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Friday 16 April 2021
EDVA Reminds Community Partners That the Americans with Disabilities Act Applies to COVID-19 Related ServicesRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today that it will be providing the attached
Dear Colleague Letter reminding community partners that are involved in the COVID-19 pandemic response that the Americans with Disabilities Act (“ADA”) applies to their services.“The COVID-19 pandemic has had a severe and distressing impact on people with disabilities, who, through no fault of their own, have faced additional barriers due to the public health crisis,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will vigorously pursue justice on behalf of those who are not provided equal access because of their disability. It is absolutely critical that COVID-19 resources, including vaccines and testing, are implemented in a manner that ensures individuals with disabilities are not subjected to discrimination and are able to access those services.”
The Dear Colleague Letter explains that ADA “considerations may include: whether registration systems and websites are available to individuals who have vision or hearing disabilities; whether facilities selected as vaccine or COVID-19 testing sites are accessible to people with mobility disabilities; and whether there is effective communication for people with disabilities in conveying information about such services.”
The Dear Colleague Letter includes links to numerous federal publications that provide a detailed discussion of the ADA’s requirements, including publications on ADA.gov. The U.S. Department of Justice has issued a technical assistance document titled “ADA Checklist for Polling Places,” which may serve as a helpful guide to states and municipalities in selecting vaccination sites, as well as providing temporary remedies to ensure that vaccination programs are accessible to people with disabilities. Like polling places, vaccination sites often have another primary use (such as a gym or community center), so the considerations for their selection and the methods used for ensuring their accessibility are applicable. The Dear Colleague Letter also includes links to additional resources and publications provided by the U.S. Department of Health and Human Services and the Federal Emergency Management Agency.
The U.S. Attorney’s Office for the Eastern District of Virginia, through its Civil Rights Enforcement (“CRE”) Unit, in partnership with the Justice Department’s Civil Rights Division, vigorously enforces a variety of federal statutes that prohibit discrimination, including the ADA, the Civil Rights Act of 1964, the Civil Rights of Institutionalized Persons Act, and the Equal Educational Opportunities Act of 1974. EDVA’s CRE Unit also enforces the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act of 1994.
For more information on the ADA, visit ADA.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
EDVA Dear Colleague Letter (COVID-19 ADA)
Drug Conspiracy Defendant Sentenced to 16 + Years in Federal PrisonRead the Press Release
SHREVEPORT, La. – Roderick Dewaine Hogan, 39, of Plain Dealing, Louisiana was sentenced today by United States District Judge Donald E. Walter to 200 months (16 years, 8 months) in prison, followed by 5 years of supervised release, on a drug conspiracy charge.
On July 17, 2019, a federal grand jury returned an indictment charging Hogan and others with conspiracy to possess with intent to distribute methamphetamine after an investigation by the Drug Enforcement Administration (DEA) into drug trafficking activities in the Plain Dealing and Springhill areas of Louisiana. Hogan pleaded guilty to the charge on October 22, 2019.
During their investigation, DEA agents learned that Hogan received a phone call on November 30, 2018 from Damione Brock, his co-conspirator, who was a prisoner at the Louisiana State Penitentiary in Angola. During the phone call, Brock asked Hogan to put together a package of methamphetamine to be delivered to Angola. Brock told Hogan that he had a girl who would pick up the methamphetamine in Alexandria if another co-conspirator, Marvin Beck, could deliver it to her. Hogan provided the narcotics to Beck and allowed him to drive Hogan’s vehicle to deliver the narcotics to the girl, who was later identified as Keisarah McGee, another co-conspirator. McGee was a correctional officer at Angola during this time.
On December 2, 2018, DEA agents surveilled the transportation of the methamphetamine, which was hidden in fake soda cans and was driven by Beck from Bossier City to Alexandria. Beck put the package into McGee’s vehicle, who then took the methamphetamine hidden in fake soda cans with the plan to take them with her into Angola when reporting for work. DEA agents alerted Louisiana Department of Corrections investigators to expect the female officer to try and enter the facility with the hidden narcotics. Agents were able to stop her at the gate at Angola and search the vehicle and found the methamphetamine and seized it prior to her entry into the facility.
The DEA conducted the investigation. Assistant U.S. Attorneys J. Aaron Crawford and Brandon B. Brown prosecuted the case.
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Dallas Attorney Charged in Narcotics Money Laundering SchemeRead the Press Release
A Dallas lawyer has been charged with laundering what he believed to be proceeds of narcotics trafficking, announced Acting U.S. Attorney Prerak Shah.
Rayshun Jackson, the 51-year-old attorney at the helm of The Jackson Law Firm, was arrested Wednesday, charged via criminal complaint with money laundering. He made his initial appearance in federal court Friday morning.
“Attorneys swear an oath to conduct themselves with integrity and uphold the rule of law. Mr. Jackson instead chose to ignore his oath by allegedly laundering money for purported narcotics dealers,” said Acting U.S. Attorney Prerak Shah. “He explicitly instructed them on how to further violate the law and profit from the devastation of our nation’s opioid epidemic, lining his own pockets in the process. He will now have to face the consequences of his actions.”
“Global drug trafficking depends on criminal money launderers to take ill-gained profits and weave a fictitious web of businesses and bank accounts to appear legitimate. These illicit activities cannot exist without each other,” said Eduardo A. Chavez, Special Agent in Charge of the DEA in Dallas. “As alleged, Mr. Jackson used his law degree not in the furtherance of justice, but to line his own pockets, a true travesty of the law. The DEA will tirelessly investigate and seek justice for drug money launderers, who enable criminal organizations to profit from those who find themselves addicted to controlled substances.”
According to the complaint, Mr. Jackson surfaced during the DEA’s years-long investigation of a large-scale opioid distribution ring, when a high-level dealer offered to introduce an undercover agent to someone who could launder drug proceeds.
Asked if he knew anyone capable of laundering around half a million dollars of “drug money,” the dealer stated he knew “business people” who “do this for a fee.”
“He’s gonna clean it. He’s gonna wash it,” the dealer told the undercover agent in August 2020. “I don’t know the ins and outs… he’s the lawyer.”
Two weeks later, the dealer accompanied the undercover agent and a confidential source to Mr. Jackson’s office on Pacific Avenue in Dallas, where the dealer vouched for the undercover agent’s trustworthiness. Still posing as a drug trafficker, the undercover agent told Mr. Jackson that he would need to clean around “half a mil a month.”
“It’s straight dope money,” the undercover agent admitted.
“I don’t care where the money comes from,” the attorney responded.
The pair allegedly negotiated a 4 percent fee, plus bonus, for the defendant to launder the money. Mr. Jackson suggested setting up a “shell corporation,” as well as a cash business like a coin laundry or car wash that would make it difficult for authorities to track proceeds. He said he could get everything up and running in two to four weeks. The pair agreed on a $100,000 trial run, with more to come, and the undercover agent departed the office with the dealer and confidential source.
“This dude has been leading us. We are successful because of him,” the dealer told the undercover after they left. “Ray is the bomb… He’s a thug, he’s just got a law degree.”
In late September, the undercover agent again traveled to Mr. Jackson’s office to deliver $100,000 in cash made from purported drug sales.
Before the undercover turned over the money, Mr. Jackson tried to clarify his long-term commitment to the drug trafficking organization.
“I can get out at any point, right? Long as ya’ll got your money?” the attorney asked.
“I know that we can come across as threatening, but we are not savages,” the undercover agent responded. “So when you are ready to be done, then we’re gonna be done.”
The undercover agent then handed Mr. Jackson a black backpack containing the cash. Mr. Jackson allegedly took the bag and looked inside. He warned the undercover agent and confidential sources to speak in code when they contacted him, and told them he would not put anything substantive in a text.
“You take care of me and I am gonna take care of you,” he told the undercover agent before he left.
The following month, a Jackson Law Firm bank account made three deposits totaling $95,000 into a DEA undercover bank account. Mr. Jackson allegedly kept $5,000, the 4 percent commission plus a 1 percent bonus.
In late November, the undercover agent returned to Mr. Jackson’s office to deliver $300,000 in purported drug sale cash. The undercover agent expressed concern about Mr. Jackson allowing anyone access to his bank accounts, since the amount of money had increased. Mr. Jackson assured the undercover that he had “full control and only control.”
Mr. Jackson allegedly began to transfer the money to the black backpack he’d kept from the prior transaction, then paused to ask if the undercover had taken steps to ensure the money did not smell like narcotics, to which the agent replied in the affirmative. Mr. Jackson continued to stuff cash into the backpack, struggling to zip it closed. When the undercover agent offered to have the confidential source escort Mr. Jackson to his vehicle, the attorney laughed and said, “nobody knows, I take stuff down all the time.”
Over the following three months, a Jackson Law Firm bank account made eleven more deposits totaling $285,000 into undercover DEA bank accounts. Each deposit was less than $50,000, just as Mr. Jackson had promised. Mr. Jackson once again allegedly kept 5 percent, or $15,000.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Jackson is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 year in federal prison per laundered transaction.
The Drug Enforcement Administration’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigations and the Dallas Police Department. Assistant U.S. Attorney Courtney Coker, the Northern District of Texas’ Deputy Criminal Chief, is prosecuting the case along with Assistant U.S. Attorneys Juanita Fielden and Nashonme Johnson.
DOJ and Washington Department of Children, Youth and Family Services settle claims of Americans with Disabilities Act (ADA) violationsRead the Press Release
Seattle – The Washington State Department of Children, Youth and Family Services (DCYF) will pay $300,000 and make sweeping changes to procedures for providing services to families where a parent or child is deaf or hard of hearing, announced Acting U.S. Attorney Tessa M. Gorman of the Western District of Washington and Acting U.S. Attorney Joseph H. Harrington of the Eastern District of Washington. The settlement follows an investigation of complaints by two Washington State families about DCYF’s Child Welfare Program (CWP).
“At every step communication is key to the relationship between a family facing challenges and social workers who are trying to protect and serve children,” said Acting U.S. Attorney Gorman. “It is critical whether in a home assessment, a supervised visit, or a therapeutic service, that a parent who is deaf or hard of hearing be able to understand and communicate with a caseworker. DCYF has agreed to a path forward that will provide these critical services.”
“No individual should be denied or delayed access to public services because of a disability,” said Acting United States Attorney Joseph H. Harrington for the Eastern District of Washington. “Services provided by the State of Washington whether through DCYF or other important areas of civic life must comply with the ADA and its effective communication requirements. The ADA for over thirty years has strengthened our society and this settlement should serve as a stark reminder of why this landmark legislation is so important.”
According to the settlement agreement, DOJ found evidence that on more than 100 occasions between 2017 and 2019, the Child Welfare Program failed to provide appropriate auxiliary aids or services, including qualified sign language interpreters, for the complainant families. The communications included high stakes interviews during investigations regarding the possible termination of parental rights and during court-ordered treatments and counseling required for reunification with children.
The investigation by the U.S. Attorney’s Offices in both the Western and Eastern Districts of Washington determined that the failure to provide auxiliary aids and services, including qualified interpreters, denied the complainant families equal access to DCYF’s services, programs, and activities. This failure to provide qualified interpreters in a timely manner, meant that the complainant families were not provided communication that was as effective as the agency’s communications to people without disabilities. That is the standard set out in the Americans with Disabilities Act.
The investigation concluded that complainant families were frequently unable to participate fully in agency investigations, had unequal access to case resolutions options like mediation, and experienced delays in moving through court-ordered services such as counseling and drug treatment. DCYF employees also improperly relied on ineffective means of communication such as the use of note-writing for the parents whose primary language was ASL, or the use of family members to interpret instead of qualified interpreters. There was also evidence that the parents’ status as individuals who are deaf or hard of hearing and their legitimate requests for qualified interpreters resulted in caseworkers having a negative view about the willingness of such parents to cooperate in DCYF’s investigation.
DOJ concluded that the delays and barriers to access to DCYF’s services, including resolution of investigations and visitations with their children, caused significant emotional distress to the complainant parents and their children. The investigation also reflected that these problems were likely not limited to the complainant parents but reflected a more widespread inability to communicate effectively with families with members who are deaf or hard of hearing.
Under the terms of the settlement DCYF Child Welfare Program must devise and implement, with input by the U.S. Attorney’s Offices, new policies, practices, and procedures on how it will communicate effectively with constituents who have communication disabilities, including individuals who are deaf or hard of hearing. The new communications policies will follow the ADA requirements and will ensure there are a variety of resources, including appropriate auxiliary aids and services, for caseworkers to use in communicating with families. The new policy will prohibit the use of interpreters who are family members and children, as required by the ADA.
The settlement agreement also calls for DCYF to enter or maintain sufficient contractual arrangements across all the counties of Washington State to meet the expected needs for qualified interpreters. Video remote interpreting may be used following the ADA’s standards and requirements.
The settlement agreement further calls for publicizing the new communications plan, appointing an ADA coordinator, training employees on the new plan and ADA requirements, and keeping a log of when auxiliary aids and services, including interpreter services, are used. The log will be part of the information provided to the U.S. Attorney’s Offices to ensure DCYF remains in compliance with the settlement agreement.
Under the terms of the settlement, the $300,000 will be divided between the complainants in Western and Eastern Washington. Some of the money will be held in trust for two of the children whose reunification with their parents was delayed by a repeated lack of interpreters.
The Department of Children, Youth and Families cooperated fully in the investigation.
The investigation was conducted by Assistant United States Attorney Christina Fogg who serves as the Civil Rights Program Coordinator for the U.S. Attorney’s Office, Western District of Washington, and Assistant United States Attorney Joseph Derrig of the Eastern District of Washington.
The U.S. Attorney’s Offices (in coordination with the Civil Rights Division of the United States Department of Justice) vigorously enforce federal civil rights laws throughout Washington. These laws prohibit discrimination, protect the constitutional rights of residents, and affirm equal opportunity for all. Find more information on our civil rights program here.
Convicted Felon Detained on Firearm and Drug Trafficking ChargesRead the Press Release
PROVIDENCE – A Providence man previously convicted in Rhode Island state court on felony drug charges and awaiting trial in state court on additional assault and firearm charges, has been detained in federal custody on unrelated drug trafficking and weapons charges, following an ATF and Providence Police investigation that determined the man was allegedly delivering fentanyl to customers in Massachusetts, at times trading for firearms as payment.
It is alleged in court documents that two individuals confirmed to ATF agents that they purchased fentanyl from Joaquin Fabian, 23, one claiming they exchanged firearms as payment.
According to court documents, beginning in January 2021, ATF agents, with the assistance of Providence Police, employing various surveillance techniques, determined that on several occasions Fabian allegedly drove to Southeastern Massachusetts to conduct his drug trafficking business. Law enforcement also surveilled Fabian participate in meetings in Providence that agents believe were related to his alleged drug trafficking activity. During this time, Fabian routinely changed vehicles and, at times, employed counter-surveillance techniques while driving.
It is alleged that on Wednesday, Fabian drove to Franklin, Massachusetts, consistent with past trips he made to meet with his drug customers. About an hour later, as law enforcement monitored Fabian’s social media accounts, Fabian allegedly posted a photograph of a handgun positioned in between what appeared to be his legs while seated in a motor vehicle. As Fabian returned to the area of his Providence residence, ATF agents and Task Force officers conducted a traffic stop of his vehicle. Fabian exited the vehicle, hesitated, grabbed towards his waistline consistent with the drawing of a firearm, and fled on foot. Agents quickly located and approached Fabian, who had his hands raised. Three cell phones were located on the ground beside him. A firearm, consistent with the firearm earlier posted in a photograph to Fabian’s social media account, was located nearby.
On Fabian’s person, agents allegedly found a packet containing 2.7 grams of fentanyl. In his vehicle agents located and seized a pound of marijuana. A court-authorized search of his residence resulted in the seizure of three plastic bags containing 70 grams of fentanyl, 439.9 grams of marijuana, three loaded magazines of ammunition, a box containing 44 rounds of ammunition, a plastic bag containing 249 rounds of various types of ammunition, and $18,802 in cash.
Fabian appeared on Thursday before U.S. District Court Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with possession of a firearm by a prohibited person, possession of ammunition by a prohibited person, possession of more than 40 grams of fentanyl with intent to distribute, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Fabian’s arrest and detention are announced by Acting United States Attorney Richard B. Myrus, Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
The case is being prosecuted by Assistant U.S. Attorney William F. Ferland.
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Company Owners Plead Guilty to Falsifying Pension Contribution ReportsRead the Press Release
BOSTON – Co-owners of a New Hampshire asbestos abatement company have been charged and agreed to plead guilty to making false statements to employee pension plans.
Richard Quinn, 58, of Sterling, Mass., and Gary McCaffrey, 65, of Salem, N.H., were charged and agreed to plead guilty to one count of making false statements to a pension plan covered by the Employee Retirement Security Act (ERISA).
According to the charging documents, Quinn and McCaffrey owned and operated Absolute Environmental Inc., an asbestos abatement company. Between November 2014 and May 2017, Quinn and McCaffrey continued to employ several undocumented individuals after being notified of their status. During this time period, McCaffrey and Quinn knowingly falsified reports to the relevant pension plans about the work performed by the undocumented individuals, failing to make required pension contributions of over $337,000.
Pursuant to the plea agreement, the government will recommend a sentence of two years of supervised release, six months of home confinement and a fine of $10,000 to $25,000 for each defendant.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Nathaniel R. Mendell; Michael C. Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of the Inspector General, Office of Investigations Labor Racketeering and Fraud, New York Region; and Carol Hamilton, Boston Regional Director of the Employee Benefits Security Administration made the announcement. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colorado Man Indicted for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Colorado Springs, Colorado, man has been indicted by a federal grand jury for Possession with Intent to Distribute Methamphetamine.
Chad William Chapman, age 36, was indicted on April 13, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on April 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 16, 2021, in the District of South Dakota, Chapman knowingly and intentionally possessed 50 grams or more of methamphetamine with intent to distribute it. Chapman was pulled over by the Aberdeen Police Department in Aberdeen and found in possession of nearly a pound of methamphetamine and $6,135 in U.S. currency.
The charge is merely an accusation and Chapman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Aberdeen Police Department and the Brown County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Chapman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been scheduled.
Chicago Man Indicted for Allegedly Straw Purchasing Handguns in Suburban StoreRead the Press Release
CHICAGO — A Chicago man has been indicted on a federal firearm charge for allegedly straw purchasing handguns in a suburban store on behalf of another individual.
On July 15, 2020, DARIUS BROWN purchased three handguns from a licensed firearms dealer in Mokena, Ill., and falsely certified on federal forms that he was the actual buyer, according to an indictment unsealed today in U.S. District Court in Chicago. In reality, Brown purchased the guns on behalf of another individual, the charges allege.
Brown, 24, is charged with one count of making a false statement in connection with the acquisition of firearms. He pleaded not guilty today during his arraignment in federal court in Chicago. A status hearing was set for April 30, 2021, before U.S. District Judge John Z. Lee.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The government is represented by Assistant U.S. Attorney Ankur Srivastava.
“Straw purchasers too often play a grave role in enabling the unlawful possession of guns and the violence that can follow,” said U.S. Attorney Lausch. “Our office is committed to working with our law enforcement partners to stop the flow of guns to individuals who cannot legally purchase them.”
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The charge in the indictment is punishable by a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Cedar Rapids Man with Violent History Sentenced to Federal Prison for Possessing GunRead the Press Release
A Cedar Rapids man, responsible for possessing a gun while using marijuana and being a felon, was sentenced today to 60 months in prison.
Marcus Lynn Brown, Jr., age 20, from Cedar Rapids, Iowa, received the prison sentence after a November 10, 2020 guilty plea to possession of a firearm by a prohibited person.
Information disclosed at sentencing and at his plea hearing showed that, in May 2020, Cedar Rapids police officers stopped a vehicle Brown was a passenger in because Brown had active arrest warrants. Once the vehicle stopped, Brown tried to run from police and fought with them as he was being arrested. Brown left a gun in the vehicle just before running. Officers located the gun, which was loaded. The gun had Brown’s DNA on it. Brown had marijuana in his pocket and tested positive for using marijuana. Brown has five prior adult criminal convictions, three of which involved violence or firearms.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 60 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number 20-CR-79.
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Cedar Rapids Man Sent to Federal Prison After Receiving Fifty Pounds of Methamphetamine for ResaleRead the Press Release
A man who distributed pounds of methamphetamine was sentenced on April 15, 2021, to more than 20 years in federal prison.
Jamie Allen Medulan, age 46, from Cedar Rapids, Iowa, received the prison term after an October 22, 2020 guilty plea to conspiracy to distribute methamphetamine and possessing a firearm during and in furtherance of a drug trafficking crime.
On July 13, 2020, officers searched a hotel room being used by Medulan and located more than five kilograms of “ice” methamphetamine, two firearms, $31,448 in cash, and other evidence of drug trafficking. Medulan later admitted receiving more than 50 pounds of methamphetamine from his source over the course of months. Medulan’s criminal history includes convictions in 31 separate cases, including convictions related to theft, assault, burglary, and manufacturing of methamphetamine.
Medulan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Medulan was sentenced to 251 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Medulan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Linn County Sheriff’s Office, the Marion Police Department, and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-55.
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Cedar Falls Man Sentenced to Federal Prison for Illegally Acquiring and Possessing FirearmsRead the Press Release
A Cedar Falls man who illegally acquired and possessed firearms after shooting a man in the face in 2017 was sentenced today to more than 5 years in federal prison.
DeShaun Anthony Bullock, Jr., age 29, from Cedar Falls, Iowa, received the prison term after a September 2020 guilty plea to possession of a firearm by a drug user.
Evidence at sentencing showed that Bullock shot a Waterloo man in the face in March 2017. Bullock was acquitted of a charge related to the March 2017 shooting in state court; however, after the acquittal, he admitted to the shooting in text messages. In July 2018, Bullock fraudulently obtained a state permit to carry weapons by lying about his drug use on the application form. In March 2019, Bullock possessed a firearm during a drug transaction. After officers observed the drug transaction, they conducted a traffic stop on Bullock’s vehicle and seized the firearm and marijuana. A month later, in April 2019, Bullock fraudulently and illegally obtained a second firearm by lying about his drug use on an ATF form required to purchase the firearm. In July 2019, officers executed a search warrant at Bullock’s residence and seized the firearm he bought in April 2019 and marijuana. Bullock admitted to officers that he had been a user of marijuana since he was 13 years old.
Bullock was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bullock was sentenced to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Bullock is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-02018.
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Camden Man Charged with Sex Trafficking of a MinorRead the Press Release
CAMDEN, N.J. – A Camden man is scheduled to make his initial appearance today on a sex trafficking charge, Acting U.S. Attorney Rachael A. Honig announced.
Semaj A. Gilmore, 31, is charged by complaint with one count of sex trafficking of a minor. He is scheduled to appear by videoconference before U.S. Magistrate Judge Karen M. Williams this afternoon.
According to documents filed in this case and statements made in court:
In April 2021, investigators learned that a missing juvenile from Pennsylvania was being advertised for sexually illicit activities on a website that is often used to advertise acts of prostitution. On April 13, 2021, an undercover agent contacted a phone number associated with the advertisement. The undercover agent and the user of the phone number, later revealed to be Gilmore, exchanged a series of messages that ultimately led to the undercover agent meeting the victim in a motel room in or around Mount Laurel, New Jersey, purportedly to engage in sexual activities in exchange for cash. Among other messages, Gilmore instructed the undercover agent to “get condoms” and to confirm that he was not “a cop.” When uniformed officers entered the motel room, Gilmore, who had been waiting in a car in the adjacent parking lot, fled the scene. Officers stopped Gilmore’s car and recovered the phone used to arrange the meeting between the victim and the undercover agent.
The count of sex trafficking of a minor carries a statutory mandatory minimum penalty of 10 years in prison and a maximum of life in prison.
Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, with the investigation leading to the charge. She also thanked members of the Mount Laurel Police Department, under the direction of Chief Steve Riedener, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Caguas Resident Indicted for Tax FraudRead the Press Release
SAN JUAN, P.R. – On April 14, 2021, the Federal Grand Jury in the District of Puerto Rico returned a seven-count indictment charging Jose A. Pabón-Sanabria, 50 yrs. old, of Caguas, Puerto Rico, with willfully attempting to evade and defeat the payment of a substantial portion of the employment taxes due to the federal government in violation of 26 U.S.C. § 7201, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. This case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI).
According to the indictment, Jose A. Pabón-Sanabria operated GAP Security Services, LLC (“GAP”), a security guard business with its principal place of business in Caguas. At the time of the events, GAP employed more than 50 full time employees.
It is alleged that Pabón-Sanabria caused employment taxes, including Federal Insurance Contribution Act (“FICA”) taxes, to be withheld from GAP’s employees’ wages, but failed to fully pay the taxes to the IRS from the first quarter of 2014 through the third quarter of 2015, among other employment tax quarters. As a result, Pabón-Sanabria failed to pay the IRS in excess of $262,000 in employment taxes for GAP employees.
The Internal Revenue Service (“IRS”) is an agency within the Department of Treasury responsible for administering and enforcing the tax laws of the United States, and collecting taxes owed to the Treasury of the United States by its citizens and other entities.
The Internal Revenue Code and associated statutes and regulations requires employers to withhold from employees’ gross pay federal income taxes and FICA taxes, which represent Social Security and Medicare taxes, and to account for and pay the withheld taxes to the IRS on a quarterly basis. These taxes are held in trust for the United States by the employer and required to be paid for the benefit of employees.
In addition to the taxes that must be withheld from pay, employers are separately required to make contributions under FICA for Social Security and Medicare in amounts matching the amounts withheld from their employees’ pay for those purposes. Together, they are commonly referred to as “employment taxes.”
“Employers such as Pabón Sanabria are required by law to withhold taxes from their employees’ wages, hold those funds in trust, and pay over those funds to the IRS,” said U.S. Attorney Muldrow. “Willful failure to comply with this requirement is a crime. Those individuals who choose to maintain their business and line their pockets with the trust funds of their employees are stealing from the U.S. Treasury –and will face substantial consequences including incarceration.”
Violations of 26 U.S.C. § 7201 carry a penalty of imprisonment for up to 5 years and three years of supervised release, along with a fine.
This case is being investigated by IRS-CI and prosecuted by Assistant United States Attorney María L. Montañez-Concepción.
An indictment is only an accusation and not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
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Brockton Man Charged with Aggravated Identity TheftRead the Press Release
BOSTON – A Brockton man who has been living under a false identity was arrested on Wednesday, April 14, 2021 on charges of aggravated identity theft and misuse of a Social Security number.
An individual referred to as “John Doe” was charged with one count of misusing a Social Security number and one count of aggravated identity theft. Following an initial appearance before U.S. Magistrate Judge Marianne B. Bowler, Doe was detained pending a detention hearing scheduled for April 19, 2021.
According to charging documents, Doe used the name and Social Security number of a U.S. citizen to apply for and obtain a Massachusetts REAL ID driver’s license. Doe also used this person’s identifiers to apply for and receive Pandemic Unemployment Assistance (PUA).
The charge of misuse of a Social Security number provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any other sentence imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the U.S. Department of Labor, Office of Inspector General; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of State, Diplomatic Security Service; U.S. Postal Inspection Service; Massachusetts State Police; and the Brockton Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Aroostook County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Presque Isle man pleaded guilty in federal court yesterday to conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Reece Humphrey, 27, and his co-conspirators distributed the drugs in Aroostook County and other parts of central and northern Maine. Humphrey traveled with co-conspirators on at least one such trip to Mexico and Arizona to obtain methamphetamine and transport it back to Maine.
Humphrey faces up to 20 years in prison and a fine of up to $1 million. He also faces between three years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Aberdeen Man Indicted on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Aberdeen, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Brent Wayne Vostad, age 36, was indicted on April 13, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on April 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 27, 2021, in Aberdeen, South Dakota, Vostad, while knowingly being a convicted felon and a user of a controlled substance, knowingly possessed a loaded handgun, which had been transported in interstate commerce.
The charge is merely an accusation and Vostad is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Aberdeen Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Vostad was remanded into the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
79th Defendant Linked to SWGA Meth Distribution Ring is Sentenced to PrisonRead the Press Release
ALBANY, Ga. – The seventy-ninth and final defendant connected to a major methamphetamine distribution ring supplying illegal drugs across the southeastern United States was sentenced to serve 96 months in a federal prison, said Peter Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Kim Wesley, 48, of Nashville, Georgia, was sentenced on Thursday, April 15, by U.S. District Judge Leslie Gardner to 96 months imprisonment to be followed by eight years of supervised release. Wesley previously pleaded guilty to one count distribution of methamphetamine. Wesley is one of 79 co-defendants in the 2016 Boris Fuller methamphetamine distribution wiretap investigation. All 79 defendants have been federally charged, convicted and sentenced. There is no parole in the federal system.
“The investigation to bring down a significant drug trafficking organization operating out of a small southwest Georgia community began four years ago. Law enforcement has never backed down from ensuring justice is served to dozens of individuals involved in distributing large amounts of methamphetamine into communities across the southeastern United States,” said Acting U.S. Attorney Leary. “I want to thank our many law enforcement partners who worked together to dismantle this drug trafficking ring.”
Between May 17, 2016 and August 2, 2016, state and federal search warrants were obtained authorizing investigators to obtain text messages and other electronic content from relevant cell phones. A review of these communications revealed that the known leader of the methamphetamine distribution ring, Boris Fuller, 42, of Moultrie, and his co-conspirators were distributing approximately four pounds of methamphetamine a week to customers in Georgia, Florida, Kentucky and South Carolina. These communications also showed that Fuller controlled a network of couriers that were traveling to Atlanta to acquire bulk quantities of methamphetamine. For his crime, Fuller was sentenced to serve 30 years in a federal prison to be followed by ten years of supervised release on October 26, 2018, by Judge Gardner after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. Authorities estimate that an organization of 79 individuals regulated by Fuller was responsible for the distribution of more than 20 kilograms of methamphetamine in and around Moultrie from May until November 2016. The names of the additional defendants previously sentenced to prison for their involvement in the Fuller methamphetamine distribution investigation are listed in earlier press releases on the USAO Middle District of Georgia website. You can find them by visiting www.justice.gov/usao-mdga.
The case was investigated by the DEA, GBI, Georgia Department of Corrections, Georgia Department of Community Supervision, Mid-South Narcotics Task Force, Colquitt County Sheriff’s Office, Crisp County Sheriff’s Office, Tift County Sheriff’s Office, Henry County Sheriff’s Office, Grady County Sheriff’s Office, Berrien County Sheriff’s Office, Cook County Sheriff’s Office, Leon County Florida Sheriff’s Office, Volusia County Florida Bureau of Investigation and Moultrie Police Department. Assistant U.S. Attorney Leah E. McEwen prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
20 Indicted on Meth Trafficking and Firearms ChargesRead the Press Release
Twenty central Texas residents face federal drug trafficking and firearms charges stemming from five separate, but related, federal grand jury indictments unsealed today in Waco, announced U.S. Attorney Ashley C. Hoff; FBI Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety (DPS) Director Steven McCraw; Temple Police Chief Shawn Reynolds; Killeen Police Chief Charles Kimble; and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division.
Indictment #1 – U.S. v. Gutierrez, et al.
This federal grand jury indictment charges the following defendants with conspiracy to possess with intent to distribute methamphetamine:
Anthony Gutierrez, aka Cuzzo, age 34 of San Juan;
Jose Francisco Gutierrez, age 33 of Killeen;
Sarah Elizabeth Crigger, age 30 of Nolanville;
Bobby Quinton Gentile, age 43 of Holland;
Ashley Nicole Sutton, age 31 of Belton;
Wesley Warrick, age 50 of Cameron;
Carlos Avila, age 38 of Buckholts;
Joe David Beck, age 50 of Temple;
Lesleigh Arianne Bittner, age 33 of Belton;
Aleah Freitag, age 29 of Rockdale;
Kimberly Lee, age 26 of Gatesville;
Colton Lane Lewis, age 30 of Temple;
Angela Loy, age 32 of Temple;
Frank Medina Jr, age 43 of Temple;
Timothy Neal Nyquist, age 36 of Temple; and
Trisha Ann Sanchez, age 40 of Temple.The indictment alleges that the defendants conspired since January 2020 to distribute multiple kilogram quantities of methamphetamine in Bell County and surrounding areas.
OVer the past two days, federal, state and local authorities arrested 13 of the above defendants. Jose Gutierrez, Crigger and Lewis were already in custody prior to yesterday. During this investigation authorities seized approximately four kilograms of cocaine, approximately seven kilograms of methamphetaine and a half a dozen firearms.
Anthony Gutierrez, Jose Gutierrez, Crigger, Gentile, Sutton and Warrick face between 10 years and life in federal prison upon conviction because the quantity level charged is at least 500 grams. The remaining defendants face between five years and 40 years in federal prison upon conviction because the quantity level charged is at least 50 grams.
Indictment #2 – U.S. v. Cory Joe Barton
This federal grand jury indictment charges 35-year-old Cory Joe Barton of Gatesville with conspiracy to possess with intent to distribute methamphetamine. The indictment alleges that on November 11, 2020, he possessed at least 500 grams of methamphetamine. If convicted, Barton faces btween 10 years and life in federal prison. Barton was previously arrested.
Indictment #3 – U.S. v. Lori Oliphint
This federal grand jury indictment charges 43-year-old Lori Oliphint of Temple with possession with intent to distribute under 50 grams of methamphetamine on August 19, 2020. If convicted, Oliphint faces up to 20 years in federal prison. Authorities arrested Oliphint yesterday.
Indictment #4 – U.S. v. Kayli Marie Guthrie
This federal grand jury indictment charges 21-year-old Kayli Marie Guthrie of Temple with possession of a firearm by a convicted felon. The indictment alleges that on May 21, 2020, Guthrie was in possession of a Colt .45 caliber handgun. According to the indictment, Guthrie was convicted on March 27, 2020, in Bell County, for possession of a controlled substance less than one gram and unauthorized use of a motor vehicle. Authorities arrested Guthrie last night.Indictment #5 – U.S. v. Annie Rose Lewis
This federal grand jury indictment charges 31-year-old Annie Rose Lewis of Temple with one count of convicted felon in possession of a firearm. The indictment alleges that on December 21, 2020, Lewis possessed a .380 caliber pistol. Lewis has a 2011 federal conviction for manufacturing counterfeit currency. If convicted, Lewis faces up to 10 years in federal prison. Authorities arrested Lewis earlier today.
The FBI, Temple Police Department, Killeen Police Department, Texas Department of Public Safety Narcotics Division and Drug Enforcement Administration conducted this investigation. The U.S. Marshals Service provided valuable assistance with the arrests. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting these cases.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Thursday 15 April 2021
York County Man Charged with Bankruptcy FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christopher Gambrill, age 44, of Windsor, Pennsylvania, was indicted by a federal grand jury for concealing assets during a bankruptcy proceeding.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that while Gambrill was a party in a bankruptcy proceeding in December 2016 through September 2017, he fraudulently concealed a $125,000 inheritance from the bankruptcy trustee and creditors.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is imprisonment for five years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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William Ellis Sentenced to 10 Years for Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
GREENEVILLE, Tenn. – On April 15, 2021, William Charles Ellis, 51, currently of Jonesborough, Tennessee, was sentenced by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Ellis agreed to plead guilty to enticement of a minor to engage in sexual activity, in violation of 18 U.S.C. § 2422(b). Ellis was sentenced to 120 months in prison, followed by 15 years of supervised release. Ellis will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
In August 2019, Ellis used an online dating application to communicate with a person that he believed to be a 15-year-old minor female. The “minor female” was an FBI agent working an online covert investigation. Ellis sent sexually explicit photos to the minor female and requested that she send sexually explicit photos and videos to him. The FBI identified the defendant, obtained a search warrant for his cellular phone, and questioned him. During questioning, Ellis admitted to communicating with a person that he believed to be an underage female and asking her to send him pornographic videos. The FBI searched Ellis’ phone and found numerous files containing child pornography.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Emily Swecker represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab resources.
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Wheeling man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mark L. Flint, II, of Wheeling, West Virginia, was sentenced today to 51 months of incarceration a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Flint, age 35, of Wheeling, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2021. Flint, who is prohibited from having a firearm, admitted to having a .40 semi-automatic pistol in May 2020 in Ohio County.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Woman Sentenced for Coupon Fraud Scheme Targeting Kmart StoresRead the Press Release
PITTSBURGH - A West Virginia resident has been sentenced in federal court to three years of probation, including six months of home detention, on her conviction for wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Tanya Thompson, aka Tanya Whetzel of Martinsburg, West Virginia.
According to information presented to the court, Thompson used fraudulent electronic coupons on her mobile device to purchase third party gift cards and prepaid credit cards at various Kmart stores. From June 2017 until December 2017, Thompson traveled to approximately 25 states and dozens of Kmart stores to use the fraudulent coupons. The total loss to Kmart was $94,977.50.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Thompson.
West Sacramento Postal Employee Sentenced to Prison for Stealing Packages that Contained DrugsRead the Press Release
SACRAMENTO, Calif. — Celeste Pang, 42, of Olivehurst, was sentenced today by U.S. District Judge Morrison C. England Jr. to six months in prison and a $2,000 fine for embezzlement of mail by postal employee, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pang, a postal employee at the West Sacramento post office, identified what she believed to be drug parcels and rerouted them to her personal residence. For over a year and a half, Pang stole parcels from the post office by replacing the original tracking label with an insured tracking label and replacing the original address label with a label bearing her home address. Agents intercepted one of the stolen packages before it reached Pang’s residence. That package contained 10 pounds of marijuana.
This case was the product of an investigation by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Waterford, PA Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Waterford, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
John Douglas Root, Jr., 28, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that while engaged in a Kik chat group focused on child exploitation, Root received and distributed digital images depicting prepubescent minors engaging in sexually explicit conduct.
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 (CEOS), 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 August 19, 2021 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Root on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Root.
Van Zandt County Man Sentenced for Receiving Child PornographyRead the Press Release
TYLER Texas – A Wills Point, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
James Joseph Veeser, 59, pleaded guilty on Sep. 20, 2020, to receipt of child pornography and was sentenced to 97 months in federal prison by U.S. District Judge J. Campbell Barker today. Upon release from prison, Veeser will be required to register as a sex offender.
“Sexual exploitation of children is a scourge that the U.S. Attorney's Office has set as a high priority for investigation and prosecution,” said Acting U.S. Attorney Nicholas J. Ganjei. “Those who receive these detestable images and videos drive the demand for them - and, hence, should face criminal liability for that conduct.”
According to information presented in court, on Jan. 8, 2019, law enforcement authorities executed a search warrant at Veeser’s residence in Van Zandt County, Texas, and recovered computer equipment. A forensic examination of the computer equipment revealed visual depictions of minors engaged in sexually explicit conduct. The videos and photos had been downloaded between Jan. 25, 2016 and Jan. 8, 2019.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and the Longview Police Department and prosecuted by Assistant U.S. Attorney Alan Jackson.
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United States District Court Orders Forfeiture of Real Estate Purchased by Mexican Cartel Leader Rafael Caro Quintero with Proceeds of His Drug Trafficking OrganizationRead the Press Release
Today, in federal court in Brooklyn, United States District Judge Eric N. Vitaliano entered a Default Judgment and Partial Decree of Forfeiture authorizing the seizure and forfeiture of five pieces of real property located in and around Guadalajara, Mexico. These properties, described in the civil forfeiture complaint filed on October 11, 2019, were purchased by Rafael Caro Quintero (“RCQ”) with drug proceeds generated by the Caro Quintero drug trafficking organization, a faction of the Mexican organized crime syndicate known as the Sinaloa Cartel. The United States will seek to enforce this Order through diplomatic channels.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the District Court’s Forfeiture Order.
“Today’s order is another step forward in our relentless pursuit of justice for the victims of Caro Quintero’s brutal drug trafficking organization and especially for DEA Special Agent Enrique Camarena, who was tragically murdered at the hands of Caro Quintero’s crime syndicate,” stated Acting United States Attorney Lesko. “In forfeiting these drug-tainted properties, we join with the Mexican government and our law enforcement partners at the DEA to commemorate Special Agent Camarena’s life and remember his ultimate sacrifice.” Mr. Lesko extended his grateful appreciation to the DEA New York Division Organized Crime and Drug Enforcement Strike Force, as well as the DEA Raleigh Resident Office and DEA Mexico City Country Office for their assistance with the case.
“Rafael Caro Quintero is one of the world’s most wanted criminals for years of drug trafficking and his role in killing one of our own, DEA Special Agent Enrique Kiki Camarena,” stated DEA Special Agent-in-Charge Donovan. “The unprecedented seizures and forfeitures announced today exemplify our resolve and perseverance in bringing RCQ to justice to face the consequences of his alleged crimes. As we continue to safeguard the American public from drug trafficking and the dangers associated, we will never forget Special Agent Camarena’s courage and sacrifice.”
According to the forfeiture complaint, between January 1980 and March 2015, the Caro Quintero drug trafficking organization was involved in the transportation of multi-ton quantities of marijuana, multi-kilogram quantities of methamphetamine and multi-kilogram quantities of cocaine from Mexico to the United States. As part of its investigation, law enforcement learned that Caro Quintero used proceeds from the sale of illegal narcotics to purchase real estate in and around his home area of Guadalajara. Caro Quintero allegedly placed the properties in the names of family members to conceal his ownership of the properties and use of illegal proceeds to purchase them, and to prevent Mexican authorities from seizing them.
Caro Quintero is a fugitive from several indictments in the United States and is on the FBI’s list of “Ten Most Wanted” criminals. In April 2018, an indictment was unsealed in federal court in Brooklyn charging Caro Quintero with leading a continuing criminal enterprise and other crimes, including his participation in the 1985 kidnapping, torture and murder of DEA Special Agent Enrique “Kiki” Camarena. A $20 million reward provided by the United States Department of State is being offered for information leading to his capture.
The government’s forfeiture case is being prosecuted by Assistant United States Attorneys Brendan G. King and Patricia E. Notopoulos.
E.D.N.Y. Docket No. 19-CV-5748 (ENV)
Undocumented alien sent to prison for causing injury to federal agentRead the Press Release
LAREDO, Texas – A 33-year-old undocumented Honduran national has been ordered to federal prison for assaulting a Border Patrol (BP) agent in the performance of his official duties, announced Acting U.S. Attorney Jennifer B. Lowery.
On Jan. 29, U.S. District Judge Marina Garcia Marmolejo rendered her guilty verdict against Walter Yobani Ordones-Chavez following a one-day bench trial that concluded Jan. 27.
Today, Judge Marmolejo ordered him to serve a 33-month-term of imprisonment. Not a U.S. citizen, he is expected to face removal proceedings following the sentence. At the hearing, the court heard additional evidence detailing how Ordones-Chavez had multiple aliases, convictions for resisting arrest in the states of Colorado and Massachusetts and been previously deported 11 times.
The court also noted that authorities had acted with great experience and restraint in apprehending Ordones-Chavez. At the conclusion of the hearing, the court thanked the agents for their service to the United States.
In the early morning hours of Dec. 31, 2019, law enforcement responded to possible illegal activity near Headen Avenue and Ventura Street in the El Tonto neighborhood of Laredo. They had discovered a group who had illegally crossed the Rio Grande River and attempted to hide inside a storage shed located at a private residence.
At trial, the court heard Ordones was one of those individuals. Testimony revealed he violently resisted efforts to apprehend him, striking at authorities and ignoring multiple commands to halt.
Law enforcement was ultimately able to physically detain him, but not before causing injury to an agent. Two BP agents were subsequently treated for injuries at a medical facility.
Ordones-Chavez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Francisco J. Rodriguez and Courtney Nix prosecuted the case.
U.S. Attorney’s Office teams up with law enforcement and other community partners to recognize overdose victimsRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Attorney’s Office is partnering with law enforcement and others in the community in the Northern District of West Virginia to recognize overdose victims as a part of National Crime Victims’ Rights Week.
West Virginia remains #1 in overdose deaths per capita in the United States, according to data collected from the Centers of Disease Control. In the 32 counties in the Northern District of West Virginia, an average of 300 people die each year of drug overdoses.
“Substance abuse disorder is rampant in our district and across the state, and in the past year, has been compounded by the pandemic and the isolation, job loss, and uncertainty that came with it. The victims of drug overdoses are someone’s loved ones. We want to recognize these tremendous losses as we continue to work to get these illegal substances off the streets,” said Randolph J. Bernard, Acting U.S. Attorney, Northern District of West Virginia.
The U.S. Attorney’s Office will be placing purple flags, one for each death in the NDWV, in several locations across the District to recognize the hundreds of sons, daughters, parents, grandchildren, and friends who lost their lives last year because of illegal drug sales.
Flags will be placed with our partners in:
• Wheeling –at Wheeling’s Heritage Port, in partnership with the City of Wheeling
• Martinsburg –at the Martinsburg Police Department in partnership with Martinsburg Police
• Bridgeport – at the Bridgeport Police Department in partnership with the Bridgeport Police
• Elkins –at the Elkins City Building in partnership with the City of Elkins
• Morgantown –at the Monongalia County Health Department in partnership with the Monongalia County Quick Response Team
The week, which is celebrating its 40th year this year, begins April 18 and runs through April 24, 2021. The theme is “Support Victims. Build Trust. Engage Communities.” For more information on the week, go to https://ovc.ojp.gov/program/national-crime-victims-rights-week/overview.
U.S. Attorney’s Office Urges Participation in National Drug Take Back DayRead the Press Release
HARRISBURG – As the April 24th Drug Enforcement Agency’s (DEA) 20th National Prescription Drug Take Back Day approaches, Acting United States Attorney Bruce D. Brandler urges the public to participate in the biannual event and remove dangerous expired, unused, and unwanted prescription drugs from your home, where they could be stolen or abused by family members and visitors, including children and teens.
Since it was established in 2010, DEA has held 19 National Prescription Drug Take Back Day events, which have, collectively, removed 13,684,848 pounds (more than 6,842 tons) of medications from circulation. The disposal service is free and anonymous, no questions asked.
DEA and its partners will collect tablets, capsules, patches, and solid forms of medication. Vaping devices and cartridges will also be accepted, so long as the lithium batteries are removed. Liquids including intravenous solutions and syringes, as well as illegal drugs, will not be accepted. All collection sites will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement.
“In the midst of the Covid-19 pandemic, the public should not forget we are still in the midst of an opioid epidemic that has only worsened during the pandemic,” stated Acting U.S. Attorney Bruce D. Brandler. “Over 81,000 people died of a drug overdose in 2020 which represented a significant increase from 2019. Getting rid of excess prescription drugs in the home will help save lives and I urge the public to participate in this very worthwhile endeavor.”
“DEA and its partners collected a record amount at its last Take Back event, making it the largest collection since the program began in 2010,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “This event brings to light how unused medications can end up in the wrong hands.”
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisoning and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. Additionally, opioid overdose deaths have increased during the pandemic. Centers for Disease Control and Prevention (CDC) issued a health alert in December indicating a significant increase in overdose deaths from May 2019 through May 2020, including concerning trends during the first months of the COVID-19 pandemic. Over 81,000 people in the United States died of a drug overdose in just one year. This is the largest number of drug overdoses on record in the United States within a one- year period and an 18 percent increase in deaths year over year.
The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, but accelerated significantly during the first months of the pandemic. Synthetic opioids, such as illicit fentanyl, are the primary driver of the increases in overdose deaths. More people die each year from drug overdose than from traffic accidents or firearms – a staggering statistic that challenges how people perceive the deaths and overdose of people addicted to opioids.
For more information about the event or to locate a collection site near you, visit the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/ or call 1-800-882-9539.
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Two Western Kentucky Men Plead Guilty to Oil and Gas FraudRead the Press Release
BOWLING GREEN, KY. – Two western Kentucky men, Stacy Scott Phelps and James Michael Harper, pleaded guilty to conspiracy to commit wire fraud and wire fraud in connection with their operation of Phoenix Development Drilling Corporation, an oil and gas drilling business, announced Acting United States Attorney Michael A. Bennett.
According to plea agreements in the case, from approximately January 2015 to June 2016 Phelps and Harper operated Phoenix Development Drilling Corporation. Through their efforts, the company acquired drilling permits and leases for property in Hart County and Monroe County, Kentucky. Phelps and Harper put together two drilling programs for Phoenix known as Phoenix Three Select and Phoenix Three Preferred. They then, directly and through Phoenix’s unlicensed agents, solicited potential investors, to invest in the programs, which were unregistered securities. To induce investors into the programs, Phelps, Harper, and others prepared brochures describing the programs and their offerings. The brochures included a joint venture and a joint operating agreement representing that Phoenix would use invested funds to drill for oil. Phoenix also offered another investment opportunity, which allowed investors to purchase an Overriding Royalty Interest (“ORI”) in all of Phoenix drilling operations and guaranteed at least a 6% return on investment in the first year. The ORI agreement stated that the monies invested would be used to further the growth of Phoenix.
As part of their fraud conspiracy in the case, Phelps and Harper made numerous false statements to investors. For example, in the Phoenix Three Select offering materials, which defendants began distributing at least as of September 8, 2015, they described that the “main focus” of the program was “to develop out the proven Lee Miles lease in Hart Co. Kentucky.” However, no wells had been drilled on that lease before Phoenix drilled a single, non-producing well on September 17, 2015. The defendants also demanded payments from investors for “completion costs” for the Lee Miles well before they had drilled the well. In so doing, they falsely represented to at least one investor at least three months before they had actually drilled that well that they had drilled the well, let it sit overnight, and when they opened it up “[i]t blew nice quality oil for over 4 minutes.”
Phelps and Harper further made misrepresentations in connection with the ORI investment opportunity. The defendants made payments to three investors and represented that that they were “ORI” payments, leading the investors to believe that the payments were oil production revenue from Phoenix’s wells. In fact, they made these “ORI” payments before Phoenix had even drilled the first well and Phoenix never drilled a viable well or made any revenue from oil production.
Finally, Phelps and Harper also represented that monies invested in both the Phoenix Three Preferred and Phoenix Three Select programs would be used for Phoenix’s oil drilling operations, when in fact only approximately 10% of the money raised from investors was spent on legitimate business purposes. The remainder of the money raised was moved through Phoenix’s bank account and diverted for the use of the defendants and other co-conspirators, which were used by some for personal expenses, including for vacations, golf, jewelry, dating and adult websites, auto parts, gas, groceries, clothing, and online gambling, among other non-business expenditures.
During the course of their fraud conspiracy, Phelps and Harper and other co-conspirators sold shares of the two Phoenix programs to ten investors, most of whom resided outside of Kentucky, and sold the additional ORI investment to three of those investors, collecting $556,056.25 in investors’ money, while paying out only $15,574 in purported ORI payments to the three investors.
Phelps is scheduled for sentencing on July 7th at 9:00 am CDT in Bowling Green before Chief United States District Court Judge Stivers. Harper is scheduled for sentencing on July 7th at 9:30 am CDT in Bowling Green before Chief United States District Court Judge Stivers.
The case is being prosecuted by Assistant United States Attorneys Nicole Elver and Stephanie Zimdahl. The case is being investigated by the Federal Bureau of Investigation (FBI).
The U.S. Attorney’s Office also appreciates the assistance of the U.S. Securities and Exchange Commission.
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Two Men Charged with Producing False Identity Documents and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – Two operators of an illegal e-commerce business engaged in the sale of digital images of false identity documents, such as passports, driver’s licenses, and national identity cards associated with more than 200 countries and territories, were charged in a six-count federal indictment unsealed in the District of New Jersey today, Acting U.S. Attorney Rachael A. Honig announced.
Mohsin Raza, aka “Mohsin Raza Amiri,” 34, and Mujtaba Raza, aka “Mujtaba Ali Lilani,” “Mujtaba Ali,” and “Mujtaba,” 33, both of Karachi, Pakistan, are each charged with conspiracy to produce and transfer in false identification documents, three counts of transferring false identification documents, one count of false use of a passport, and one count of aggravated identity theft.
“The indictment alleges a global scheme to produce fraudulent identity documents that other wrongdoers then used to further additional illegal activity, including activity intended to interfere with U.S. elections,” Acting U.S. Attorney Honig said. “Together with the FBI and our other law enforcement partners around the world, we will continue to identify criminal operations such as these and shut them down.”
“Today’s actions demonstrate the FBI’s commitment to target the entire ecosystem supporting cyber actors, regardless of where those criminals reside, and hold them accountable,” Special Agent in Charge George M. Crouch Jr. of the FBI Newark Division said. “The individuals indicted enabled criminal organizations around the world to perpetuate cyberattacks against Americans and our allies and to bypass anti-fraud measures designed to stop the flow of stolen funds through the financial system. Mohsin Raza and Mujtaba Ali Raza are now fugitives and have been added to the FBI’s White Collar Crimes Most Wanted website. The FBI will never stop pursuing these criminals until justice is served.”
According to the indictment:
From at least 2011, the defendants operated a fraudulent online business based out of Karachi, named, at various times, “SecondEye Solution” and “Forwarderz” (collectively, “SecondEye”). SecondEye, through various versions of its website, electronically produced, sold, and transferred digital versions of false government-issued identity and other documents. The false documents were the types of documents commonly needed and used to create online accounts at banks, payment processors, social media sites, and digital currency platforms.
The defendants advertised SecondEye’s services on at least one well-known cyber hacker forum. SecondEye’s advertisements claimed that SecondEye documents could be used by customers who were “banned” or “suspended” to restore access to their online accounts. The defendants accepted more than $1.5 million in Bitcoin transfers alone from SecondEye customers related to more than 20,000 separate transactions.
SecondEye customers used the false SecondEye documents to commit and facilitate the commission of various cybercrimes and other criminal conduct. Between May 11, 2017, and Sept. 16, 2017, a member of the Internet Research Agency LLC, a Russian organization that engaged in operations to interfere with elections and political processes, including the 2016 U.S. presidential election, purchased multiple false identification documents from SecondEye in the names of real and fictitious U.S. persons. The false identification documents were later used as supporting documents for accounts previously operated by the Internet Research Agency at a social media company.
SecondEye customers used the false SecondEye documents to defraud payment processing companies, e-commerce businesses, social media, and social networking platforms, and virtual currency exchanges, both foreign and domestic, by gaining unauthorized access to online platforms provided by such entities, often to gain access to customer accounts that previously had been revoked or suspended.
As part of its investigation, the United States has seized three domestically-hosted domain names used by SecondEye in furtherance of its fraudulent document business: www.secondeyesolution.com, www.secondeyesolution.biz, and www.forwarderz.com. Visitors to the websites received the following message:
THIS WEBSITE HAS BEEN SEIZED
The conspiracy charge and each of the three counts of transferring false identity documents are punishable by a maximum of 15 years in prison. The false use of a passport charge is punishable by maximum of 10 years in prison. The aggravated identity theft charge is punishable by an additional consecutive mandatory minimum imprisonment term of two years. Each count has a maximum fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. In addition, the United States will seek forfeiture of any proceeds derived from the offenses and any property used to facilitate the commission of the offenses.
Acting U.S. Attorney Honig credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and David E. Malagold of the U.S. Attorney’s Office Cybercrime Unit and Sarah Devlin, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Twenty-Two Indicted for Drug Trafficking in San Antonio AreaRead the Press Release
Twenty-two defendants from San Antonio, Del Rio and Laredo face federal drug trafficking charges, announced U.S. Attorney Ashley C. Hoff and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux, Houston Division.
A federal grand jury indictment unsealed today charges the following defendants with conspiracy to possess with intent to distribute a controlled substance:
Matthew Noe Arteaga, age 35 of San Antonio;
Nicolas Rodriguez, age 39 of San Antonio;
Bryan Anthony Brown, age 33 of San Antonio;
Brian Victorino Chavarria, age 24 of San Antonio;
Oscar Oviedo, age 26 of San Antonio;
Joseph Richard Guerrero, age 28 of San Antonio;
Homero Garcia, age 36 of San Antonio;
Jesus Gerardo Vasquez, age 19 of San Antonio;
Jesse Martinez, age 41 of San Antonio;
Justin Paul Guerrero, age 26 of San Antonio;
Ricardo Gonzalez, age 24 of San Antonio;
Juan Carlos Robles, age 35 of San Antonio;
Fernando Jose Moreno, age 45 of San Antonio;
Rene Palafos, age 37 of San Antonio;
Michael Barron, age 39 of San Antonio;
Oswaldo Jesus Lopez, age 26 of Laredo;
Oscar Jesus Lopez, age 23 of Laredo;
Javier Garcia Lopez, age 29 of San Antonio;
Jose De Jesus Garcia, age 35 of San Antonio;
Madilyn Marie Alvarado, age 26 of Del Rio
James Patric Bartlett, age 42 of San Antonio; and,
Albelardo Oviedo, age 29 of San Antonio.
The indictment alleges that defendants Arteaga, Rodriguez, Brown, Chavarria, Oscar Oviedo, Joseph Guerrero, Vasquez, Martinez, Justin Guerrero, Gonzalez, Robles, Moreno, Palafos, Barron, Lopez, Jose Garcia, Alvarado, Bartlett, and Albelardo Oviedo conspired from June 2019 until April 7, 2021, to distribute methamphetamine. It also alleges that from June 2019 until April 7, 2021, Oscar Oviedo, Vasquez, Justin Guerrero, Moreno and Palafos conspired to distribute cocaine, and that Chavarria, Homero Garcia, Oswaldo Lopez and Oscar Lopez conspired to distribute heroin. All of the defendants except Albelardo Oviedo are also charged in substantive counts in the indictment related to specific instances of drug trafficking that occurred throughout the course of the conspiracy.
During this investigation, authorities seized approximately 24 kilograms of methamphetamine, six kilograms of heroin, three kilograms of cocaine, four firearms and approximately $100,000 along with other assets attributable to this organization.
Over the past two days, federal, state and local authorities arrested all of the defendants with the exception of Brown, Martinez, Jose Garcia, Alvarado, and Bartlett. Those five defendants were already in custody.
“These arrests send a strong and unified message that these crimes will not be tolerated in our communities and those who commit these offenses will be brought to justice,” said DEA Special Agent in Charge Comeaux. “We will continue to work closely with our federal, state and local law enforcement partners in order to enhance the quality of life for the citizens in the San Antonio region.”
Martinez, Robles, and Jose Garcia face between 15 years and life upon conviction of conspiracy to possess a controlled substance with intent to distribute. Each has a prior serious felony drug conviction which enhances their minimum mandatory sentence. All the remaining defendants face between 10 years to life in federal prison upon conviction.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
The DEA, U.S. Marshals Service, IRS Criminal Investigations, U.S. Customs and Border Protection, Texas Department of Public Safety, Bexar County Sheriff’s Office, Terrell Hills Police Department, Seguin Police Department and San Antonio Police Department conducted this Organized Crime Drug Enforcement Task Force (OCDETF) investigation called Operation Alamo Fade. The Bexar County District Attorney’s Office also assisted in the investigation. OCDETF Lead Task Force Attorney Adrián Rosales is prosecuting this case on behalf of the government.
This operation is part of an OCDETF Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Houston/South Texas OCDETF Strike Force is to disrupt and dismantle the drug trafficking organizations headed by designated Consolidated Priority Organization Targets (CPOTs), Regional Priority Organization Targets (RPOTs), and their affiliates that impact Houston and south Texas.
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Tulsa Police Officer Pleads Guilty to Making a False Statement to a Firearms Dealer to Purchase a Gun for BoyfriendRead the Press Release
A Tulsa police officer pleaded guilty today in federal court for conspiring to make a false statement to a firearms dealer when purchasing a firearm.
Latoya Lisa Dythe, 26, pleaded guilty to conspiracy to make a false statement to a firearms dealer and to false statement to a firearms dealer.
According to her written plea agreement, Dythe admitted that she and her coconspirator Devon Jamyll Jones agreed that Dythe would purchase a firearm for him at a Bass Pro Shop. Jones gave Dythe money to purchase a specific firearm, a FN HERSTAL S.A., 5.7 X 28mm. As mandated by law, Dythe filled out required forms to purchase the firearm. When asked on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 “Are you the actual transferee/buyer of the firearm(s) listed on this form,” Dythe answered “Yes”. Her response was a false statement made to obtain the firearm for Jones. Dythe admitted that she did in fact obtain the firearm and immediately gave it to Jones following the purchase. She admitted that she knew her actions were Illegal when she committed the crime.
The ATF Form 4473 specifically issues a warning to purchasers: “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”
“Police officers, just like all citizens, that engage in criminal conduct must be held accountable for their actions,” said Acting U.S. Attorney Clint Johnson. “Latoya Dythe understood it was illegal to lie on federal firearms transaction forms to obtain a gun for another individual, and today she has accepted responsibility for the crime. I appreciate the Tulsa Police Department for bringing this case to the attention of federal authorities and for working with the FBI and my office as this case proceeds in federal court.”
“The public rightfully expects more from those who have sworn to serve,” said FBI Special Agent in Charge Melissa Godbold. “Latoya Dythe’s actions violated the public’s trust and I’m thankful for our federal, state and local law enforcement partners’ hard work to ensure this type of behavior is not tolerated.”
Dythe remains on bond pending sentencing which will occur on July 15. She faces a maximum penalty of five years imprisonment for each count, three years of supervised release and a fine not to exceed $250,000.
Devon Jones, 28, was charged as a coconspirator with Dythe in the indictment announced in December. Jones is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. See the press release here announcing the indictment.
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Edward Snow is prosecuting the case.
This case was prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers
Tucker County man sentenced for his role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – John Luther Boyles, of Parsons, West Virginia, was sentenced today to 78 months of incarceration for his role in a methamphetamine distribution operation, Acting United States Attorney Randolph J. Bernard announced.
John Luther Boyles, age 64, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in February 2019. Boyles admitted to conspiring with others to distribute more than five grams of methamphetamine from December 2017 to March 2018 in Tucker and Randolph Counties and elsewhere.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Three Sparks Men Indicted on Fentanyl Distribution ChargesRead the Press Release
RENO, Nev. – A federal grand jury has returned indictments charging three residents of Sparks, Nevada, for their alleged roles relating to the distribution of fentanyl (a deadly synthetic opioid).
- Jesse Arevalo, aka “Kay,” 30, and Francisco Navarro-Delgado, 32. Arevalo and Navarro-Delgado are each charged with one count of conspiracy to distribute fentanyl, cocaine, and heroin, and one count of maintaining drug involved premises. Arevalo is also charged with five counts of possession with intent to distribute controlled substances. According to allegations in the superseding indictment against him, from February to April 2021, Arevalo possessed with the intent to distribute at least 400 grams of fentanyl and at least 500 grams of cocaine.
According to allegations in the indictment and arguments made in court, from about November 2019 to March 2021, Arevalo and Navarro-Delgado conspired to maintain several apartments for the purpose of storing and distributing large quantities of fentanyl and cocaine. Arevalo acquired thousands of fentanyl pills as well as kilograms of cocaine per month, using those apartments to store and distribute the controlled substances. Further, from about November 2019 to February 2020, Arevalo allegedly used students at a southeast Reno high school to distribute controlled substances, including fentanyl pills, on his behalf.
- Jaime Collazo Munoz, aka “Chivo,” 33. In a related case, Munoz was indicted on four counts of distribution of a controlled substance (specifically, fentanyl). According to allegations in the indictment against him, from July to November 2020, Munoz distributed at least 80 grams of fentanyl.
“During the pandemic, Nevada has seen an increase in overdoses, as illegal drugs and illicit drug use continue to exact an enormous toll across our state,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Together with our law enforcement partners, we will keep fighting to stop the distribution of drugs in our communities — particularly schemes that get children and youth involved in drug sales and trafficking.”
“Fentanyl and other highly potent synthetic opioids remain the primary driver behind the ongoing opioid crisis with counterfeit prescription pills being the most prevalent form of exposure,” said Acting Reno Resident Agent in Charge Aimee Koontz for the DEA. “Individuals that prey on our youth and community by distributing these potentially lethal counterfeit pills pressed with fentanyl will be held accountable. These fake pills are disguised to look like prescription pills, but in reality taking one is no different than playing Russian roulette that is fueling the opioid epidemic.”
“This time last year our community was reeling because of shocking fentanyl overdose deaths,” said Washoe County Sheriff Darin Balaam. “I asked for the Drug Enforcement Administration’s support in investigating the distribution of opiates in our region, and ultimately agents ended up adopting our drug cases due to their national and international implications. I am extremely grateful to the Drug Enforcement Administration and federal, state and local law enforcement partners for their diligent work on the cases. I promise you and every member of our community, we will not stop fighting illegal drug trafficking in Washoe County.”
Arevalo, Navarro-Delgado, and Munoz were charged by two indictments on March 25, 2021, and Arevalo was charged with additional criminal offenses on April 15, 2021. Arevalo and Munoz were detained and remanded to custody, and Navarro-Delgado was released on a personal recognizance bond. Jury trials have been scheduled before Chief U.S. District Judge Miranda Du and U.S. District Judge Larry R. Hicks on May 17, 2021.
If convicted, Arevalo faces a maximum statutory penalty of life imprisonment and a fine up to $10,000,000. If convicted, Navarro-Delgado, and Munoz each face a maximum statutory penalty of 40 years imprisonment and a fine of up to $5,000,000.
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the DEA and Washoe County Sheriff’s Office with assistance by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), United States Marshals Service (USMS), Lyon County Sheriff’s Office, Douglas County Sheriff’s Office, Nevada Highway Patrol K-9, Regional Gang Unit, Regional Narcotics Unit, Washoe County Sheriff’s Office K-9, Sparks Police Department K-9, and (Regional) Human Exploitation and Trafficking Unit. Assistant U.S. Attorney Andolyn Johnson is prosecuting the cases.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine: only a few milligrams of this chemical compound, equivalent to a few grains of table salt, are enough to cause a fatal overdose. According to the Centers for Disease Control and Prevention, over 70% of the nearly 71,000 drug overdoses in 2019 involved an opioid.
If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.
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Three Hattiesburg Men Sentenced to Prison for Drug Trafficking Crimes in Hattiesburg under Project EJECTRead the Press Release
Hattiesburg, Miss. – Three men have been sentenced by Senior U.S. District Judge Keith Starrett and U.S. District Judge Taylor B. McNeel for possessing methamphetamine with the intent to distribute, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
On January 29, 2020, Shane Ware was recorded distributing approximately 221 grams of methamphetamine. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 100% pure. Ware pled guilty on November 24, 2020, before Judge Starrett. On April 14, 2021, Ware was sentenced by Judge McNeel to 70 months confinement, a $5000 fine, and five years of supervised release.
On February 12, 2020, Alfred Richards was recorded distributing approximately 121 grams of methamphetamine. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 99% pure. Richards pled guilty on November 24, 2020, before Judge Starrett. On April 8, 2021, Richards was sentenced by Judge Starrett to 120 months confinement, a $5000 fine, and five years of supervised release.
On February 19, 2020, Demetric Evans was recorded distributing approximately 112 grams of methamphetamine. Pursuant to forensic analysis by the DEA, the methamphetamine was determined to be 97% pure. Evans pled guilty on November 24, 2020, before Judge Starrett. On March 31, 2021, Evans was sentenced by Judge McNeel to 120 months confinement, a $7500 fine, and five years of supervised release.
All three defendants were originally indicted for this offense on September 22, 2020.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Tennessee Woman Pleads Guilty to Filing False Claims for Unclaimed PropertyRead the Press Release
SACRAMENTO, Calif. —Marilyn Cook (aka Marilyn Powell and Marilyn Sunset), 58, of Alcoa, Tennessee, pleaded guilty today to one count of mail fraud in relation to a scheme to obtain unclaimed property held by the California State Controller’s Office Unclaimed Property Division, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August and September 2014, Cook, using the name Marilyn Sunset, committed a scheme to defraud by filing false claims with the Division of Unclaimed Property for properties belonging to the U.S. Marshal Service and others. These properties were being held pursuant to a California law that requires financial institutions, businesses, and other entities, to turnover financial assets to the State Controller’s Office when an account has been inactive or there has been no contact with the property owner for a specified period of time. The properties are then safeguarded until they are returned to their rightful owner. The Unclaimed Property Division maintains a list of properties in their possession on a publicly available website and provides instructions on how to claim such properties.
In furtherance of the scheme, Cook identified properties belonging to others, including the U.S. Marshal Service, and falsely certified under penalty of perjury that she was entitled to claim the identified properties. Cook also used a Tennessee ID card that she obtained in the name Marilyn Sunset to have certain claim forms notarized, as was required by the Unclaimed Property Division for claims over a certain dollar amount. Finally, Cook submitted fictitious documents in support of her claims to show that she was authorized to claim the properties. These documents included a letter on Department of Justice letterhead that falsely purported to have been signed by a former Assistant Attorney General, authorizing Sunset to collect properties on behalf of the U.S. Marshal Service. In all, Cook falsely claimed 128 properties totaling $398,537. The Unclaimed Property Division identified the claims as fraudulent and did not disperse any property to Cook.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Cook is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on July 15. Cook faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence 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.
Tax Attorney Indicted for Facilitating Tax FraudRead the Press Release
A federal grand jury in San Francisco returned an indictment today charging a Houston-based tax attorney of conspiring with the Chairman and Chief Executive Officer of a private equity firm to defraud the IRS. The grand jury further charged him with three counts of aiding and assisting in the preparation of the CEO’s false tax returns for the 2012 to 2014 tax years.
According to the indictment, from 1999 to 2014, Carlos E. Kepke helped Robert F. Smith create and maintain offshore entities that were used to conceal from the IRS approximately $225,000,000 of capital gains income that Smith had earned. In approximately March 2000, Kepke allegedly created a Nevisian limited liability company (Flash Holdings) and a Belizean trust (Excelsior Trust) to serve as the tax evasion vehicles. When Smith earned capital gains income from his private equity funds, a portion was allegedly deposited into Flash’s bank accounts in the British Virgin Islands and Switzerland. As alleged, Smith was able to hide this income because Excelsior, and not Smith, was the nominal owner of Flash. Smith then allegedly failed to timely and fully report his income to the IRS. Kepke allegedly assisted in the preparation of Smith’s false 2012 to 2014 returns.
For his services, Smith has allegedly paid Kepke nearly $1,000,000 since 2007. These fees, as charged, included an annual payment for Kepke to purge or “securitize” his records related to Smith, Excelsior, and Flash.
Kepke is scheduled for his initial court appearance on April 22 before U.S. Magistrate Judge Corley of the U.S. District Court for the Northern District of California. If convicted, Kepke faces up to five years in prison on the conspiracy count and three years in prison for each count of assisting in the preparation of a false return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting U.S. Attorney Stephanie M. Hinds of the U.S. Attorney’s Office in the Northern District of California; and Jim Lee, Chief of the IRS Criminal Investigations (IRS-CI), made the announcement.
IRS-CI are investigating the case.
Senior Litigation Counsel Corey Smith, Assistant U.S. Attorney Michael G. Pitman, and Trial Attorneys Lee Langston and Christopher Magnani are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax Attorney Indicted for Facilitating Multi-Million Dollar Tax FraudRead the Press Release
SAN FRANCISCO – A federal grand jury returned an indictment today charging Houston-based tax attorney Carlos E. Kepke with conspiring with the Chairman and Chief Executive Officer of a private equity firm, to defraud the Internal Revenue Service (IRS), announced Acting United States Attorney Stephanie M. Hinds; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Jim Lee, Chief of the Internal Revenue Service, Criminal Investigations (IRS-CI). The grand jury further charged Kepke with three counts of aiding and assisting in the preparation of the CEO’s false income tax returns for the years 2012 through 2014.
According to the indictment, from 1999 to 2014, Kepke helped Robert F. Smith create and maintain a structure of offshore entities and foreign bank accounts that were used to conceal from the IRS approximately $225 million of capital gains income that Smith had earned. In approximately March 2000, Kepke allegedly created a Nevisian limited liability company (Flash Holdings) and a Belizean trust (Excelsior Trust) to serve as the tax evasion vehicles. When Smith earned capital gains income from his private equity funds, a portion was allegedly deposited into Flash’s bank accounts in the British Virgin Islands and Switzerland. As alleged, Smith was able to hide this income because Excelsior, and not Smith, was the nominal owner of Flash. Smith then allegedly failed to timely and fully report his income to the IRS. Kepke allegedly assisted in the preparation of Smith’s false 2012 to 2014 returns.
The indictment alleges that since 2007 Smith paid Kepke more than $1,000,000 for his services. These fees, as charged, included an annual payment for Kepke to purge or “securitize” his records related to Smith, Excelsior, and Flash.
An indictment contains only allegations and the defendants is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kepke’s initial federal court appearance on the charges is scheduled for April 22 before U.S. Magistrate Judge Jacqueline Scott Corley. If convicted, Kepke faces a maximum term of up to five years in prison on the conspiracy count and three years in prison for each count of assisting in the preparation of a false return. The court also may order an additional term of supervised release, restitution, and additional fines, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman and Department of Justice Senior Litigation Counsel Corey Smith and Trial Attorneys Lee Langston and Christopher Magnani of the Tax Division are prosecuting the case. This case is the result of an investigation by IRS-CI.
St. Louis Man Sentenced to 12 Years in Prison for Enticing Illinois Minor, Traveling to Engage in Illicit Sexual ConductRead the Press Release
Belleville, Ill. – Earlier today, Joseph L. Hughes, a/k/a “Joe King,” 29, of St.
Louis, Missouri, was sentenced to 149 months in prison for enticing a 14-year old girl to engage in
sex and traveling across state lines to have sex with her. Hughes committed the offenses in late
2018 and pled guilty to the three-count federal indictment in October 2020.
According to court filings, Hughes and the minor victim used Facebook Messenger to
communicate. Hughes later traveled from St. Louis to the girl’s home in Belleville, Illinois, to
have sex with her on Nov. 24, 2018, and Dec. 8, 2018. As part of his guilty plea, Hughes admitted
that the victim told him her age right away, and that he knew what he did was against the law.Hughes’s sentence includes a five-year term of supervised release and a $300 fine.
The case was investigated by the FBI, the Belleville Police Department, the St. Clair
County Sheriff’s Department, and the St. Louis County Police Department, with assistance from the
St. Clair County States Attorney’s Office. Assistant United States Attorney Angela Scott
prosecuted the case.Sioux City Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
A Sioux City man who conspired to distribute methamphetamine around the tri-state area pled guilty April 15, 2021, in federal court in Sioux City.
Leroy Eric McCoy, age 39, from Sioux City, Iowa was convicted of conspiracy to distribute methamphetamine. In a plea agreement, McCoy admitted to conspiring to distributing large quantities of methamphetamine around the tri-state area. McCoy was previously convicted in 2005 of conspiracy to distribute methamphetamine near a private location and possession with intent to distribute methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. McCoy remains in custody of the United States Marshal pending sentencing. McCoy faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and term of five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4039.
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Second of two defendants sentenced in scheme to steal, sell drugs from nursing home patientsRead the Press Release
BRUNSWICK, GA: Two former employees of a nursing and personal care facility have been sentenced after admitting to a scheme in which they stole and resold prescription drugs.
Rochella Ellison, 48, of Townsend, Ga., and Nadia Gibson, 38, of Jacksonville, Fla., each were sentenced to probation after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Alprazolam, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Ellison was sentenced today (Thursday, April 15), while Gibson was sentenced in March.
“All too often, the source of illegally-sold drugs in the community – including dangerously addictive opioids – starts with pilferage of medicine supplies at healthcare facilities,” said Acting U.S. Attorney Estes. “We applaud the work of our law enforcement partners in tracking down and interrupting the sources of illegal drug supplies, no matter where they’re found.”
As described in court documents and testimony, Ellison and Gibson both were employed at a Brunswick, Ga., nursing home and senior living facility, where Ellison worked as a guest services representative, and Gibson as a licensed practical nurse. From as early as Dec. 2019 until early 2020, the two, and others, conspired to steal drugs from patient supplies and resell them for shared profit.
The Drug Enforcement Administration, Brunswick Police Department, and Glynn County Sheriff’s Office took over the investigation after an internal review at the facility discovered the missing drugs. Ellison and Gibson were indicted on federal charges in May 2020.
“The distribution of pain pills for non-medical reasons continues to be a major concern,” said the Special Agent in Charge of the Atlanta Field Division Robert J. Murphy. “Consequently, DEA and its law enforcement partners will continue to target those who traffic these addictive and sometimes deadly pain medications.”
The case was prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Matthew A. Josephson and Mary Sue Robichaux.
Second Trash Company Executive Charged with Bribing San Francisco Public RegulatorRead the Press Release
SAN FRANCISCO – John Francis Porter, the former Vice President and Group Manager of Recology’s San Francisco Group, has been charged in a federal criminal complaint unsealed today with bribing former Director of San Francisco Department of Public Works (DPW) Mohammed Nuru and with money laundering, announced Acting United States Attorney Stephanie Hinds, Internal Revenue Service–Criminal Investigation Acting Special Agent in Charge Michael Daniels, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The complaint unsealed today alleges that Porter, 37, of San Francisco, bribed Nuru and participated in laundering the proceeds of the bribe as part of an alleged years-long scheme to defraud the public of its right to honest services. Porter was Group Controller and later Vice President and General Manager of Recology’s San Francisco Group, which provides refuse collection and disposal services in the City of San Francisco. Porter was a central player in the scheme detailed in the complaint that provided Nuru, then the DPW Director, with a continuous stream of money and benefits to influence Nuru to engage in official acts benefitting Recology.
Nuru resigned as the Director of San Francisco’s DPW after being charged in a January 16, 2020, federal complaint with honest services fraud for a scheme to bribe a San Francisco Airport Commissioner. The prosecution of Nuru remains underway.
Porter is the second Recology employee charged. Paul Giusti, the former Recology San Francisco Group Government and Community Relations Manager who reported to Porter, was charged in a November 18, 2020, federal complaint with bribery and money laundering for his role in the same conduct described in today’s complaint allegations against Porter. Giusti’s prosecution is continuing.
“Once again a person employed by a company contracting with San Francisco has been charged with bribing a San Francisco City Hall official with more than $1 million of funds and benefits,” said Acting U.S. Attorney Stephanie M. Hinds. “A person who pays a bribe is as criminally liable as the public official who takes it. Our investigation of San Francisco City Hall corruption continues. If you have information about corruption among San Francisco public officials or contractors with San Francisco, reach out to the FBI. Your cooperation is important.”“Rooting out public corruption remains one of the highest priorities for IRS – Criminal Investigation,” said Acting Special Agent in Charge Michael Daniels. “IRS – Criminal Investigation provides financial investigative expertise in our work with our law enforcement partners. Pooling the skills and resources of each agency makes a formidable team as we investigate allegations of criminal wrong-doing.”
"John Porter is the eleventh individual charged in the FBI's probe into public corruption in San Francisco City Hall," said FBI Special Agent in Charge D. Fair. "This complaint reflects the FBI’s commitment to hold corporate executive leadership accountable for their actions. The FBI will continue to investigate all individuals, regardless of their position, who seek to improperly influence public officials for corporate gain at the expense of the public. If you have any information on bribery, corruption, or other illegal acts, please contact the FBI."
The specific charge of the complaint alleges that in the summer of 2018, Recology sought to raise the “tipping fees” it charged the City of San Francisco for dumping materials at the Recology Sustainable Crushing facility. During the summer and fall of 2018, the complaint alleges, Porter sought Nuru’s assistance with Recology’s efforts to increase the tipping fee. Porter enlisted the help of his subordinate Giusti, who had a close relationship with Nuru.
The complaint states that Porter emailed Nuru seeking assistance in obtaining the tipping fee increase on November 26, 2018. Thereafter, Giusti agreed to give Nuru a bribe of $20,000 to influence his official actions on the proposed increase. The complaint describes that Porter gave written approval for Recology to issue a $20,000 check described as a “holiday donation” to the Lefty O’Doul’s Foundation for Kids, a non-profit organization to help underprivileged San Francisco children run by Nick Bovis. Giusti provided the bribe money to the Lefty O’Doul’s Foundation, and Bovis used the Recology money to pay for Nuru’s elaborate DPW holiday party, not to help underprivileged San Francisco children. Despite the bribe, the attempt to increase the tipping fee was ultimately unsuccessful. Bovis pleaded guilty to honest services fraud in May 2020 for bribing Nuru.
The complaint further describes Porter’s role in the Recology San Francisco Group’s efforts, acting through executives including Giusti and Porter, to direct benefits to Nuru totaling over $1 million to influence Nuru, who was Recology’s regulator. Recology had an ongoing need for Nuru’s approvals, including for rate increases for residential garbage collection. The complaint cites an email that Porter sent in 2015 to a colleague at Recology: “Mohammed is the Director of the DPW who ultimately signs off on our rates. Needless to say, keeping him happy is important.”
To keep Nuru happy, the complaint alleges that Giusti, with the approval of Porter or Porter’s immediate predecessor, arranged for Recology to provide Nuru with a stream of benefits over years. Porter ultimately approved $55,000 to fund Nuru’s DPW holiday parties in payments disguised as charitable Lefty O’Doul’s Foundation donations. The complaint also describes Porter’s role in approving hundreds of thousands of dollars over years in Recology payments made, at Nuru’s directions, to a San Francisco non-profit, ostensibly for a DPW program called “Giant Sweep.” That non-profit held the money for about a week or two, then took a 5 percent cut and sent the money at Nuru’s direction to accounts controlled by Nuru at another non-profit. Recology’s payments to Nuru were closely tied in time to specific needs for Nuru’s assistance and approval.
Porter is charged with one count of bribery, in violation of 18 U.S.C. § 666(a)(2), and one count of laundering the proceeds of honest services fraud, in violation of 18 U.S.C. § 1956(a)(1)(B)(i). If convicted of bribery, he faces a maximum penalty of 10 years in prison and a fine of $250,000. If convicted of concealment money laundering, he faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, or both. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Porter is expected to make his initial appearance in federal court in San Francisco on April 20, 2021, at 10:30 a.m. before U.S. Magistrate Judge Jacqueline Scott Corley.
Thus far in the San Francisco City Hall corruption probe, 11 defendants have been charged, and multiple defendants have pled guilty. Most recently, Sandra Zuniga, 45, of South San Francisco and the former Director of both the San Francisco Mayor’s Office of Neighborhood Services and San Francisco’s Fix-It Team, entered her plea of guilty to a charge of conspiring to launder money with the former DPW Director Muhammed Nuru. Zuniga entered her guilty plea in a plea agreement that remains partly under seal in which she agrees to cooperate with the FBI in the public corruption investigation relating to San Francisco government.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by IRS Criminal Investigation and the FBI.
Sacramento Man Sentenced to 7 Years in Prison for Falsely Claiming to Be an Attorney and Defrauding Couple of over $500,000Read the Press Release
SACRAMENTO, Calif. — Derek Bluford, 34, of Sacramento, was sentenced today to seven years in prison for wire fraud, money laundering, obstruction of a federal investigation, and making false statements, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bluford told a couple that he was an attorney and could represent them in a dispute they were having with their tenant. After the couple agreed, Bluford then told them that they had incurred numerous fines and court costs, as well as costs to repair their rental unit; he also told them he had negotiated a settlement agreement with the couple’s former tenant. Based on these representations, the couple paid Bluford over $500,000. Bluford, in fact, was not an attorney, and there were no fines or court costs imposed. Bluford laundered the proceeds from his scheme, obstructed a federal investigation, and made false statements to the FBI regarding the investigation.
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.
Rochester Man Arrested and Charged with Submitting False Claims to the IRS After Receiving Hundreds of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Eugene Jamar Thomas, 42, Of Rochester, NY, was arrested and charged by complaint with submitting false claims to the Internal Revenue Service. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, during the 2015 and 2016 tax years, the defendant falsely reported income and withholdings to the Internal Revenue Service, claiming to be entitled to millions of dollars in tax refunds. On his 2015 return, Thomas declared that he had earned $819,934 in interest income and that he had $818,834 of that income withheld and paid to the IRS as tax. As a result, the defendant’s 2015 tax return falsely claimed that he was entitled to a refund of $495,655. The IRS ultimately issued Thomas a tax refund check for $482,017. The defendant then deposited the check into two bank accounts in his name, spending a portion of the refunds on two vehicles and cash withdrawals. Subsequently, the IRS determined that Thomas failed to submit all of the proper tax documents with his 2015 tax return, and as a result, the remaining funds in the defendant’s bank accounts were frozen.
Thomas called the IRS hotline to inquire about why his bank accounts were frozen and was told that he was issued an erroneous refund and the bank was contacted to return the funds to the IRS. The defendant was then contacted by an IRS Revenue Officer to discuss the overstatement of income and withholdings that Thomas claimed on his 2015 tax return. The defendant was advised to file an amended 2015 tax return and repay the refund to which he was not entitled. Thomas never filed an amended 2015 tax return and never repaid any portion of the 2015 refund that he wrongfully received.
For the tax year 2016, the defendant again falsely reported income and withholdings to the IRS, claiming he had earned $4,731,845 of interest income in 2016 and had $4,683,641 of that income withheld and paid to the IRS as tax. As a result, Thomas falsely claimed that he was entitled to a refund of $2,683,945. The tax returned was flagged by the IRS and no refund was issued.
Thomas made an initial appearance this afternoon before U.S. Magistrate Judge Mark W. Pedersen and was released.
The criminal complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Red Springs Man Convicted of Firearm OffenseRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Red Springs man yesterday on charges of possession of a firearm as a convicted felon.
According to court records and evidence presented at trial, Jonathan Revels, 57, was convicted for possessing a firearm as a convicted felon. The evidence presented at trial showed that on September 4, 2016, members of the Robeson County Sheriff’s Office and the Red Springs Police Department responded to shots fired on Kate Denny Road. Through the investigation, officers learned that Revels was involved in the shooting. Video evidence showed that Revels brought a firearm to the altercation, which was later recovered by law enforcement. Prior to this date, Revels had been previously convicted in federal court and sentenced to over a decade in federal prison.
Revels is set to be sentenced during the July 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Robeson County Sheriff’s Office, Red Springs Police Department, State Bureau of Investigation, and the Bureau of Alcohol Tobacco and Firearms investigated the case, and Assistant U.S. Attorneys Chad Rhoades and Brandon Boykin prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:20-CR-20-BO-2.
Pryor man sentenced to prison for assaulting woman on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS – A Pryor man who admitted beating and strangling a woman on the Fort Belknap Indian Reservation was sentenced today to 34 months in prison and to three years of supervised release, Acting U.S. Attorney Leif Johnson said.
Corey Dane Hill, 36, pleaded guilty on Dec. 16, 2020 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided. Hill was detained.
In court documents filed in the case, the prosecution alleged the assault occurred on Nov. 16, 2019, while Hill was drinking alcohol with the victim, identified as Jane Doe, in Fort Belknap Agency. The two argued. Hill hit the victim in head and strangled her. The victim underwent surgery for injuries.
Assistant U.S. Attorney Jared Cobell prosecuted the case, which was investigated by the FBI and Fort Belknap Law Enforcement.
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North Carolina Man Sentenced in Maryland to 18 Months in Federal Prison for Bank Fraud Scheme Involving $529,000 in Stolen Altered Postal Service Money OrdersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Vantino Johnson, age 23, of Charlotte, North Carolina, in Maryland today to 18 months in federal prison, followed by five years of supervised release on the federal charges of bank fraud conspiracy and bank fraud, in connection with a scheme to negotiate stolen altered postal service money orders at victim financial institutions. Judge Xinis ordered that Johnson pay restitution in the full amount of the victims’ losses, $272,087.19.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division.
According to his guilty plea, between May and October 2019, Johnson and others conspired to defraud victim financial institutions by negotiating stolen and fraudulent postal money orders. Specifically, Johnson admitted that he and his co-conspirators stole money orders from post offices in Maryland and North Carolina, then altered the stolen money orders to reflect being issued for $800 or $1,000. Johnson and his co-defendants then deposited the stolen and altered money orders into bank accounts that had been opened at the victim financial institutions in the names of identity theft victims, using those victims’ means of identification without their knowledge or permission.
On October 17, 2019, law enforcement executed search warrants at two residences in North Carolina associated with Johnson and at a residence in Waldorf associated with Beamon. A search of Johnson’s residences as well as his vehicle recovered: receipts showing the deposit of stolen postal money orders; debit cards for bank accounts that were opened in a number of victims; money orders stolen from various post offices; stolen and altered money orders; blank paper printed with amounts, issue dates, and post office zip codes; and a loaded firearm.
A search of the Waldorf residence associated with Beamon recovered: a stolen postal arrow key used to open United States Postal Service collection boxes; checks that were stolen from the mail; blank paper printed displaying amounts, issue dates, and post office zip codes; and approximately 37 postal money orders. Law enforcement also seized nine firearms from Beamon’s residence, including one AR-15 style ghost gun assault rifle, firearms with extended magazines, and approximately 553 rounds of various ammunition.
As detailed in their respective plea agreements, between May and October 2019, in Maryland and North Carolina, Johnson deposited 61 fraudulent postal money orders into at least 12 bank accounts that had been opened using the identification of at least 11 separate individuals. Beamon deposited 34 fraudulent postal money orders into at least 6 bank accounts that had been opened using the identification of at least 5 separate individuals. During the course of the conspiracy, it was foreseeable to Johnson and Beamon that the conspirators negotiated $529,000 in stolen money orders. At least $150,200 was negotiated into accounts controlled by Johnson, and at least $124,800 was negotiated into accounts controlled by Beamon.
Johnson’s co-conspirator, Remy Beamon, age 24, of Waldorf, Maryland, pleaded guilty to federal charges for a bank fraud conspiracy and for bank fraud, as well as for being a felon in possession of a firearm and was sentenced on February 18, 2021, to 51 months in federal prison.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Rajeev Raghavan, who prosecuted the case.
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New Orleans Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JAYLON JOHNSON, age 23, a resident of New Orleans, Louisiana was sentenced on April 13, 2021 to thirty-three months in the Bureau of Prisons following his plea to a one-count indictment by a federal grand jury. Additionally, JOHNSON was sentenced to serve one year of supervised release following imprisonment and to pay a $100.00 special assessment fee. JOHNSON was charged with Possession of Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The Honorable Susie Morgan sentenced JOHNSON.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department conducted an investigation into gun violence and narcotics trafficking in the Hollygrove neighborhood. On October 13, 2020, JOHNSON was observed in possession of a fully concealed firearm while riding his bicycle. The officer articulated that he observed the outline of the firearm underneath JOHNSON’s shirt as he rode his bicycle. Upon being instructed to stop his bicycle, JOHNSON fled from officers on foot. While fleeing, JOHNSON discarded the firearm. Following a foot pursuit, JOHNSON was arrested. Officers recovered the firearm after retracing JOHNSON’s path of flight.
U.S. Attorney Duane A. Evans praised the work of the Bureau of Alcohol, Tobacco, and Firearms and the the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution of this case.
New Jersey Man Charged with Fraudulently Obtaining More Than $150,000Read the Press Release
NEWARK, N.J. B A Camden, New Jersey, man was arrested this morning for fraudulently obtaining more than $150,000, Acting U.S. Attorney Rachael A. Honig announced.
Alfred Powner II, 39, is charged by complaint with one count of wire fraud. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge James B. Clark III.
According to the complaint:
The State of New Jersey, Unclaimed Property Administration (UPA), maintains a system to collect and maintain “abandoned” funds owed to New Jersey persons and entities. The UPA’s online website allows users to verify whether the UPA is holding funds for a particular person or entity. A person or entity seeking to claim funds held by the UPA on its behalf can use the UPA’s online portal to request a distribution of funds. From September 2019 through March 2020, Powner submitted a fraudulent application and other fraudulent information to the UPA in support of his claim for a distribution. As a result, Powner received approximately $150,000 from the UPA.
The New Jersey Department of Labor & Workforce Development (NJDOL) administers and manages unemployment insurance benefit (UIB) programs. Records revealed that NJDOL caused approximately $5,000 to be sent to a bank account Powner controlled in response to a claim for UIBs. NJDOL also received two additional UIB claims, from purportedly separate claimants, that requested that UIB funds be sent to Powner’s bank account. The three individuals whose names were used to make these UIB claims were deceased at the time the UIB claims were made.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits to Powner or twice the gross loss suffered to the victims of his offense, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, in Manhattan, New York, special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrest. She also thanked New Jersey’s Unclaimed Property Administration and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.