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4 June 2021
Counselor Involved in Wide-Ranging Medicaid Fraud Scheme Pleads GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CORTNEY DUNLAP, 36, of Burlington, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to health care fraud related to a wide-ranging scheme that defrauded the Connecticut Medicaid Program of more than $1.3 million.
According to court documents and statements in court, from 2014 to 2020, Dunlap was a Licensed Professional Counselor with offices located on Brainard Road in Hartford. Dunlap also owned two entities, Inspirational Care and KEYS Program Inc., through which he managed group homes in Hartford, Bristol, Cromwell and Waterbury, including residences for women and children who were victims of domestic abuse.
From August 2018 through October 2020, Dunlap engaged in a scheme to defraud the Connecticut Medicaid Program by submitting claims for psychotherapy services that were purportedly provided to Medicaid clients. The vast majority of the claims were for occasions and dates of service when no psychotherapy services of any kind had been provided to the Medicaid clients identified in the claims. On a limited number of occasions, some of the services were rendered by unlicensed individuals who were not qualified or licensed to provide psychotherapy.
The Connecticut Medicaid program suspended Dunlap as a Medicaid provider on approximately April 28, 2020, and, on May 7, 2020, federal law enforcement agents executed a court-authorized search of Dunlap’s Hartford offices. Dunlap subsequently billed Medicaid for psychotherapy services through Inspirational Care for services that which were not provided, using the provider number of a licensed clinical social worker who did not provide the services and was not aware that her provider number was being used to bill for the nonexistent services.
Dunlap required tenants of the group homes operated or managed by Inspirational Care and KEYS program to provide copies of the Medicaid member cards for the tenants and their children as a condition of the tenants residing at the group homes. Dunlap then used these Medicaid member numbers to bill Medicaid for psychotherapy services that were not provided to the tenants or their children. Dunlap used the Medicaid member numbers of approximately 65 tenants or their children to bill Medicaid for fraudulent services, and Medicaid paid Dunlap approximately $543,117 for psychotherapy services that were not provided to these individuals.
In February 2019, the New Haven Public Schools hired Dunlap as a guidance counselor at the New Haven Adult and Continuing Education Center. In February 2020, Dunlap accessed a database containing personal identifying information of students and former students enrolled at New Haven Adult and Continuing Education, many of whom Dunlap did not have any professional relationship with and had never met. Dunlap used the information he acquired to determine whether the students were insured by Medicaid and, if so, identified the students’ Medicaid member identification numbers. He then billed Medicaid for fraudulent psychotherapy services that were never provided to the students. Dunlap used the personal identifying information and Medicaid member numbers of approximately 135 New Haven Adult and Continuing Education students to bill Medicaid for fraudulent services, and was paid a total of approximately $593,383 by Medicaid for these claims.
Dunlap also fraudulently billed Medicaid for psychotherapy services purportedly provided to employees of Inspirational Care when no such services were provided, and submitted fraudulent claims to Medicaid for psychotherapy services purportedly provided to members of his family when no such services were provided.
Dunlap was arrested on a criminal complaint on October 14, 2020.
Judge Dooley scheduled sentencing for August 27, 2021, at which time Dunlap faces a maximum term of imprisonment of 10 years. Dunlap has agreed to pay restitution to Medicaid in the amount of $1,313,322. To help satisfy his restitution obligation, Dunlap has agreed to forfeit a bank account containing approximately $152,000.
This investigation has been conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation, with the assistance of the Office of the Inspector General for the U.S. Department of Housing and Urban Development, the Office of the Inspector General for the U.S. Department of Education, the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services.
This case is being prosecuted by Assistant U.S. Attorney David J. Sheldon with the assistance of Auditor Susan N. Spiegel.
Convicted Felon on Parole Sentenced to more than 13 Years in Federal Prison for Drug Crimes and Gun PossessionRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that James Robert Cude, age 46, of Canon City, Colorado, was sentenced to 163 months in federal prison to be followed by a 5-year term of supervised release for distribution and possession with intent to distribute methamphetamine, as well as possession of a firearm by a previously convicted felon.
According to the plea agreement, on separate occasions during the month of September in 2016, the defendant sold undercover agents 26.6 grams, 26.4 grams, and 94.1 grams of methamphetamine. He also sold undercover agents a Rock River LAR-15 rifle, a stolen Ruger Model P95 9mm handgun, and a Beretta Model PX4 Storm handgun. The defendant was a multi-convicted felon and on parole at the time of the offense conduct in this matter.
“Prosecutions like this play an important role in keeping Colorado safe,” said Acting U.S. Attorney Matt Kirsch. “We thank our law enforcement partners at the ATF and the Aurora Police Department, who removed a dangerous felon from our community.”
ATF Denver Special Agent in Charge David Booth stated, “Not only was the defendant prohibited from possessing firearms, he also brought dangerous drugs into our community. ATF is proud to work with our partners at the U.S. Attorney’s Office to fight violent crime and protect the public.”
United States District Court Judge R. Brooke Jackson sentenced James Robert Cude on June 1, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation and was assisted by the Aurora Police Department. Assistant United States Attorney Candyce Choi Cline handled the prosecution of the case.
CASE NUMBER: 20-cr-00188-RBJ
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Convicted Felon Indicted on Federal Charges of Possession of Firearm, Fentanyl, Meth, Heroin, CocaineRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a five-count indictment charging Jonathan Xavier Miller, 37, of Blythewood, for drug possession and possession of a firearm as a convicted felon.
The indictment alleges that, in February 2019, Miller knowingly, intentionally, and unlawfully possessed with the intent to distribute 50 grams or more of a mixture containing meth, cocaine, and crack cocaine. It further alleges that, in July 2019, Miller possessed with the intent to distribute crack cocaine. The indictment also alleges that, in November 2019, Miller possessed with the intent to distribute a substance containing meth, fentanyl and heroin, as well as possessing a 9mm handgun in furtherance of a drug trafficking crime.
Miller is prohibited to possess a firearm due to prior felony convictions. Prior convictions of Miller include that for strong armed robbery, criminal domestic violence, drug possession, and gun possession.
Miller is facing up to life imprisonment on one of the federal charges.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richland County Sheriff’s Department and the Irmo Police Department.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Convicted Child Molester Indicted on Visa Fraud and False Statements in Immigration ProceedingsRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment yesterday charging a man from Cumberland County, North Carolina, with visa fraud and making false statements in immigration proceedings.
According to the indictment, Roger Rene Diaz-Castellano, 53, a citizen and national of Honduras, knowingly made false statements in his Application for Temporary Protected Status (Form I-821) when he denied having ever committed a crime, when in fact he had committed indecent liberties with a child over a seven-year period between 2010 and 2017.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven. Operation False Haven is an ongoing initiative designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained immigration benefits.
Concord Man Sentenced to over 16 Years for Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Tyler Cady, 31, of Concord, was sentenced to 198 months in federal prison for conspiracy to possess controlled substances with intent to distribute and possession of a firearm in furtherance of that conspiracy, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 4, 2020, an individual who was cooperating with law enforcement agents arranged to conduct a methamphetamine transaction that would involve Cady and another individual. Agents observed Cady arrive for the transaction in Dover, where he began to conduct the drug deal. When agents sought to arrest Cady, he had over 111 grams of 100 percent pure methamphetamine on his lap. A search of Cady’s person revealed approximately seven grams of fentanyl. Over $8,000 in cash was found in Cady’s vehicle and on his person. A search of Cady’s vehicle revealed a knapsack containing approximately 252 grams of highly pure methamphetamine. The vehicle also contained a loaded sawed-off shotgun, a pistol, a scale, and a money counter.
Cady previously pleaded guilty on February 26, 2021. Under his plea agreement, he will forfeit the cash, firearms, and ammunition to the United States.
“Armed drug traffickers are a menace to the community,” said Acting U.S. Attorney Farley. “We are working with our law enforcement partners to keep our state safe from violence and to stop the flow of deadly drugs. As this sentence shows, armed drug traffickers will face significant federal prison time if they choose to operate in the Granite State.”
“Drugs and guns are a deadly combination,” said DEA Special Agent in Charge Brian D. Boyle. “DEA is committed to bring to justice methamphetamine traffickers like Mr. Cady. This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This matter was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the New Hampshire State Police and the Colebrook Police Department. The case was prosecuted by Assistant U.S. Attorney John S. Davis. Assistant U.S. Attorney Robert Rabuck assisted with the forfeiture aspects of this matter.
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Chicago Man Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A Chicago man was arrested yesterday and charged with sexual exploitation of children and receipt of child pornography.
Ernesto Herrera, 32, of Chicago, Ill., was charged by criminal complaint with one count of sexual exploitation of children and one count of receipt of child pornography. Following an initial appearance in federal court in the Northern District of Illinois yesterday, Herrera was detained pending a detention hearing scheduled for Monday, June 7, 2021. He will appear in Boston at a later date.
According to the charging documents, in June 2020, Herrera allegedly threatened and manipulated a Massachusetts minor via Snapchat and text message to make and send videos and images of the victim engaged in sexual conduct, among other things. The investigation determined that the phone number and Snapchat account used to contact the victim belonged to Herrera. A subsequent search of Herrera’s phone revealed that the victim sent over one thousand media files to Herrera’s Snapchat account. Several of those media files allegedly depicted child pornography
The charge of sexual exploitation of children provides a mandatory minimum sentence of 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Emmerson Buie, Jr., Special Agent in Charge of the Federal Bureau of Investigation, Chicago Division; and John R. Lausch, Jr., United States Attorney for the Northern District of Illinois made the announcement today. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Capitol Heights Man Sentenced to More Than Three Years in Federal Prison for Conspiracy to Pass Counterfeit Currency and Making Counterfeit CurrencyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Ricco Darnell Taylor, age 32, of Capitol Heights, Maryland to 41 months in federal prison, followed by three years of supervised release, for conspiracy to pass counterfeit currency and making counterfeit currency. Judge Chuang has also ordered Taylor to pay $98,000 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office.
According to his plea agreement, from 2017 to December 2019, Taylor manufactured and passed counterfeit currency with co-conspirators Keara Davis, age 29, of Capitol Heights, Maryland; Deon Jones, age 31, of Temple Hills, Maryland; and Tara Simpson, age 52, of Hyattsville, Maryland. As part of the conspiracy, Taylor manufactured the counterfeit with a printer at his residence, supplied the fraudulent currency to his co-conspirators, and occasionally sold counterfeit currency to others.
During a search of Davis and Taylor’s Maryland residence on March 23, 2018, law enforcement officers recovered several cell phones, three counterfeit $100 bills, various gift cards, receipts from victim retailors, linen copy paper, an HP printer, two shell casings, and a .38 caliber revolver. According to authorities, the linen copy paper was a type commonly used in counterfeiting operations. The ink from the counterfeit $100 bills were analyzed by the Secret Service and determined to be indistinguishable from genuine currency. The .38 caliber revolver was possessed in connection with the counterfeiting operation.
Taylor, along with his co-conspirators, used the counterfeit currency to purchase merchandise at various local retailers and, in some instances, returned items in exchange of genuine currency. For example, on June 19, 2019, Taylor purchased diapers for $26.49 using a counterfeit $100 bill. The following day, Taylor returned the diapers, as well as a few items Jones had purchased, in exchange for genuine currency. In total, the Secret Service recovered eight counterfeit $100 bills used by Taylor and his co-conspirators during the June 19, 2019 transactions, as well as video surveillance and receipts reflecting their criminal activity.
His plea agreement further states that on July 26, 2019 and October 10, 2019, law enforcement officers conducted two traffic stops of a vehicle Taylor was operating. In both instances, Taylor attempted to flee on foot but was later apprehended. As a result of both traffic stops, officers recovered a total of 31 counterfeit $100 bills and 27 pages of uncut counterfeit $20 bills displaying three repeating serial numbers. A subsequent search of Taylor’s cell phone also revealed text messages indicative of passing counterfeit currency. Taylor’s fingerprints were also discovered on the first three pages of the uncut $20 bills.
In total, Taylor and his co-conspirators are responsible for passing over $95,000 in counterfeit currency.
On June 2, 2021, Davis was sentenced to 15 months in federal prison for conspiracy and passing of counterfeit currency. Co-defendants Simpson, and Jones were each sentenced to 37 months in federal prison for the same charge. All three co-defendants were also ordered to pay $95,000 in restitution.
Acting United States Attorney Jonathan F. Lenzner praised the Secret Service for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Michael Morgan and Dana J. Brusca, who prosecuted the case.
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Bellows Falls Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on June 4, 2021, Ferdinand Cruz, aka “Feldi,” 40, of Bellows Falls, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 15 months in prison after his guilty plea to one count of being a previously convicted felon found in possession of a firearm. U.S. District Judge Christina Reiss also ordered Cruz to serve a three (3) year term of supervised release and to pay a $100 special assessment. Judge Reiss also ordered the criminal forfeiture of two firearms that were found in Cruz’s possession.
According to court records and proceedings, in May 2020, the Dover, Vermont Police Department was investigating an unrelated criminal allegation against Cruz. When officers went to Cruz’s residence to interview him, he was wearing what was later identified as a Ruger LCP .380 caliber pistol on his waistband. At that time, Cruz was a previously convicted felon, having been convicted of Robbery in the Second Degree in 2003, and was prohibited from possessing a firearm. When police later went to Cruz’s residence to recover the Ruger LCP .380 caliber pistol, they found a second gun: a Taurus Model PT111 Millennium G2 9mm caliber pistol.
Acting U.S. Attorney Jonathan A. Ophardt commended the efforts of the Dover, Vermont Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives in the investigation and prosecution of Cruz.
Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Cruz. Assistant Federal Public Defender Elizabeth Quinn represented Cruz.
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. https://www.justice.gov/psn
Bellevue man sentenced to prison for defrauding his employer with deceptive insider sales of used medical equipmentRead the Press Release
Seattle – A former manager of a Snoqualmie, Washington medical device company was sentenced today in U.S. District Court in Seattle to 14 months in prison for his scheme to defraud his employer of nearly $800,000 in used equipment sales, announced Acting U.S. Attorney Tessa M. Gorman. Arunkumar Singal, 42, pleaded guilty to wire fraud on January 3, 2020. At the sentencing hearing U.S. District Judge Richard A. Jones told Singal, “You put everything at risk for one thing: to add to your wealth….. You stopped because you were caught by law enforcement, but you continued to lie and deceive.”
According to records filed in the case, in 2014 Singal was the Director of Global Product Support at Spacelabs Healthcare Inc. The company was established in the 1950’s to make medical monitoring devices to astronauts and then expanded their business to include medical monitoring devices for hospitals and clinics. Singal was put in charge of a new initiative to resell used equipment. But instead of selling the equipment to the highest bidder as he was supposed to do, Singal devised a scheme to have a Texas company bid on the equipment at a very low price, and then used a shell company Singal himself created to purchase the equipment for a ten percent increase in profit to the Texas company. Singal then turned around and sold the equipment at a much higher price to a Minnesota company. Through this fraudulent scheme Singal made a profit of more than $780,000. Singal used the ill-gotten gain to pay down the mortgage on his luxury Mercer Island home and to buy a Tesla, among other expenditures. The scheme unraveled when tech support workers doing regular maintenance on Singal’s company cell phone reported messages that appeared to indicate side deals not authorized by the company. The company fired Singal and reported potential fraud to the Snoqualmie Police Department who alerted the FBI.
As part of the plea deal, Singal sold the Mercer Island home and paid restitution to Spacelabs of $780,163. However, the harm to the company went beyond the lost income on the sales of the equipment. At the time Singal was stealing from the company, Spacelabs was having to tighten its spending and lay-off staffers. Had it received the true value of the used equipment the financial constraints would not have been so severe.
In asking for a three-year prison sentence, prosecutors wrote to the court, “Singal abused his position of trust and responsibility... When he was placed in a position of increased responsibility, he promptly abused the trust he had been given, devising the scheme to resell Spacelabs’ property for his own personal gain… Singal literally lost no opportunity to wring every ounce of profit from his criminal scheme.”
“People tend to spend lavishly when it's not their money,” said Donald Voiret, Special Agent in Charge, FBI Seattle. “In this case, Mr. Singal's greed cost him not only his reputation, but also his home as well as restitution of hundreds of thousands of dollars. Perhaps most costly however, his selfishness may ultimately cost him his right to remain in the United States.”
Singal is a citizen of India and will likely be deported following his prison term.
The case was investigated by the Snoqualmie Police Department and the FBI.
The case was prosecuted by Assistant United States Attorney Stephen Hobbs.
Baltimore Police SWAT Officer Facing Federal Indictment for Obstruction of Justice, Production, and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Donald Hildebrandt, age 51, of Bel Air, Maryland, on the federal charges of obstruction of justice, production of child pornography, and possession of child pornography.
The federal charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Harford County Sheriff Jeffrey R. Gahler; Lieutenant Paul Marziale of the Harford County Sheriff’s Office, Director of the Harford County Child Advocacy Center; and Harford County State’s Attorney Albert J. Peisinger, Jr.
Hildebrandt is a Special Weapons and Tactics (SWAT) officer with the Baltimore City Police Department and is currently suspended without pay. According to the court documents, on October 18, 2020, law enforcement received a complaint that Donald Hildebrandt had been discovered in a room with a minor female with his erect penis exposed. Another minor had reported the incident. During an interview at the Harford County Child Advocacy Center (CAC), one of the minor victims disclosed that Hildebrandt exposed himself to her and demanded that she engage in sexually explicit conduct with him.
The indictment alleges Hildebrandt attempted obstructed justice by altering and concealing evidence. According to court documents, in January 2021, a witness informed an investigator that Hildebrandt had reset his tablet. Allegedly, as alleged in previous court documents, a forensic review of the previously seized tablet showed signs consistent with a factory reset. In Hildebrandt’s iCloud account, investigators allegedly discovered a web address to an anonymous communication network within Hildebrandt’s notes application, which opened to a child pornography website. Purportedly, the website allowed customers to anonymously purchase child pornography with cryptocurrency.
The indictment also alleges that Hildebrandt produced child pornography by placing a covert camera into a bathroom he knew to be used by three minor females. As alleged in the indictment, Hildebrandt positioned the camera so that it would capture the minor females exiting the shower and drying off with towels. Hildebrandt allegedly created nude images of two prepubescent females. Hildebrandt allegedly possessed at least two videos constituting child pornography, including one that was over two and a half hours in length containing a compilation of numerous different instances of child abuse, including prepubescent minors being sexually abused.
If convicted, Hildebrandt faces a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison for production of child pornography; a maximum sentence of 10 years in federal prison for possession of child pornography; and a maximum of 20 years in federal prison for obstruction of justice. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Maryland State Police, the Harford County Sheriff’s Office, the Harford County Child Advocacy Center, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland Jr., who is prosecuting the federal case.
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A Southport Man was Sentenced to More Than 12 Years ImprisonmentRead the Press Release
WILMINGTON, N.C. – A Southport man was sentenced today to 151 months in prison for possessing with the intent to distribute five (5) grams or more of methamphetamine. On August 13, 2020, Kevin Joseph Boyle pled guilty to the charges.
According to court documents and other information presented in court, Kevin Joseph Boyle, 64, was stopped by Brunswick County Sheriff’s Deputies on a return trip from Charlotte, NC. The information presented showed that between July 20, 2019 and July 21, 2019, a GPS tracking device on Boyle’s truck indicated that Boyle traveled to Charlotte and then back towards Brunswick County. Once in Brunswick County, deputies with Brunswick County stopped Boyle’s truck after the vehicle crossed the center line of the highway. Boyle allowed law enforcement to search his truck. A K9 gave a positive indication for the presence of narcotics in the vehicle. Law enforcement found a magnetic box located in the rear passenger side tire well containing methamphetamine. Interviews from cooperating witnesses confirmed that Boyle travelled to Charlotte on a regular basis to resupply with methamphetamine and further confirmed that Boyle was a major source of methamphetamine in Southport.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Brunswick County Sheriff’s Office (BCSO) investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case. This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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. 7:20-cr-00013-M.
360 Patriot and 360 Ventures Pay $1.12 Million to Resolve False Claims Act Allegations of Service-Disabled Veteran-Owned Small Business FraudRead the Press Release
ALEXANDRIA, Va. – 360 Patriot Enterprises, LLC (360 Patriot), located in Alexandria, Virginia, and its former minority shareholder, 360 Ventures LLC (360 Ventures), located in Wilmington, Delaware, agreed to pay a combined $1.12 million to settle civil fraud allegations that 360 Patriot was awarded two U.S. Army contracts set aside for service-disabled veteran-owned small businesses (SDVOSB) at a time when 360 Patriot was not controlled by a service-disabled veteran (SDV), announced Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
In order to qualify as a SDVOSB, companies must meet defined eligibility criteria, including that the company is at least 51% unconditionally and directly owned and controlled by one or more SDVs. The United States alleged that from March 2015 to December 2017, 360 Patriot was controlled by a non-SDV, and 360 Ventures facilitated the non-SDV’s control of the company under previous ownership and management. During that time, 360 Patriot was awarded two Army contracts that were set aside for qualified SDVOSBs.
360 Patriot’s current management submitted a written contractor disclosure to the Department of Defense Office of Inspector General in October 2020, describing the company’s likely prior control by a non-SDV.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Defense Criminal Investigative Service; U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; and the Naval Criminal Investigative Service.
The matter was investigated by Assistant U.S. Attorneys Kristin S. Starr and William Hochul.
The civil claims settled by the settlement agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
26-Year-Old Florida Man Charged with Coercion and Enticement of A MinorRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Miriam E. Rocah, Westchester County District Attorney, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of CHRISTOPHER NUNEZ for persuading, inducing, enticing, and coercing a 15-year-old minor to engage in sexual activity. NUNEZ was arrested yesterday in Miami, Florida, and will be presented today in Miami federal court.
Manhattan U.S. Attorney Audrey Strauss said: “This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them. As today’s arrest shows, we will use every tool available to law enforcement to investigate and prosecute those alleged to have sexually exploited children.”
Westchester County District Attorney Miriam E. Rocah said: “This case highlights the dangers present online that can turn very real for minors in Westchester and elsewhere. We will work together with our law enforcement partners at every level in every jurisdiction to protect our children. I am grateful for the partnership of the SDNY and the FBI in this investigation, which will help identify perpetrators and victims around the country.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, we believe Mr. Nunez has chatted and possibly had contact with other victims. We’re asking for everyone to take note of his social media username ‘PLMV23’ and call 1-800-CALL-FBI or go to tips.fbi.gov if you recognize it. Parents and guardians are the first line of defense in keeping sexual predators from getting access to children, so please pay attention to what your children are doing online. Ask questions about with whom they’re chatting, and make sure you know how to use the security features on all their devices. A conversation with a child today may protect them from a trauma which will last a lifetime.”
According to the Complaint[1] filed on June 1, 2021, in White Plains federal court and unsealed today:
Between in or about early March 2021 up to and including on or about May 1, 2021, NUNEZ communicated online with a 15-year-old minor (“Victim-1”) and persuaded Victim-1 to meet NUNEZ in person to engage in sexual activities with him. NUNEZ used various social media platforms to communicate with Victim-1, including Discord and Snapchat. In his communications with Victim-1 on Discord, NUNEZ used the social media user name, “PLMV23.”
On or about April 30, 2021, and May 1, 2021, NUNEZ travelled to New York from Miami, Florida, to meet with Victim-1 in person in Westchester County, New York, to engage in sexual activity with her.
On or about May 2, 2021, CHRISTOPHER NUNEZ was charged in the Town of North Salem, New York, with Rape in the Third Degree and Endangering the Welfare of a Child. The Westchester County District Attorney’s Office will be prosecuting these charges.
Anyone who may have encountered CHRISTOPHER NUNEZ (who may have been using the social media user name “PLMV23”), or whose child may have had any communications with NUNEZ, is asked to contact the FBI at 1-800-CALL-FBI (225-5324).
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NUNEZ, 26, of Miami, Florida, is charged with one count of coercion and enticement, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the efforts of the FBI, the Westchester County District Attorney’s Office, and the New York State Police in connection with this investigation. She added that the investigation is ongoing.
This case began as an investigation in the Special Prosecutions Division Child Abuse Bureau of the Westchester County District Attorney’s Office by Assistant District Attorney Charlotte Gudis, working jointly with the New York State Police. The federal prosecution is being handled by the White Plains Division of the U.S. Attorney’s Office. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
3 June 2021
Woodville Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Jackson, Miss. – A Woodville man pled guilty in federal court today to selling methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Ricky Oneal Wright, 58, sold 6.5 grams of pure methamphetamine to an individual on October 22, 2019.
Wright was indicted and pled guilty today to possessing with intent to distribute 5 grams or more of methamphetamine. He is scheduled to be sentenced on September 2, 2021 at 10 a.m. and faces a mandatory minimum penalty of 5 years in prison and a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by The Mississippi Bureau of Narcotics and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
Veterans Affairs Employee Pleads Guilty After Recording Co-Workers in Veterans Affairs Clinic RestroomRead the Press Release
PENSACOLA, FLORIDA – Robert Sampson, 52, of Gulf Breeze, Florida, pled guilty today to charges of Video Voyeurism and Disorderly Conduct. Sampson surreptitiously videoed eight fellow Department of Veterans Affairs (VA) employees using a hidden recording device that he placed in a restroom at the Veterans Affairs Joint Ambulatory Care Center in Pensacola, Florida, on multiple occasions from August 2019 to June 2020. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the plea today.
“The victims in this case perform an incredible service to our retired and disabled military community and they should feel safe and have their privacy respected in their work environment,” stated Acting U.S. Attorney Coody. “I applaud the Department of Veterans Affairs Police and the Department of Veterans Affairs Office of the Inspector General for their thorough investigation into this crime.”
Sampson pled guilty as charged. The facts introduced at the time of the plea revealed that Sampson admitted to placing a hidden camera, disguised to look like a cell phone charger power adapter, in a restroom at the Pensacola VA Joint Ambulatory Care Center approximately 17 times. When VA employees discovered the recording device and notified the VA Police, Sampson attempted to wrestle the employees for control of the device. Sampson later admitted that he had placed the device in the restroom to record individuals in the restroom and would later watch the footage.
The Department of Veterans Affairs Police responded to the disturbance and initiated the investigation into the allegations before forwarding the case to the Veterans Affairs Office of the Inspector General.
Sampson’s sentencing hearing is scheduled for August 19, 2021, at 2:00 pm, at the United States Courthouse in Pensacola before the Honorable Elizabeth M. Timothy. Sampson faces up to one year of imprisonment on the Video Voyeurism Count, and up to six months imprisonment for the Disorderly Conduct Count.
The case is being prosecuted by Assistant United States Attorney Jennifer H. Callahan and Special Assistant United States Attorney Matthew Kalayjian, a member of the United States Navy JAG Corps.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Utah Man Sentenced to 30 Years in Prison for Murdering his Wife on a Cruise Ship in Southeast AlaskaRead the Press Release
JUNEAU – A Utah man was sentenced today to 30 years in federal prison followed by five years of supervised release for the beating death of his wife during a 2017 family cruise to Alaska.
Kenneth Manzanares, 43, pleaded guilty in February 2020 to the second-degree murder of Kristy Manzanares while onboard the Emerald Princess cruise ship in the U.S. Territorial Waters outside southeast Alaska on July 25, 2017.
“In 2017 Kenneth Manzanares brutally murdered his wife Kristy Manzanares while on an Alaskan cruise with their three daughters and extended family members. This was not a random act of violence but a chilling neglect for human life for which he will serve 30 years in federal prison, where there is no parole ever,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska.
“While today’s sentence will not bring Kristy back to her family and friends, we hope it provides a sense of justice for this heinous crime and brings some closure to those who knew and cared about her.”
“No excuse can justify the savagery committed by this man, who will now spend the next three decades behind bars,” said Robert Britt, Special Agent in Charge of the FBI Anchorage Field Office. “The FBI worked tirelessly, with the support of our partners, to seek justice for Kristy – a beloved mother, daughter, sister and friend. While justice has now been served, the lasting impact and trauma this man inflicted on Kristy’s family can never be erased. Our thoughts are with Kristy’s family and her home community.”
According to court documents, on July 24, 2017, Kenneth Manzanares, Kristy Manzanares, their three daughters and Kristy’s extended family members boarded the Emerald Princess on an Alaskan cruise. On the evening of July 25, Kenneth and Kristy were inside their cabin along with two of their daughters.
According to admissions made in connection with the plea, Kenneth and Kristy became involved in an argument about Kenneth’s behavior that evening. During the argument, Kristy stated she wanted a divorce and told him to get off the ship in Juneau and travel back home to Utah. Kenneth told the two daughters to leave the room and both went into an adjoining relatives’ cabin. A few minutes later, they both heard Kristy scream and attempted to reenter the cabin using the adjoining door when Kenneth told them “don’t come in here.” They both went to the connected balcony and saw Kenneth straddling Kristy on the bed striking her in the head with closed fists.
Prior to security officers arriving in the cabin, Kristy Manzanares’ two brothers and father arrived on scene. One of the brothers saw Kenneth Manzanares drag Kristy’s body toward the balcony and he grabbed her ankles pulling her back into the cabin. Soon after, at approximately 9:00 p.m., ship security and medical personnel arrived and attempted to perform life saving measures on Kristy but were unsuccessful. It was determined that she was killed by blunt force trauma to her head and face. Manzanares was arrested, on July 26, 2017, and has remained in federal custody.
The FBI’s Anchorage Field Office conducted the investigation leading to the charges in this case. Additional investigative assistance was provided by the FBI’s Seattle and Salt Lake City Field Offices, the U.S. Coast Guard Investigative Service (CGIS), Coast Guard District 17, U.S. Customs and Border Protection (CBP) and the U.S. Postal Inspection Service (USPIS).
Assistant U.S. Attorney Jack Schmidt prosecuted the case.
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Tyngsborough Police Officer Indicted for Bank Fraud and National Firearms Act ViolationsRead the Press Release
BOSTON – A Tyngsborough police officer was indicted yesterday by a federal grand jury on bank fraud and violations of the National Firearms Act (NFA).
Daniel Whitman, 36, of Salisbury, was indicted on one count of bank fraud conspiracy, two counts of bank fraud, two counts of making false statements to a bank, one count of possession of an unregistered firearm, one count of making a firearm in violation of the NFA and one count of transferring a firearm in violation of the NFA. Whitman was previously charged and arrested in January 2021 with conspiracy to violate provisions of the NFA.
According to the charging documents, Whitman is a police officer with the Tyngsborough Police Department and was the owner and principal manager of Hitman Firearms, LLC, a retail gun shop in Tyngsborough. It is alleged that Whitman and co-conspirator Bin Lu sought to build a large indoor shooting range, which would serve regional and international customers, and offer shooting clinics and other services. Whitman and Lu brought in a Chinese investor, who contributed several million dollars to the project. However, in applying for loans from federally insured financial institutions, Whitman allegedly hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.
It is also alleged that Whitman knowingly made, possessed and transferred firearms that had been modified by the addition of stocks and short barrels, resulting in their classification as short-barreled rifles (SBR) under the NFA. These SBRs were not properly registered in the National Firearms Registration and Transfer Record as required by the NFA, nor did Whitman pay the applicable taxes or fulfill other requirements under the NFA.
In May 2021, Lu agreed to plead guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. A plea hearing is scheduled for June 8, 2021.
The bank fraud charges provide for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The NFA charges provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Pleads Guilty to Hate Crime Charges After Using Dating App to Target Gay Men for Violent CrimesRead the Press Release
A Texas man pleaded guilty yesterday to federal hate crime charges in the U.S. District Court for the Northern District of Texas.
According to court documents, Daniel Jenkins, 22, of Dallas, pleaded guilty yesterday to a federal hate crime and two other charges in connection with his involvement in a scheme to target gay men for violent crimes, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney for the Northern District of Texas Prerak Shah, and FBI Special Agent-in-Charge Matthew J. DeSarno of the Dallas Field Office. Jenkins is the last of four defendants to plead guilty to charges stemming from the scheme.
Jenkins pleaded guilty to one hate crime count, one count of conspiracy to commit hate crimes, kidnapping, and carjacking, and one count of use of a firearm during and in relation to a crime of violence.
“The Department of Justice and the Civil Rights Division are committed to confronting the scourge of hate-based violence gripping communities across our nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We denounce hate-based violence in all of its forms, including violence targeting individuals based on sexual orientation and gender identity. We will continue to diligently investigate and prosecute violent, bias-motivated crimes to the fullest extent. As noted by Attorney General Garland, we stand ready to use every tool in our arsenal to address the rise in hate and we will work to hold perpetrators of hate-motivated violence accountable.”
“These defendants brutalized multiple victims, singling them out due to their sexual orientation. We cannot allow this sort of violence to fester unchecked,” said Acting U.S. Attorney Prerak Shah of the Northern District of Texas. “The Department of Justice is committed to prosecuting hate crimes. In the meantime, we urge dating app users to remain vigilant. Unfortunately, predators often lurk online.”
“Investigating hate crimes is one of the FBI's highest priorities because of the devastating impact they have on families and communities,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “We are committed to the pursuit of offenders and holding them accountable for perpetrating these harmful crimes. No one should have to live in fear of violence because of who they are, where they are from or what they believe. We will continue working with our law enforcement and community partners to detect and prevent violent incidents motivated by hate or bias. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
According to court documents filed in connection with his guilty plea, Jenkins admitted that he and his co-conspirators used Grindr, a social media dating platform used primarily by gay men, to lure gay men to a vacant apartment and other areas in and around Dallas for robbery, carjacking, kidnapping, and hate crimes over the course of approximately a week in December 2017. Jenkins admitted that he and his co-conspirators held victims against their will; pointed a handgun at victims and took their personal property, including their vehicles; and traveled to local ATMs to withdraw cash from the victims’ accounts. Jenkins further admitted that he and his co-conspirators physically injured at least one victim and taunted the victims based upon the co-conspirators’ perception of the men’s sexual orientation.
In March 2019, Michael Atkinson pleaded guilty to conspiracy and kidnapping charges in connection with this case. In December 2019, Daryl Henry and Pablo Ceniceros-Deleon pleaded guilty to a federal hate crime and other charges in connection with this case. Sentencing for these three defendants is set for June 23.
Daniel Jenkins’ sentencing is set for Oct. 6. Pursuant to the terms of the plea agreement, Jenkins faces a sentence of up to 26 years in prison.
The FBI’s Dallas Field Office conducted the federal investigation; a separate criminal investigation is being conducted by the Dallas Police Department. Special Litigation Counsel Rose E. Gibson and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division along with Assistant U.S. Attorney Nicole Dana of the Northern District of Texas are prosecuting the case.
Swindler Sentenced to Federal Prison for $6.8M Securities Fraud SchemeRead the Press Release
AUSTIN – A federal judge sentenced 45-year-old Christopher Matthew Meredith of Shawnee, Kansas to 14 years in federal prison today for his scheme to defraud investors of more than $6.8 million.
In addition to the prison term, U.S. District Judge Robert Pitman ordered Meredith to pay $6,820,510.50 in restitution and to be placed on supervised release for a period of three years after completing his prison term. Following today’s hearing, Judge Pitman remanded Meredith to the custody of the U.S. Marshals Service to begin serving his prison term.
“This con artist targeted dozens of retirees and other investors who resided in the Brenham area as well as other parts of Texas and the country. He obtained millions of dollars through blatant lies and then funded his lifestyle with their money,” said U.S. Attorney Ashley Hoff. “I commend the prosecutors and our partners from the FBI and the Texas State Securities Board for bringing Meredith to justice and providing his victims with a measure of closure.”
On January 8, 2020, Meredith pleaded guilty to one count of securities fraud. According to court documents, Meredith solicited investors for his company, Strategic Pharma, Inc. (SPI), under false pretenses from January 2015 to March 2017. Meredith told investors that SPI had agreements, business operations, money and assets, knowing this was false. For example, Meredith intentionally told investors that SPI had entered into agreements with the Department of Veterans Affairs (VA) and Biopharma Services, Inc. that would result in substantial revenue for SPI. Meredith created a counterfeit VA contract and showed it to investors to prop up his lie. Meredith also failed to disclose to his investors that he was under investigation for a similar investment fraud scheme in Florida where he eventually pleaded guilty to felony grand theft. Meredith persuaded investors to give him money in return for shares of SPI stock. Then he used investor funds for his own personal benefit, including the purchase of a home, and for the benefit of his relatives and associates.
“As a result of the relentless investigative efforts of the FBI San Antonio, Austin White Collar Task Force and the Texas State Securities Board, Meredith will no longer swindle members of our community out of their hard-earned dollars,” said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division. “Over 100 investors were identified as victims in this case, many of whom lost their retirement savings. We hope they find some solace in seeing Meredith brought to justice and held accountable for his pattern of willful deceit."
“The State Securities Board is pleased with today’s sentencing. The gravity of financial crime and its impact on our investors was well reflected with the imposition of a fourteen-year sentence for Mr. Meredith,” said Texas State Securities Board Commissioner Travis J. Iles. “Texas investors saw justice today. The good work of the Western District’s U.S. Attorney's Office, the FBI, and our investigator made the result possible.”
Assistant U.S. Attorneys Alan M. Buie, Daniel Castillo and Robert Almonte prosecuted this case.
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St. Croix Man Sentenced to Federal Prison for Attempting to Smuggle Cocaine Thru the Henry E. Rohlsen AirportRead the Press Release
ST. CROIX, USVI - U.S. Attorney Gretchen C.F. Shappert announced that yesterday, Zion Hazel, 24, of St. Croix, appeared before Visiting Judge Anne E. Thompson in U.S. District Court on St. Croix and was sentenced to 27 months in prison on the charge of Conspiracy to Possess Cocaine with Intent to Distribute.
According to court documents, on April 12, 2018, Zion Hazel, along with co-defendants Keithley Parris and Don-Luke George, conspired to bring 2 kilograms of cocaine into the Henry E. Rohlsen Airport with the intent to transport the cocaine to Miami via American Airlines flight #2227. Specifically, George, who was employed at the airport, smuggled four bricks of cocaine into the passenger waiting area of the airport, and delivered them to Hazel in the handicap stall of the men’s restroom. Hazel was a passenger on the outgoing American Airlines flight but was intercepted with the cocaine prior to boarding his flight by Customs and Border Protection officers.
Customs and Border Protection and Homeland Security Investigations investigated the case. The DEA Southeast Laboratory in Miami analyzed the cocaine.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
St. Croix Man Previously Convicted of a Felony Pleads to Firearm Charge in Federal CourtRead the Press Release
ST. CROIX, USVI – U.S. Attorney Gretchen C.F. Shappert announced that yesterday, Lionel Woodley, 35, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., in U.S. District Court on St. Croix and entered a guilty plea to the charge of Felon in Possession of Firearm.
According to court documents, on March 17, 2019, Virgin Islands Police Department (VIPD) officers stopped the vehicle driven by Woodley at around 11:30 p.m. for failing to observe a stop sign and passing on a double yellow line. During the traffic stop, VIPD officers noticed the odor of marijuana emanating from Woodley’s vehicle. The officers searched the vehicle and located a revolver in the center console, a bag on the front seat containing approximately 20 grams of marijuana, approximately 7 grams of cocaine, along with $105.00, and a scale. Police also found and seized $701 on Woodley’s person. Woodley did not have a license to possess the firearm and had previously been convicted of the felony offense of Attempted Robbery Second Degree by the Superior Court of the Virgin Islands.
This offense carries a possible sentence of incarceration of up to 10 years, a maximum fine of up to $250,000 dollars, and a term of supervised release of at least 2 years. Sentencing is set for October 1, 2021.
The Virgin Islands Police Department and the Drug Enforcement Administration (DEA) investigated the case.
Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.Somersworth Man Sentenced to 90 Months for Child Pornography CrimesRead the Press Release
CONCORD - Joseph Gaudreau, 25, of Somersworth, was sentenced to 90 months in federal prison for possessing and distributing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on April 26, 2017, the New Hampshire State Police (“NHSP”) received three tips previously submitted to the National Center for Missing and Exploited Children by the online communications application Skype. The tips reported that on three separate occasions on March 21, 2017, the same user account uploaded files to Skype that were identified as child sexual abuse images. NHSP investigators later determined that the Skype account was associated with Gaudreau.
NHSP investigators spoke with Gaudreau at his residence in Somersworth on August 30, 2017. In a voluntary interview, Gaudreau admitted to possessing child pornography and sharing it with others on the internet using multiple applications, including Skype. He told law enforcement that he generally stored images in his Dropbox account, which he could access from any internet-capable device.
Law enforcement officers next obtained a search warrant for the contents of any Dropbox account associated with the username or e-mail that Gaudreau voluntarily provided them during the interview. The materials received from Dropbox included numerous video files and still images of child pornography.
Gaudreau previously pleaded guilty on January 7, 2021. In addition to the prison sentence, Gaudreau will be under supervised release for seven years once he is released.
“In order to protect children, we work closely with our law enforcement partners to investigate crimes involving child pornography and child exploitation,” said Acting U.S. Attorney Farley. “As this prison sentence demonstrates, crimes against children are serious offenses with very significant penalties. This sentence should serve as a warning that those who possess or distribute child sexual abuse images will be held accountable for their unlawful and disturbing conduct.”
“Today’s sentencing of Gaudreau is a significant step toward preventing him from further possessing and distributing repulsive online child abuse images such as those uncovered in this investigation,” said William S. Walker, Acting Special Agent In Charge, Homeland Security Investigations, Boston. “HSI hopes that the sentence imposed today will bring some measure of justice to the innocent victims who were exploited by the repeated distribution of these illicit images by Gaudreau and his cohorts. Today’s sentencing would not have been achieved without the crucial teamwork and strong support of the New Hampshire Internet Crimes Against Children Task Force, the New Hampshire State Police, the Somersworth Police Department and the Office of the U.S. Attorney for New Hampshire.”
This matter was investigated by the New Hampshire State Police, NH Internet Crimes Against Children Task Force, and Homeland Security Investigations, with assistance from the Somersworth Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Serial Fraudster Sentenced to More Than Six Years in Federal Prison for Multiple Fraud Schemes Resulting in Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Robert Lee Snowden Jr., age 45, of Owings Mills, Maryland, to 78 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud and for aggravated identity theft, in connection with a series of fraud schemes perpetrated between 2013 and 2020. Additionally, Judge Hollander ordered that Snowden pay restitution of $1,021,583.72.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Inspector General M. Sutherland of the Office of Inspector General for the Maryland Department of Human Services.
According to the statement of facts that was part of his guilty plea, from 2013 to July 16, 2020, Snowden conspired to defraud the Maryland Department of Human Services (DHS) and the Federal Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the “Food Stamp Program,” by using victims’ stolen identification information to obtain SNAP benefits. Snowden sold the SNAP benefits for cash at approximately 50% of the value of the benefits on the SNAP card.
In 2011, prior to being laid off from his temporary position at a health care business, Snowden stole lists of health care professionals’ personal identifying information. Beginning in 2013, Snowden used the health care professionals’ stolen identity information to apply for SNAP benefits, creating fraudulent supporting documents in the names of the victims to provide when requested during the application process. Snowden used the addresses of acquaintances or nearby vacant homes for the mailing of SNAP cards, which Snowden, or another at his direction, would pick up from those addresses.
Snowden admitted that he sold the majority of the SNAP benefit cards for cash. After the buyer used the SNAP card, the card was returned to Snowden, who would sell the card to another buyer when the next month’s benefits were loaded to the card. Snowden and his co-conspirator, Larae Betrand, also used the SNAP cards at stores to purchase groceries for themselves. Over 220 victims’ identities were used to apply for SNAP benefits and at least $1,021,583.72 in SNAP benefits were issued and redeemed through the scheme. Snowden also used victims’ identities to open utility accounts including internet, phone, and electricity at his residence.
From 2015 to 2019, Snowden was in a relationship with Larae Betrand. Betrand was aware of and participated in the SNAP fraud scheme. In addition to receiving DHS mail and SNAP benefit cards at her home address, Betrand sometimes posed as victims on phone calls with DHS and provided false information to secure approval of the fraudulent SNAP applications. Snowden provided Betrand fraudulent SNAP cards for her personal use.
As detailed in his plea agreement, Snowden and Betrand also engaged in a scheme to obtain fraudulent loans from banks and a credit union by providing false employment information on applications for six vehicle loans. Snowden fabricated documents, intending to deceive the lenders regarding his and Betrand’s ability to repay the loans. Snowden was unemployed during all relevant times, and Snowden was aware that Betrand earned significantly less than they claimed on the false documents. Between March 2017 and February 2020 Snowden and Betrand fraudulently obtained $92,668.58 for four auto loans—two loan applications were denied.
Finally, in the spring of 2020 and continuing through at least July 9,2020, Snowden attempted to obtain COVID-19 SBA Economic Injury Disaster Loan (EIDL) using the identity of at least one of the SNAP victims. Using the victim’s information, Snowden established a fictitious business entity in the name of the victim and obtained fraudulent credentials to apply for EIDL. Snowden did not complete the transaction before law enforcement searched his residence on July 16, 2020.
Betrand, age 39, of Elkridge, Maryland, previously pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in relation to this scheme and is awaiting sentencing. Betrand will also be ordered to pay at least $5,000 restitution.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of Agriculture Office of Inspector General, the U.S. Postal Inspection Service, and the Maryland Department of Human Services Office of Inspector General for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the case.
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Sacramento Man Sentenced to 27 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Javontae D. Rucker, 29, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 27 years in prison for production of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between February and March 2017, while babysitting, Rucker took advantage of an infant in his care, and he used his cellphone to produce pornographic images and a video of the victim and himself. Rucker also admitted to possessing over a thousand child pornography videos and images of other victims.
“Given the severity of this defendant’s conduct and the need to deter him and protect the public from further crimes by him—especially young, vulnerable children like the infant victim—today’s sentence is necessary and appropriate,” said Acting U.S. Attorney Talbert. “We are committed to investigating and prosecuting those who create or possess these horrific images and will relentlessly pursue predators who sexually abuse children.”
“This case exemplifies the work the FBI and our law enforcement partners at the Sacramento County Sheriff’s Office do to identify and investigate child predators who exploit innocence and trust in truly horrific ways,” said Special Agent in charge Sean Ragan of the FBI Sacramento Field Office.“ Javontae Rucker exploited his trusted role as a babysitter for a family, preying upon an innocent infant in his care. Cases like these remind us all of the important role the FBI has in protecting our country’s children from child predators who live among us.”
This case was the product of an investigation by the Internet Crimes Against Children Task Force, composed of various law enforcement agencies, including the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rockland Man Pleads Guilty to Making Hoax Distress CallRead the Press Release
PORTLAND, Maine: A Rockland man pleaded guilty today in federal court to making a hoax distress call, Acting U.S. Attorney Donald E. Clark announced.
According to court documents, on December 3, 2020, while at the Spruce Head Fisherman’s Co-op, Nathan Libby, 31, communicated a false distress call for a vessel and crew reportedly taking on water in the vicinity of Spruce Head. In response, the U.S. Coast Guard initiated a search lasting more than five hours, which included the use of a local Coast Guard vessel, a Maine Marine Patrol vessel, and a helicopter from Coast Guard Air Station Cape Cod. Further investigation identified Libby as the caller and the search was suspended as a hoax call.
The Coast Guard pursues all distress calls, and when dealing with hoax cases, crews will search until the nature and legitimacy of the calls are resolved.
“I applaud the collaborative efforts of the Department of Justice, Maine Marine Patrol, Rockland Police Department, and the United States Coast Guard in bringing this case to a close and ensuring accountability for Mr. Libby’s actions,” said Capt. Brian LeFebvre, Sector Commander of Coast Guard Sector Northern New England. “Hoax calls like the call Mr. Libby placed unnecessarily put our rescue crews at risk, waste resources, and may limit our ability to respond to actual emergencies.”
Libby faces up to five years in prison, a $250,000 fine, a $10,000 civil penalty and reimbursement for all costs incurred in responding to the false distress message. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Coast Guard Investigative Service, the Maine Marine Patrol and Coast Guard Sector Northern New England investigated the case.
Riverside Man Pleads Guilty to Animal Crushing Charge for Severely Injuring Puppy Then Posting Videos of the Animal on Social MediaRead the Press Release
LOS ANGELES – A Riverside County man pleaded guilty today to a federal criminal charge for inflicting severe injuries on a puppy – including slitting its throat – then posting videos of the suffering animal on his social media accounts.
Angel Ramos-Corrales, 19, of Riverside, pleaded guilty to one felony count of animal crushing.
According to his plea agreement, on February 13, Ramos-Corrales assaulted his pet dog, whom he named “Canelo,” inflicting severe injuries to the puppy’s head and torso, causing skull and rib fractures. The dog’s injuries caused it to continuously fall headfirst, and Ramos-Corrales recorded a video of the injured puppy and posted it on his Instagram account.
On the same day, Ramos-Corrales slit Canelo’s throat by approximately 4.4 centimeters (1.7 inches), causing the dog to bleed significantly and lapse into unconsciousness. While Canelo was lying on a bathroom floor, Ramos-Corrales recorded a video of the puppy and posted it on his Snapchat account, according to the plea agreement. On the video, Ramos-Corrales makes a series of statements, including “I’m cold-hearted,” and then callously kicks the still-alive Canelo.
After law enforcement arrived at Ramos-Corrales’ residence, Riverside County Department of Animal Services took custody of Canelo and a veterinarian determined that the dog was still alive, but later euthanized Canelo because of the severity of the dog’s injuries.
United States District Judge John F. Walter has scheduled an August 16 sentencing hearing, at which time Ramos-Corrales will face a statutory maximum sentence of seven years in federal prison.
The FBI investigated this matter and received substantial assistance from the Riverside Police Department. The Riverside County District Attorney’s Office received the initial referral from the Riverside Police Department, and, after reviewing the matter and conferring with the United States Attorney’s Office, a decision was made that federal prosecutors would file the case.
Assistant United States Attorney Julius J. Nam of the Riverside Branch Office is prosecuting this case.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Allen Libby, age 29, was sentenced on May 26, 2021, to 48 months in federal prison and 3 years of supervised release and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Libby, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Hi-Point, 9mm semiautomatic pistol and 9mm ammunition, which was found after Libby came into contact with law enforcement in April 2020 in Rapid City.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Libby was immediately remanded to the custody of the US Marshals Service.
Project Parkersburg Update: Wood County Man Sentenced to 25 Years in Prison for Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Aurelius Edmonds, 37, of Vienna was sentenced today to 25 years in federal prison for conspiracy to distribute more than 500 grams of methamphetamine.
According to court documents, Edmonds admitted that he and co-defendants Terrence McGuirk and Antoine Terry together agreed to purchase methamphetamine and cocaine from a source of supply in Phoenix, Arizona in August 2018. Edmonds traveled to Phoenix to purchase the drugs and make arrangements with Todd Land and Troy Pastorino to ship them to Dayton, Ohio where he, Terry and McGuirk would take possession of the shipment. Police learned of the deal and intercepted the shipment in a traffic stop of Troy Pastorino in Dayton, Ohio on September 19, 2018. Edmonds, Terry and Land were arrested at a night club where they were awaiting word from Pastorino that the shipment was ready for pickup. McGuirk was arrested in his nearby hotel room. The shipment contained 121 pounds of ICE methamphetamine and 6 kilograms of cocaine. Edmonds admitted his intent to distribute the cocaine in Ohio and return to Parkersburg with the proceeds. For their roles in the drug conspiracy, Terry and McGuirk received sentences of 10 years and 25 years in prison, respectively.
Of the other defendants charged in federal court, Todd Land, Jeffrey Hoyler, Nicholas Easton, T.J. Gibson, Edward Marks, Amy Rake, Marshall Polan, Troy Pastorino, Michael Holley, Colleen Moyle, Amanda Atkinson, and Michael Rhodes have been sentenced.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the excellent investigative work of the Federal Bureau of Investigation (FBI), the Parkersburg Police Department, the Dayton (Ohio) Police Department and the Parkersburg Narcotics and Violent Crime Task Force.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Joshua Hanks and Jeremy Wolfe are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00225.
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Presque Isle Man Sentenced on Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Presque Isle man was sentenced in federal court today for conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Kaleb Dahlgren, 32, to 10 years in prison and three years of supervised release. Dahlgren pleaded guilty in January 2021.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Dahlgren and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Dahlgren traveled with co-conspirators on at least one such trip to Mexico and Arizona to obtain methamphetamine and transport it back to Maine.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Petal Woman Pleads Guilty to CARES Act Unemployment Insurance Benefits FraudRead the Press Release
Hattiesburg, Miss. – Delma Ruth High, 64, of Petal, pleaded guilty to theft of government funds involving unemployment insurance benefits fraud, announced Acting U.S. Attorney Darren J. Lamarca and U.S. Secret Service Resident Agent in Charge Shawn Wolfe.
In May 2020, a local bank alerted the U.S. Secret Service Jackson Resident Office that unemployment insurance benefits from the State of Washington and Arizona had been deposited into High’s account. This information was provided in relation to High’s actions in the days leading up to her account being closed for fraudulent activity. An investigation into these benefits revealed that they were deposited into High’s account under other individuals’ names. The unemployment insurance benefits were federally subsidized through the CARES Act in response to the COVID-19 pandemic.
High pled guilty today to theft of government funds. She is scheduled to be sentenced on Wednesday, October 6, 2021, and faces up to 10 years in prison. Senior U.S. District Court Judge Keith Starrett will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the United States Secret Service.
Assistant U.S. Attorneys Meghan M. McCalla and William Dieters prosecuted the case.
This case is being prosecuted as part of the Department of Justice’s National Unemployment Insurance Fraud Task Force (NUIFTF). In response to the unprecedented scope of Unemployment Insurance (UI) fraud, the Department of Justice established the NUIFTF. The NUIFTF is a prosecutor-led multi-agency task force with representatives from FBI, DOL-OIG, IRS-CI, HSI, DHS-OIG, USPIS, USSS, SSA-OIG, FDIC-OIG, and other agencies. Members of the NUIFTF are working with state workforce agencies, financial institutions, and other law enforcement partners across the country to fight UI fraud, and consumers should be vigilant in light of these threats and take the appropriate steps to safeguard themselves.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Parker Man Sentenced to Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX, Ariz. – On Tuesday, Marcus Leon Tuchawena, 24, of Parker, Arizona, was sentenced by U.S. District Judge Dominic W. Lanza to 84 months in prison for abusive sexual contact with a minor. Tuchawena was also sentenced to lifetime supervised release and is required to register as a sex offender. Tuchawena previously pleaded guilty to this charge.
On October 21, 2019, Tuchawena engaged in abusive sexual contact with the minor victim at a home in Parker, Arizona, on the Colorado River Indian Tribes Indian Reservation. Tuchawena and the victim are both enrolled members of the Colorado River Indian Tribes.
The Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix handled the prosecution.
CASE NUMBER: CR-20-00145-PHX-DWL
RELEASE NUMBER: 2021-036_Tuchawena# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Owners of Underground, International Financial Institutions Sentenced for Operating Unlicensed Money Transmitting BusinessRead the Press Release
Assistant U.S. Attorneys Daniel Silva (619) 546-9713 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – June 3, 2021
SAN DIEGO –Lei Zhang of Las Vegas, Nevada, was sentenced in federal court yesterday to 15 months in prison and the forfeiture of $150,000 for operating an unlicensed money transmitting business.
Zhang is believed to be the first individual in the United States sentenced for his role in developing a new form of unlawful underground financial institution that transfers money between the United States and China, thereby circumventing domestic and foreign laws regarding monetary transfers and reporting, including United States anti-money laundering scrutiny and Chinese capital flight controls.
As set forth in court documents, Zhang would collect U.S. dollars (in cash) from various third-parties in the United States and deliver that cash to a customer, typically a high-roller gambler from China who could not readily access cash in the United States due to capital controls that limit to $50,000 per year the amount of Chinese currency an individual can convert to foreign currency. Upon receipt of the U.S. dollars, the gambler would transfer the equivalent value of Chinese yuan (using a banking app) from the customer’s Chinese bank account to a Chinese bank account designated by defendant Zhang. For facilitating these transactions, Zhang was paid a commission based on the monetary value illegally transferred.
Zhang further admitted that he was regularly introduced to customers by casino hosts, who sought to increase the gambling play of the casino’s customers. By connecting cash-starved gamblers in the United States with Zhang’s illicit money transmitting businesses, the casinos increased the domestic cash play of their China-based high-roller customers. All a gambler needed was a mobile device with remote access to a China-based bank account. As a result, Zhang managed to transmit and convert electronic funds in China into hard currency in the United States, all while circumventing the obstacles imposed both by China’s capital controls and the anti-money laundering scrutiny imposed on all United States financial institutions. For their efforts, the casino hosts often received a cut of Zhang’s commission.
“The groundbreaking work by these investigative agents in identifying and ferreting out this new form of illicit money transmittal cannot be overstated,” noted Acting U.S. Attorney Randy Grossman. “Prosecuting global money laundering is a priority for the U.S. Attorney’s Office.”
Special Agents from Homeland Security Investigations, IRS Criminal Investigation Las Vegas Financial Crimes Task Force, and the Drug Enforcement Administration led the investigation into Zhang’s operations.
DEFENDANT Case Number 20-CR-370-WQH
Lei Zhang Las Vegas, NV Age: 41
SUMMARY OF CHARGES
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
IRS Criminal Investigation Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
Orlando Man Sentenced to 32 Months in Federal Prison for Passport Fraud and Illegal Reentry After DeportationRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Donovan Davey (57, Orlando) to 32 months in federal prison for making a false statement in a passport application, aggravated identity theft, falsely claiming U.S. citizenship, and illegally reentering the United States after being deported.
Davey had pleaded guilty on March 3, 2021.
According to court documents, Davey is a citizen of Jamaica. He does not have lawful status to reside in the United States and was physically removed from the United States to Jamaica in 2005 and 2012. In October 2009, Davey fraudulently filed an application for a U.S. passport using the name of Connecticut resident J.T. and including J.T.’s date of birth and social security number but submitting Davey’s photograph. As a result of this fraudulent application, a U.S. passport was issued to Davey in J.T.’s name.
In March 2020, Davey fraudulently filed an application with the U.S. Department of State to renew the passport that he held in J.T.’s name. In the renewal application, Davey again provided J.T.’s personal identifying information, but Davey’s photograph. In the renewal application, Davey attested under penalty of perjury that he was “a citizen or non-citizen national of the United States,” which was not true.
In September 2020, Davey was arrested in Orlando after having returned to the United States without authorization from the U.S. Attorney General or the Secretary of the Department of Homeland Security.
“Today’s sentencing sends a strong message: the Diplomatic Security Service is committed to ensuring those who commit passport fraud and identity theft face consequences for their criminal actions,” said DSS Special Agent in Charge Peter Kapoukakis of the Miami Field Office. “Our strong relationships with the U.S. Attorney’s Office and other law enforcement agencies continue to be essential in the pursuit of justice and safeguarding our national security.”
“A U.S. passport is an important document around the world, and this criminal thought he could get one through fraud,” said U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Miami Field Office Director Michael Meade. “Federal agencies working together stopped his scheme and made our communities and nation safer.”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service (DSS) and U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations (ERO). It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Oncologist Sentenced to 20 Years in Prison in Pill Mill ConspiracyRead the Press Release
An oncologist has been sentenced to 20 years in federal prison for running a pill mill, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Arrested in DEA Dallas’ “Operation Wasted Daze,” Dr. Caesar Mark Capistrano, 61, was convicted at trial in January three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance. He was sentenced Thursday by U.S. District Judge Reed C. O’Connor.
“Doctors who run pill mills knowingly profit off of vulnerable people’s addictions,” said Acting U.S. Attorney Prerak Shah. “The Justice Department is determined to prosecute doctors who funnel powerful prescription drugs onto our streets. We will do everything within our power to curb the opioid epidemic.”
“Using one’s trusted status as a medical professional for unlawful acts cannot go unpunished,” stated Eduardo A. Chávez, Special Agent in Charge of the DEA’s Dallas Field Division. “The Dallas DEA will always seek justice against those who take advantage of individuals, especially ones who suffer from addiction.”
According to evidence presented at three different trials conducted in early 2021, Dr. Capistrano and his associate, 36-year-old Dr. Tameka Lachelle Noel, wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.
Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, used a network of recruiters to enlist individuals from the community and local homeless shelters to pose as “patients.” Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel.
The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pill mill pharmacies and diverted the drugs for resale on the streets. The pharmacists charged the recruiters between $200 and $800 per prescription, filling hundreds and hundreds of prescriptions for a fee, according to evidence presented at trial.
At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose. In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.
Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine.
Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.
Medical professionals convicted in the scheme include:
- Caesar Mark Capistrano, medical doctor
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute a controlled substance and was sentenced to 20 years in federal prison
- Tameka Lachelle Noel, medical doctor
Pleaded guilty on 11/16/2020 to conspiracy to dispense a controlled substance and was sentenced to eight years federal prison
- Ngozika Tracey Njoku, nurse practitioner
Pleaded guilty on 11/20/2020 to conspiracy to dispense a controlled substance and was sentenced to six months in federal prison
Clinic staff convicted in the scheme include:
- Shirley Ann Williams, clinic office manager
Pleaded guilty on 11/18/2020 to conspiracy to disperse a controlled substance and was sentenced to six years in federal prison
- Latonya Ann Tucker, office staff
Pleaded guilty on 11/20/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison
Pharmacists convicted in the scheme include:
- Wilkinson Oloyede Thomas, Calvary Pharmacy
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense controlled substances and one count of possession with intent to distribute controlled substances
- Christopher Kalejaiye Ajayi, Remcare Pharmacy
Convicted at trial on 3/2/2021 of three counts of conspiracy to dispense controlled substances, and two counts of possession with intent to distribute controlled substances
- Bartholomew Anny Akubukwe, Beco Pharmacy
Pleaded guilty on 11/18/2020 to conspiracy to dispense a controlled substance and was sentenced to 11 years in federal prison
- Nedal Helmi Naser, Brandy Pharmacy
Pleaded guilty on 3/16/2021 to conspiracy to dispense a controlled substance
- Ethel Oyekunle-Bubu, Ethel’s Pharmacy
Convicted at trial on 1/28/2021 of three counts of conspiracy to dispense a controlled substance and two counts of possession with intent to distribute controlled substances
Recruiters convicted in the scheme include:
- Ritchie Dale Milligan, Jr
Pleaded guilty on 11/18/2020 to conspiracy to distribute a controlled substance and was sentenced to eight years federal prison
- Wayne Benard Kincade
Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance
- Katie Lorane Parker
Pleaded guilty on 11/16/2020 to conspiracy to distribute a controlled substance and was sentenced to four years in federal prison
- Cynthia Denise Cooks
Pleaded guilty on 11/25/2020 to conspiracy to distribute a controlled substance and was sentenced to five years federal prison
The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department. The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. Assistant U.S. Attorneys Laura Montes and Shawn Smith are prosecuting the case.
- Caesar Mark Capistrano, medical doctor
Office Manager Pleads Guilty to Embezzling More Than $1 Million from His Former EmployerRead the Press Release
CHARLOTTE, N.C. – Richard Allen Clark, 55, of Lenoir, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for embezzling more than $1 million from his former employer, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to plea documents and statements made in court, from 2013 to 2019, Clark was employed as an office manager for two family owned businesses in Lenoir, and was responsible for, among other things, handling the companies’ bookkeeping and financial records, making payments to vendors and the IRS, and reconciling the companies’ bank accounts. According to court documents, Clark used his position and his access to the companies’ financial records and bank accounts to embezzle more than $1 million from his employers, and used the United States mail to carry out his scheme. According to the indictment, Clark stole money from a company bank account the owner had directed Clark to close. Instead of closing the account, Clark used it to steal from his employer, by instructing customers to make payments to that account.
Clark also admitted that he laundered the funds he embezzled from his employer by withdrawing customer funds from the company’s bank account through multiple fraudulent checks payable to himself, which he deposited into multiple personal bank accounts. Court records show that Clark then used the stolen funds to pay for his personal lifestyle, including to make payments for his home mortgage, to make auto loan payments for an F-150 truck and other vehicles, to install a home theater system, and to pay for travelling and shopping expenses, among other things.
Finally, Clark pled guilty to filing a false U.S. income tax return for tax year 2018 by deliberately failing to claim the additional income he stole from his employers. According to the filed Indictment, Clark falsely declared only his legitimate W-2 income on his 2014 through 2018 U.S. Joint Income Tax Returns, resulting in approximately $195,000 in lost taxes to the United States.
Clark pleaded guilty to one count of mail fraud, which carries a maximum prison term of 30 years in prison and a $1 million fine; one count of money laundering, which carries a maximum penalty of 20 years in prison and a $500,000 fine; and one count of making a false statement on his tax return, which carries a maximum term of three years in prison and a $100,000 fine per count.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI, the USPIS, and the Caldwell County Sheriff’s office for their investigation which led to the charges.
Assistant U.S. Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
New Orleans Woman Sentenced on Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on May 26, 2021, ZYETA RUDOLPH, age 42, a resident of Orleans Parish, Louisiana, was sentenced to serve 37 months in the custody of the United States Bureau of Prisons for participating in a conspiracy to distribute cocaine. RUDOLPH was also sentenced to 4 years of supervised release following imprisonment and payment of a $100 mandatory special assessment fee.
These charges stemmed from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in South Louisiana and Houston, Texas. This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, ZYETA RUDOLPH, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”. To date, Elbert Childs, ZYETA RUDOLPH, and Dale Phillips have pled guilty.
During her guilty plea in this case, ZYETA RUDOLPH admitted that she was a drug courier for her brother Gene Rudolph. She acknowledged that she had transported between 3.5 and 5 kilograms of cocaine from Houston to the greater New Orleans area on behalf of her brother.
The case was investigated by the Drug Enforcement Administration (D.E.A.), and the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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New Orleans Woman Sentenced on Federal Drug Trafficking ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on May 26, 2021, ZYETA RUDOLPH, age 42, a resident of Orleans Parish, Louisiana, was sentenced to serve 37 months in the custody of the United States Bureau of Prisons for participating in a conspiracy to distribute cocaine. RUDOLPH was also sentenced to 4 years of supervised release following imprisonment and payment of a $100 mandatory special assessment fee.
These charges stemmed from an investigation by both the United States Drug Enforcement Administration and the Plaquemines Parish Sheriff’s Office into the illegal distribution of drugs in South Louisiana and Houston, Texas. This investigation led to the Indictment of Paul Metz, Eugene Rudolph, Elbert Childs, ZYETA RUDOLPH, Yrian Devoure, and Dale Phillips back in May 2019 under case number 19-087 “H”. To date, Elbert Childs, ZYETA RUDOLPH, and Dale Phillips have pled guilty.
During her guilty plea in this case, ZYETA RUDOLPH admitted that she was a drug courier for her brother Gene Rudolph. She acknowledged that she had transported between 3.5 and 5 kilograms of cocaine from Houston to the greater New Orleans area on behalf of her brother.
The case was investigated by the Drug Enforcement Administration (D.E.A.), and the Plaquemines Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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Monterey Attorney Sentenced to Two Years in Prison for Embezzling from Trust That Owned Premises of San Francisco’s Elite Cafe RestaurantRead the Press Release
SAN FRANCISCO – John Arthur Hudson was sentenced in federal court yesterday to two years in prison and ordered to pay $828,521.52 in restitution for his wire fraud convictions based on fraudulent loans he obtained that were secured by real property held in a trust that he administered, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig Fair. The sentence was handed down by the Honorable James Donato, United States District Judge.
Hudson, 71, an attorney whose law practice was based in the Monterey County area, pleaded guilty to two counts of wire fraud on October 28, 2020. According to the complaint that charged him, Hudson was appointed to be trustee of a trust in 2011. The trust owned a commercial property on Fillmore Street in San Francisco and received rental income from its tenant The Elite Cafe, a New Orleans-inspired restaurant.
According to the plea agreement, Hudson committed fraud by obtaining loans secured by the trust’s property in a scheme that began in or about April 2011 and continued through June 2018. As trustee of the trust, Hudson pledged the Fillmore property as security for loans and concealed the loans from the trust’s two beneficiaries, to whom he owed fiduciary duties. He also lied to the lenders by representing the loan proceeds would be used to improve the Fillmore property. Once he obtained the loan proceeds, Hudson did not put the funds towards improving the Fillmore property but instead used the funds to benefit himself personally, including paying his own mortgage, issuing checks payable to himself, paying credit card bills for expenses unconnected to the trust, and paying other personal expenses.
The plea agreement further revealed the steps Hudson took to conceal his fraud. For example, Hudson hid the existence of the loans in documents and communications regarding the trust by falsifying the balance of the trust’s funds. He concealed information regarding a personal injury lawsuit against the trust from the two trust beneficiaries, as the lawsuit named a lender as a co-defendant in the action. Hudson further obtained documentation reflecting improvements made to the Fillmore property but paid for by its tenant and then provided that documentation to a lender, misrepresenting to the lender that he had used the lender’s funds to pay for those improvements to the Fillmore property.
Hudson personally obtained at least $693,000 by embezzling from his victims, according to his plea agreement.
In addition to the prison term, United States District Judge Donato ordered Hudson to pay $828,521.52 in restitution and sentenced him to a three-year period of supervised release. Hudson remains out of custody and will begin serving his prison term on September 13, 2021.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is a result of an investigation by the Federal Bureau of Investigation.
Monmouth County Man Charged with Bankruptcy FraudRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man made his initial court appearance today for allegedly filing a fraudulent bankruptcy petition claiming he had limited assets and hundreds of millions of dollars in liabilities, when, in fact, he had $2.9 million in a hidden bank account, Acting U.S. Attorney Rachael Honig announced today.
Elia Zois, 56, of Colts Neck, New Jersey, is charged by complaint with one count of concealment in bankruptcy. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Leda Dunn Wettre.
According to the complaint:
Zois was one of five partners in “Business-2,” a New Jersey-based health care organization that maintained approximately 50 senior living facilities throughout New Jersey, Michigan, and Wisconsin. On Feb. 6, 2019, he and his spouse filed for Chapter 7 bankruptcy protection, alleging that between 2014 and 2018 he had only $9,000 in assets and $201 million in liabilities, based upon his partnership in Business-2. A forensic accounting report concluded that during that period Zois received $2.9 million in deposits into the bank account of “Business-1” – of which Zois was the sole owner – including approximately $200,000 in undeclared income after he filed for bankruptcy. The hidden account was intended to conceal a portion of his income to circumvent existing IRS liens on his known assets.
The count of concealment in a bankruptcy carries a maximum penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited the investigators of the U.S. Department of Labor, Employee Benefits Security Administration, under supervision of Regional Director Thomas Licetti; and special agents of the Department of Labor (OIG), New York Region, under the direction of Acting Special Agent in Charge Nikitas Splagounias, with the investigation leading to the charges. She also thanked special agents of the FBI, Milwaukee field office, for their assistance.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michigan Registered Sex Offender Sentenced to 10 Years for Using the Internet to Attempt to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan today sentenced Arthur Jay Traxler, Jr. (55, Monroe, Michigan) to 10 years in federal prison for attempted online enticement of a minor to engage in sexual activity. Traxler has been detained since his arrest in November 2020. Traxler was already a registered sex offender, having been convicted of criminal sexual conduct (4th degree) in 2016, and was on probation at the time that he committed this federal offense.
Traxler had pleaded guilty on March 4, 2021.
According to the plea agreement, between July 21 and August 4, 2020, Traxler engaged in a series of conversations over the internet with a person whom he believed to be a 14-year-old child. Unbeknownst to Traxler, this “child” was an undercover FBI agent. During the course of the online conversations, Traxler discussed in detail his desire to have the “child” send him images of the “child” engaging in sexually explicit conduct. FBI agents arrested Traxler in Michigan on November 9, 2020, and he admitted that he had been chatting online with the “child.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Massachusetts Man Sentenced to 60 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Doriel Guerrero, 22, of Methuen, was sentenced to 60 months in federal prison for conspiracy to distribute, and possess with intent to distribute, fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in early June 2019, Guerrero contacted an undercover law enforcement officer via Facebook. He explained to the agent he was looking for potential business partners to help distribute fentanyl and provided the agent with a phone number. On several occasions between August and November of 2019, law enforcement agents used undercover officers and cooperating individuals to purchase fentanyl from Guerrero and his co-defendant, Joel Espinosa.
Guerrero previously pleaded guilty on February 23, 2021. Espinosa previously pleaded guilty and was sentenced to 30 months in prison.
“Fentanyl traffickers continue to cause tremendous damage to our community,” said Acting U.S. Attorney Farley. “We will continue to work closely with our law enforcement partners to identify and prosecute those who distribute this deadly drug in the Granite State.”
“Fentanyl is causing grave damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “The men and women of DEA along with our law enforcement partners are hard at work protecting the public by taking this poison off the streets of New Hampshire.”
This matter was investigated by the Drug Enforcement Administration, New Hampshire State Police, Massachusetts State Police, and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Matthew T. Hunter.
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Massachusetts Man Sentenced for Robbing Two Rhode Island BanksRead the Press Release
PROVIDENCE, R.I. – A Weymouth, MA, man was sentenced today to four years in federal prison for robbing two Rhode Island banks.
In December 2019, Kevin Donovan, 43, pled guilty as charged by way of a federal indictment with two counts of bank robbery.
At the time of his guilty plea, Donovan admitted that on May 23, 2019, he walked into a Citizen’s Bank branch in East Providence, handed a teller a note that read, “No die packs. Sorry,” grabbed $3,475 from a teller draw the bank teller placed on the counter, and fled.
Donovan also admitted, that on June 4, 2019, he entered a Citizen’s Bank branch in North Providence, handed a teller a blank note, and left the bank. About 45 minutes later he entered a Citizen’s Bank branch in Pawtucket, handed a teller a note that read, “Please don’t yell, lets make this fast. It was either this or kill myself No die Packs. Quick! Very sorry.” Donovan left the bank with a bag containing $3,371.90 and a dye pack.
Today, U.S. District Court Judge William E. Smith sentenced Donovan to a term of 48 months of incarceration in federal prison to be followed by three years of federal supervised release. Donovan was ordered to pay restitution in the amount of $6,846.90.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The robberies were investigated by the East Providence Police Department, North Providence Police Department, Pawtucket Police Department and the FBI.
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Massachusetts Man Pleads Guilty After Getting Caught with Nearly 60-Pounds of MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Daren Lewis, 40, of Quincy, MA, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute 500 grams or more of methamphetamine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorneys Justin G. Bish and Nicholas T. Cooper, who are handling the case, stated that on July 10, 2020, Homeland Security Investigations (HSI) in Flagstaff, Arizona received an alert regarding a suspicious cargo shipment, originating in California and destined for Tonawanda, NY. The shipment was manifested as personal effects and the phone number provided by the shipper was not a working number.
HSI Buffalo and the Erie County Sheriff's Office began investigating the shipment after its arrival in Tonawanda. At approximately 1:45 p.m. on July 13, 2020, the defendant arrived at an area cargo terminal in a U-Haul rental truck. After going inside the office, Lewis returned to the truck and backed the U-Haul up to the container holding the suspicious shipment. Lewis opened the locks on the container and positioned the doors of the U-Haul truck to obscure the area between the truck and the container before going into the container. After a short time, he was observed in the cab of the truck and appeared to be using a telephone. After closing the doors on the back of the U-Haul truck and driving away from the cargo terminal, the defendant was stopped on Sheridan Drive in Tonawanda by Erie County Sheriff's Deputies. The defendant and the U-Haul truck were transported to an Erie County Sheriff's Office. A search warrant was executed on the U-Haul. Inside, investigators discovered two cardboard boxes containing shrink wrapped packages. One of the packages was opened and found to contain a bag of a white crystal substance, which field tested positive for methamphetamine. The shipment contained a total of 59.5 pounds of suspected methamphetamine. The estimated street value of the suspected methamphetamine is $2,700,000. Lewis was arrested.
The plea is the culmination of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Niagara County Drug Task Force, under the direction of Niagara County Sheriff Michael Filicetti.
Sentencing is scheduled for October 13, 2021, before Judge Vilardo.
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Marysville Man Indicted on Child Exploitation ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Brent Hooton, 48, of Marysville, charging him with sexual exploitation of a child and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, Hooton produced images of a child under the age of 12 engaged in sexually explicit conduct. Hooton then distributed those images to other users over the Kik messaging application.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Mira Chernick is prosecuting the case.
If convicted of sexual exploitation of a child, Hooton faces a mandatory minimum sentence of 15 years in prison, a maximum statutory penalty of 30 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Lorain Man with History of Violence Sentenced to 15 Years After Conviction of Felon in Possession of AmmunitionRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Ronald Mickel, 41, of Lorain, was sentenced on Wednesday, June 2, 2021, by U.S. District Court Judge Sara Lioi to 15 years imprisonment. A federal jury convicted Mickel of being a felon in possession of ammunition in September 2020.
According to court documents and evidence presented at trial, on January 4, 2019, Mickel was sentenced to 3 years of community control supervision following a conviction for domestic violence in the Lorain County Common Pleas Court. In November of 2019, Parole Officers with Ohio Adult Parole Authority (APA) received reliable information that Mickel was in possession of a firearm. On November 21, 2019, Mickel tested positive for THC, a violation of the conditions of his supervision.
As a result of these developments, on November 26, 2019, APA Parole Officers conducted a search at the residence belonging to Mickel and located in the 32 rounds of 9mm ammunition and 16 grams of suspected marijuana. Mickel was arrested and charged with one count of felon in possession of ammunition.
Prior to his arrest on November 26, 2019, Mickel had several convictions for other violent crimes. In 1999, Mickel was convicted of aggravated robbery. In 2013, Mickel was convicted of assault and in 2015, Mickel was convicted on three separate occasions of felony domestic violence and once of burglary. Finally, in 2019, Mickel was once again convicted of felony domestic violence.
This investigation was conducted by the ATF and Ohio Adult Parole Authority. This case was prosecuted by Assistant U.S. Attorneys John C. Hanley and Bryson Gillard.
Lincoln Woman Sentenced for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Taeh Mitchell, 27, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for possession with the intent to distribute 50 grams or more of actual methamphetamine. Chief United States District Judge John M. Gerrard sentenced Mitchell to 63 months in prison followed by a 4-year term of supervised release. There is no parole in the federal system.
On August 4, 2019, law enforcement was dispatched to investigate a suspicious vehicle in Lincoln. Law enforcement encountered Mitchell in a van with another individual. Mitchell’s purse was seized from the van and searched. Inside was 97.65 grams of lab-confirmed methamphetamine, of which at least 93 grams was actual methamphetamine, a digital scale, and number of unused baggies.
This case was investigated by the Lincoln Police Department and Lincoln/Lancaster County Narcotics Task Force.
Lancaster Man Going to Prison for A Decade for Selling Heroin and Fentanyl That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Levine, 24, of Lancaster, NY, who was convicted of conspiring to distribute heroin and fentanyl, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Joseph M. Tripi and Charles J. Volkert, Jr., who handled the case, stated that between June 2013 and March 23, 2017, the defendant conspired with Robert Moore and others to distribute heroin in the City of Buffalo and surrounding suburbs. Levine was a user of the heroin and fentanyl he obtained from Moore, but during the course of the conspiracy, he also re-distributed some of the drugs to other users for profit.
On February 18, 2017, Levine received a quantity of heroin and fentanyl from Moore, which Levine, in turn, distributed to an individual identified as B.G., who thereafter died as the result of an overdose.
During the course of the investigation, law enforcement officers from the Amherst, Lancaster, and Buffalo Police Departments, and the New York State Police and DEA, conducted 11 controlled purchases of fentanyl and butyryl fentanyl from co-defendant Robert Moore. Additionally, on February 23, 2017, law enforcement officers with the Amherst Police Department conducted a controlled purchase of fentanyl from Joshua Levine. On March 16, 2017, law enforcement officers conducted search warrants at Robert Moore’s residence on Glenwood Drive in Williamsville, NY, and also at Joshua Levine’s residence on Aurora Street in Lancaster, NY. A quantity of fentanyl with identical drug packaging was discovered at each of those residences.
Both Robert Moore and Joshua Levine were arrested the day of the search warrants.
Robert Moore was previously convicted and is awaiting sentencing. Two other co-defendant, Reese Moore, and Kevin Abernathy, were also previously convicted and sentenced.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Ray Donovan, Special Agent-in-Charge, New York Field Division; the Amherst Police Department, under the direction of Chief Scott P. Chamberlin; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Mary Clark, and Lieutenant Kevin Reyes; the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Buffalo Police Department Narcotics Squad, under the direction of Commissioner Byron C. Lockwood; the Lockport Police Department, under the direction of Police Chief Steven Abbott; the Depew Police Department, under the direction of Chief Jerome Miller; the Niagara County Sherriff’s Office and the Niagara County Drug Task Force, under the direction of Sheriff Michael Filicetti; the Erie County Sherriff’s Office, under the direction of Sheriff Timothy Howard; and Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
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Kissimmee Man Pleads Guilty to Conspiring to Distribute Kilos of CocaineRead the Press Release
Jacksonville, Florida – Eddie “Macho” Martinez-Marquez (32, Kissimmee) has pleaded guilty to conspiring to possess with intent to distribute and to distribute five kilograms or more of cocaine. Martinez-Marquez faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between December 2016 and August 2018, Martinez-Marquez supplied cocaine to a co-conspirator in Jacksonville, Florida. The amounts varied, but Martinez-Marquez typically would supply one or two kilograms, twice per month, which the co-conspirator would then sell in the Jacksonville area. Martinez-Marquez charged $27,000 per kilogram, and at times, “fronted” the drugs to his co-conspirator, essentially supplying the drugs on credit. The pair used couriers to transport drugs and money between each other in the Jacksonville and Orlando metro areas.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Florida Highway Patrol, and the North Florida High Intensity Drug Trafficking Area Task Force. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
KC Man Sentenced to 20 Years for Metro-area Armed RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for the armed robberies of eight metropolitan-area businesses during the summer of 2017.
Calvin C. Wallace, III, 30, was sentenced by U.S. Chief District Judge Beth Phillips to 20 years in federal prison without parole.
On Nov. 9, 2020, Wallace pleaded guilty to one count of conspiracy to commit robbery, seven counts of robbery, and one count of possessing a firearm in furtherance of a violent crime.
Wallace admitted that he engaged in a conspiracy to commit robberies at eight Kansas City metropolitan area businesses from June 29 to Aug. 3, 2017. The total loss over the month and a half was approximately $24,511. After the stolen iPhones and iPad were recovered, the court today ordered Wallace to pay $1,917 in restitution.
Wallace robbed Tobacco Outlet, 5020 Parvin Road in Kansas City, Mo., at gunpoint on June 29, 2017. Wallace took money, scales, a torch, tobacco wraps and boxes of cigarettes.
Wallace robbed (or attempted to rob) two businesses on July 24, 2017. Wallace attempted to rob GNC, 2682 N.E. Vivion Road in Kansas City, Mo., at knifepoint. Wallace robbed Conoco Minit Mart, 8100 Westridge Road in Raytown, Mo., at gunpoint.
On July 27, 2017, Wallace robbed Cosmo Prof, 5526 N. Antioch Road in Kansas City, Mo., at gunpoint.
Wallace robbed another Cosmo Prof, 9429 Mission Road in Leawood, Kan., at gunpoint on July 28, 2017. Wallace demanded that the clerk give him her ring, but she refused. The clerk opened two cash registers while Wallace pointed a firearm at her, and he took money from those registers, as well as a pair of hair clippers. Wallace demanded that the clerk go into the back of the store or he would shoot her.
Wallace robbed Circle K, 909 N.W. Chipman Road in Lee’s Summit, Mo., at gunpoint on Aug. 1, 2017. Wallace stole money and cartons of cigarettes.
Wallace attempted to rob Shell, 5401 Northwest 64th Street in Kansas City, Mo., at gunpoint on Aug. 2, 2017.
Wallace robbed AT&T, 303 South Commercial Street in Harrisonville, Mo., at gunpoint on Aug. 3, 2017. Wallace stole money, 29 iPhones and an iPad.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Raytown, Mo., Police Department, the Leawood, Kan., Police Department, the Lee’s Summit, Mo., Police Department, the Harrisonville, Mo., Police Department, the Cass County, Mo., Sheriff’s Department and the Belton, Mo., Police Department.
Justice Department, EPA, and the State of Indiana Reach Clean Air Act Settlement with Lone Star IndustriesRead the Press Release
INDIANAPOLIS - Lone Star Industries Inc, a subsidiary of Italian company Buzzi Unicem, has agreed to upgrade and optimize pollution control equipment and procedures at its cement manufacturing facility in Greencastle, Indiana, to resolve Clean Air Act (CAA) violations brought by the U.S. Environmental Protection Agency (EPA) and the State of Indiana Department of Environmental Management.
The complaint filed simultaneously with the settlement alleges numerous, longstanding Clean Air Act violations at the Greencastle plant that date from 2010 to the present. Many of the violations involved opacity in emissions that exceeded state and federal limits. Opacity measures the amount of light blocked by emissions of particulate matter (PM). Particulate matter, especially fine particulates, contains microscopic solids or liquid droplets, which can migrate deep into the lungs and cause serious health problems. The complaint also alleges violations of CAA requirements that limit emissions of other hazardous air pollutants from the burning of hazardous wastes which Lone Star uses to heat its cement kilns.
“This settlement is a reminder that industrial facilities must comply with laws and prevent illegal emissions of harmful pollutants from plant operations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD) “The settlement requires Lone Star to improve its processes and pollution controls to protect air quality and the public health in surrounding communities.”
“The health of the citizens of the State of Indiana is a top priority of my office” said Acting U.S. Attorney John Childress. “Successful efforts such as this to protect and preserve the environment for current and future generations, demonstrates our ongoing dedication to that goal.”
“EPA is committed to improving air quality in Indiana in order to protect people’s health and the environment,” said Acting EPA Region 5 Administrator Cheryl Newton. “Reducing particulate matter especially benefits vulnerable populations such as children, older adults, and people with heart or lung diseases.”
Under the settlement, Lone Star will also pay $729,000 in civil penalties spilt equally between the United States and the State of Indiana, and undertake additional measures not required by law to mitigate past violations of CAA opacity limits.
EPA estimates that the measures in the consent decree will reduce emissions of particular matter from the Lone Star plant by 2.44 tons per year, carbon monoxide emissions by 46.39 tons per year, and other hazardous air pollutants by 1.69 tons. Lone Star will spend approximately $1.4 million at the Greencastle facility to bring it into compliance and to mitigate for past harm.
The settlement was lodged today in the U.S. District Court for the Southern District of Indiana and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/consent-decrees.
Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.
Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.