC (“Cliniflow”), through materially false and misleading statements about Cliniflow’s cash reserves, portfolio companies, and exposure to litigation. In fact, Cliniflow purportedly held majority ownership in the same primary portfolio company as other Downing entities and was simply a new name used by WAGNER and LAWRENCE to solicit investments from new employee-investors that was not tainted by the lawsuits filed against Downing entities. A majority of the over $1.5 million raised by WAGNER and LAWRENCE through Cliniflow was transferred to other Downing entities and used to pay for, among other things, WAGNER’s personal expenses and the repayment of prior investors.
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LAWRENCE, 54, of Clearwater, Florida, pled guilty to two counts of securities fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison. In addition to the prison term, Judge Hellerstein ordered LAWRENCE to serve 3 years of supervised release, and to pay forfeiture in the amount of $150,000 and restitution in the amount of $4,450,000 to victims of his criminal conduct.
Ms. Strauss praised the work of the FBI, and thanked the United States Securities and Exchange Commission and the Enforcement Section of the Massachusetts Securities Division for their assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Sagar K. Ravi are in charge of the prosecution.
Evans man sentenced to more than six years in federal prison for possession of child pornographyRead the Press Release
AUGUSTA, GA: An Evans man has been sentenced to federal prison after admitting to possession of child pornography.
Oludare Oluwabusi, 44, of Evans, Ga., was sentenced to 78 months in federal prison after pleading guilty to one count of Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Oluwabusi to register as a sex offender and to serve 15 years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Criminals who exploit children attempt to hide their deeds in the far corners of the internet, but our law enforcement partners relentlessly track them down and bring them to justice,” said Acting U.S. Attorney Estes. “Oludare Oluwabusi will now be held accountable for his crimes.”
As described in court, Oluwabusi was taken into custody in April 2020 after FBI agents searched his residence based on a cyber tip from the National Center for Missing and Exploited Children. Investigators who examined multiple devices seized from Oluwabusi’s home in the Riverwood Plantation community identified hundreds of photos and videos of child pornography stored on those devices.
Oluwabusi has no prior criminal record.
“Oluwabusi’s sentence should be a message to anyone involved in this abhorrent behavior,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a top priority to protect our children by working with our federal, state, local and private sector partners to track down and hold accountable anyone who victimizes them.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Enterprise Man Sentenced to 37 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Montgomery, Alabama – On Tuesday, June 8, 2021, Alexander Russaw, Jr., a 40-year-old man from Enterprise, Alabama, was sentenced to 37 months in prison for being a felon in possession of a firearm. In addition to his prison sentence, Russaw was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on April 24, 2020, the Enterprise Police Department observed a vehicle sitting on the side of the road at the intersection of Rucker Boulevard and Boll Weevil Circle. The car was located in some hedges on the roadside and when officers stopped to see if anyone needed assistance, they found Russaw asleep in the driver’s seat. When they woke Russaw, he seemed disoriented. While speaking with him, officers noticed an open container with baggies of a white powdery substance that they suspected to be cocaine in plain view. Officers then detained Russaw to investigate further and, during a pat down search, found a .380 caliber handgun in his pants pocket. Russaw has multiple felony convictions and is prohibited from possessing a firearm. When officers conducted a full search of the container, additional suspected controlled substances were found.
Russaw was indicted by a federal grand jury for being a felon in possession of a firearm on October 27, 2020. He pleaded guilty to that charge on March 3, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Enterprise Police Department investigated this case. Assistant United States Attorney Alice S. LaCour prosecuted the case.
Enrolled member of the Navajo Nation pleads guilty to second degree murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Mathias Neal, 21, from Sheep Springs, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court on June 3 to an information charging him with second degree murder in Indian Country.
According to his plea agreement, on or about July 12, 2015, Neal and an accomplice got into a physical altercation with John Doe while at a chapter house, a local governance building, in San Juan County, New Mexico, on the Navajo Nation. During the altercation, Neal punched and kicked the victim while he was on the ground and hit him with brass knuckles and rocks to his head and throat, causing fatal injuries. Neal admitted being aware that John Doe tried to run away and not fight back. As a result of the beating, John Doe died at the scene and was dragged to a windmill area by Neal and his accomplice.
Neal is currently in custody awaiting sentencing, which has not been scheduled yet. He faces life in prison.
The case was investigated by the Farmington Office of the FBI and the Navajo Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Eighth Defendant Sentenced to Federal Prison for Felony Lane Gang-Type Criminal Activity in Baton Rouge and Across LouisianaRead the Press Release
Acting United States Attorney Ellison C. Travis announced that Chief U.S. District Judge Shelly D. Dick sentenced Raymond Mathews, age 35, of Oakland Park, Florida, to 48 months in federal prison following his conviction for conspiracy to commit bank fraud. The Court further sentenced Mathews to serve five years of supervised release following his term of imprisonment, ordered him to pay $224,068 in restitution, and further ordered him to forfeit an additional $77,070.69 in proceeds from his crime.
Today’s sentence stems from a lengthy federal, state, and local investigation that spanned numerous jurisdictions across several states and led to convictions against ten (10) individuals for participating in a fraudulent scheme targeting victims in the Middle District of Louisiana. As the charging documents explain, and numerous defendants have admitted in connection with their guilty pleas, from August 2016 through February 2017, the defendants traveled through numerous states, including Louisiana, where they would break into unattended vehicles, steal the victims’ licenses, checkbooks, and credit and debit cards, and then use the stolen items to conduct fraudulent financial transactions at the victims’ banks. As alleged in the Indictment, throughout the course of the conspiracy, in an effort to evade detection and capture, the defendants would monitor social media and other websites for reports of criminal activity attributed to the “Felony Lane Gang,” a term often used to describe criminals engaged in this type of scheme. The defendants would use social media postings regarding Felony Lane Gang activity to plot the courses of their trips (e.g., to avoid locations where they perceived banks and law enforcement to be particularly effective at detecting fraud) and to increase the success of their endeavor (e.g., by checking to make sure that their own photographs and identities had not been publicly disseminated).
As Mathews admitted in connection with his guilty plea, he joined the group in August 2016 and participated in trips about once a month, through February 2017. Mathews often assisted the other members of the conspiracy by filling out the stolen checks and forging the victims’ signatures on the checks, so that other members of the conspiracy could take the checks and fraudulently cash them at the victims’ banks. Mathews is the eighth defendant from this investigation to be sentenced to federal prison as a result of his role in this scheme.
The status of the other charged defendants in this investigation is as follows:
- Michael D. Gibbs, age 28, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud, and is awaiting sentencing.
- Brandon J. Gassett, age 30, of Ft. Lauderdale, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud. On October 29, 2020, Gassett was sentenced to serve 84 months in federal prison and pay $224,068 in restitution.
- Frank Jackson, age 27, of Oakland Park, Florida, pled guilty to conspiracy to commit bank fraud and bank fraud. On July 2, 2020, Green was sentenced to serve 33 months in federal prison.
- Geoffrey D. Green, age 37, of Lauderdale Lakes, Florida, pled guilty to conspiracy to commit bank fraud, and is awaiting sentencing.
- Erin Brown, charged in Case 17-80-SDD-EWD, pled guilty to conspiracy to commit bank fraud. On September 26, 2018, Brown was sentenced to serve 24 months in federal prison.
- Natasha Hammett, charged in Case 17-81-BAJ-RLB, pled guilty to conspiracy to commit bank fraud. On September 20, 2018, Hammett was sentenced to serve 4 months in federal prison.
- Tina Eggleston, charged in Case 17-136-JWD-RLB, pled guilty to conspiracy to commit bank fraud. On August 23, 2018, Eggleston was sentenced to serve 10 months in federal prison and pay restitution, among other conditions.
- Johnny Jones, charged in Case 17-137-JWD-EWD, pled guilty to conspiracy to commit bank fraud and possession of unauthorized access devices. On August 27, 2018, Jones was sentenced to serve 10 months in federal prison.
- Allen Clark, charged in Case 18-9-SDD-EWD, pled guilty to conspiracy to commit bank fraud and possession of unauthorized access devices. On September 13, 2018, Clark was sentenced to serve 16 months in federal prison.
In addition, all of the defendants sentenced to date have been ordered to pay restitution for their crimes and serve terms of supervised release following their release from prison.
Acting U.S. Attorney Ellison C. Travis stated, “The convictions and sentencings of these interstate criminals sends a clear message that this type of organized crime will be vigorously investigated and prosecuted to the fullest extent of the law. I want to congratulate our prosecutors and all of our federal, state, and local partners around the country for their tireless efforts.”
Douglas Williams, Jr., FBI New Orleans Special Agent in Charge, stated, “The FBI will continue to aggressively pursue those individuals, such as Mr. Raymond Mathews, who seek to unjustly enrich themselves at the expense of others. The investigation of the Felony Lane Gang’s criminal activities was expansive and far reaching. The successful results of the investigation and prosecution would not have been possible without the substantial assistance of our law enforcement partners and the U.S. Attorney’s Office for the Middle District of Louisiana.”
This matter is being investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, the Baton Rouge Police Department, the East Baton Rouge Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, Walker Police Department, Lafayette Police Department, Covington Police Department, Oxford (Mississippi) Police Department, Florida Highway Patrol and Asheville (North Carolina) Police Department. The investigation has received substantial assistance from the 19th JDC District Attorney’s Office in East Baton Rouge, Louisiana, the Johnson County, Wyoming Prosecuting Attorney’s Office, and the Third Judicial Circuit of Florida State Attorney’s Office.
This matter is being prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office, and former Assistant United States Attorneys Chris Dippel and Cal Leipold.
Dominican National Sentenced for False Identity CrimesRead the Press Release
BOSTON – A Dominican national previously residing in Methuen was sentenced today in federal court in Boston for aggravated identity theft and fraudulent use of a Social Security number.
Manuel Enrique Arias Aguasvivas, 32, was sentenced by U.S. District Court Judge Rya W. Zobel to two years in prison and one year of supervised release. Arias Aguasvivas will be subject to deportation proceedings upon completion of his sentence. On Feb. 17, 2021, Arias Aguasvivas pleaded guilty to one count of aggravated identity theft and one count of false representation of a Social Security number.
On July 2, 2015, Arias Aguasvivas submitted an application to renew his Massachusetts driver’s license in the Lawrence office of the Massachusetts Registry of Motor Vehicles. In so doing, he used the Social Security number and other identifying information of a U.S. citizen.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General made the announcement today. Valuable assistance was provided by the U.S. Marshals Service, District of Massachusetts; Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, Boston; the Massachusetts State Police; and the Massachusetts Office of Inspector General. Assistant U.S. Attorney Robert E. Richardson of Mendell’s Major Crimes Unit prosecuted the case.
District Woman Sentenced to Prison for Hate Crime Targeting Member of the Asian CommunityRead the Press Release
WASHINGTON – Carolyn Heard, 64, of Washington D.C., was sentenced on June 1, 2021, to a term of imprisonment based on charges stemming from a hate crime targeting a member of the Asian community that took place in Northwest Washington in April 2021, U.S. Attorney Channing D. Phillips announced.
Heard pleaded guilty to one count of threats to do bodily harm, a charge that, with a hate-bias enhancement, carries a maximum penalty of 270 days of incarceration. District of Columbia Superior Court Associate Judge Steven Wellner sentenced Heard to the maximum penalty of 270 days, suspending all but 90 days of incarceration. Following her prison term, Heard will be placed on probation for 18 months. Heard also was sentenced in two other pending cases.
According to the government’s evidence, Heard approached the victim, a member of the Asian community in Washington, D.C., outside a neighborhood store and, while armed with a knife, threatened to kill the victim, saying, “I will kill you; you have coronavirus; go back to China.”
In announcing the sentence, Acting U.S. Attorney Channing D. Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Anna Forgie, who prosecuted the hate crime matter, and Assistant U.S. Attorneys Victor Suh and Raha Mokhtari, who prosecuted other charges on which the defendant was sentenced.
Defendant Arrested in Texas for Multimillion-Dollar Wire Fraud and Money Laundering SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent-in-Charge of Homeland Security Investigations (“HSI”) in New York, announced today that GUILLERMO PEREZ was arrested this morning for defrauding businesses and individuals of more than $2.2 million through business email compromise and bank fraud schemes. PEREZ will be presented tomorrow in the United States District Court for the Southern District of Texas.
According to the allegations contained in the Indictment[1] unsealed today:
From at least in or about October 2018 through at least in or about October 2019, GUILLERMO PEREZ participated in a scheme to defraud businesses by impersonating individuals and businesses in the course of otherwise ordinary financial transactions, thereby fraudulently inducing counterparties to those transactions to transfer funds to bank accounts controlled by PEREZ and his co-conspirators (the “Business Email Compromise Scheme”). To facilitate this scheme, PEREZ conspired to deceive federally insured banks into opening business bank accounts (the “Fraudulent Bank Accounts”) by providing the banks with false and misleading information regarding PEREZ’s co-conspirators’ affiliations.
In reliance on the foregoing false and misleading misrepresentations, the victims of the Business Email Compromise Scheme wired more than $2.2 million into the Fraudulent Bank Accounts. PEREZ and his co-conspirators, knowing the money represented fraud proceeds, transferred those fraud proceeds out of the Fraudulent Bank Accounts in transactions designed to conceal and disguise their source, ownership, and control.
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GUILLERMO PEREZ, 26, of Houston, Texas, is charged with (1) conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison, and (2) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Ms. Strauss praised the investigative work of HSI. The prosecution of this case is being handled by the Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Emily Deininger and Tara La Morte are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
City of Quincy Agrees to Remedy Discharges of Stormwater Containing SewageRead the Press Release
BOSTON – The U.S. Attorney’s Office has entered into a consent decree with the City of Quincy to resolve violations of the Clean Water Act regarding the City’s stormwater and sanitary sewer systems. Water sampling indicated untreated sanitary sewage discharging from numerous Quincy stormwater outfalls, including outfalls discharging at beach areas.
The settlement requires Quincy to implement extensive remedial measures to minimize the discharge of sewage and other pollutants into Quincy Bay, Dorchester Bay, Neponset River, Hingham Bay, Boston Harbor and other water bodies in and around Quincy. The cost of the remedial measures is expected to be in excess of $100 million. The City will also pay a civil penalty of $115,000.
Under the proposed consent decree, Quincy will implement a comprehensive and integrated program to investigate, repair and rehabilitate its stormwater and sanitary sewer systems. The proposed settlement is also consistent with U.S. Environmental Protection Agency (EPA) directives to strengthen enforcement of violations of cornerstone environmental statutes in communities disproportionately impacted by pollution, with special focus on achieving remedies with tangible benefits for the community.
“This settlement is a reminder that municipalities must comply with the law and environmental standards to prevent and address pollution caused by defects in their stormwater and sewage systems,” said Acting United States Attorney Nathaniel R. Mendell. “This is a matter of environmental protection and public health.”
“This settlement builds on work done over the past three decades to address pollution in Boston Harbor,” said EPA New England Acting Regional Administrator Deborah Szaro. “The work required under the proposed settlement will achieve cleaner and healthier water in Quincy and nearby areas. This will protect people’s health, making it safer to enjoy beaches or other recreation in or on the bays and rivers in the area.”
In March 2019, the U.S. Attorney’s Office filed a civil complaint alleging that the City of Quincy inadequately controlled sewage leaking from its sanitary sewer system, allowing sewage to mix with stormwater and be discharged from the municipal storm sewer system into nearby waterbodies, including at beach locations. The complaint also alleged that Quincy’s sanitary sewer system has overflowed on numerous occasions, resulting in discharges of sewage.
Raw sewage overflows from sanitary sewers and discharges of stormwater mixed with sewage from municipal storm sewer systems introduce a variety of harmful pollutants, including disease causing organisms, and can contribute to illnesses and beach and shellfish bed closings.
The proposed consent decree establishes a schedule for Quincy to investigate the sources of sewage being discharged from its storm drains. Quincy will first complete its investigations of drainage areas discharging to beach areas, including Wollaston Beach and the Adams Shore area. Quincy will prioritize the rest of the investigations according to the sensitivity of receiving waters and evidence of sewage. The proposed consent decree also requires Quincy to remove all identified sources of sewage as expeditiously as possible. In addition, Quincy is required to conduct frequent and enhanced monitoring (in both dry and wet weather) of its stormwater outfalls. Until pollutants are removed from its storm drain discharges, Quincy will be required to post notices to warn beachgoers of contaminated stormwater at such storm drain outfalls. The remedies under the proposed consent decree also include the investigation and repair of Quincy’s sanitary sewer infrastructure, and the integration of that work with its stormwater investigations.
Some portions of Quincy’s sanitary sewer system are over 100 years old. Numerous studies conducted by Quincy have identified significant and widespread defects in the sanitary sewer system, including cracks that allowed sewage to leak. While Quincy has made some repairs to the sanitary sewer system, the proposed consent decree will require future work to be conducted on a fixed schedule and coordinated with its stormwater investigations. The proposed consent decree requires the City to conduct all investigations and complete remedial work by December 2034.
Acting U.S. Attorney Mendell and EPA Acting Regional Administrator Szaro made the announcement today. The matter was handled by Susan Poswistilo of Mendell’s Civil Division and Senior Counsel David Gordon and Donald Frankel of the Justice Department’s Environment and Natural Resources Division.
More information:
How EPA works to protect water by ensuring compliance with environmental laws and regulations: https://www.epa.gov/enforcement/water-enforcement.
Sanitary Sewer Overflows (SSOs): https://www.epa.gov/npdes/sanitary-sewer-overflow-sso-frequent-questions.
Chenango County Man Pleads Guilty to Sexually Exploiting Three ChildrenRead the Press Release
SYRACUSE, NEW YORK – Patrick Kain, age 34, of Norwich, New York pled guilty yesterday to three counts of sexual exploitation of a child and one count of committing a felony involving a minor by a registered sex offender. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Nicholas Boshears, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Kain was convicted in Chenango County Court of Sexual Abuse in the First Degree in 2014, and because of that conviction is required to register as a sex offender in New York State. As a part of his guilty plea, Kain admitted that from roughly 2016 through 2019 he created sexually explicit images and videos of three different victims, each of whom were approximately five years old. These depictions generally involved Kain secretly recording the victims’ genitals. Included among this material is a video of Kain reaching his hand toward one of the victim’s genitals, putting his hand inside that victim’s underwear, and pulling it aside. In addition to the child pornography that Kain created, he also possessed approximately 90 videos and 10 images of child pornography not involving his own victims, both on his laptop and in an online storage account.
Kain faces a mandatory minimum sentence of 35 years and a maximum sentence of 160 years, a $250,000 fine, restitution to the victims, will be required to serve a post-release term of supervised release of between five years and life, and will have a continued duty to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors. The defendant’s sentencing is scheduled for October 6, 2021 before Hon. Thomas J. McAvoy, Senior District Judge.
This case is being investigated by the FBI, the New York State Police, and the Chenango County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Charlotte Man Found Guilty for Operating as Money Mule in $2 Million Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted Chukwudi Michael Okwara, 40, of Charlotte, for his involvement in a Business Email Compromise (BEC) scheme that defrauded at least six companies of approximately $2 million. William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina, announced today that Okwara had been convicted at trial of 27 counts of money laundering, false statements to banks, and aggravated identity theft.
A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by scammers.
According to trial evidence, witness testimony and documents filed with the court, beginning in November 2018, Okwara, who also goes by “Collins Bird” and “Larry Eugene Coleman,” used fake documents to open multiple money mule bank accounts. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. As trial evidence established, Okwara used the money mule accounts to receive and launder the proceeds of BEC scams perpetrated on at least six victim companies totaling $2 million. According to evidence presented at trial, the money mule accounts opened by Okwara were initially funded with relatively small deposits. Victims of the BEC schemes located throughout the United States were then tricked by scammers to wire large amounts of funds into these accounts. Within days of receipt of the fraudulent wires, Okwara used false and stolen identities and conducted financial transactions with the fraudulently obtained proceeds in order to conceal their origins, including to make large cash withdrawals, purchase official checks, and send wires to other bank accounts under his control.
Okwara’s money laundering convictions carry a maximum sentence of 20 years and a $500,000 fine per count; the five counts of conducting financial transactions with illegal proceeds carry a maximum prison sentence of 10 years and a $250,000 fine per count; the two counts of submitting false documents to banks carry a maximum prison term of 30 years and a $1,000,000 fine per count; and the two counts of aggravated identity theft carry a mandatory minimum sentence of two years in prison, per count, to be served consecutively to any other sentence imposed.
Okwara is currently in federal custody. A sentencing date has not been set.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the investigating efforts of the U.S. Postal Inspection Service and the Charlotte-Mecklenburg Police Department.
Assistant United States Attorneys Matthew Warren and Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Cayuga County Felon Admits to Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBANY, NEW YORK – James Workman, age 32, of Conquest, New York, pled guilty today to unlawfully possessing a firearm and ammunition as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Nicholas B. Boshears, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Cayuga County Sheriff Brian Schenck.
Workman, who has prior felony convictions for arson and burglary offenses, admitted that he possessed a .30-06 caliber rifle and ammunition, and discharged the rifle at his residence in Conquest, on October 6, 2020.
Chief United States District Judge Glenn T. Suddaby is scheduled to sentence Workman on October 28, 2021. Workman faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Cayuga County Sheriff’s Department, as well as Immigration and Customs Enforcement (ICE) and the Office of Special Investigation for the New York State Department of Corrections and Community Supervision (DOCCS). The case is being prosecuted by Assistant U.S. Attorneys Richard Belliss and Alexander Wentworth-Ping.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/project-guardian-memo-2019/download.
Car Wreck Fraud Defendant Pleads GuiltyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sebron Dejuan Brown, age 35, of Muskogee, Oklahoma entered a guilty plea to Conspiracy to Commit Odometer Tampering, in violation of Title 49, United States Code, Sections 32703(2) and 32709(b); two counts of Odometer Fraud, in violation of Title 49, United States Code, Section 32703(2) and 32709(b); and to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1343. Brown could potentially be sentenced to up to 20 years imprisonment for the multiple violations of federal laws.
The Second Superseding Indictment alleged that from in or about December 2016 and continuing through in or about May 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, and others known and unknown to the grand jury, agreed and conspired to commit offenses against the United States, to-wit: to knowingly and willfully reset and alter, and cause to be reset and altered, the odometers of motor vehicles, intending to change the mileage registered by the odometers.
The Second Superseding Indictment further alleged that on or about December 18, 2016, and continuing through March 10, 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and willingly reset and alter, and cause to be reset and altered, the odometer of motor vehicles from approximate high mileage to the approximate low mileage with the intent to change the number of miles registered on said odometers in vehicles.
The Second Superseding Indictment further alleged that from on or about March 3, 2017, and continuing through on or about May 2, 2017, within the Eastern District of Oklahoma and elsewhere, the defendant, codefendant Rakyra Jones, codefendant Tracy Mahone (now dismissed from the Second Superseding Indictment), and others known and unknown to the grand jury, agreed and conspired to transmit and caused to be transmitted by means of a wire communication in interstate commerce signals and sounds for the purpose of executing a scheme to defraud insurance companies.
The charges arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation, and the United States Department of Transportation, National Highway Traffic Safety Administration, Office of Odometer Fraud Investigation.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Doug Horn, Assistant United States Attorney Jarrod Leaman, and Assistant United States Attorney Michael Cooper represented the United States.
Camden Man Sentenced to 10 Years in Prison for Conspiring to Distribute over One Kilogram of HeroinRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 120 months in prison for conspiring to distribute more than one kilogram of heroin, Acting U.S. Attorney Rachael A. Honig announced.
Ramon Velez, 44, of Camden, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with one count of conspiracy to distribute heroin from June 2018 through November 2018. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
Using confidential informants, consensual recordings, over 40 controlled drug purchases, and several court-authorized wiretaps, the investigation showed a large-scale drug operation operating in the 400-500 block of Pine Street in Camden in 2017-2018. Street-level sellers were supervised by managers, who also resupplied them with pre-packaged heroin, cocaine, and crack cocaine. Ramon Velez also sold heroin from the area surrounding his residence. Several firearms were recovered from different locations during searches by the FBI and other law enforcement officers when the defendants were arrested in November 2018. Ramon Velez was arrested on December 6, 2018.
In addition to the prison term, Judge Bumb sentenced Johnson to five years of supervised release.
Nineteen defendants were arrested on drug trafficking charges based on the investigation; 15 defendants have pleaded guilty on drug conspiracy charges. One defendant, Kaliel Johnson of Camden, was sentenced last week to nine years in prison; 13 defendants are awaiting sentencing and three more defendants are awaiting trial. The charges and allegations against those three defendants awaiting trial are merely accusations, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Sara Aliabadi of the U.S. Attorney’s Office’s Camden Office.
California Man Sentenced to 90 Months in Prison for Plot to Distribute over 30 Pounds of Crystal Methamphetamine and Five Kilos of Fentanyl into New JerseyRead the Press Release
CAMDEN, N.J. – A California man was sentenced today to 90 months in prison for shipping approximately 30 pounds of crystal methamphetamine and conspiring to send an additional 5 kilograms of fentanyl into New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Jesus Zavala-Torres, 35, of San Jacinto, California, pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and a quantity of fentanyl. Judge Hillman imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
In September 2018, law enforcement officers received information that an individual identified as Isabel Otanez-Sanchez, was shipping large quantities of narcotics to New Jersey from California. On Jan. 28, 2019, Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (the “CS”) in Atlantic City, New Jersey. Zavala-Torres and Sanchez hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped from California to New Jersey. Agents recovered the 28 packages, totaling approximately 30 pounds, from the car’s gas tank. On Feb. 12, 2019, the CS met with Sanchez and Zavala-Torres in Riverside, California. At this meeting, Sanchez and Zavala-Torres also agreed to sell an additional five kilograms of fentanyl that would be shipped to the CS in New Jersey in the same manner as the methamphetamine. Following this meeting, Sanchez and Zavala-Torres were arrested by law enforcement and the five kilograms of fentanyl they intended to ship to New Jersey were recovered.
In addition to the prison term, Judge Hillman sentenced Zavala-Torres to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s sentencing. She also thanked HSI in Riverside, CA; the New Jersey State Police; the Hemet, California, Police Department; and the Atlantic City Task Force for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Burlington County Man Sentenced to 65 Months in Prison for Defrauding Investors of over $1.5 MillionRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 65 months in prison for defrauding several investors of more than $1.5 million, Acting U.S. Attorney Rachael A. Honig announced.
Brett Cooper, 44, of Moorestown, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in Court:
Cooper and two other individuals created a “high-yield bank scheme” and solicited investments from multiple investors, telling them that they could double or triple their initial investments in 60 to 90 days. Cooper set up several shell companies, including a company he named Peninsula Water Development and another named Dream Holdings, and he had the investors wire money to bank accounts that he had set up for these shell companies. Cooper admitted that he never invested any of the money and that he transferred the money to his personal accounts used it to pay his living expenses and for other personal expenditures. Cooper also wired some of the money from the investors to two other conspirators. A total of eight victims lost money due to Cooper’s fraudulent scheme.
Cooper was previously found liable for damages related to the fraud scheme in a civil case brought by the Securities and Exchange Commission (SEC). In the civil case, Cooper was ordered to pay over $2 million in damages and fines in November 2015.
In addition to the prison term, Judge Bumb sentenced Cooper to three years of supervised and fined him $25,000. Restitution will be determined at a late date.
Acting U.S. Attorney Honig credited agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and attorneys and investigators for the Securities and Exchange Commission, under the direction of Division of Enforcement Acting Director Melissa Hodgman, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office’s Camden Office.
Brainerd Man Sentenced to Prison for Wildlife Trafficking, Trespassing After Removing the Head of A Black Bear on the Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – A Brainerd, Minnesota, man was sentenced in federal court today for wildlife trafficking and trespassing on Indian land after removing the head of a 700-pound black bear on the Red Lake Indian Reservation.
Brett James Stimac, 41, was sentenced by Judge Susan Richard Nelson to 15 months in prison, followed by one year of supervised release, and a $9,500 fine.
According to court documents, on the evening of September 1, 2019, Stimac, who is not an enrolled member of the Red Lake Band of Chippewa Indians, willfully, knowingly and without authorization or permission, entered the Red Lake Indian Reservation for the purposes of hunting a bear. The Government contends that Stimac, using a compound bow, shot and killed a large American black bear near the Reservation’s garbage dump.
According to court documents, on September 2, 2019, Stimac returned to the dump the following day and located the bloody carcass of the bear. Stimac posed for photographs with the bear’s carcass and later shared the photographs on social media. Because of the bear’s large size, Stimac was unable to move the bear from the Reservation. Instead, Stimac used a saw to remove the bear’s head for a trophy. Stimac brought the bear’s head to a taxidermist in Ironton, Minnesota, and left the remainder of the carcass to spoil.
The Red Lake Band of Chippewa Indians does not permit non-Indians to hunt bear, one of seven clan animals of the Band, within the boundaries of the Red Lake Indian Reservation, due to the bear’s cultural and spiritual importance to the Band.
This case was the result of an investigation conducted by the Minnesota Department of Natural Resources, the Red Lake Department of Public Safety, the Red Lake Department of Natural Resources, and the U.S. Fish and Wildlife Service, with assistance from the Beltrami County Attorney’s Office.
Special Assistant U.S. Attorney Gina L. Allery and Assistant U.S. Attorney Emily A. Polachek prosecuted the case.
Aroostook County Man Sentenced for Sexual Exploitation of a Child and Possession of Child PornographyRead the Press Release
BANGOR, Maine: An Aroostook County man was sentenced today in U.S. District Court in Bangor for sexual exploitation of a minor and possession of child pornography, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lane E. Walker sentenced Kyle Sirois, 29, recently of Fort Fairfield, to 40 years in prison to be followed by a lifetime of supervised release. Sirois was also ordered to pay $24,000 in restitution. He pleaded guilty on October 3, 2019.
According to court records, at an unknown time between March 2015 and October 2017, Sirois produced video files depicting child pornography. In addition, Sirois possessed other images and videos of different children engaging in sexual behavior, which he had purposefully sought out and received through the internet. These images and videos depicted the sexual exploitation of prepubescent children under the age of 12.
The investigation was conducted by Homeland Security Investigations, the Maine State Police Computer Crimes Unit, the Fort Fairfield Police Department, and the Madawaska Police Department.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Arizona man admits sexually exploiting two Montana children through online activityRead the Press Release
GREAT FALLS – An Arizona man accused of coercing minor girls to send him sexually explicit images of themselves through the internet and of receiving child pornography pleaded guilty to charges today, Acting U.S. Attorney Leif M. Johnson said.
Joshua Dean Fish, 27, of Gilbert, Arizona, pleaded guilty to two counts of sexual exploitation of a child and to receipt of child pornography. Fish faces a mandatory minimum 15 years to 40 years in prison, a $250,000 fine and five years to life of supervised release on each sexual exploitation crime and a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release on the receipt of child pornography crime.
Chief U.S. District Judge Brian M. Morris presided and set sentencing for Sept. 23. Chief Judge Morris continued Fish’s detention pending further proceedings.
The government alleged in court documents that in January 2020, the Lewis and Clark County Sheriff’s Office received a report of online sexually explicit activity involving two children, who were under the age of 18. An investigation identified Fish as the person who was offering to pay for the sexually explicit images. Prior to mid-2018, Fish resided in Montana. The two child victims, one residing in Butte and another residing in Helena, reported that an online user promised monetary digital payments in exchange for nude images that would be sent through the internet. Both child victims sent Fish sexually explicit images of themselves.
The government further alleged that an investigation by Arizona law enforcement into a Cybertip to the National Center for Missing and Exploited Children involving sending and receiving child pornography through a social media application led to Fish. In June 2020, law enforcement searched Fish’s residence and interviewed him. Fish admitted he paid minor girls for nude images, which were sent to him online, and to possessing numerous hard drives containing child pornography. During an examination of digital devices seized during the search, law enforcement found hundreds of thousands of images and video files of child pornography.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by Homeland Security Investigations, FBI, Lewis and Clark County Sheriff’s Office, Internet Crimes Against Children Task Force and the Gilbert (Arizona) Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Amsterdam Man Sentenced for Attempting to Transfer Obscene Material to a MinorRead the Press Release
SYRACUSE, NEW YORK – Neil Giraldi, age 65, of Amsterdam, New York, was sentenced today to 33 months in prison for attempting to transfer obscene material to a minor.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Nicholas B. Boshears, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Giraldi admitted to sending sexually explicit messages and multiple pictures of his penis to an undercover FBI agent posing as a 13-year-old child on a social media application.
In addition to the prison sentence, Senior United States District Judge Norman A. Mordue sentenced Giraldi to a 3-year term of post-release supervision.
This case was investigated by the FBI and its Child Exploitation Task Force, and prosecuted by Assistant U.S. Attorney Rachel Williams.
Albany Felon Sentenced for Possession of a Loaded HandgunRead the Press Release
ALBANY, NEW YORK – Saul McDuffie, age 34, of Albany, was sentenced today to 33 months in prison for unlawful possession of a firearm by a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and Chief Eric Hawkins of the Albany Police Department (APD).
In pleading guilty, McDuffie admitted to possessing a loaded .380 caliber handgun on North Swan Street in Albany on October 28, 2019. When McDuffie saw a marked APD police cruiser pass, he placed the handgun on the tire of a parked car, which was observed by an APD officer responding to a complaint of drug dealing in the area. McDuffie had prior felony convictions for drug offenses and burglary when he possessed the loaded handgun.
In addition to the prison sentence, Chief U.S. District Judge Glenn T. Suddaby sentenced McDuffie to serve a 3-year term of post-release supervision.
This case was investigated by the APD and HSI, and prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel Williams.