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3 June 2021
Justice Department, EPA and the State of Indiana Reach Clean Air Act Settlement with Lone Star IndustriesRead the Press Release
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. 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 the law 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 of the Southern District of Indiana. “Successful efforts such as this protect and preserve the environment for current and future generations and demonstrate 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 also will pay $729,000 in civil penalties, split equally between the United States and the State of Indiana, and will 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 particulate 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 per year. 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 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.
Justice Department Obtains Settlement from San Diego Landlord to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
Assistant U. S. Attorney Leslie Gardner (619) 546-7603
NEWS RELEASE SUMMARY – June 3, 2021
SAN DIEGO – The Justice Department today announced it has reached an agreement with landlord Larry Nelson to resolve a Fair Housing Act lawsuit alleging that he sexually harassed female tenants while owning and managing San Diego area rental properties.
Under the consent order entered by the United States District Court for the Southern District of California, Nelson must pay at least $230,000: $205,000 in damages to tenants harmed by his harassment and a $25,000 civil penalty to the United States. A judgment for an additional $350,000 also was entered against Nelson in favor of the United States but is suspended based on sworn disclosure statements reflecting Nelson’s financial situation. Any misrepresentation or omission by Nelson on those disclosure statements will trigger collection of the suspended judgment. Nelson also is prohibited from being involved in property management of rental units in the future and must hire an independent professional property manager. He also must implement a nondiscrimination policy and complaint procedure, and must release judgments obtained against victims whom he wrongfully evicted.
The United States’ lawsuit alleged that Nelson’s harassment spanned a period of nearly two decades. The allegations included that Nelson, among other things, engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicted or threatened to evict female tenants who objected to or refused his sexual advance.
“A person’s home should be a refuge, a place where an individual can feel secure and protected,” said Pamela Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division. “Sexual harassment in housing often destroys that sense of safety and security and leaves victims afraid in their own homes. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants, and will continue vigorously to pursue allegations of sexual harassment.”
“Abusive landlords in San Diego and Imperial counties should be on notice that protecting the civil rights of citizens in our district is a top priority, and we do not tolerate discrimination and harassment in housing,” said Acting U.S. Attorney for the Southern District of California Randy S. Grossman. “Holding a key to someone’s property is a position of trust, not a license to engage in illegal sexual harassment and sexual demands.”
This case was jointly litigated by attorneys in the Civil Rights Division and the Civil Division of the United States Attorney’s Office for the Southern District of California. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.5 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
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Justice Department Obtains Settlement from San Diego Landlord to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department today announced it has reached an agreement with defendant Larry Nelson to resolve a Fair Housing Act lawsuit alleging that he sexually harassed female tenants while owning and managing San Diego area rental properties.
Under the consent order entered by the U.S. District Court for the Southern District of California, Nelson must pay at least $230,000 to $205,000 in damages to tenants harmed by his harassment and a $25,000 civil penalty to the United States. A judgment for an additional $350,000 also was entered against Nelson in favor of the United States, but is suspended based on sworn disclosure statements reflecting Nelson’s financial situation. Any misrepresentation or omission by Nelson on those disclosure statements will trigger collection of the suspended judgment. Nelson also is prohibited from being involved in property management of rental units in the future and must hire an independent professional property manager. He also must implement a nondiscrimination policy and complaint procedure and must release judgments obtained against victims whom he wrongfully evicted.
The United States’ lawsuit alleged that Nelson’s harassment spanned a period of nearly two decades. The allegations included that Nelson engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances, made intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicted or threatened to evict female tenants who objected to or refused his sexual advance.
“People deserve to be safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives them of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue vigorously to pursue allegations of sexual harassment.”
“Abusive landlords in San Diego and Imperial counties should be on notice that protecting the civil rights of citizens in our district is a top priority, and we do not tolerate discrimination and harassment in housing,” said Acting U.S. Attorney Randy S. Grossman for the Southern District of California. “Holding a key to someone’s property is a position of trust, not a license to engage in illegal sexual harassment and sexual demands.”
This case was jointly litigated by attorneys in the Civil Rights Division and the Civil Division of the U.S. Attorney’s Office for the Southern District of California. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $2.5 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Judges sentences St. Louis man for murder, witness tampering and drug chargesRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Maurice Woodson to 276 months in prison today. The 34-year-old St. Louis, Missouri resident pleaded guilty, in February, to one count of conspiracy to distribute cocaine, one count of discharging a firearm in furtherance of a drug trafficking crime resulting in death and one count of witness tampering.
Woodson was a member of a large-scale and long-term cocaine trafficking conspiracy between 2012 and 2016. Woodson and others bought large quantities of cocaine from convicted drug trafficker Adrian Lemons and Lemons’ associates in the St. Louis area. The investigation into Woodson and his associates developed evidence of a well-defined distribution network with a direct Mexican source of supply for cocaine. During the course of investigation, agents seized more than 70 kilograms of cocaine and well over one million dollars, among other things.
In furtherance of the drug trafficking conspiracy, Woodson was recruited to kill a person. Woodson agreed to commit the murder. On December 5, 2013, Woodson intentionally shot and killed the person as that person tried to enter his vehicle in the 3500 block of Kossuth. Woodson received both drugs and money as compensation for the murder. Similarly, Woodson was recruited to kill another victim in furtherance of the cocaine trafficking conspiracy. On November 28, 2014, Woodson lured the other person to a meeting. When the person arrived in the 900 block of Harlan, Woodson intentionally shot and killed him. He died as a result of his gunshot wounds. Two others who accompanied the victim were also shot and injured.
In January 2016, Woodson was indicted in federal court for his roles in the drug conspiracy and December 2013 murder. Woodson was ordered detained by a magistrate judge pending trial. While detained in a local holding facility, Woodson initiated a murder-for-hire scheme. As part of the scheme, Woodson recruited an individual to murder a potential witness to the December 2013 murder committed by Woodson. Utilizing female companions, Woodson arranged meetings with and payments to the individual recruited to murder the potential witness. Unbeknownst to Woodson, the individual recruited by Woodson to commit the murder-for-hire was an undercover law enforcement official.
“The purchase of a firearm intended for someone else, is straw purchasing and it is illegal. Doing so circumvents background checks and record keeping requirements that are intended to keep the public safe and impede access to firearms by prohibited and often violent criminals," said Frederic Winston, Special Agent-in-Charge for the ATF St. Louis Division. "Firearms trafficking is not a victimless crime; It is illegal and puts firearms in the hands of said prohibited and violent criminals. These investigation are a priority for ATF in our mission of reducing violent gun crime. “
Homeland Security Investigations, Drug Enforcement Administration, Federal Bureau of Investigation, St. Louis Metropolitan Police Department; Kennett Police Department, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Judge sentences registered sex offender to more than 20 years on child pornography chargesRead the Press Release
CAPE GIRARDEAU – United States District Judge Rodney W. Sippel sentenced Justin A. Williams to 270 months in prison today. The 29-year-old Cape Girardeau resident pleaded guilty, in December, to one count of receiving child pornography.
Williams admitted using the internet to solicit sexually explicit material from a 14-year old female from the state of Washington in December 2019. At the time he committed the offense, Williams was already required to register as a sex offender because of his 2015 state conviction for first-degree child molestation from the Circuit Court of Scott County. According to court records from that case, Williams sexually abused a six-year old female relative in 2014. Williams was released from the Missouri Department of Corrections just months before committing the federal offense.
After serving his 270-month federal sentence, Williams will be placed on supervised release for the rest of his life. Williams will also be required to continue registering as a sex offender.
This case was investigated by the Missouri State Highway Patrol and the Federal Bureau of Investigation. Assistant United States Attorney Jack Koester is handling the case.
Jacksonville Man Pleads Guilty to Submitting False Claims for FEMA Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – Deontres Javan Taylor (27, Jacksonville) has pleaded guilty to disaster assistance fraud involving Federal Emergency Management Agency (FEMA) benefits. He faces up to 30 years in federal prison and payment of restitution to the United States in the amount of $8,083.19. A sentencing date has not yet been set.
According to court documents, on September 4, 2017, Taylor made an application for disaster assistance benefits to FEMA. In the application, he claimed that his primary residence in Jacksonville had suffered storm damage from Hurricane Irma. Taylor stated that storm surge flooded his home and that lightning caused a power surge which resulted in the residence losing power. As a result of these issues, Taylor claimed that he had moved to a hotel and needed housing assistance. Based on the false statements made by Taylor in his application, FEMA paid $8,038.19 in benefits for Taylor.
Follow up investigation by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations, determined that Taylor hadn’t lived at the residence he had listed in his benefits application since at least 2015, and that he was not there when Hurricane Irma impacted the Jacksonville area. An inspection by FEMA of the residence that Taylor had listed in his benefits application determined that the home did not suffer storm surge damage nor lose power due to Hurricane Irma.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721 or submit a complaint online: https://www.justice.gov/DisasterComplaintForm.
Jackson Man Pleads Guilty to Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Jackson, Miss. - A Jackson man pleaded guilty today to possessing a firearm in furtherance of drug trafficking, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Michelle A. Sutphin of the Federal Bureau of Investigation in Mississippi.
On May 13, 2019, FBI agents and Jackson police officers executed a search warrant on a house in Jackson. When agents entered, Jekobie Lewis Ransburgh, 23, was sitting on a couch with a digital scale, packaged marijuana and crack-cocaine, and cash. In addition, a handgun was tucked in his pants. Ransburgh told agents the cash was drug proceeds and that he possessed the gun to protect the drugs and cash.
Ransburgh was indicted and pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced on September 16, 2021, and faces a mandatory minimum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and the Jackson Police Department are investigating the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
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.
Hudson County Man Admits Using Fake Passports to Conduct $450,000 Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in a conspiracy that used fake passports to open accounts at victim banks into which he and others deposited phony IRS refund checks, Acting U.S. Attorney Rachael A. Honig announced.
Mamadou Diallo, 44, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of bank fraud conspiracy and one count of false use of a passport.
According to documents filed in the case and statements made in court:
From June 2012 through December 2018, Diallo and others conspired to fraudulently obtain money from four victim banks. Diallo and his conspirators created false passports from various West African countries by affixing their own pictures onto passports bearing names other than their own. They opened fraudulent bank accounts at the victim banks using the doctored passports as photo identification. The conspirators deposited fraudulent checks bearing the routing number for the U.S. Treasury. Once the fraudulent checks were deposited, the conspirators withdrew the funds. To date, the losses associated with the conspiracy exceed $450,000.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greater. The passport fraud charge carries a maximum potential penalty of 15 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Oct. 13, 2021.
Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the U.S. Department of Treasury-Office of Inspector General, under the direction of Inspector General Richard K. Delmar; and the New York State Department of Taxation and Finance, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Honduran National Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Honduran national who led police on a high-speed chase after threatening to shoot one victim and carjacking another, has been sentenced in federal court for illegally possessing a firearm.
Jose Arevalo-Inestroza, 29, of Kansas City, Missouri, a Honduran national who is illegally in the United States, was sentenced by U.S. District Judge Greg Kays on Wednesday, June 2, to five years in federal prison without parole.
On Sept. 8, 2020, Arevalo-Inestroza pleaded guilty to being an alien in possession of a firearm. Arevalo-Inestroza, who entered the United States illegally from Honduras, admitted that he was in possession of a Sig Sauer 9mm semi-automatic pistol.
According to court documents, Arevalo-Inestroza and another person, both armed, threatened an employee at T&F Auto, 9701 Independence Ave., Kansas City, Mo. The employee told police the two men asked about a vehicle he had just finished working on, which they claimed belonged to one of their friends. He told them they couldn’t take the vehicle since it did not belong to them, and the battery was not working. Arevalo-Inestroza pulled out a handgun from his waistband and pointed it at the employee, and said, “Do you think I’m a clown? Guess what? I’m gonna kill you!” The employee put his hands up, and the second man appeared with a rifle and ordered him to turn around. The employee heard three gunshots from behind, which a witness later explained as Arevalo-Inestroza firing the shots into the ground near the employee.
The two men fled with Arevalo-Inestroza driving a white van. Police officers located the van at 8501 Winner Road in Kansas City, and pulled it over. When they got out of the van, Arevalo-Inestroza fled on foot and the other man resisted arrest. Officers found a loaded Sig Sauer 9mm semi-automatic handgun next to the driver’s seat and a loaded .22-caliber rifle under the front passenger seat.
As Arevalo-Inestroza fled from the police officers, he carjacked a white pick-up truck. When officers attempted to stop the truck, Arevalo-Inestroza fled at speeds exceeding 80 miles per hour, and nearly struck at least one vehicle while weaving in and out of traffic. He abandoned the truck at I-435 and 40 Highway and again fled on foot, at which point officers arrested him.
Arevalo-Inestroza was charged in Jackson County, Mo., with unlawful use of a weapon related to these events. He pleaded guilty on Feb. 20, 2020, was sentenced to a four-year suspended execution of sentence and was released to Immigration and Customs Enforcement on an immigration detainer.
Arevalo-Inestroza first entered the United States illegally in November 2006. After serving a 30-day sentence for the misdemeanor convictions of theft and criminal damage to property in Wyandotte County, Kansas, he was deported from the United States on May 17, 2018. He illegally reentered the United States sometime thereafter.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations.
Havre man admits to receiving child pornographyRead the Press Release
GREAT FALLS – A Havre man accused of receiving child pornography on his cell phone admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Joshua Daniel Kaupang, 38, pleaded guilty to receipt of child pornography. Kaupang faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and at least five years to life of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Sept. 19. Kaupang was released pending further proceedings.
In court documents filed in the case, the government alleged that in January 2019 in Havre, law enforcement executed a search warrant on Kaupang’s cell phone looking for evidence in a theft case. While searching the phone, agents observed child pornography files. An agent applied for a second search warrant and located child pornography. The investigation determined that Kaupang used his phone to view “sets” of child pornography that were available for download.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the Internet Crimes Against Children Task Force and the Montana Division of Criminal investigation.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Harrison County man admits to his involvement in bank robberyRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Alan Gill, of Salem, West Virginia, has admitted to his involvement in the robbery of Summit Community Bank in November 2020, Acting U.S. Attorney Randolph J. Bernard announced.
Gill, 61, pleaded guilty today to one count of “Accessory After the Fact – Bank Robbery.” Gill admitted to helping Clint Monroe Utter evade authorities. Utter is accused of robbing the Summit Community Bank in Salem, West Virginia, of $69,100 on November 17, 2020. (https://www.justice.gov/usao-ndwv/pr/harrison-county-man-indicted-bank-robbery)
Gill is facing up to 10 years of incarceration and a fine of up to $125,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guilty Verdict in Case of Unpermitted Snowboard-Instruction Business on Mammoth Mountain Ski Area, Within the Inyo National ForestRead the Press Release
BAKERSFIELD, Calif. — After a one–day bench trial, U.S. Magistrate Judge Jennifer L. Thurston found Jason E. Murchison, 37, of Huntington Beach, guilty today of one count of operating an unpermitted business on National Forest land, Acting U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Murchison operated an unpermitted snowboard-instructing service on Mammoth Mountain Ski Area, within the Inyo National Forest. In February 2020, an undercover operation revealed that Murchison was the principal operator of Learn to Snowboard and advertised paid lessons on a website www.learntosnowboardbb[.]com. Neither Learn to Snowboard nor Murchison had a special use authorization from the U.S. Forest Service to operate on Forest Service lands.
“The USDA Forest Service is entrusted with sustaining the health, diversity, and productivity of the nation’s forests to meet the needs of present and future generations,” said Don Hoang, Special Agent in Charge, Forest Service - Law Enforcement and Investigations, Pacific Southwest Region. “Unpermitted activity on National Forest System lands, however, negatively impacts our shared natural resources and authorized permittees. Forest Service Law Enforcement investigates and prosecutes unauthorized use like in this case to ensure the sustainability of National Forest System land.”
This case was the product of an investigation by the U.S. Forest Service and the Newport Beach Police Department. Special Assistant U.S. Attorney Philip N. Tankovich and Assistant U.S. Attorney Jeffrey Spivak prosecuted the case.
The charge is a class B misdemeanor, and immediately after trial, Judge Thurston sentenced Murchison to two years of probation and a fine of $500. A restitution hearing is scheduled for July 21.
Gaithersburg Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Bruce Ralph Sturtz, age 73, of Gaithersburg, Maryland, today to 10 years in federal prison, followed by 10 years of supervised release, for possession of child pornography. Judge Grimm also ordered that, upon his release from prison, Sturtz must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to Sturtz’s plea agreement, on February 26, 2017, a Maryland State Police (“MSP”) investigator conducted an online investigation of Sturtz after three separate law enforcement officers working through the Internet Crimes Against Children Task Force (“ICAC”) downloaded child pornography videos from a device at an IP address assigned to Sturtz’s residence. The investigator found that Sturtz’s computer was running software that allowed other users to download a video that had previously been identified as child pornography. The investigator downloaded and viewed the video, which documented the sexual abuse of a prepubescent female.
Less than a month later, on March 23 and March 24, 2017, investigators conducting online investigations for offenders sharing child pornography directed their focus to the Sturtz device because it was running the same computer software. The investigators downloaded and viewed videos shared by the Sturtz device, which contained images of prepubescent females engaged in sexually explicit conduct, including bondage and bestiality.
On October 25, 2017, a federal search warrant was executed on Sturtz’s residence. At the time the search warrant was executed, Sturtz was downloading child pornography onto his computer. Law enforcement seized a number of electronic devices. A subsequent forensic analysis of the seized electronic devices revealed at least 1,356 videos and 16 pictures depicting child pornography. The videos and images found on the seized electronic devices included child pornography of babies and toddlers, other children under 12 years of age, including incest, bondage, bestiality, and sexual acts between adults and victim children. Forensic analysts were also able to identify on the seized electronic devices the three video files that were downloaded by investigators from Sturtz’s device.
Sturz has previously been convicted of a sex offense involving a minor. On October 6, 2000, Sturtz pled guilty to a third-degree sex offense in the Circuit Court for Montgomery County, Maryland and was later sentenced to 10 years in prison, with all but eighteen months suspended, plus five years of probation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, and the Maryland State Police Internet Crimes Against Children Task Force for their work in this investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Joseph R. Baldwin, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Gainesville Man Convicted of Production, Receipt, and Possession of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville has convicted John Ernst Tennant, Jr., 70, of Gainesville, on charges of production, receipt, and possession of child pornography. The guilty verdict, reached by the jury today at the conclusion of a 3-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The prosecution of persons who sexually victimize children is a priority of this District,” stated Acting U.S. Attorney Coody. “With the assistance of our law enforcement partners, we will ensure that those who engage in such heinous conduct will be held accountable for their actions.”
Tennant’s sentencing hearing is scheduled for August 17, 2021, at 2:00 pm, at the United States Courthouse in Gainesville before the Honorable Allen Winsor. Tennant faces a mandatory minimum term of fifteen years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation between the Gainesville Police Department and Federal Bureau of Investigation Jacksonville Division as part of the North Florida Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Frank Williams prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fugitive from drug-trafficking investigation sentenced to federal prison after capture in Reno casinoRead the Press Release
SAVANNAH, GA: A California man who once operated a drug-trafficking ring in the Savannah area has been sentenced to federal prison after his capture in Nevada.
Antonio Acosta, 45, of Berkeley, Calif., was sentenced to 120 months in prison by U.S. District Court Judge William T. Moore Jr. after pleading guilty to two counts of Interstate and Foreign Travel or Transportation in Aid of Racketeering Enterprises (Conspiracy to Distribute, and Distribution, of Controlled Substances), said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Acosta will be required to serve three years of supervised release.
There is no parole in the federal system.
“We commend the alert law enforcement professionals who captured Antonio Acosta and returned him to the Southern District to be held responsible for spreading poison throughout the Savannah community,” said Acting U.S. Attorney Estes. “Justice was delayed, but it’s no longer denied.”
Acosta and eight co-defendants were indicted in February 2014 on federal drug trafficking charges following a two-year investigation by the U.S. Drug Enforcement Administration (DEA) and the Chatham-Savannah Counter Narcotics Team (CNT). As described in court documents and testimony, Acosta shipped kilogram quantities of cocaine via the U.S. Postal Service, and an extensive network of co-conspirators distributed those drugs throughout the greater Savannah area.
At the culmination of the investigation, DEA and CNT investigators executed search warrants in multiple locations, seizing large quantities of drugs, more than $200,000 in cash, multiple firearms, and drug distribution paraphernalia. Seven of the co-defendants pled guilty to charges in the indictment and received sentences of up to 127 months in federal prison; an eighth co-defendant died shortly after indictment. Acosta fled from the Savannah area, and on July 29, 2020, officers from the Reno, Nev., Police Department received a tip that Acosta was wanted for arrest and was in a Reno casino. Acosta was taken into custody without incident while sitting at a gambling table, and U.S. Marshals returned him to the Southern District where he was re-indicted in November 2020 and later pled guilty.
“This cocaine trafficker eluded justice and evaded law enforcement capture for six years,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “With patience, investigative skill and relentless pursuit, this fugitive from justice was captured. This is a shining example of how DEA and its law enforcement partners will work tirelessly to pursue drug traffickers who run from justice.”
“The dedication of the CNT Agents and our partners across the country who worked together for years to investigate, apprehend, and prosecute Acosta is remarkable,” said Michael G. Sarhatt, Director of the Chatham-Savannah Counter Narcotics Team. “The sentencing in this case demonstrates that no matter how long someone tries to hide, they will be held responsible for distributing these poisons in our community.”
The case was investigated by the DEA and CNT, with assistance from the Reno, Nev., Police Department and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorney Noah J. Abrams.
Fresno Gang Member Faces Federal Firearms ChargeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Keith Breazell, 31, of Fresno, charging him with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 25, 2021, detectives arrested Breazell for unlawfully possessing a semi‑automatic, .40-caliber pistol with no serial number. These guns are often referred to as “ghost guns” because the lack of a serial number on the firearm renders them untraceable. Breazell’s ghost gun was found inside a satchel that he had abandoned after fleeing from the approaching officers. The firearm was loaded with 15 rounds of ammunition. Breazell is prohibited from possessing firearms and ammunition because of his prior criminal history. In 2014, he was convicted of assaulting a person with a semiautomatic firearm. He also has two prior convictions for illegally possessing firearms.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Breazell faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is 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.
Four Members of Twin Cities Methamphetamine Trafficking Ring Sentenced to PrisonRead the Press Release
ST. PAUL, Minn. – Acting U.S. Attorney W. Anders Folk today announced that four people involved in a Twin Cities-based methamphetamine trafficking ring have been sentenced to prison for their roles in the drug distribution conspiracy.
Brandon Earl Swanson, 41, of Crystal, Minnesota, was sentenced to 144 months in prison and five years of supervised release. Jared William Merta, 40, of Montrose, Minnesota, was sentenced to 170 months in prison and five years of supervised release. Wayde Salem Salwei, 46, of Minnetonka, Minnesota, was sentenced to 132 months in prison and five years of supervised release. Katherine Byrd Campbell, 33, of Rochester, Minnesota, was sentenced to time served and five years of supervised release. Co-defendants Lucas Jay Madison and Mark Oren Schorn were previously sentenced by Judge Eric C. Tostrud to 235 and 180 months in prison, respectively.
According to court documents, between March 2020 through at least April 2020, the defendants were involved in a large-scale methamphetamine trafficking operation. On April 14, 2020, law enforcement stopped Madison and Campbell near Faribault, Minnesota, as they traveled back from Phoenix, Arizona. Law enforcement conducted a search of the vehicle and recovered approximately 23 pounds of methamphetamine contained within a backpack. The methamphetamine was intended for delivery to multiple co-conspirators in the Twin Cities and surrounding metropolitan area. On the same day, law enforcement conducted multiple search warrants, including Merta’s and Schorn’s apartments in Montrose, Madison’s apartment in St. Paul, and Madison’s car detailing business in Bloomington, Minnesota, where Madison, Swanson and other co-conspirators conducted their operations. As a result of these searches, law enforcement agents recovered more than $100,000 in U.S. currency, more than 780 grams of methamphetamine, three handguns, multiple digital scales, THC cartridges, multiple cell phones, and other drug paraphernalia.
This case was the result of an investigation conducted by the United States Drug Enforcement Administration, the Anoka Hennepin Drug Task Force, the Cannon River Drug & Violent Offender Task Force, the Southeast Minnesota Gang and Drug Task Force, the Wright County Sheriff’s Office, the Rice County Sheriff’s Office, the Anoka County Sheriff’s Office, the Minnesota State Patrol, and the Edina Police Department.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Former Youngstown Area Physician Sentenced to 22 Years for Sex Trafficking MinorsRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Albert Aiad-Toss, 53, of Canfield, was sentenced today by U.S. District Court Judge Pamela A. Barker to 22 years of imprisonment, lifetime supervised release, a $50,000 fine and a special assessment of $40,800. Aiad-Toss, a Youngstown-area physician at the time of the offense conduct, previously pleaded guilty to seven counts of sex trafficking of a minor and one count of child exploitation. This case is the District’s largest juvenile sex trafficking prosecution to date.
“Juvenile sex traffickers like Aiad-Toss prey upon our most important resource – our children,” said Acting U.S. Attorney Bridget M. Brennan. “Through the collaborative efforts of the Ashland Police Department, the Federal Bureau of Investigation, the Ashland County Prosecutor’s Office and our office, law enforcement has once again demonstrated our unwavering commitment to holding traffickers accountable and protecting our children. The young victims in this case bravely and courageously shared their experiences and certainly prevented other young girls from being similarly victimized.”
“The sentence today is the culmination of months of hard work by multiple law enforcement agencies to bring this offender to justice,” said Christopher Tunnell, Ashland County Prosecutor and Special Assistant U.S. Attorney. “We are sending a unified message to anyone perpetrating crimes against our children that no matter who you are, we will bring every resource at our disposal to bear upon you, and you will be made to answer for your crimes.”
"The abuse of a child is both despicable and incomprehensible," said FBI Special Agent in Charge Eric B. Smith. "Aiad-Toss, using his position of trust, admitted to engaging in sexual acts with minors. As a result, Aiad-Toss will be serving a significant and just sentence in federal prison. Law enforcement will continue our unceasing efforts to protect our most precious resource, our children."
As set out in court documents, between June 1, 2019, and June 29, 2019, Aiad-Toss used the online application Snapchat to entice, recruit and patronize six minor female victims, all between the ages of 12 and 15, to engage in sexual conduct with him by providing them with money, alcohol, new clothes and other items of value. He specifically budgeted $2,000 per month to be spent on obtaining young girls for sexual exploitation.
To avoid detection, Aiad-Toss targeted young girls in Ashland County, which was approximately 90 miles away from his home in Youngstown, to avoid being seen by anyone he knew. To further avoid detection, he typically arranged for the girls to enter hotel rooms through a side door rather than through the main entrance.
Many of Aiad-Toss’ encounters involved more than one of the juvenile victims meeting him in a hotel room at the same time. On June 15, 2019, surveillance video obtained by investigators show Aiad-Toss inside a hotel with three juvenile victims. Additionally, investigators located an image taken on June 17, 2019, depicting Aiad-Toss in a vehicle with three juvenile victims.
Aiad-Toss’ conduct also included the exploitation of another child by using Snapchat to entice and receive sexually explicit images and videos.
Aiad-Toss was arrested on July 5, 2019.
This case was investigated by the Federal Bureau of Investigation and the Ashland Police Department. This case was prosecuted by Assistant U.S. Attorney Ranya Elzein, Acting U.S. Attorney Bridget M. Brennan and with the assistance of Ashland County Prosecutor and Special Assistant U.S. Attorney Christopher Tunnell.
Former Senior FinCEN Employee Sentenced to Six Months in Prison for Unlawfully Disclosing Suspicious Activity ReportsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that NATALIE MAYFLOWER SOURS EDWARDS, a/k/a “Natalie Sours,” a/k/a “Natalie May Edwards,” a/k/a “May Edwards,” a former Senior Advisor at the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”), was sentenced to six months in federal prison for unlawfully disclosing Suspicious Activity Reports (“SARs”) and other sensitive information. EDWARDS previously pled guilty to participating in a conspiracy to disclose SARs before United States District Judge Gregory H. Woods, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Today’s sentence demonstrates that public servants who abuse the power entrusted to them will face steep consequences for their actions. Maintaining the confidentiality of SARs, which are filed by banks and other financial institutions to alert law enforcement to potentially illegal transactions, is critical to preserve the integrity of myriad investigations, and the financial privacy of individuals. Government employees entrusted with such highly sensitive information owe a duty to safeguard that information. The defendant abused that trust to serve her own purposes, broke the law, and now faces time in a federal prison for her actions.”
According to the allegations contained in the Complaint, Information, other court filings, publicly-available information, and statements made in public court proceedings:
The mission of FinCEN is to “safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.”[2] Among other things, FinCEN manages the collection and maintenance of SARs regarding potentially suspicious financial transactions, which, under the Bank Secrecy Act (“BSA”), U.S. financial institutions and other parties are required by law to generate and deliver to FinCEN. Under the BSA and its implementing regulations, willful disclosure of a SAR or its contents by government employees or agents except as necessary to fulfill official duties is a felony.
Beginning in approximately October 2017, and lasting until her arrest in October 2018, EDWARDS agreed to and did unlawfully disclose numerous SARs to a reporter (“Reporter-1”), the substance of which were published over the course of approximately 12 articles by a news organization for which Reporter-1 worked. The illegally disclosed SARs pertained to, among other things, Paul Manafort, Richard Gates, the Russian Embassy, Maria Butina, and Prevezon Alexander. EDWARDS had access to each of the pertinent SARs and saved them—along with thousands of other files containing sensitive government information—to a flash drive provided to her by FinCEN. She transmitted the SARs to Reporter-1 by means that included taking photographs or images of them and texting the photographs or images to Reporter-1 over an encrypted application. In addition to disseminating SARs to Reporter-1, EDWARDS sent or described to Reporter-1 internal FinCEN emails or correspondence appearing to relate to SARs or other information protected by the BSA, and FinCEN non-public memoranda, including Investigative Memos and Intelligence Assessments published by the FinCEN Intelligence Division, which contained confidential personal information, business information, and/or security threat assessments.
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In addition to her prison term, EDWARDS, 43, of Quinton, Virginia, was sentenced to three years of supervised release.
Ms. Strauss praised the outstanding investigative work of the Treasury Department’s Office of Inspector General and the Federal Bureau of Investigation.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Kimberly J. Ravener and Daniel C. Richenthal are in charge of the prosecution.
[2] www.fincen.gov/about/mission
Former Property Manager Pleads Guilty to Theft from Federally Subsidized Housing ComplexesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ALICIA GARDNER, 51, of Griswold, waived her right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to embezzling money from federally subsidized housing complexes that she had managed.
According to court documents and statements made in court, Gardner was employed by Garden Homes Management Corporation with responsibilities that included managing the Salem Village I and II housing complexes in Brooklyn, Connecticut, and the St. Mary’s housing complex in East Hartford. The housing complexes principally catered to elderly and disabled citizens receiving federal rental subsidies from the U.S. Department of Housing and Urban Development (HUD) or the U.S. Department of Agriculture (USDA). Between approximately 2009 and 2018, Gardner diverted rental payments and other tenant fees to a separate account she had set up for cable fees, and then diverted those payments to pay more than $400,000 in personal expenses. Gardner also overcharged tenants a total of more than $60,000 for cable expenses, which increased the amount of money available to be diverted. In addition, the government will present evidence at sentencing that Gardner embezzled more than $150,000 in rental payments paid by St. Mary’s tenants.
At sentencing, which is not scheduled, Gardner faces a maximum term of imprisonment of 10 years.
Gardner is released on a $100,000 bond pending sentencing.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of the Inspector General, and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
Former Mississippi Band of Choctaw Indians Tribal Council Member Sentenced to Prison for Wire FraudRead the Press Release
Jackson, Miss. - A former member of the Tribal Council for the Mississippi Band of Choctaw Indians was sentenced today to 24 months in prison for wire fraud, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Randy Lamar Anderson, 46, of Conehatta, admitted to forging hotel bills and receipts, and submitting those documents to the Tribal government in claims for reimbursement for official business travel. The total loss to the Mississippi Band of Choctaw Indians was calculated at over $12,500.
An original indictment returned by a federal grand jury in February 2019 first charged the former elected lawmaker with defrauding the Tribal government (one count of theft and two counts of wire fraud). A superseding indictment, returned by the federal grand jury in November 2019, alleged that Anderson, while subject to the conditions of his release on bond, committed additional crimes against other Members of the Mississippi Band of Choctaw Indians residing in the Conehatta community on Reservation lands, and attempted to deter them from reporting his criminal conduct.
Since the original indictment issued, Anderson’s term on the Tribal Council expired, and Anderson did not run for reelection to the Council.
On December 7, 2020, Anderson pleaded guilty to one count of wire fraud.
Today, Chief Judge Daniel P. Jordan III sentenced Anderson to 24 months in prison, followed by three years of supervised release, and restitution in the amount of $12,501.31.
“As long as public corruption continues to be an issue in our State, I can promise you that the U.S. Attorney’s Office will be here to root it out, prosecute it, and ensure that justice is done. I want to personally thank the agencies involved for working with us to catch those who violate our corruption laws,” said Acting U.S. Attorney LaMarca.
Acting U.S. Attorney LaMarca commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The case was prosecuted by Assistant United States Attorney Theodore Cooperstein and Assistant United States Attorney Kevin Payne.
Former Accountant for Hillandale Farms Co. Indicted in $6.8M Embezzlement SchemeRead the Press Release
PITTSBURGH, Pa. – The owner of several Pittsburgh-area businesses and former accountant for a nationwide supplier of eggs and related farm products to retail stores has been indicted by a federal grand jury in Pittsburgh on charges of fraud conspiracy, money laundering conspiracy and tax fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The six-count Indictment charges Jonathan A. Weston, 57, of Canonsburg, Pennsylvania, with one count of fraud conspiracy, one count of money laundering conspiracy, two counts of willful failure to file tax returns, and two counts of filing false income tax returns. The indictment was returned under seal on May 25 and unsealed today following Weston’s arrest.
According to the Indictment, from October 2005 to January 2019, Weston, a former employee of Hillandale Farms Co. located in Greensburg, Pennsylvania, engaged in a scheme with a person known as VP, to embezzle approximately $6.8 million dollars from Hillandale Farms, and then launder the stolen money through businesses they both controlled, purchase collectible cars and real estate, and engage in lavish personal expenditures. In addition, the indictment alleges that in calendar years 2015 and 2018 Weston failed to file tax returns, and in tax years 2016 and 2017 Weston filed false returns.
The law provides for a maximum total sentence of 58 years in prison and a fine of $2,550,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that KENNIE SANTOS-PAYANO, age 25, a resident of Kissimmee, Florida, pleaded guilty on May 27, 2021 to a one count Indictment, charging him with possession with the intent to distribute more than five kilograms of cocaine hydrochloride.
The Honorable District Court Judge Mary Ann Vial Lemmon will sentence SANTOS-PAYANO on September 23, 2021. SANTOS-PAYANO, if convicted, faces a mandatory minimum term of imprisonment of 10 years up to a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least five years of supervised release following any term of imprisonment.
The case was investigated by the Office of Homeland Security Investigations and the Louisiana State Police. Assistant United States Attorney Bayonle Osundare is prosecuting the matter.
Florida Man Pleads Guilty to Conspiring to Defraud Massachusetts-Based Uniform Supply CompanyRead the Press Release
BOSTON – A Florida man pleaded guilty today in connection with a scheme to defraud his former employer, a Massachusetts-based uniform-supply company, by falsifying invoices.
Richard Ritz, 58, pleaded guilty to one count of conspiracy to commit mail and wire fraud. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Sept. 9, 2021. Ritz was charged on May 4, 2021.
Between approximately 2000 and March 2019, Ritz and others defrauded the uniform-supply company by causing the company to pay fake invoices for products that were not actually delivered and diverting other products that they re-sold for their own benefit. In addition, Ritz’s co-conspirators created a fake supply company and Ritz caused the uniform-supply company to pay more than $800,000 in invoices to the fake supplier for purported products.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fifteen Alleged Members and Associates of Baltimore “Triple C” Gang Facing Federal Indictment on Charges Related to Their Participation in Drug Distribution and/or Racketeering Conspiracies, Including 18 Murders and 27 Attempted MurdersRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a second superseding indictment that charges a total of 15 Baltimore defendants for their participating in violent racketeering and/or drug conspiracies. Eleven of the defendants, including seven new defendants, are charged with participating in a racketeering conspiracy that allegedly resulted in 18 murders, more than 27 attempted murders, carjackings, robberies, assaults, and witness intimidation that occurred between 2015 and November 2020. The second superseding indictment was returned on May 27, 2021 and unsealed late yesterday. Today’s announcement is the first public release related to the investigation and prosecution of members of the Triple C gang.
More than 50 law enforcement officers participated in the arrests of the three new defendants and the execution of three search warrants on June 2, 2021. The other four new defendants are already in federal custody on other charges.
The second superseding indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Commissioner Michael Harrison of the Baltimore Police Department.
Acting U.S. Attorney Jonathan F. Lenzner stated, “This violent street gang committed more than 40 homicides and attempted murders in total. This is not about numbers – each of those shootings represents a victim whose family will never see again, or a survivor of a non-fatal shooting who will never be the same. We are determined to root out the sources of violence from our neighborhoods and will continue to work with ATF, BPD and our other law enforcement partners to reduce violent crime and deadly drug dealing and hold accountable those who bring them to our streets.”
“These indictments are the result of relentless investigative efforts between ATF and our law enforcement partners, utilizing crime gun intelligence resources to connect the dots between the many incidents of violence,” said ATF Baltimore Special Agent in Charge Tim Jones. “ATF remains committed in our mission to identify offenders in Baltimore City who are committing murders, shooting, and violence, preventing citizens from living in safe communities.”
“This indictment represents the hard work of the men and women of the Baltimore Police Department, and our federal partners in holding criminals accountable for the violence in our city. We will continue to work collaboratively in going after individuals who are committing acts of violence, bringing drugs and guns into our neighborhoods and intimating the citizens of Baltimore.”
The following defendants, all from Baltimore, are charged in the second superseding indictment:
Desmond Butler, a/k/a Dez, age 23; Darell Carter, a/k/a Black Ice, age 24; Correy Cawthorn, a/k/a Fat Correy, age 22; Michael Chester, a/k/a Mikkie, age 22; Darien Coleman, a/k/a DCole, age 20; Gary Creek a/k/a Hov, age 39; Richard Grier, a/k/a Rich Homie, age 20; Robert Harris-Howell, a/k/a Slim, age 29; Dayon Jeter, a/k/a Savage and Day On Geter, age 22; Desean Johnson, a/k/a Boosie, age 23; Raekwon McMann, a/k/a Ray Ray, age 23; Keishonne Moore, a/k/a Keedie, age 23; Rashaud Nesmith, a/k/a Shaud, age 20; Tyeshawn Rivers, a/k/a Shawn, age 21; and
Alonzo Tunnell, a/k/a Lo, age 29.According to the 11-count indictment, from at least 2015 to May 27, 2021, Correy Cawthorn, Desmond Butler, Darrell Carter, Michael Chester, Darien Coleman, Gary Creek, Richard Grier, Dayon Jeter, Raekwon McMann, Rashaud Nesmith and Tyeshawn Rivers were part of the Triple C criminal enterprise. The indictment alleges that Triple C (Cruddy Conniving Crutballs) is a violent street gang that operated throughout Baltimore City, and ran street-level drug distribution “shops” in the Darley Park and Orchard Ridge neighborhoods in east and northeast Baltimore, where they distributed heroin, fentanyl, crack cocaine, and marijuana, among other controlled substances.
The second superseding indictment further alleges that Triple C members engaged in a pattern of criminal racketeering activity including acts including 18 murders, 27 attempted murders of rival gang members and narcotics dealers, narcotics trafficking, illegal firearms possession, robbery, carjacking, assault and witness intimidation and retaliation. Law enforcement seized 15 firearms that were used and/or possessed by members of the Triple C gang. Members of the gang allegedly earned respect from fellow members and maintained or advanced their position in the gang by engaging in criminal activities in furtherance of the gang, and particularly violent acts directed by Triple C leadership.
The second superseding indictment alleges that Creek founded Triple C as an alternative gang to the “Black Guerilla Family,” and established a hierarchy within the group, positioning Carter and Cawthorn in prominent roles. Creek allegedly took contract murders on behalf of Triple C and ordered other members to fulfill the contract. Triple C rules allegedly included members having access to firearms and providing firearms to members; removing arrested members from social media chats and group text messages to avoid law enforcement recovering the communications on the arrested members’ phones; and sharing members’ locations through their cell phones. The second superseding indictment alleges that Triple C members used over a dozen different firearms to commit acts of violence, often trading with each other or with associates to avoid detection through ballistic evidence.
According to the second superseding indictment, Triple C members routinely used social media websites to enhance the gang’s status and to identify and locate victims. Triple C members and associates posted photographs and rap videos to these social media websites in which they flaunted firearms, the superiority of the gang, and threatened to kill those who stood in the way of the gang. Members also allegedly used the sites to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members.
As detailed in the second superseding indictment, Triple C members supported rap artists or were burgeoning rap artists themselves, who would support Triple C by including lyrics about the gang in their songs. For example, in one rap artist’s music video on social media, the lyrics included “ain’t no Crip or no Blood, I’m Triple C baby.” Several alleged members and associates of Triple C are in the video dancing and waving firearms during the rap. In addition, gang members allegedly wore clothing touting the gang and warning against “snitching,” and promoted the gang by giving away clothing, such as t-shirts and hats.
Further, the second superseding indictment alleges that Triple C members and associates used social media chats and text messages to discuss, among other things, past criminal acts; the location and activities of other members; rival gangs and drug traffickers; the arrest or incarceration of members; the identities of individuals suspected of cooperating with law enforcement and proposed action to be taken against them; plans regarding the commission of future crimes and drug distribution; and ways to conceal these crimes from law enforcement.
Incarcerated members of Triple C allegedly used jail telephones to disseminate information about arrests and releases of members and associates; to warn of investigations; to publicize the identities of persons believed to be cooperating with law enforcement; to order assaults and murders of enemies of the enterprise; and to request money from Triple C members who were not incarcerated. Knowing the jail calls are recorded, incarcerated Triple C members and associates allegedly made calls using other inmates’ account numbers to conceal their identities.
The second superseding indictment seeks the forfeiture of any property constituting or derived from the racketeering conspiracy and narcotics distribution, including cash, drugs, 16 firearms, 250 rounds of ammunition, and any other proceeds.
If convicted, the 12 defendants charged with racketeering face a maximum of life in prison for the racketeering conspiracy. The defendants all face a mandatory minimum of 10 years and maximum of life in federal prison for conspiracy to distribute controlled substances, including 280 grams or more of crack cocaine and detectable amounts of fentanyl, heroin, and marijuana; and a maximum sentence of 20 years in federal prison for conspiracy to possess a firearm in furtherance of drug trafficking. Johnson and Moore each face a mandatory minimum sentence of five years in federal prison, consecutive to any other sentence imposed and up to life in federal prison for possession of a firearm in furtherance of drug trafficking. Harris-Howell, Tunnell, Cawthorn, Moore, and Johnson each face a maximum of 20 years in federal prison for possession with intent to distribute crack cocaine. Finally, Harris-Howell faces a maximum sentence of 10 years in prison for possession of a firearm and ammunition by a prohibited person. Dayon Jeter, Michael Chester and Darien Coleman were arrested on June 2, 2021 and had initial appearances in U.S. District Court in Baltimore. Chester and Coleman were ordered to be detained pending trail and Jeter has a detention hearing scheduled for June 7, 2021 at 11:30 a.m. Eleven other defendants are already detained on related federal or state charges and will have an initial appearance in the coming weeks. Creek is on pre-trial release and is expected to surrender to federal authorities today for an initial appearance scheduled at 1:00.
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.
A total of 10 defendants charged in the previous indictments in this case have pleaded guilty. Eight have been sentenced to between three and 17 years in federal prison. Two are awaiting sentencing.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore Police Department for their work in the investigation and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting the case.
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Federal Prison Sentences for Drug ConspiratorsRead the Press Release
WILMINGTON, Del. – Two men have been sentenced to substantial federal prison terms for their roles in a wide-ranging drug conspiracy involving heroin, fake Oxycodone pills containing fentanyl, and cocaine. United States District Judge Richard G. Andrews sentenced Julian Rivera-Villa, 57, yesterday and his co-defendant, Ricardo Perez-Guillen, 41, on April 13, 2021. Rivera-Villa received a sentence of over 10 years imprisonment; Perez-Guillen received over seven years of federal prison time.
According to public statements and court documents, Rivera-Villa and Perez-Guillen, both of Gloucester City, New Jersey, conspired to distribute 10 kilograms of heroin and approximately 14,000 fentanyl-laced fake Oxycodone pills. Perez-Guillen was arrested on August 21, 2019 in New Castle, Delaware after selling a kilogram of heroin and 600 fake Oxycodone pills containing fentanyl. Rivera-Villa was arrested the same day outside the residence he shared with Perez-Guillen in Gloucester City. Inside that residence, Drug Enforcement Administration (“DEA”) agents and task force officers found 7 additional kilograms of heroin, 13,000 more fake Oxycodone pills, and 3 kilograms of cocaine. They found another two kilograms of heroin located inside hidden traps behind the seats of a nearby car registered to Perez-Guillen.
The street value of the seized drugs was in excess of $1 million. The amount of heroin seized is conservatively estimated at 1.4 million doses.
David C. Weiss, U.S. Attorney for the District of Delaware noted that these convictions resulted from the largest federal seizure of heroin and fake Oxycodone pills by Delaware law enforcement in recent memory, stating: “My office is committed to combatting the opioid epidemic by bringing to justice those most responsible for flooding our communities with deadly heroin and fentanyl. We will continue to seek significant federal prison terms against those profiting off the addictions of others.”
“These defendants were responsible for trafficking multi-kilogram amounts of heroin, fentanyl-laced counterfeit pills, and cocaine,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Poly-drug violators such as Rivera-Villa and Perez-Guillen are drug-traffickers that pose the greatest threat to our community. I would like to thank all of our partner law enforcement agencies in Wilmington and Camden County, New Jersey that helped make these arrests possible.”
Assistant U.S. Attorney Alexander Ibrahim prosecuted the case, which was investigated by the DEA’s Wilmington Resident Office Tactical Diversion Squad and High Intensity Drug Trafficking Area (“HIDTA”) Group 41, comprised of law enforcement officers from the DEA, Middletown Police Department, Newark Police Department, Delaware Probation and Parole, Wilmington Police Department, New Castle County Police Department, Delaware Alcohol & Tobacco Enforcement, Delaware State Police, and Maryland State Police.
The DEA and the U.S. Attorney’s Office also wish to thank Homeland Security Investigations, Wilmington Resident Office, DEA-HIDTA in Camden, New Jersey, and the Camden County Sheriff’s SERT team for their assistance in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case Nos. 19-cr-141 and 20-cr-007.
Father-And-Son Owners of Orange County Car Dealership Convicted of Multiple Fraud OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that SAAED MOSLEM and his father, MEHDI MOSLEM, were found guilty in White Plains federal court today of conspiring to commit bank fraud and to defraud the Internal Revenue Service (“IRS”) in connection with their operation of Exclusive Motor Sports, a used car dealership in Central Valley, New York. SAAED MOSLEM was also found guilty of aggravated identity theft, bankruptcy fraud, and additional bank fraud charges. The jury returned its verdict after a two-week trial before U.S. District Judge Cathy Seibel.
U.S. Attorney Audrey Strauss said: “Mehdi and Saaed Moslem for years provided false financial information and fabricated tax returns to their lenders, while at the same time cheating on their taxes. Saaed Moslem also hid assets from his creditors and stole a customer’s identity. Now the wheels have come off the father-son fraud business, and they await sentencing for their multiple crimes.”
According to the Indictment and the evidence presented at trial:
From 2009 through 2018, MEHDI MOSLEM and SAAED MOSLEM conspired to defraud the United States by concealing profits relating to their car dealership, Exclusive Motor Sports, from the IRS. To falsely lower their business income, MEHDI MOSLEM and SAAED MOSLEM caused their accountant to prepare partnership tax returns that significantly understated Exclusive Motor Sports’ inventory. The fraudulent business income figures passed through to MEHDI MOSLEM’s and SAAED MOSLEM’s personal tax returns, resulting in a substantial underreporting of the amount of tax due.
From 2011 through 2019, MEHDI MOSLEM and SAAED MOSLEM also conspired to commit bank fraud by providing falsely inflated net worth statements and fabricated tax returns in connection with loan applications, including for a $1.5 million mortgage on the Exclusive Motor Sports property in Central Valley, New York. SAAED MOSLEM then made numerous false statements to conceal his assets from financial institutions and other creditors when he filed for bankruptcy in 2015. In 2019, SAAED MOSLEM committed aggravated identity theft by using a customer’s personal identifying information in connection with a fraudulent car loan application.
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MEHDI MOSLEM, 72, and SAAED MOSLEM, 37, both of Central Valley, New York, were each convicted of one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to defraud the United States and the IRS, which carries a maximum sentence of five years in prison. SAAED MOSLEM was also convicted of one count of bank fraud and one count of making a false statement to a lender, each of which carries a maximum sentence of 30 years in prison, one count of bankruptcy fraud, which carries a maximum sentence of five years in prison, and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison that must run consecutively to any other sentence of imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
SAAED MOSLEM and MEHDI MOSLEM are scheduled to be sentenced by Judge Seibel on October 1, 2021, at 10:00 a.m.
Ms. Strauss praised the outstanding investigative work of the IRS-Criminal Investigation, and the Federal Bureau of Investigation. She also thanked the Orange County District Attorney’s Office for its assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Daniel M. Loss, Nicholas S. Bradley, and James McMahon are in charge of the prosecution.
Farmington Man Charged with Oxycodone Distribution OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned a five-count indictment charging ANTHONY HARRIS, 51, of Farmington, with multiple counts relating to the illegal distribution of oxycodone.
The indictment was returned on June 1 and Harris was arrested today. He appeared via videoconference before U.S. Magistrate Judge Robert A. Richardson and was released on a $50,000 bond.
As alleged in statements made in court, Harris was prescribed oxycodone, but unlawfully sold his prescribed pills over the course of more than three years.
The indictment charges Harris with four counts of possession with intent to distribute, and distribution of, oxycodone, and one count of conspiracy to possess with intent to distribute, and distribute, oxycodone. Each charge carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Bristol Police Department. The Tactical Diversion Squad includes officers from the Bristol, East Windsor, Hamden, New Britain, West Haven, Newington, Manchester, Glastonbury and Watertown Police Departments. Department. The case is being prosecuted by Assistant U.S. Attorneys Conor M. Reardon and Nathaniel J. Gentile.
Fairview Man Faces Federal Charges for Damaging Government Property During Portland RiotsRead the Press Release
PORTLAND, Ore.—A Fairview, Oregon, man is facing federal charges for causing thousands of dollars in damage to federal property, including the Mark O. Hatfield U.S. Courthouse and the U.S. Immigration and Customs Enforcement (ICE) Portland Field Office, during recent riots in Portland.
Anthony Amoss, 33, has been charged by criminal complaint with three counts of destruction of government property.
According to court documents, federal investigators obtained evidence showing that, during three separate riots, Amoss broke more than a dozen windows at the Hatfield Courthouse and ICE Portland Field Office. In the early morning hours of March 14, 2021, Amoss and others threw several objects at Hatfield Courthouse windows, causing more than $143,000 in damage. On March 20 and April 1, 2021, Amoss threw more than 40 objects at ICE Portland Field Office windows, causing more than $21,000 in damage.
Amoss made his initial appearance in federal court on June 2, 2021 before a U.S. Magistrate Judge and was released pending further court proceedings.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being investigated by ICE and the Federal Protective Service and prosecuted by Gregory R. Nyhus, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Erie Man Admits Distributing and Possessing Sexually Exploitive Images of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Jeffrey Adam Jepson, 39, pleaded guilty to two counts before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that Jepson distributed sexually explicit photos depicting a minor victim under the age of six to an undercover officer. Jepson also possessed other images of child sexual abuse depicting minors under the age of twelve, some as young as infants and toddlers.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baxter scheduled sentencing for October 14, 2021 at 1:30 p.m. The defendant has agreed to a 12-year sentence to be followed by 20 years of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, the District of Columbia’s Metropolitan Police Department and the Erie County Detectives Bureau conducted the investigation that led to the prosecution of Jepson.
EOIR Warns of Scammers Spoofing Agency Phone NumberRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced it has recently been notified of phone calls that spoof the Office of the Chief Immigration Judge as part of a misinformation campaign. The callers will often “spoof,” or fake, the Office of the Chief Immigration Judge’s main line, 703-305-1247, so the calls appear to be coming from EOIR on the recipient’s caller ID.
In this scam, fraudulent callers posing as EOIR employees request personal information from the victims. These calls are fraudulent; EOIR personnel do not call individuals from this number about case-related matters. To protect yourself, be wary of answering phone calls from numbers you do not recognize. Never give out your personal information over the phone to individuals you do not know.
If you have a question about your case, please call the Automated Case Information Hotline at 1-800-898-7180, or visit the Automated Case Information System (https://portal.eoir.justice.gov/InfoSystem) or the Immigration Court Online Resource (https://icor.eoir.justice.gov).
Delaware Man Sentenced to over Seven Years for Defrauding Cisco Systems, Microsoft, Lenovo, and APC Out of More than $3.5 million in Computer HardwareRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Justin David May, 31, of Wilmington, DE was sentenced today to seven years and eight months in prison, five years of supervised release, ordered to pay more than $4 Million in restitution and over $300,000 forfeiture by United States District Judge Joel H. Slomsky, following his guilty pleas in two separate cases to 42 counts of mail fraud, 10 counts of money laundering, three counts of interstate transportation of goods obtained by fraud, and two counts of tax evasion.
The defendant’s convictions stem from from separate schemes he perpetrated in order to defraud Cisco Systems Inc. (“Cisco”), Microsoft Corporation (“Microsoft”), Lenovo Group Ltd. (“Lenovo”), and APC by Schneider Electric (“APC”) out of computer hardware, by submitting to these manufacturers hundreds of false warranty claims seeking the advance replacement of more than $5 million worth of computer hardware. While not every false claim was successful, most of the claims did deceive the manufacturers, and May successfully defrauded them into shipping more than $3.5 million worth of computer hardware to him and several co-schemers.
May’s fraud schemes involved the registration of false domain names and the creation of false e-mail addresses, which were used to submit the false warranty claims. After first obtaining legitimate serial numbers for Cisco computer hardware, Microsoft Surface tablets, Lenovo Thinkpads, and APC Smart-UPS that he did not own, the defendant contacted the companies, using false identities and the false email addresses he had created, and claimed to be the owner of a piece of computer hardware that was supposedly broken. May knew how to explain the supposed problem in such a way that the item in question could not be fixed through trouble shooting and would instead require a replacement. May promised to return the supposedly broken item as soon as he received the advance replacement, and he gave false addresses to which the replacement items could be shipped, including many addresses in Philadelphia, South Jersey, and Delaware. After picking up the hardware, May sold most of it through eBay or to various computer equipment resellers, and he never returned any of the supposedly broken items, because he never owned them in the first place.
The primary victim of the defendant’s fraud schemes was Cisco. With respect to Cisco, May personally submitted 267 false warranty claims, while co-schemers based in Texas submitted another 101 false warranty claims. Out of these 368 total false warranty claims, May and his co-schemers were successful on at least 252 occasions, and between April 12, 2016 and April 3, 2017, May and his co-schemers deceived Cisco into shipping Cisco hardware worth almost $3.5 million. May laundered the proceeds he obtained from the Cisco scheme by cashing checks he received from the computer equipment resellers at a check cashing business rather than depositing them in his bank account, and he used some of the proceeds to buy a new BMW.
With respect to Microsoft, May and a Singapore-based co-schemer were responsible for the submission of 227 false warranty claims to Microsoft, and they were successful on 139 of these false claims, which induced Microsoft into shipping to May a total of 139 Microsoft Surface tablets with a retail value of $364,761.
With respect to Lenovo, May personally submitted at least 216 separate false warranty claims, and as to each he claimed that his Lenovo ThinkPad hard drive had failed. These false warranty claims were successful on 193 occasions, and May caused Lenovo to ship to him 193 separate “replacement” hard drives, with a retail value of $143,000. May sold all of these hard drives through an eBay store he operated.
With respect to APC, May induced APC to ship at least three of its uninterruptable power supply products, with a retail value of at least $11,400 through the submission of false warranty claims.
While May earned hundreds of thousands of dollars through his illegal fraud scheme, he failed to pay any income tax on that money, and instead he evaded the payment of at least $52,000 in federal income taxes.
“Warranties are designed to make consumers whole by replacing faulty products, not to be exploited by scammers looking to turn an illegal profit,” said Acting U.S. Attorney Williams. “Warranty fraud is not a victimless crime, rather, companies which support employment for thousands of workers stand to lose millions of dollars, which was the case here. The defendant’s scheme caused real harm, which is why he will now spend many years behind bars as punishment for his actions. I would like to thank the FBI and IRS for their dedication and partnership in this matter.”
“May and his co-conspirators undermined the warranty process which exists to support honest consumers. They profited from this complex scheme while defrauding these companies and the federal government,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Through the hard work and collaborative efforts of the FBI and IRS, this sentencing sends the message to those who seek to make a profit through fraud and deception, that this conduct bears significant consequences.”
“IRS Criminal Investigation will painstakingly investigate cases when individuals have taken property that belongs to others,” Thomas Fattorusso, Special Agent in Charge of IRS Criminal Investigation. “We will continue to be persistent in our mission to take apart these illicit schemes and bring the criminals who run them to justice.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Cranston Man Sentenced to Ten Years in Prison for Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A Cranston man arrested in May 2018 on state kidnapping, indecent exposure, and domestic violence charges, and later found also to be in possession of images of child pornography, some of which he regularly distributed to another person, was sentenced today to ten years in federal prison on possession of child pornography and distribution of child pornography charges.
According to documents on file with the court, on May 27, 2018, Robert E. Soares, 41, was arrested and charged by Cranston Police after he forcibly confined a woman to a bedroom, exposed himself to others, and engaged in fighting and violent behavior.
A subsequent investigation determined that Soares had persuaded a 14-year-old girl to allow him to take photographs and a video of her dressed only in her underwear. The images were created in a makeshift movie set Soares constructed in his basement. Additionally, from August 21, 2017, until September 22, 2017, and from mid-February 2018 through May 16, 2018, Soares repeatedly distributed images of child pornography and child erotica to a friend, often referring to these images of prepubescent children being sexually abused as his “pervy pic” of the day.
According to court records, Soares, who was previously convicted on state assault, robbery, and drug charges, pleaded nolo contendere in state court on September 13, 2018, to domestic violence – kidnapping, and was sentenced to 15 years in prison - 3 years to serve, 12 years suspended
On November 22, 2019, Soares pleaded guilty to federal charges of distribution of child pornography and possession of child pornography. Today, U.S. District Court Judge William E. Smith sentenced Soares to a term of incarceration of 120 months in federal prison and lifetime federal supervised release. U.S. District Court Judge Smith ordered Soares federal sentence be served consecutive to his term of incarceration in state prison.
Soares’ federal sentence is announced by Acting United States Attorney Richard B. Myrus. The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the Cranston Police Department and Homeland Security Investigations.
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Convicted Juvenile Sex Trafficker from Delaware Sentenced to 20 Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kristian Jones, 27, of Wilmington, DE, was sentenced to twenty years in prison, ten years of supervised release, and was ordered to pay over $15,000 in restitution to his victims by United States District Judge Nitza I. Quiñones Alejandro for his participation in a conspiracy to sex traffic minor and young adult victims.
In April 2019, following a 14-day jury trial, the defendant was found guilty of one count of conspiracy to engage in sex trafficking by force, fraud, and coercion and three counts of sex trafficking of minors by force, fraud, and coercion.
The evidence at trial showed that Kristian Jones helped manage the sex trafficking enterprise led by co-defendant Dkyle Bridges. The multi-year sex trafficking conspiracy preyed on teenage girls and young women looking for a home and support. Once lured into the trafficking circle, the victims were compelled to engage in commercial sex acts in southeastern Pennsylvania, Delaware, and elsewhere, for the co-defendants’ financial benefit. Co-defendant Bridges used violence and coercive tactics to force the victims to remain in his sex trafficking operation – including pouring water on them to keep them awake, choking them, and assaulting them. Bridges, the leader of this operation, was sentenced to 35 years in prison earlier this year.
Defendant Kristian Jones’ role in the sex trafficking operation included overseeing the trafficking of three minor girls brought to hotel rooms to engage in commercial sex acts. The defendant collected the money paid by the sex buyers, provided the condoms, controlled the victims’ access to food, and stayed on-site to ensure the victims engaged in the commercial sex acts. In doing so, the defendant fulfilled his role as the day-to-day manager of the sex trafficking of children.
The defendant’s brother, Anthony Jones, was also convicted for his role in this sex trafficking conspiracy. Anthony Jones is scheduled to be sentenced later this summer.
“Kristian Jones used the bodies of children for his own financial benefit,” said Acting U.S. Attorney Williams. “His crimes are appalling, and today’s sentence of twenty years reflects the seriousness with which the federal justice system will treat defendants convicted of sex trafficking offenses. We will continue to work collectively to investigate and prosecute these destructive crimes committed against some of the most vulnerable members of our community.”
“Jones exploited and abused his victims. His willingness to prey on vulnerable women and coerce them to engage in sex trafficking is a danger to public safety,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Today’s sentencing further affirms the FBI’s commitment to combating sex trafficking and protecting the survivors of these crimes. Together with our law enforcement partners across the region, we are dedicated to investigating and bringing federal charges against those like Jones who commit these reprehensible acts.”
The case was investigated by Federal Bureau of Investigation – Philadelphia with assistance from the Tinicum Township Police Department; Newark, Delaware Police Department; Delaware State Police; Delaware River Bay Authority; and Philadelphia Police Department; and was prosecuted by Assistant United States Attorney Priya T. De Souza and Department of Justice Trial Attorney Jessica L. Urban.
Clarksburg man admits to carjacking and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher M. Vickers, of Clarksburg, West Virginia, has admitted to carjacking and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Vickers, 31, pleaded guilty today to one count of “Carjacking,” and one count of “Use of Firearm During and in Relation to a Crime of Violence.”
According to court documents, on June 3, 2020, Vickers drove to a residence in Shinnston, West Virginia to take a motorcycle. Vickers admitted to grabbing a woman by her hair and holding a gun to her head, demanding the location of the motorcycle. Vickers admitted to attempting to take the motorcycle from the property.Vickers faces up to 15 years of incarceration and fine of up to $250,000 for the carjacking charge and faces no less than seven years of incarceration and a fine of up to $250,000 for the firearm use. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Shinnston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Cincinnati nightclub owner pleads guilty to illegally possessing firearms, underreporting taxesRead the Press Release
CINCINNATI – A Cincinnati nightclub owner pleaded guilty today in U.S. District Court to federal firearms and tax crimes.
Julian Rodgers, 45, of Cincinnati, was charged by a bill of information on March 31.
He admitted to underreporting his income by at least $100,000 and to illegally possessing firearms after being convicted of a felony crime.
According to his plea agreement, Rodgers reported his 2017 income as approximately $90,000. He did not report at least $105,107.92 in additional income that year, causing a tax loss of nearly $36,000.
Financial records show Rodgers spent money in 2017 on personal expenditures out of his business bank accounts, including payments on a Porsche and gambling expenses at a casino.
In August 2018, federal agents advised Rodgers that, as a convicted felon, he was prohibited from possessing firearms and ammunition. When agents executed a search warrant at Rodgers’ residence in October 2018, they discovered two firearms, a 9mm semiautomatic handgun and a 40-caliber handgun.
Possessing a firearm after being convicted of a felony crime is punishable by up to 10 years in prison. Filing a false income tax return carries a potential penalty of up to three years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation; and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Matthew W. McFarland. Assistant Deputy Criminal Chief Timothy S. Mangan and Assistant United States Attorney Kenneth L. Parker are representing the United States in this case.
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Cincinnati man sentenced to 40 years in prison for sexually exploiting 16-year-oldRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court today to 480 months in prison for sex trafficking and creating child pornography of a 16-year-old victim.
Ismail Salaam, 38, was convicted after a jury trial in November 2018. He was charged by a criminal complaint in September 2016 and indicted by a grand jury in October 2016 and January 2017.
“Salaam physically abused, prostituted and sexually exploited a 16-year-old female. When the victim attempted to stop the abuse, Salaam became violent, choking the victim and pulling her hair,” said Acting U.S. Attorney Vipal J. Patel. “Our community is surely safer with Salaam serving a lengthy sentence in federal prison.”
According to court documents and testimony at trial, Springdale officers responded to the La Quinta Motel in Springdale in September 2016 in response to a report of a juvenile runaway in the motel. Officers discovered Salaam there with the 16-year-old juvenile runaway.
It was further discovered that Salaam had been with the minor girl for the previous three weeks. Salaam paid for food, hairstyling, manicures and clothing for the victim.
Salaam took explicit photographs of the girl and attempted to have the victim post an advertisement on Backpage.com in the escorts section.
Salaam coordinated encounters with at least two men, in which the victim was to engage in sexual conduct in exchange for money. In text messages, Salaam instructed the victim to flirt with the men, offer sexual acts, and collect money and marijuana. In one instance, an adult male had intercourse with the victim and provided $100, which the girl provided to Salaam.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Springdale Police Chief Thomas Wells announced the sentence imposed by U.S. District Court Judge Timothy S. Black. Assistant United States Attorneys Matthew C. Singer and Kyle J. Healey and OCDETF Deputy Criminal Chief Christy L. Muncy are representing the United States in this case.
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Chelsea Man Indicted for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Chelsea man was arraigned today on an indictment for federal firearms offenses.
Miguel Reyes, 31, was indicted by a federal grand jury on two counts of being a felon in possession of a firearm and ammunition.
According to the charging documents, on Aug. 18, 2020, Reyes was in possession of a Beretta, Model U22, .22 LR caliber pistol and ammunition. On Aug. 26, 2020, Reyes was allegedly in possession of a Glock, model 48, 9 mm pistol, and ammunition. Due to a prior felony conviction, Reyes is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. Valuable assistance was provided by the Chelsea Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cannabis Processing Firm and Managers Plead Guilty to Illegal Transportation of Hazardous WasteRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – June 3, 2021
SAN DIEGO – WellgreensCA, Inc., a San Diego company engaged in extracting oils from cannabis, along with the owner and a manager, pleaded guilty in federal court today to offenses related to the dumping of hazardous waste in San Diego County in early 2018.
In pleading guilty, WellgreensCA, Inc. and owner Lunar Loussia admitted that, as a company engaged in the business of extracting oils from cannabis, Wellgreens generated various wastes, including 55-gallon drums of waste ethanol. The waste ethanol generated by Wellgreens was a federally-regulated hazardous waste that exhibited the characteristic of ignitability, because it had a flashpoint of less than 140 degrees Fahrenheit.
Loussia admitted that he agreed with R.U., a contractor, and others to dispose of the drums of waste ethanol generated by Wellgreens, knowing that the ethanol in the drums given to R.U. for disposal was a waste that had the potential or substantial potential to be harmful to others or to the environment.
The defendants acknowledged that as a large-quantity generator of hazardous waste, Wellgreens was required to transport all hazardous waste, including the waste ethanol, from their site accompanied by a uniform hazardous waste manifest. Loussia admitted that on February 7, 2018, he caused R.U. to pick up three full drums of waste ethanol for disposal from the Wellgreens facility on Trade Street, knowing that no hazardous waste manifest was prepared or provided to R.U., as required by law, to track the shipment. The defendants acknowledged that R.U. disposed of the drums of waste ethanol behind a business located at 1350 Hill Street in El Cajon.
Nadia Malloian further admitted that on May 17, 2018, employees of Wellgreens caused R.U. to pick up four full 55-gallon drums of waste ethanol from the Wellgreens facility on Trade Street for disposal. Those employees were aware at the time that no uniform hazardous waste manifest was prepared or provided to R.U. to accompany the waste ethanol during transportation.
The drums transported by R.U. from Wellgreens were abandoned at 1201 Avocado Avenue in El Cajon, near a Vons supermarket, along with paperwork associated with Wellgreens, including laboratory reports. An employee of Vons contacted the El Cajon police, and the San Diego County Department of Environmental Health Services (DEH). Both agencies responded and DEH conducted sampling and took photographs. The employee of Vons also contacted the laboratory named on the paperwork to attempt to learn the identity of the owner of the drums, sending photographs of the drums and associated paperwork in an email.
The laboratory forwarded the message from the employee at Vons to defendant Malloian on May 22, 2018. Malloian admitted that on May 23, 2018, after learning that agents of WellgreensCA, Inc. had knowingly transported the drums of waste ethanol to the location on Avocado Avenue in El Cajon without a manifest, as required by law, she assisted them with the specific purpose of hindering their apprehension by helping to arrange the removal of the drums from the location on Avocado Avenue in El Cajon.
As part of the plea agreement, the company agreed to pay a $45,000 fine and restitution of $26,482 for the costs of emergency response and restoration of the sites where the hazardous waste was abandoned.
“Crimes against the environment are crimes against all of us,” said Acting U.S. Attorney Randy Grossman. “We will not allow our communities to become dumping grounds for harmful chemicals because companies refuse to follow the rules.” Grossman praised prosecutor Melanie Pierson for her dogged commitment to protect the environment and EPA investigators for their hard work on this case and others like it.
“The defendants knowingly ignored legal requirements for the proper transportation and disposal of hazardous waste, putting local communities in the San Diego area at risk,” said Special Agent in Charge Scot Adair of EPA’s criminal enforcement program in California. “This case demonstrates that EPA will hold accountable those who intentionally violate laws that endanger human health.”
The defendants are scheduled to be sentenced on August 3, 2021, at 9:00 a.m. before U.S. District Judge William Q. Hayes.
DEFENDANTS
WellgreensCA Inc. Date of Incorporation: 2016 San Diego, California
Lunar Loussia Age: 39 El Cajon, California
Nadia Malloian Age: 48 El Cajon, California
SUMMARY OF CHARGES, Criminal Case No. 19cr2439-WQH
WellgreensCA and Lunar Loussia
Transportation of Hazardous Waste Without a Manifest, 42 U.S.C. §6928(d)(5)
Maximum Penalty: Two years in prison, fine of greater of $250,000 ($500,000 for the corporation) or $50,000 per day of violation
Nadia Malloian
Accessory After the Fact to Transportation of Hazardous Waste Without a Manifest, 18 U.S.C. §3 and 42 U.S.C. §6928(d)(5)
Maximum Penalty: One year in custody, fine of greater of $50,000 or $25,000 per day of violation
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigation Division
Camden Man Sentenced to 110 Months in Prison for Conspiring to Distribute 900 Grams of HeroinRead the Press Release
CAMDEN, N.J. B A Camden man was sentenced today to 110 months in prison for conspiring to distribute approximately 900 grams of heroin in Camden, Acting U.S. Attorney Rachael A. Honig announced.
Kaliel Johnson, 28, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with one count of conspiracy to distribute heroin from August 2018 through November 2018. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Using confidential informants, consensual recordings, over 40 controlled drug purchases, and several court-authorized wiretaps, the investigation showed a large-scale drug operation in the 400-500 block of Pine Street in Camden in 2017-2018. Street-level sellers were supervised by managers, who also resupplied them with pre-packaged heroin, cocaine, and crack-cocaine. Several firearms were recovered from different locations during searches by the FBI and other law enforcement officers when the defendants were arrested in November 2018. Johnson was arrested on Nov. 28, 2018.
In addition to the prison term, Judge Bumb sentenced Johnson to five years of supervised release.
Nineteen defendants were arrested on drug trafficking charges based on this investigation; 15 defendants have pleaded guilty on drug conspiracy charges and are awaiting sentencing, and three defendants are awaiting trial. The charges and allegations against those three defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Sara Aliabadi of the U.S. Attorney’s Office’s Camden Office.
California drug trafficker sentenced to five years in prison after Flathead County law enforcement seize three pounds of methRead the Press Release
MISSOULA – A California man who admitted trafficking methamphetamine after Flathead County law enforcement officers seized a package containing three pounds of the drug was sentenced today to five years in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Santiago Marron, 38, of San Bernardino, California, pleaded guilty on Jan. 25 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
In court documents filed in the case, the government alleged that on Dec. 25, 2019, Marron and co-defendant, Adan Barjas Bedal, dropped off a package at a Flathead County residence. Confidential informants told law enforcement that Marron drove the package to Montana from another state and knew that the package contained meth. The Flathead County Sheriff’s Office seized the package pursuant to a Montana search warrant and recovered three pounds of meth. Three pounds of meth is the equivalent of 10,872 doses. Co-defendant Bedal was sentenced to 70 months in prison for his conviction in the case.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Northwest Montana Drug Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Cheyenne Carjacking Suspects SentencedRead the Press Release
Acting United States Attorney Bob Murray announced today that JACOB NATHANIEL HOPKINS TRIGG, age 19 of Colorado, and OSCAR ALFREDO ORTIZ age 20 of Cheyenne, WY, were convicted and sentenced by Federal District Court Judge Nancy Freudenthal related to their involvement in a violent carjacking of a Cheyenne resident that occurred in southwest Cheyenne on April 21, 2020. Trigg was sentenced to nine years with five years supervised release. Ortiz was sentenced to 15 years with five years of supervised release. They were each ordered to pay $5,089 in restitution and $200 in special assessment fees.
The victim encountered the defendants standing on the roadway while driving in southwest Cheyenne. After the victim stopped to offer assistance, Ortiz brandished a rifle and demanded the victim turn over control of the vehicle. Trigg pointed a handgun at the victim and demanded he empty his pockets. Ortiz and Trigg then ordered the victim out at gun point and fled in the vehicle. The next day, the vehicle was located in Longmont, Colorado. Witnesses and video cameras captured the defendants and a female dump the vehicle and cover it with a tarp. Meanwhile, officers in Longmont were tracking the duo on social media and found several posts related to the crime spree that also included a high-speed chase on I-70 near Evergreen, Colorado. The Colorado State Patrol ultimately disengaged from pursuing the vehicle after speeds reached in excess of 96 mph in a heavy traffic area. The FBI arrested the Ortiz and Trigg following a search warrant of Ortiz’s residence in Cheyenne where the firearms were located. Both firearm purchases were tracked back to the defendants.
“I want to send a clear message to would-be carjackers: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said Acting United States Attorney Bob Murray. “This office and our law enforcement partners will always fight for crime victims and do our job to hold accountable violent criminals.”
“Today’s sentence highlights the successful collaboration between the FBI’s Rocky Mountain Safe Streets Task Force (RMSSTF), Cheyenne Police Department (CPD), Longmont Police Department, Boulder County Sheriff’s Office and the U.S. Attorney’s Office. The CPD’s integration into the RMSSTF directly impacted the efficiency of the investigation,” said FBI Denver Special Agent in Charge Michael Schneider. “We work diligently with our partners to identify, investigate, and prosecute violent criminals such as Trigg and Ortiz to protect the public and keep our communities safe. FBI Denver is grateful for all our task force participants as these strong partnerships continue to bring justice to those who commit violent crimes.”
The case was investigated by the Cheyenne Police Department, F.B.I., the Boulder County Sheriff’s Office and Longmont Police Department in Colorado. The charges were prosecuted by Assistant United States Attorney Timothy J. Forwood.
“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.”
CH2M Hill Plateau Remediation Company Agrees to Pay More than $3 Million to Settle Hanford Subcontract Small Business Fraud AllegationsRead the Press Release
Spokane – Today, Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that CH2M Hill Plateau Remediation Company (CHPRC), a prime contractor at the Department of Energy’s Hanford Site, has agreed to pay $3,038,270 million to resolve allegations that CHPRC violated the False Claims Act by submitting false and fraudulent small business subcontract reports.
In 2008, CHPRC, a Washington subsidiary of CH2M Hill Companies Ltd., which is headquartered in Englewood, Colorado, was a DOE prime contractor responsible for environmental remediation and cleanup of the Central Plateau area of the Hanford Site, which includes the Plutonium Finishing Plant and other legacy plutonium production facilities. Pursuant to its contract, DOE fully reimbursed CHPRC for its costs, including hundreds of millions of dollars in subcontractor costs. Accordingly, CHPRC’s contract required that CHPRC make efforts to award a certain percentage of those subcontracts to small businesses, including businesses located in Historically Underutilized Business Zones (HUBZones). CHPRC’s contract also required CHPRC to regularly report to DOE regarding its efforts to subcontract to HUBZone businesses. CHPRC’s contract provided for fee-based incentives regarding CHPRC’s success in subcontracting to HUBZone businesses, and for the imposition of monetary penalties if CHPRC missed its goals and failed to exercise good faith efforts to award HUBZone subcontracts.
This settlement resolves allegations that CHPRC falsely reported to DOE regarding its HUBZone subcontracting efforts. Specifically, the settlement resolves allegations that CHPRC falsely represented that subcontract awards to two companies, Indian Eyes, LLC, and Phoenix-ABC A Joint Venture (“PABC”), were to HUBZone businesses, when in fact CHPRC knew that both entities did not have HUBZone status during the time period of the subcontracts.
Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington, said, “Small business fraud not only harms the taxpayers and the vital cleanup mission at Hanford, but legitimate small disadvantaged businesses that do not have the opportunity to fairly compete for and perform subcontracts. This resolution demonstrates that we will continue to work with courageous whistleblowers and our law enforcement partners to ensure accountability for small business fraud at Hanford and elsewhere.”
“The whistleblower complaint alleged that CHPRC knowingly misrepresented PABC and Indian Eyes as legitimate HUBZone entities and falsely claimed HUBZone credit and status as part of CHPRC’s small business subcontracting plan,” said Teri Donaldson, Inspector General of the Department of Energy. “This settlement affirms the OIG’s commitment to protecting the integrity of the Department of Energy’s procurement process to provide opportunities for small and disadvantaged businesses through programs like the Small Business Administration’s HUBZone and Disadvantaged Woman-Owned programs. The OIG will aggressively investigate any allegations of false claims, overbilling, kickbacks and any other fraud scheme threatening the Department of Energy and ultimately the American taxpayers. The OIG has enjoyed a very collaborative relationship with the United States Attorney’s Office and will continue to join forces with DOJ to investigate and hold accountable those perpetrating fraud against Department of Energy resources and programs.”
The case is captioned as United States of America ex rel. Salina Savage, et al. v. CH2M Hill Plateau Remediation Company, et al., 14-cv-5002-SMJ. The case originally arose out of a whistleblower complaint filed by Savage Logistics LLC, a Hanford-area small business, and Salina Savage, its owner. The whistleblowers will receive $865,907 as a result of the settlement. The investigation was conducted by the Department of Energy Office of Inspector General. The United States was represented by Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene.
Buffalo Man Who Escaped from Halfway House Following Federal Prison Term Pleads GuiltyRead 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 Rashaad Samuel, 30, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to escape. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Meghan A. Tokash and Laura A. Higgins, who are handling the case, stated that in May 2018, the defendant was sentenced to serve 48 months in prison for his conviction on federal drug charges. On June 5, 2020, Samuel, who had a projected release date of October 4, 2020, was furlough transferred from the Federal Correctional Center Pollock, in Pollock, Louisiana, to a community-based placement at the Volunteers of America, Residential Reentry Center (RRC) in Rochester, NY in order to complete his sentence. On September 25, 2020, the defendant signed out of the RRC to go to his work site and was scheduled to return on early the following morning. He failed to return. After numerous attempts, the RRC made contact with Samuel and instructed him to report to the RRC by 5:00 a.m. The defendant failed to return and remained in “escape status” until he was arrested in February 2021 by the United States Marshal Service.
The plea is the result of an investigation by the United States Marshals Service, under the direction of Marshal Charles Salina.
Sentencing is scheduled for September 17, 2021, before Judge Arcara.
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Broken Arrow Resident Found Guilty of MurderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Miranda Lynne Ree, age 24, of Broken Arrow, Oklahoma was found guilty by a federal jury of Murder Second Degree in Indian County.
The jury trial began with testimony on Tuesday, June 1, 2021, and concluded on Thursday, June 3, 2021 with the guilty verdict. The defendant was indicted in September 2020 on the charge of Murder I. After considering the evidence presented at trial, the jury found Ree guilty of the lesser included offense of Murder II. Murder in the Second Degree is punishable by any term of years or life in imprisonment.
The evidence presented at trial proved that on or about September 27, 2018, Ree, an Indian, unlawfully killed Bryan James Chaney with a knife. The crime occurred in Wagoner County, within the boundaries of the Muscogee (Creek) Nation, and within the Eastern District of Oklahoma.
The guilty verdict was the result of an investigation by the Wagoner County Sheriff’s Office and the Federal Bureau of Investigation.
“The defendant was originally charged in the District Court of Wagoner with Murder in the First Degree, but the case was dismissed after the Supreme Court decision in McGirt v. Oklahoma,” said Acting United States Attorney Christopher J. Wilson. “Once the state charge was dismissed, the Federal Bureau of Investigation picked up the investigation and prosecution of the case was initiated by our office. The verdict today in federal court represents the next step in ensuring the defendant is held responsible for unlawfully killing Bryan James Chaney.”
“Craig Gestring, the lead prosecutor in the case, is an Assistant United States Attorney from the Middle District of Florida," said Wilson. “Mr. Gestring volunteered to handle cases in the Eastern District. I am appreciative of Mr. Gestring and other Department of Justice attorneys who have come to our aid after the McGirt decision dramatically increased the number of violent crime cases our office has been required to handle.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Ree was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Special Assistant United States Attorney Craig Gestring and Assistant United States Attorney Michael Warren represented the United States.
Box Elder man sentenced to prison for assaulting woman on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man who admitted assaulting a woman, causing serious injuries, on the Rocky Boy’s Indian Reservation, was sentenced on Wednesday to 21 months in prison and to three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Kelcey James Morsette, 31, pleaded guilty on Feb. 24 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $941 in restitution.
The government alleged in court documents that on Nov. 14, 2019, Morsette was highly intoxicated and belligerent. Morsette argued with the victim, identified as Jane Doe, before becoming angry and attacking her. Doe sustained serious injuries from the assault and was hospitalized. The assault occurred on the Rocky Boy’s Indian Reservation.
Assistant U.S. Attorney Jared C. Cobell prosecuted the case, which was investigated by the FBI and Rocky Boy’s Police Department Criminal Investigations.
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Bergen County Postal Employee Admits Stealing Checks from MailRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) employee today admitted stealing checks sent through the mail, Acting U.S. Attorney Rachael A. Honig announced.
Juan Torres, 28, of Hackensack, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of mail theft.
According to documents filed in this case and statements made in court:
Torres admitted that from November 2019 to May 2020 he stole checks that were addressed to third-party victims and mailed to addresses on postal routes in Hackensack, Leonia, and Maywood, New Jersey. He subsequently deposited the checks in New Jersey and elsewhere, into a bank account that he controlled, including a $1,505 check stolen from mail addressed to a third party. Torres stole checks totaling over $27,000.
The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing is scheduled for Oct. 4, 2021.
Acting U.S. Attorney Honig credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s guilty plea. She also thanked special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
Bergen County Man Sentenced to 18 Months in Prison for Short Sale Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 18 months in prison for his role in a multi-year scheme to defraud financial institutions and others, Rahul Agarwal, Attorney for the United States in this matter, announced.
Steve Young Kang, aka “Steven Young Kang” and “Young Tae Kang,” 66, of Ridgefield, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of bank fraud and one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Kang and others fraudulently induced mortgage lenders to participate in “short sale” transactions, in which, typically, a financial institution agrees to allow a homeowner in financial distress to sell his or her home for less than the homeowner owes on the mortgage. Such transactions are called short sales because the market value of the house is less than the amount owed by the homeowner and the lender agrees to accept a payment “short” of the amount owed by the owner.
From June 2013 to January 2017, Kang, who owned and controlled two real estate brokerages, sold his own properties and recruited others to sell properties in fraudulent short sales to a co-schemer, Mehdi Kassai. The co-schemers convinced financial institutions to agree to short sales and to accept less than the properties were worth through false documents, straw buyers, and cosmetic damage to properties. Kang, as a listing broker, also prevented legitimate and higher offers from being made by artificially limiting the ability of others to bid on and buy properties. Kassai then sold the properties to third-parties at a substantial profit. Kang defrauded financial institutions and others of at least $2.7 million.
In addition to the prison term, Judge Martini sentenced Kang to three years of supervised release and ordered him to forfeit $835,248 in proceeds of the scheme. Restitution will be determined at a later date.
Attorney for the United States Agarwal credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, special agents of the U.S. Department of Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorneys Charlie L. Divine and Kevin V. Di Gregory of the Federal Housing Finance Agency, Office of Inspector General.
Bakersfield Resident Pleads Guilty to Unlawfully Possessing a FirearmRead the Press Release
FRESNO, Calif. — Miguel Alberto Burgos, 28, of Bakersfield, pleaded guilty today to being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 18, 2021, a law enforcement officer stopped Burgos for committing traffic infractions while driving a vehicle in Bakersfield. Burgos yielded his vehicle and fled on foot. The officer gave chase and eventually secured Burgos on the ground, but he broke free and continued flight. Shortly afterwards, officers caught and arrested Burgos. During the chase, Burgos possessed and discarded a Ruger LCP .380‑caliber handgun loaded with a high-capacity magazine. Burgos cannot lawfully possess firearms because he was convicted in 2013 of second-degree robbery.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol and the Kern County Fire Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Burgos is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 3. Burgos faces a maximum term of 10 years in prison and a $250,000 fine. The actual sentence, however, will 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.
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.
Alleged Money Launderer for the Sinaloa Cartel ExtraditedRead the Press Release
Assistant U. S. Attorney Daniel Zipp (619) 546-8463
NEWS RELEASE SUMMARY – June 3, 2021
SAN DIEGO – Juan Manuel Alvarez-Inzunza, alleged top money launderer for the Sinaloa Cartel, was arraigned in federal court today following his extradition to the United States from Mexico yesterday.
On March 6, 2015, a federal grand jury sitting in the Southern District of California returned an indictment charging Alvarez-Inzunza with conspiracy to launder monetary instruments and conspiracy to import and distribute cocaine and methamphetamine. Alvarez-Inzunza was previously designated under the Foreign Narcotics Kingpin Designation Act for his role in providing money laundering services to top cartel leaders including Joaquin “El Chapo” Guzman Loera.
Alvarez-Inzunza was arrested by Mexican law enforcement officers in March 2016, at the request of the United States. Since his arrest in Mexico, Alvarez-Inzunza has remained in custody pending extradition to the United States. He was flown by the United States Marshals Service from Mexico City to San Diego on June 2, 2021. He is scheduled to be arraigned on Thursday, June 3, 2021, before U.S. Magistrate Linda Lopez.
Acting U.S. Attorney Randy Grossman stated, “Today is a reminder that international drug kingpins and money launderers who profit by shipping narcotics into our community are not safe from prosecution. We will work with our international partners to bring them to justice wherever they reside.”
Acting U.S. Attorney Grossman praised the outstanding work of Assistant U.S. Attorney Daniel Zipp, Homeland Security Investigations and the U.S. Department of Justice’s Office of Enforcement Operations and the Office of International Affairs, and the Department of Treasury’s Office of Foreign Assets Control for their ongoing assistance in this investigation.
“Juan Manuel Alvarez-Inzunza is responsible for moving millions of dollars in illicit drug proceeds from the United States into Mexico,” said Cardell T. Morant, Special Agent in Charge for HSI San Diego. “We stand dedicated and united with our law enforcement partners to continue dismantling these organizations; ensuring they can no longer hide from the authorities and that they will ultimately be brought to justice.”
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT 14-CR-2253-DMS
Juan Manuel Alvarez-Inzunza
Age: 39
Hometown: Culiacan, Sinaloa, Mexico
SUMMARY OF CHARGES
- Conspiracy to Launder Monetary Instruments (18 U.S.C. 1956(h))
- Conspiracy to Distribute Cocaine Intended for Importation ( 21 U.S.C. 959, 960, 963)
- Conspiracy to Import Cocaine and Methamphetamine (21 U.S.C. 952 and 960)
- Conspiracy to Distribute Cocaine and Methamphetamine (21 U.S.C. §841(a)(1) and 846)
AGENCIES
Homeland Security Investigations
Department of Treasury, Office of Foreign Assets Control
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of International Affairs
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.