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28 May 2021
DHS and DOJ Announce Dedicated Docket Process for More Efficient Immigration HearingsRead the Press Release
Today, Secretary of Homeland Security Alejandro N. Mayorkas and Attorney General Merrick B. Garland announced a new Dedicated Docket process to more expeditiously and fairly make decisions in immigration cases of families who arrive between ports of entry at the Southwest Border. This new process should significantly decrease the amount of time it takes for migrants to have their cases adjudicated while still providing fair hearings for families seeking asylum at the border.
“Families arriving at the border who are placed in immigration proceedings should have their cases decided in an orderly, efficient, and fair manner,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Families who have recently arrived should not languish in a multi-year backlog; today’s announcement is an important step for both justice and border security.”
“The mission of the Department of Justice’s immigration courts is to decide the cases that come before them promptly and fairly,” said Attorney General Merrick B. Garland. “This new program for certain newly arriving families will help achieve that critically important goal.”
Under this new process, certain recently arrived families may be placed on the Dedicated Docket. Families may qualify if they are apprehended between ports of entry on or after Friday, May 28, 2021, placed in removal proceedings, and enrolled in Alternatives to Detention (ATD). DHS, in partnership with the Department of Justice (DOJ) Executive Office for Immigration Review (EOIR), will make available information services to help families understand the immigration system and refer families to pro bono legal service providers for possible representation.
EOIR has identified immigration courts in 10 cities with established communities of legal services providers and available judges to handle the cases. The designated cities are Denver, Detroit, El Paso, Los Angeles, Miami, Newark, New York City, San Diego, San Francisco, and Seattle.
Under the Dedicated Docket, EOIR’s immigration judges will work generally to issue a decision within 300 days of the initial master calendar hearing, subject to the unique circumstances of each case including allowing time for families to seek representation where needed. While the goal of this process is to decide cases expeditiously, fairness will not be compromised.
Convicted Felon Sentenced for Illegal Firearms PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Talladega man for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
United States District Judge Corey L. Maze sentenced Larry Dewayne Gaither, 43, to 54 months in prison for being a felon in possession of a firearm. According to the indictment, Gaither unlawfully possessed an American Tactical .223 and 103 rounds of Wolf Performance .223 caliber ammunition in January 2020. Gaither was previously convicted in Calhoun County, Alabama, of felony offenses of robbery, assault, and using a false identity. Gaither pleaded guilty to the charge in December 2020.
“Keeping firearms out of the hands of convicted felons is a key component of our violent crime strategy.” U.S. Attorney Escalona said. “My office will prosecute convicted felons who illegally possess firearms as part of our ongoing efforts to keep our communities safe.”
”ATF’s Crime Gun Intelligence partnerships focus on the devastating impact of firearms violence and works with the entire community to provide a safe environment,” SAC French said.
ATF investigated the case. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
Construction Company President Charged with Defrauding the State Department in Multimillion-Dollar Fraud SchemesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael Speckhardt, the Special Agent in Charge of the U.S. Department of State, Office of Inspector General, announced the arrest today of SINA MOAYEDI, the owner of a construction company, on charges including bribery and fraud. MOAYEDI was arrested in Castleton, Virginia, and will be presented later today in the Western District of Virginia before U.S. Magistrate Judge Joel C. Hoppe.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Sina Moayedi made misrepresentations about his employees’ qualifications and his company’s ownership in order to induce the State Department into awarding approximately $100 million in lucrative construction contracts to Moayedi’s company, Montage, Inc. Moayedi also allegedly cultivated a State Department insider, and paid the insider lucrative bribes in exchange for confidential State Department bidding information. Moayedi must now be held accountable for his alleged brazen fraud on the government.”
Special Agent in Charge Michael Speckhardt said: “As alleged, the defendant’s scheme to undermine the Department’s procurement process for personal gain caught up with him today and he will now be held accountable. His alleged actions not only hurt other legitimate businesses competing for awards, but also damage the public’s trust in the effective and efficient utilization of taxpayer money.”
According to allegations in the Complaint[1]:
Montage, Inc. (“Montage”) is a U.S.-based business that is primarily involved in worldwide Government construction projects, including embassies, military posts, consulates, and similar overseas properties owned and operated by the United States Government. Montage has performed over $220 million in contracting work for the U.S. Government, including for the Department of Defense, the Department of Justice/Federal Bureau of Investigation, the State Department, the Department of the Interior, the Department of Agriculture, the National Aeronautics and Space Administration (“NASA”), the Equal Employment Opportunity Commission (“EEOC”), and the Department of Veterans Affairs. Since 2014, Montage appears to have focused primarily on competing for and obtaining contracts with the State Department. During that period, the State Department has awarded Montage approximately six overseas U.S. Embassy/Consulate construction project contracts totaling $100 million, in locales such as Ecuador, Spain, Sudan, the Czech Republic, and Bermuda. The founder of Montage is SINA MOAYEDI.
Montage engaged in at least two fraud schemes. The first scheme alleges that, from approximately 2014 to September 2020, MOAYEDI and Montage lied that it was a female-owned business in order to secure unmerited advantages in the bidding process. By way of context, it is advantageous to a company, when bidding for federal government contracts, to be majority-owned by an individual from a socially or economically disadvantaged community. In fact, certain contracts (or portions of contracts) are “set aside” for – i.e., only available to – such companies. MOAYEDI and Montage repeatedly represented falsely in submissions to the State Department that Montage was female-owned, or female-owned and minority-owned, in order falsely to induce the State Department to award Montage lucrative construction contracts. In actuality, MOAYEDI repeatedly lied about Montage being a female-owned business, and indeed, MOAYEDI controls Montage and makes all material decisions on Montage’s behalf. As MOAYEDI revealed to a bank that inquired about Montage’s ownership status, “I am the sole owner and president of Montage and have always been.” Montage and MOAYEDI also repeatedly misrepresented, and significantly overstated, the qualifications of Montage employees. MOAYEDI made these misrepresentations in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions.
The second scheme charged in the Complaint is a bribery scheme during at least 2016 and 2017. Insider-1 is employed in the State Department’s Overseas Building Operations (“OBO”), which, according to OBO’s website, “directs the worldwide overseas building program for the Department of State and the U.S. Government community serving abroad.” Specifically, Insider-1 works for the State Department’s OBO Project Development and Coordination Division, European division. In connection with overseas construction projects, the State Department has a Technical Evaluation Panel (TEP) that considers all aspects of an offeror’s plan to execute the project. The TEP has the power to disqualify an offeror. Insider-1 oversaw the TEP for the Hamilton, Bermuda, project – a project that was awarded to Montage. In at least 2016 and 2017, MOAYEDI paid cash bribes to Insider-1 in exchange for confidential State Department bidding information relating to a particular multimillion-dollar contract in Bermuda, for which Montage was then bidding. In connection with the bidding process for the Bermuda project, Insider-1 informed MOAYEDI, in sum and substance, that: His bid was low; Montage could raise its bid by $300,000 and would still be the low bidder; and he should kick back 20 percent, or $60,000, to Insider-1 in return for this information. Shortly thereafter, Montage increased its bid by nearly $1 million. In a letter accompanying the revised bid, MOAYEDI falsely represented to the State Department that Montage’s revised bid was attributable to “an arithmetic error in our estimate worksheets.” MOAYEDI then paid Insider-1 $60,000 in cash, in three separate payments, using two men as intermediaries.
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MOAYEDI, 66, of Chevy Chase, Maryland, is charged with one count of wire fraud, and one count of conspiracy to commit wire fraud, each of which carries a maximum potential prison sentence of 20 years, and one count of bribery of a public official, which carries a maximum potential prison sentence of 15 years.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only; any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the State Department, Office of Inspector General, Special Agents from the United States Attorney’s Office for the Southern District of New York, and the Internal Revenue Service. She also thanked Special Agents from the United States Attorney’s Office for the District of Columbia and the Montgomery County, Maryland, Police Department.
The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case. Assistant U.S. Attorneys Michael D. Neff and Louis A. Pellegrino are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Cincinnati political consultant pleads guilty to embezzling $1.4M from Congressional campaignRead the Press Release
CINCINNATI – A political and media consultant pleaded guilty in federal court today to wire fraud and falsification of records related to the embezzlement of more than $1.4 million from a United States Congressional campaign.
A bill of information was filed on April 27 charging James R. Schwartz II, 41, of Cincinnati.
According to court documents, from approximately 2011 through 2019, Schwartz worked as a consultant on behalf of a Congressional campaign through his companies Fountain Square Group LLC and Prime Media LLC. Schwartz also served as the de facto treasurer for the campaign.
The plea document details that Schwartz embezzled funds from the Congressional campaign by writing checks to himself and his companies from the campaign that were for more money than he and his companies had actually earned. He allegedly concealed the embezzled funds by misrepresenting the amounts paid to him and his companies in reports to the Federal Election Commission. It is alleged that Schwartz fabricated bank statements and other documents in submissions to the Federal Election Commission in order to conceal his embezzling.
Committing wire fraud and falsifying records in a federal investigation are crimes punishable by up to 20 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
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Childersburg Man Sentenced for Possession of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Childersburg man for possession of child pornography, announced United States Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
United States District Judge Corey L. Maze sentenced William Jason Walker, 49, to 78 months in prison followed by 10 years’ supervised release. Walker was also ordered to pay $51,000.00 in restitution to the victims. In September 2020, Walker pleaded guilty to possession of child pornography. This conviction will require Walker to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“Victimization of children will not be tolerated. We will prosecute those who produce, possess or distribute child pornography to the fullest extent of the law,” U.S. Attorney Escalona said. “Thanks to the collaborative work of the Swedish National Police and the Department of Homeland Security, a child predator has been taken out of our community for many years and will be closely monitored upon his release.”
“HSI is proud to work with our law enforcement partners in Alabama to protect our most vulnerable citizens,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Our community is safer now that this child predator is off the streets.”
According to the plea agreement, in November 2019, the Department of Homeland Security Cyber Crimes Center (DHS/C3) of Fairfax, Virginia, received information from SKF, a company located in Sweden, that images of child pornography had been downloaded to a company laptop at a specific IP address. DHS/C3 agents obtained information from the representatives of SKF and determined that the laptop was assigned to Walker. The IP address was traced to the SKF factory located in Moody, Alabama. Walker was employed as a sales representative at that location. Walker used his employer’s laptop, as well as an iPad and thumb drives, to view the pornographic images. Forensic examination of the seized devices revealed 16,870 images of suspected child sexual abuse material.
The U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case along with HSI Task Force Agents with the Bessemer Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit Project Safe Childhood.
California Man Sentenced to 90 Months in Prison for Conspiring to Distribute over 30 Pounds of Crystal Methamphetamine and Five Kilos of Fentanyl into New JerseyRead the Press Release
CAMDEN, N.J. – A California man was sentenced today to 90 months in prison for shipping approximately 30 pounds of crystal methamphetamine and conspiring to send an additional five kilograms of fentanyl into New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Isabel Otanez-Sanchez, 27, of San Jacinto, California, previously pleaded guilty before U.S. District Judge Noel Hillman to an information charging him with one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and a quantity of fentanyl. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In September 2018, law enforcement officers received information that an individual known as “Pancho,” later identified as Otanez-Sanchez, was shipping large quantities of narcotics to New Jersey from California. On Jan. 28, 2019, Otanez-Sanchez agreed to send 30 pounds of methamphetamine to a law enforcement confidential source (the “CS”) in Atlantic City, New Jersey. Otanez-Sanchez and conspirator Jesus Zavala-Torres hid 28 packages of methamphetamine inside a salvaged vehicle that was shipped to New Jersey from California. Agents recovered the 28 packages, totaling approximately 30 pounds, from the car’s gas tank. On Feb. 12, 2019, the CS met with Otanez-Sanchez and Zavala-Torres in Riverside, California. Otanez-Sanchez and Zavala-Torres also agreed to sell an additional five kilograms of fentanyl that would be shipped to the CS in New Jersey in the same manner as the methamphetamine. Following this meeting, Otanez-Sanchez and Zavala-Torres were arrested by law enforcement and the five kilograms of fentanyl they intended to ship to New Jersey were recovered.
In addition to the prison term, Judge Hillman sentenced Otanez-Sanchez to five years of supervised release. Zavala-Torres is scheduled to be sentenced June 2, 2021.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges and today’s sentencing. She also thanked HSI in Riverside, California; the New Jersey State Police; the Hemet, California, Police Department; and the Atlantic City Task Force for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Buffalo Man Pleads Guilty for His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Louis Gilbert, 43, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to conspiring to possess with intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorneys Richard Antoine and Laura A. Higgins, who are handling the case, stated that between July 2019, and January 10, 2020, the defendant conspired with others to sell cocaine. On January 10, 2020, Gilbert and co-defendant Saan Thompson engaged in a text communication regarding a drug sale. Thereafter, investigators set up surveillance in the vicinity of 189 May Street and observed Thompson and Gilbert meet inside of the residence. Afterwards, Erie County Sheriff’s deputies conducted a traffic stop of the vehicle Gilbert was driving and he was found in possession of suspected cocaine.
Saan Thompson and another co-defendant Ronnie Charleston were previously convicted and are awaiting sentencing. Charges remain pending against co-defendant Antoine Gilbert. 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.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
Sentencing is scheduled for September 14, 2021, before Judge Arcara.
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Bryson City Woman Is Sentenced to 21 Years for Distribution of A Controlled Substance Resulting in DeathRead the Press Release
ASHEVILLE, N.C. – Shannon White, 44, of Bryson City, N.C. was sentenced to 21 years in prison late yesterday for distribution of a controlled substance resulting in death, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Chief U.S. District Judge Martin Reidinger ordered White to serve three under court supervision after she is released from prison.
Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office and Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to evidence presented at Shannon’s trial, witness testimony and documents filed in the case, White, who is an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, was involved in the distribution of narcotics in an around Jackson and Swain Counties. Trial evidence established that on January 27, 2019, a victim, identified in court documents as J.F., ordered heroin from White. White agreed to supply the heroin to J.F. and supplied him with a substance that White believed to be heroin, but turned out to be fentanyl. According to trial testimony, J.F.’s use of the fentanyl resulted in J.F.’s overdose death. According to trial evidence, White continued to sell narcotics even after she became aware of the J.F.’s death, and falsely accused two other individuals of committing the crime.
"White peddled fentanyl, a highly toxic drug that resulted in a fatal overdose, and brazenly continued to distribute the lethal opioid even after she learned of the victim’s death,” said Acting U.S. Attorney Stetzer. “White’s 21-year sentence imposed by the Court reflects the severity of her conduct and the detrimental role drug dealers play in spreading deadly substances that plague communities and cause tragic deaths. The U.S. Attorney’s Office will continue to work closely with our law enforcement and community partners to combat the opioid epidemic."
“The death involved in this investigation underscores the seriousness of our country’s dependence on prescription opioids,” said the Special Agent in Charge Murphy. “In this case, the victim’s life was cut short, after consuming what turned out to be a deadly dose of fentanyl. Consequently, White will spend well-deserved time in federal prison. DEA and our law enforcement partners will continue to expend our time, energy and resources in an effort to stem the tide against the opioid epidemic.”
“The death involved in this investigation underscores the seriousness of our country’s dependence on prescription opioids,” said the Special Agent in Charge Murphy. “In this case, the victim’s life was cut short, after consuming what turned out to be a deadly dose of fentanyl. Consequently, White will spend well-deserved time in federal prison. DEA and our law enforcement partners will continue to expend our time, energy and resources in an effort to stem the tide against the opioid epidemic.”
“The Swain County Sheriff’s Office is pleased to be a part of this investigation to bring this person to justice. We hope this brings some closure to the family of the victim in this case. We will continue to fight the drug problem in Swain County and will aggressively pursue anyone who sells or gives drugs to anyone that causes their death,” said Sheriff Cochran.
White is currently in custody. She will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement Acting U.S. Attorney Stetzer commended the Swain County Sheriff’s Office and the DEA in Asheville for their investigation of this case and thanked the FBI and the Cherokee Indian Police Department for their invaluable assistance.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Bridgeport Jury Finds Waterbury Man Guilty of Drug and Gun OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in Bridgeport has found ANDRE DENNIS, 40, of Waterbury, guilty of narcotics and firearm offenses. The trial before U.S. District Judge Victor A. Bolden began on May 26 and the jury returned its verdict this morning.
According to the evidence at trial, in November 2018, Dennis was on special parole following his most recent conviction for possession of narcotics. On November 29, 2018, Connecticut parole officers and the Waterbury Police Department conducted a compliance check at Dennis’ residence and found a loaded Smith & Wesson pistol and approximately 45 grams of fentanyl, 12 grams of crack cocaine, and seven grams of powder cocaine. The search also revealed items used to process and package narcotics for sale, and more than $9,000 in cash.
Dennis’ criminal history includes several state felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The jury found Dennis guilty of one count of possession with intent to distribute fentanyl, cocaine and cocaine base (“crack”), and one count of unlawful possession of a firearm by a felon. Dennis was found not guilty of one count of possession of a firearm in furtherance of a drug trafficking crime.
At sentencing, which is not scheduled, Dennis faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 50 years.
Dennis has been detained since his arrest on November 29, 2018.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterbury Police Department with the assistance of Connecticut State Parole. The case is being prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Hal Chen.
Branford Man Charged with Child Pornography OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston, announced that MICHAEL HOLM, 42, of Branford, was arrested today on a federal criminal complaint charging him with distribution, transportation and possession of child pornography and obscene visual depictions of minors engaged in sexually explicit conduct.
As alleged in court documents, from approximately September 1, 2014 to March 8, 2021, Holm used various websites, mobile applications and online file storage platforms, such as ChatStep, Kik, Discord, Dropbox, Skype, SkyDrive and Gmail, to distribute, transport, and store material depicting the sexual abuse of children. On March 8, 2021, law enforcement agents conducted a court-authorized search of Holm’s Branford residence and seized his Apple iPhone. A preliminary forensic examination of the iPhone revealed 31 images and videos depicting child pornography. Law enforcement agents also conducted a court-authorized search of Holm’s Dropbox account, where he had uploaded and stored over 100 images and videos of child pornography.
The complaint also alleges that Holm engaged in some of this conduct while he was on federal supervised release for a prior child pornography offense. In August 2011, Holm was sentenced in federal court to three months of imprisonment and five years of supervised release for possession of child pornography.
Holm appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and was ordered detained.
If convicted of the distribution and transportation charges, Holm faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years. If convicted of the possession charges, Holm faces a mandatory minimum term of imprisonment of 10 years and maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Holm’s prior federal conviction for possession of child pornography.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) with the assistance of the Connecticut State Police and the Branford Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Bowie Man Sentenced to 12 Months and One Day in Federal Prison for Selling More Than $300,000 Worth of Counterfeit DVDsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Olayinka Wahab, age 45, of Bowie, Maryland, on March 24, 2020 to 12 months and one day in federal prison, followed by three years of supervised release, for copyright infringement in connection with his sale of counterfeit DVDs containing copyrighted works, including popular movies, television shows, and fitness programs. Judge Xinis has also ordered Wahab to pay $241,370.58 in forfeiture and $165,961.53 in restitution to the victims of his copyright infringement.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to his plea agreement, between March 2009 and May 2018, Wahab sold approximately 18,306 DVDs or DVD sets, with a total retail value of $315,761.44. Wahab knowingly sold counterfeit DVDs containing copyrighted works belonging to ABC Studios/Disney, Anchor Bay Entertainment; Disney; Fox; HBO Home Entertainment; Lionsgate; MGM; Netflix; Paramount; Sony; Universal; Warner Brothers; and BeachBody, LLC.
In 2017, representatives from the Motion Picture Association (MPA) identified a seller on an Internet marketplace selling fraudulent DVDs at a discounted rate. MPA purchased an item and analyzed the DVD upon receipt. Although the packaging was nearly indistinguishable from legitimate copies, the product was fraudulent. Records obtained from the Internet marketplace revealed the seller had made over 10,000 sales of DVD or Blu-Ray discs of popular movies, television shows, or fitness programs between August 2016 and April 2018.
Undercover law enforcement officers subsequently conducted purchases from the seller, including DVD titles of “Beauty and the Beast,” “The Walking Dead,”,“The Fate of the Furious,” “Finding Dory,” and among other popular titles. The DVDs purchased by the undercover officers were provided to MPA representatives for authentication and were determined to be counterfeit. Law enforcement determined that Wahab was the individual purchasing the counterfeit items from China and reselling the fraudulent items in the United States.
During the nine years when Wahab was engaged in the sale of counterfeit DVDs, he made approximately $241,370.58 from these sales. As gross proceeds from Wahab’s criminal activity, Judge Xinis ordered forfeiture in this amount. Separately, the Court also ordered restitution in the amount of $165,961.53 in order to compensate the copyright holder victims whose copyright infringed titles the Defendant was selling online.
Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in the investigation and thanked the MPA for its substantial assistance in this matter. Mr. Lenzner thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Thomas M. Sullivan, who prosecuted the case.
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Beltsville Pimp Sentenced to Eight Years in Federal Prison for Conspiracy to Commit Sex TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Kamal Dorchy, age 46, of Beltsville, Maryland, yesterday to eight years in federal prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking. Judge Russell also ordered that, upon his release from prison, Dorchy will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Lisa D. Myers of the Howard County Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Chief Malik Azziz of the Prince George’s County Police Department; and Howard County State’s Attorney Rich Gibson.
According to Dorchy’s plea agreement, from September 2016 to July 2017, Dorchy conspired with others to commit sex trafficking. Dorchy used Internet websites to post prostitution advertisements and recruit sex workers for his prostitution business through advertisements for massage work or prostitution.
As detailed in his plea agreement, on July 27, 2017 a Howard County Police Department detective met with an adult sex worker (Victim 1) at a hotel in Laurel, Maryland. Victim 1 advised the detective about Dorchy’s conduct. The victim also told the detective she used a name had given her in prostitution ads.
Dorchy admitted that he met a 17-year-old minor at a strip club in July of 2017 and recruited the minor victim to work for him in his prostitution business. Dorchy claims that he was not aware of her true age at the time, and believed she was 18 years of age due to her employment at the strip club. The minor victim informed law enforcement that she told Dorchy her true age before she was trafficked. Dorchy arranged prostitution dates for the minor victim by posting ads on Internet websites, including for dates in Maryland. When Dorchy could not be there for the minor victim’s prostitution dates, he employed his cousin to act as “security.” The minor victim was 17 years old during the time that she was trafficked.
A third sex trafficking victim, an adult female, advised law enforcement that she met Dorchy in 2016 during a job interview for a massage business at a hotel in Baltimore, where she was told that she would be walking clients to appointments. The victim advised that, at Dorchy’s direction, she later did prostitution dates at the massage business.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner praised HSI, the Howard County, Baltimore County, Baltimore City, and Prince George’s County Police Departments, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Lenzner thanked Assistant U.S. Attorneys Ayn B. Ducao, Adam K. Ake, and Jeffrey J. Izant, who prosecuted the case.
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Belleville Man Indicted for Producing Child PornographyRead the Press Release
EAST ST. LOUIS, Ill. – A St. Clair County man is under federal indictment on multiple charges involving producing and distributing sexually explicit images of minors. Zachary Dennert, 19, of Belleville, Illinois, is accused of coercing two minors, including one under the age of 12 years old, to produce visual depictions of sexually explicit conduct. The offenses occurred between January and August 2020.
The four-count federal indictment further alleges that Dennert transported images of a third minor victim in August 2020 and distributed an image of child pornography over the internet in September 2020.On May 26, 2021, Dennert appeared before United States Magistrate Judge Mark A. Beatty and entered a not guilty plea. He is being held in custody pending a detention hearing next week.
Each count of producing child pornography is punishable by at least 15 years and up to 30 years in prison. For the other charges, Dennert faces a possible penalty of 5-20 years’ imprisonment. All four counts are also punishable by a fine of up to $250,000.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by O’Fallon Police Department and United States Secret Service.
Assistant U.S. Attorney Alexandria Burns is prosecuting the case.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.
Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and
Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Auburn Man Pleads Guilty to Filing a False Tax ReturnRead the Press Release
BOSTON – An Auburn man pleaded guilty yesterday in federal court in Worcester to filing a false personal tax return.
Stephen Hubley, 64, pleaded guilty to one count of filing a false and fraudulent tax return. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 17, 2021.
Hubley admitted he failed to report several hundreds of thousands of dollars in income on his 2019 personal tax return.
The charge of filing a false and fraudulent tax return provides for a sentence of up to three years in prison, one year of supervised release, restitution equal to the tax loss as determined the Court and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
Appellate Court Affirms Convictions of Lawyer and Coal Company Executive for Bribing State LegislatorRead the Press Release
BIRMINGHAM, Ala. – The U.S. Court of Appeals for the Eleventh Circuit yesterday affirmed the convictions of a Birmingham lawyer and an Alabama coal company executive in a scheme to bribe a state legislator to use his office to oppose Environmental Protection Agency actions in north Birmingham, announced U.S. Attorney Prim F. Escalona.
A jury found former Balch & Bingham partner JOEL IVERSON GILBERT and former Drummond Company Vice President of Government and Regulatory Affairs DAVID LYNN ROBERSON guilty of bribery, honest services wire fraud, conspiracy, and money laundering. At trial, the government showed that, after the EPA notified a Drummond Company subsidiary of its potential liability for cleanup costs, Gilbert and Roberson bribed former Alabama Rep. Oliver Robinson to advocate Drummond’s opposition to EPA’s prioritization or expansion of the north Birmingham Superfund site near Robinson’s district. The bribe came in the form of a consulting contract that paid Robinson $360,000 through the Oliver Robinson Foundation, a non-profit organization, between 2015 and 2016. In return, Robinson spoke to EPA officials and state environmental officials, secretly taping his meetings, and cast a vote for a state resolution drafted by Gilbert opposing the EPA’s efforts.
On appeal, Gilbert and Roberson contended that their actions did not meet the legal definition of bribery. The Eleventh Circuit disagreed and affirmed their judgments of conviction. It held that the two “concealed payments of hundreds of thousands of dollars to an Alabama Representative through his charitable foundation” in exchange for his official acts “intended to undermine the Environmental Protection Agency’s . . . efforts to clean up a Superfund site.”
“The Eleventh Circuit confirmed what the jury understood. Joel Gilbert and David Roberson paid a state representative to deprive the voters of north Birmingham of their voice,” Escalona said. “The appellate court’s decision makes clear that the very purpose of our bribery laws is to prohibit such efforts to subvert the will of the community.”
Assistant U.S. Attorneys George Martin, now of the Southern District of Alabama, Robin B. Mark, and J.B. Ward prosecuted the case in the district court. Martin briefed and Assistant U.S. Attorney Praveen Krishna argued the case before the Eleventh Circuit.
Alexandria Jury Convicts Armed Robbery DefendantRead the Press Release
ALEXANDRIA, La. – Larcentursa Mayweather a.k.a. “Cent” a.k.a “Lacenturia,” 49, of Winnfield, Louisiana, has been convicted on armed bank robbery charges, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge Dee D. Drell presided over the four-day trial held in Alexandria.
Mayweather was charged on July 8, 2020 in a federal indictment with conspiracy to commit armed bank robbery, two counts of armed bank robbery, and one count of making a false bomb threat. Evidence introduced at trial showed that Mayweather conspired with two other co-defendants, Paul Nash, Jr. and Tabitha Lee Gray a.k.a. “Tabitha White” to rob two banks in the Western District of Louisiana in April 2019.
Mayweather helped plan the bank robberies and instructed Nash and Gray on how to carry out the robberies and what to do and he acted as the getaway driver. On April 2, 2019, Mayweather drove Nash and Gray to Campti, Louisiana and dropped them off at the City Bank and waited for them while they were inside committing the armed robbery. Nash and Gray left the bank with the stolen money and fled to the car where Mayweather was waiting, and they drove away. Prior to the bank robbery and in an effort to divert the attention of law enforcement officers while the robbery was being committed, Mayweather provided Nash with a cell phone and instructed him to make a false report to law enforcement conveying that there was a bomb threat on the Lakeview High School property in Campti.
The second armed robbery occurred on April 16, 2019 at the Bank of Montgomery in Castor, Louisiana. Again, Mayweather helped plan the robbery and instructed Nash and Gray on how to carry out the robbery. Instead of calling in a false report of a bomb threat, this time they committed an arson and set a house on fire to try and divert the attention of local law enforcement while the robbery was being committed. Nash and Gray entered the bank with firearms drawn and ordered the tellers to stay out of the way so they could take the money. After the money was stolen, Nash and Gray ran out of the bank intending to find Mayweather, who had promised he would be waiting to pick them up. Instead, once they exited the bank, Mayweather saw law enforcement officers in the area and instead of picking them up, he accelerated and left Nash and Gray to fend for themselves. Nash and Gray ran into a nearby wooded area and were later apprehended. Mayweather was seen leaving the area of the Bank of Montgomery and was stopped and arrested by law enforcement officers. Gray's purse and a receipt belonging to Nash were found in his vehicle.
Testimony at trial revealed that a glove belonging to Mayweather was found in the parking lot and his DNA was on the glove. Further, Nash and Gray each wore gloves during the robberies which were provided by Mayweather from his place of employment at the time.
Nash and Gray each previously pleaded guilty in this case and agreed to testify about their involvement in the robberies. Nash is scheduled to be sentenced on June 18, 2021 at 11:00 a.m. Gray is scheduled to be sentenced on August 19, 2021 at 2:00 p.m.
Mayweather faces up to 5 years in prison on the conspiracy count, up to 25 years on the armed bank robbery counts, up to 10 years on the false bomb threat count, and up to a $250,000 fine. Sentencing is set for August 27, 2021 at 11:00 a.m.
The FBI, Louisiana State Police, Natchitoches Parish Sheriff’s Office, Bienville Parish Sheriff’s Office, Jackson Parish Sheriff’s Office, and Louisiana State Fire Marshal conducted the investigation. Assistant U.S. Attorneys Tennille Gilreath and Robert F. Moody prosecuted the case.
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Albuquerque man pleads guilty to violating migratory bird treaty actRead the Press Release
ALBQUERQUE, N.M. – Amado Martin Vargas Hernandez, 57, of Albuquerque, pleaded guilty and was sentenced in federal court on May 24 for a single misdemeanor count of violating the Migratory Bird Treaty Act.
In the plea agreement, Vargas Hernandez admitted that on Nov. 14, 2019, in Bernalillo County, New Mexico, he unlawfully possessed bird parts, including feathers of sharp-shinned hawks, American kestrels, greater roadrunners, red-tailed hawks, northern flickers, white-winged doves, crested caracaras, Cooper’s hawks, bald eagles, golden eagles, and barred owls. Federal law prohibits the possession, use, and sale of the feathers or other parts of protected birds, as well as the unauthorized killing of these birds, to help ensure that their populations remain healthy and sustainable.
Vargas Hernandez was sentenced to one year of probation. As part of his sentence, Vargas Hernandez agrees to pay a fine of $250 to the North American Wetlands Conservation Fund Account. Additionally, Vargas Hernandez forfeits any interest in the feathers, parts, and products of the protected birds seized during the course of the investigation of this case.
The U.S. Fish and Wildlife Service (FWS) investigated this case. FWS is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges as well as thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The agency enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands and helps foreign and Native American tribal governments with their conservation efforts.
Assistant U.S. Attorney Novaline D. Wilson prosecuted the case.
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11 indicted in international fentanyl distribution conspiracyRead the Press Release
CINCINNATI – A federal grand jury has indicted 11 people, including seven from Cincinnati, for engaging in an international conspiracy to distribute the deadly drug fentanyl.
“These charges disrupt an alleged fentanyl pipeline that stretched from a source cartel in Mexico, through California and Arizona and onto the streets of Cincinnati,” Acting U.S. Attorney Vipal J. Patel said. “We hope this investigation saved countless lives by preventing fentanyl from reaching our community’s streets.”
A 29-year-old Cincinnati man, Tyree Cushan Yisrael, was the final defendant to be arrested today.
Local and federal investigations started in 2019 and included the DEA Cincinnati field office, the FBI and the Hamilton County Regional Enforcement Narcotics Unit (RENU). Gilberto Ojeda-Avila of Tolleson, Arizona, was believed to be a source of supply who helped coordinate the transport of illicit drugs from Arizona to local distributors in the Cincinnati area, including Kenneth Green and Richard Sommerville.
On Memorial Day weekend in 2020, investigators stopped cars driven by Georgina Tapia-Llamas and Nancy Osorio-Duarte in Cincinnati and allegedly found more than four kilograms of fentanyl hidden in the front bumper and wheel wells of the car driven by Osorio-Duarte.
Further investigation helped identify several alleged prolific Cincinnati distributors. Execution of search warrants at several locations in the Cincinnati area last October and November resulted in the seizure of more than 13 additional kilograms of fentanyl, at least 17 guns and more than $1 million in alleged drug proceeds.
The fentanyl seized was allegedly being sold for approximately $65,000 per kilogram, giving the quantity of drugs in this case an estimated street value of at least $1.1 million.
“Fentanyl can be 50 times more potent than heroin and has claimed far too many lives, not just here in Southern Ohio, but across the nation,” said Cincinnati District Office Special Agent in Charge Keith Martin. “Through the cooperation between law enforcement entities, we were able to halt the distribution of a significant amount of this potentially deadly substance and thwart an allegedly major drug trafficking organization.”
The final indictment was returned on March 31, 2021.
The indictment charges the following with conspiracy to possess with intent to distribute a controlled substance:
Name
Age
City of residence
Gilberto Ojeda-Avila
24
Tolleson, Arizona
Georgina Tapia-Llamas
43
Tolleson, Arizona
Selma Valenzuela-Garibaldi
41
Phoenix
Kenneth Eugene Green
56
Cincinnati
Richard Charles Sommerville II
37
Cincinnati
Gabriel Thomas
36
Cincinnati
Nancy Osorio-Duarte
41
Phoenix
Tyree Cushan Yisrael
29
Cincinnati
Antonio Lamont Brumfield
22
Cincinnati
Chavez Foggie
23
Cincinnati
Isis Allen
29
Cincinnati
Each of the defendants is charged in a narcotics conspiracy punishable by at least 10 years and up to life in prison.
“The FBI is proud to have worked alongside our federal and local partners to bring to justice those who harm our communities by distributing this deadly drug,” stated FBI Cincinnati Special Agent in Charge Chris Hoffman. “We remain committed to getting fentanyl, and those who distribute it, off the streets.”
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hamilton County Sheriff Charmaine McGuffey announced the charges. Assistant United States Attorney Jennifer Weinhold is representing the United States in this case.
An indictment is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
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27 May 2021
Woman Sentenced to Prison for False Statements to PoliceRead the Press Release
DES MOINES – On Tuesday, May 25, 2021, a federal judge sentenced Allison Danielle Doyle, age 25, of Des Moines, to 18 months in prison for making a false statement to a Des Moines Police Detective investigating a federal crime. Doyle had previously pleaded guilty to the charge.
At sentencing, United States District Court Senior Judge James E. Gritzner found that Doyle’s lies to police were designed to thwart law enforcement’s investigation into gun-related crimes. Specifically, police were investigating a gang-related shooting that occurred on May 10, 2020. During the course of that investigation, a search warrant was executed at Doyle’s residence and a firearm was discovered. Doyle and her boyfriend then concocted a scheme to have Doyle falsely claim responsibility for the firearm to avoid her boyfriend being federally charged. Doyle then subsequently lied to a Des Moines Police Detective during an interview.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by the Des Moines Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Neighborhoods, 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.
Woman Sentenced for Drug Conspiracy ChargesRead the Press Release
BOSTON – A woman who conspired with a member of the Fitchburg Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday for drug distribution charges.
Sophia Velasquez, 28, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (five days) in prison and three years of supervised release, with three months to be served in home confinement. On Feb. 4, 2021, Velasquez pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl.
Velasquez conspired with Dairon Rivera, a/k/a “King Mafia,” to sell 17 grams of fentanyl to a cooperating witness in an audio/video recorded sale that took place in December 2017.
Rivera pleaded guilty and was sentenced to two years in prison and three years of supervised release on April 1, 2021.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Velasquez is the 27th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wilmington Man Convicted of PCP Distribution PlotRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Wilmington man yesterday on charges of conspiracy to distribute and possess with the intent to distribute one kilogram or more of a mixture and substance containing a detectible amount of phencyclidine (PCP), a quantity of cocaine, heroin, and marijuana and possession with the intent to distribute a quantity of PCP and aiding and abetting.
According to court records and evidence presented at trial, Rashawn Aki Simon, 46, utilized connections for a large-scale drug trafficking organization in New York City, New York to import various drugs into North Carolina for distribution for a number of years. In March, 2019, Rashawn Simon ordered multiple pounds of liquid PCP that the Drug Enforcement Administration (DEA) along with Sampson County Sheriff’s Office intercepted while in-route to Wilmington, North Carolina where Rashawn Simon was awaiting its deliver. The DEA, Sampson County Sheriff’s Office, and the New Hanover County Sheriff’s Office coordinated a controlled delivery that ultimately lead to Rashawn Simon’s arrest. During the trial, the testifying officers and agents stated uniformly that the seizure of PCP was the largest quantity of PCP that any of them had seen at one time. Conservatively, the quantity of PCP seized equated to thousands of individual doses.
Simon faces a sentence of up to life in prison when he is scheduled to be sentenced during the September 7, 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 Louise W. Flanagan accepted the verdict. The Drug Enforcement Administration, Sampson County Sheriff’s Office, and the New Hanover County Sheriff’s Office are the investigating parties in the case; Assistant U.S. Attorney Brad Knott prosecuted and tried 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.7:19-cr-00074-FL.
Westport Man Sentenced to Prison for Defrauding Investors, Making False Statements to SECRead the Press Release
Leonard C. Boyle, Acting United States Attorney for the District of Connecticut, announced that BARTON STUCK, 74, of Westport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for defrauding investors and then making false statements to the Securities and Exchange Commission.
According to court documents and statements made in court, Stuck controlled related business entities, including Signal Lake General Partner LLC, Signal Lake Operations LLC, Signal Lake Management LLC, Signal Lake Side Fund LP, Signal Lake Side Fund II LP, Signal Lake Side Fund IIA LP, Signal Lake Top Prospects Fund, and SLT Logic LLC (collectively, the “Signal Lake entities”). The Signal Lake entities were venture capital vehicles investing in various technology companies. Stuck solicited investments for the Signal Lake entities.
In 2015 and 2016, Stuck committed fraud by, among other things, misrepresenting the financial health and prospects of the Signal Lake entities and their investments in order to enrich himself. In one instance, Stuck made misrepresentations to an undercover FBI agent posing as a prospective investor. Stuck falsely guaranteed a payment of twice the original $500,000 investment, and falsely claimed that a Signal Lake entity had $200 million in a particular bank account when, in fact, the balance of the bank account at the time was $.50. He also falsely stated that a $50,000 fee he required would be used for accounting and legal expenses. When the undercover agent paid Stuck the $50,000 fee, Stuck used it for personal expenditures.
Stuck also made false statements in forms that he filed with the Securities and Exchange Commission in 2016 and 2017. Specifically, Stuck falsely claimed that a Signal Lake entity managed and had a gross asset value of $145 million, and was subject to annual audits by a Stamford accounting firm.
On October 25, 2018, Stuck pleaded guilty to one count of wire fraud, one count of engaging in illegal monetary transactions, and two counts of making false statements to the Securities and Exchange Commission.
Stuck, who is released on a $100,000 bond, is required to report to prison on June 24, 2021.
This investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Connecticut Department of Banking. The case was prosecuted by Assistant U.S. Attorney Jonathan N. Francis.
Visalia Woman Convicted of Smuggling Illegal PesticidesRead the Press Release
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – May 27, 2021
SAN DIEGO – Selene Barraza of Visalia, California, was convicted by a federal jury yesterday of smuggling illegal pesticides into the United States from Mexico.
The jury found that Barraza smuggled 25 containers of pesticides and fertilizer concealed under the seats of her vehicle into the United States at the San Ysidro Port of Entry on February 26, 2020. The pesticides included 12 bottles of Metaldane and six bottles of Furadan. The active ingredient of Metaldane is methamidophos, and the active ingredient of Furdan is carbofuran. Both methamidophos and carbofuran are cancelled pesticides, which may not be legally imported, sold, distributed or applied in the United States.
According to trial testimony, Barraza purchased the pesticides at a store in Tijuana, where she was told that it was illegal to cross them into the United States but that if the pesticides were discovered, they would simply be seized. The amount of Metaldane alone purchased by Barraza would have lasted 100 to 200 years if applied to her property, according to the directions on the label. Barraza told agents she intended to use the pesticides and resell them. Barraza is scheduled to be sentenced before U.S. District Judge Dana M. Sabraw on August 20, 2021.
“These chemicals are banned in the United States because they are toxic and dangerous,” said Acting U.S. Attorney Randy Grossman. “This verdict is an important reminder that there are serious consequences for those who attempt to smuggle illegal pesticides into the U.S. with no regard for public safety.” Grossman praised Assistant U.S. Attorney Melanie Pierson, Department of Justice Trial Attorney Stephen Da Ponte and agents with Homeland Security Investigations and the U.S. Environmental Protection Agency, Criminal Investigation Division for their excellent work to protect the public.
“The jury’s verdict sends a clear message to individuals that knowingly put people at risk” said Scot Adair, the Special Agent in Charge of EPA’s criminal enforcement program in California. “With our partner agencies, EPA’s job is to protect the American people from highly toxic pesticides like the ones illegally smuggled into this country by the defendant.”
“The jury’s verdict confirms the seriousness of preventing these toxic chemicals from polluting the environment and putting people’s health at risk,” said Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI). “HSI and our partners at Environmental Protection Agency – Criminal Investigation Division, U.S. Customs and Border Protection, and the U.S. Attorney’s Office are committed to working together to stop these deadly pesticides from entering the United States.”
This case was prosecuted by Assistant U.S. Attorney Melanie Pierson and DOJ Trial Attorney Stephen DaPonte.
DEFENDANT
Case Number 20cr1442-DMS
Selene Barraza Age: 34 Visalia, CA
SUMMARY OF CHARGES
Smuggling – Title 18, U.S.C., Section 545
Maximum penalty: 20 years of imprisonment and $250,000 fine
AGENCIES
Homeland Security Investigations
U.S. Environmental Protection Agency, Criminal Investigation Division
Virginia Man Pleads Guilty to Conspiring to Distribute over Two Tons of Illegal MarijuanaRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Harold McDonald, 23, of Virginia, pleaded guilty before U.S. District Judge John L. Sinatra to conspiring to distribute 1,000 kilograms or more of marijuana. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a $10,000,000 fine.
Assistant U.S. Attorney Misha Coulson, who is handling the case, stated that on August 23, 2020, a commercial tractor bearing Canadian plates was encountered at the Peace Bridge Port of Entry and was said to contain two shipments of empty plastic bottles and paper product. The truck was referred to secondary inspection for a vehicle x-ray scan. A physical inspection of five wooden pallets inside revealed 1,848.5 kilograms of marijuana located on pallets.
Subsequently, law enforcement officers conducted a controlled delivery operation. This included a vehicle stop of a Jeep Cherokee in which the defendant was riding. The Jeep was observed following the shipment of marijuana and conducting counter surveillance of law enforcement in the area. Law enforcement observed a loaded 9mm semi-automatic handgun partially tucked under the defendant’s leg. An additional loaded magazine for the handgun was later located on McDonald’s person. Also, in the vehicle at the time of the stop were co-defendants Joseph Lee Ellis and Heather Nicole Dommer, who was driving the vehicle.
Charges remain pending against co-defendants Joseph Lee Ellis and Health Nicole Dommer. 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.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing will be scheduled at a later date.
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Virginia Beach Businessman Pleads Guilty to $2.5 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man pleaded guilty today to defrauding the IRS out of more than $2.5 million of taxes by, among other things, hiding assets, making false statements about his ability to pay, using a nominee company to conduct business, and diverting huge sums of money to pay creditors instead of the IRS.
“The defendant attempted to evade the payment of over $2.5 million in taxes and instead used his ill-gotten gains for personal expenses such as an oceanfront home, luxury travel, and yacht club dues,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is committed to holding accountable those who try to defraud the system rather than paying their fair share.”
According to court documents, Richard Yanek, 52, has owned and operated a credit card processing business since at least 1995. Between 2013 and 2018, Yanek withheld employment taxes from his employees but failed to consistently pay more than a million dollars of those withholdings to the IRS. Each year, Yanek provided false employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.
Yanek had not filed a personal income tax return or paid personal income taxes since 2010, despite earning and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club dues. Yanek had his personal tax returns prepared by his accountant for the years 2011 through 2015, all of which reported substantial taxes due and owing. However, Yanek intentionally chose not to file these returns with the IRS, and he later made false statements to the IRS and law enforcement when asked why those returns had not been filed.
Yanek is scheduled to be sentenced on September 27. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorneys Mack Coleman and Howard Zlotnick are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-26.
Utah Company and Its Owner Plead Guilty to Wildlife Trafficking ChargesRead the Press Release
A Utah man and his company Natur Inc. pleaded guilty yesterday in federal court in Salt Lake City to violating the Lacey and Endangered Species Acts.
On Nov. 18, 2020, a grand jury issued an indictment charging Jean-Michel Arrigona, 58, of Midvale, with unlawfully importing wildlife into the United States and reselling it from the Natur store in Midvale, which he owns. In a plea agreement with the government, Arrigona admitted that he imported approximately 1,500 wildlife items from 2015 to 2020. He only declared three of the packages, as required, to the U.S. Fish and Wildlife Service or customs authorities. Arrigona resold the wildlife online and at Natur. The wildlife, primarily from Indonesia, consisted of taxidermy mounts and bones of bats, flying foxes, frogs, starfish, insects, rodents, and lizards. Some of the wildlife, such as the flying fox (Pteropus sp.) and monitor lizard (Varanus sp.) are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which regulates trade in endangered or threatened species through permit requirements. The United States, Indonesia, and 181 other countries are signatories to the CITES treaty.
Arrigona pleaded guilty to a felony Lacey Act trafficking charge, and Natur pleaded to one misdemeanor violation of the Endangered Species Act. U.S. District Judge Robert J. Shelby will determine the defendants’ sentence at an Aug. 4 hearing. Arrigona and Natur have agreed to pay at least $23,101 and $5,000 in fines, respectively. The maximum sentence for Arrigona under the Lacey Act is five years’ imprisonment and a $250,000 fine. The Endangered Species Act carries a maximum corporate sentence of five years’ probation and a $25,000 fine.
The U.S. Fish and Wildlife Service’s Office of Law Enforcement in Redmond, Washington, conducted the investigation as part of Operation Global Reach. The operation focused on the trafficking of wildlife from Indonesia to the United States.
Trial Attorney Ryan Connors of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Melina Shiraldi of the U.S. Attorney Office for the District of Utah prosecuted the case.
USP Lee Inmate Sentenced for Weapon PossessionRead the Press Release
ABINGDON, Va. – Anthony Meyers, an inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia, was sentenced recently to 42 months in federal prison for unlawfully possessing a weapon inside the prison.
Meyers, 37, possessed a 6 and one-half inch long prison-made, sharpened knife. He pleaded guilty in February 2021, to one count of illegal possession of contraband inside the prison.
Acting United States Attorney Daniel P. Bubar announced the sentence today.
The investigation of the case was conducted by the Federal Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
U.S. Attorney’s Office Provides Update on Federal Prosecutions and Ongoing Strategies to Combat Violent Crime in ChicagoRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.
The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN). PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops 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.
“The number of violent crimes in Chicago remains stubbornly high, including homicides, shootings, and carjackings, and we have seen troubling increases in these areas since the pandemic began,” said U.S. Attorney Lausch. “We are using every available federal law enforcement tool to continue to bring quality, impactful cases that hold violent offenders accountable and reduce violent crime in Chicago.”
In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to wreak havoc in their communities. Through enforcement actions, prosecutions, and community partnerships, the U.S. Attorney’s Office works to lower violent crime and make neighborhoods safer.
Enforcement Actions and Prosecution Activity
The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes. State and local partners in this effort include the Chicago Police Department (CPD), Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department, and other police departments throughout northern Illinois.
The U.S. Attorney’s Office’s Gun Crimes Prosecution Team continues to enhance the prosecution of illegal firearm possession in the most violent police districts in Chicago. Working collaboratively with federal and local law enforcement, the team focuses on charging Chicago’s most dangerous criminals quickly after arrest, endeavoring to disrupt the cycle of violence in the neighborhoods most in need.
“Our Gun Crimes Prosecution Team works tirelessly to investigate and prosecute firearms cases from those Chicago neighborhoods suffering from the most violent crimes,” said U.S. Attorney Lausch. “Our partnerships with CPD and other state and local law enforcement have never been better.”
Firearm and violent crime investigations in Chicago have also been bolstered by an important tool from ATF: the National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. Federal, state, and local law enforcement in Chicago have used NIBIN extensively to help solve violent crimes and prosecute trigger-pullers and other gun offenders.
Following up on the activities our office reported in October of last year, the U.S. Attorney’s Office remains active in fighting violent crime through various enforcement actions, prosecutions, and sentencings, as illustrated by the examples below:
- Gang-Related Prosecutions
“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.
- Last month, DAVID SANTIAGO, of Chicago, was sentenced to 12 years in federal prison for illegally selling guns to Chicago gang members. During the investigation law enforcement seized 16 firearms, including rifles and semi-automatic handguns. Santiago purportedly obtained many of the firearms in Kansas and boasted to the Chicago buyers that the guns were “clean” and “brand new.” The case was investigated by ATF and CPD.
- RONTRELL TURNIPSEED, of Matteson, Ill., was sentenced in March to ten years in federal prison for engaging in a pattern of racketeering activity that included attempted murder, drug trafficking, and obstruction of justice. Turnipseed conspired with leadership of the Four Corner Hustlers street gang to violently protect the gang’s drug dealing in Chicago. Eight co-defendants have pleaded guilty, while three have pleaded not guilty and are awaiting trial. The probe was led by FBI, ATF, and CPD. The effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the U.S. using a prosecutor-led, intelligence-driven, multi-agency approach.
- A superseding indictment in March accused JASON BROWN, the alleged leader of the AHK street gang, of illegally possessing four loaded handguns in furtherance of a drug trafficking crime that included distributing methamphetamines. The superseding indictment also renewed charges previously filed against Brown for allegedly providing material support to the terrorist organization ISIS. The case was investigated by FBI, CPD, IRS-CI, ISP, USPIS, U.S. Customs and Border Protection, HSI, Lombard, Ill., Police Department, and Addison, Ill., Police Department, with assistance from the National Security Division of the Department of Justice.
- Firearm Trafficking and Firearm Theft Prosecutions
“Straw purchasers and firearms traffickers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch. “We will continue to work with our law enforcement partners, including our colleagues in other U.S. Attorney’s Offices in the Midwest and across the country, to hold accountable individuals or groups who traffic firearms into Chicago.”
- KALIL WARNER, of Chicago, was charged earlier this month with five counts of illegal transfer and possession of a machine gun. The indictment accuses Warner of transferring and possessing “switch devices,” which are designed to convert handguns into machine guns. The investigation was led by ATF.
- Earlier this month, three U.S. Army soldiers at Fort Campbell were charged in the Middle District of Tennessee with illegally purchasing and transferring dozens of firearms to the streets of Chicago. During the probe, five firearms recovered from a shooting scene in Chicago were found to have been purchased at firearms dealers in Tennessee. Further investigation identified the soldiers as the alleged majority purchasers of the firearms. Law enforcement in Chicago, including CPD and ATF, assisted in the investigation.
- Last month, SCOTT TREECE, of Rockford, Ill., and KYLE HALL, of Skokie, Ill., were charged with trafficking firearms. In social media postings, Treece allegedly offered to purchase firearms in Georgia on behalf of others and distribute the guns in the Chicago area. The investigation was led by ATF.
- DARIUS BROWN, of Chicago, was indicted last month on a federal firearm charge for allegedly straw purchasing multiple handguns in a suburban store on behalf of another individual. ATF led the probe.
- BENITTA GROSS, of Springfield, Ill., was charged in March with providing a semi-automatic handgun to a convicted felon in the Chicago area whom she knew was not lawfully allowed to possess it. The investigation was led by ATF and CPD, with valuable assistance from the Cook County State’s Attorney’s Office, Sangamon County State’s Attorney’s Office, Sangamon County Sheriff's Office, USMS, and Springfield Police Department.
- Alleged straw-purchaser DIAMOND SMITH, of Chicago, was charged in March with making false statements in the acquisition of a firearm for allegedly buying handguns in a Chicago suburb on behalf of another individual. ATF conducted the investigation.
- LEONARD D. JOHNSON was charged in December after law enforcement seized machine guns and more than 100 “switch devices” from his home in the Chicago suburb of Robbins. Each “switch device” is capable of converting a semi-automatic handgun into a machine gun. ATF led the probe, with valuable assistance from the Lansing Police Department and Midlothian Police Department.
- BENJAMIN CORTEZ-GOMEZ and GUSTAVO URIEL GOMEZ-HIPOLITO were indicted in November for allegedly trafficking multiple handguns from Indiana to Chicago. ATF and CPD led the investigation, with assistance from the Cook County Sheriff’s Office and the U.S. Customs and Border Protection’s Air and Marine Operations.
- Carjacking and Robbery Prosecutions
“The U.S. Attorney’s Office works closely with federal, state, and local law enforcement officers to prosecute violent crimes, such as carjacking, that violate federal law,” said U.S. Attorney Lausch.
- A violent carjacking late last week in Chicago led to a federal charge against KIAR EVANS, of Chicago. Evans allegedly took a vehicle at gunpoint near Garfield Park. The U.S. Attorney’s Office filed the carjacking charge directly in federal court the day after the incident. FBI and CPD investigated the case.
- ANTONIO EDWARDS, of Chicago, was sentenced last month to more than 18 years in federal prison for participating in a violent robbery crew that targeted cell phone stores in the Chicago area and downstate. Two other members of the crew – ANDREW MCHANEY and JAMES BATES, both of Chicago – previously pleaded guilty and were sentenced to federal prison terms of 14 years and eight years, respectively. The probe was led by the FBI, with assistance from police departments in Chicago, Waukegan, Bradley, Mount Prospect, North Aurora, Skokie, and Homewood.
- Chicago residents FALANDIS RUSSELL and TERRANCE WILLIAMS were charged earlier this year with conspiring to violently rob pawn shops, currency exchanges, and retail stores in Chicago and the suburbs, netting the conspirators more than $22,000 in cash and more than $305,000 worth of jewelry. The case was investigated by the FBI, with valuable assistance from Police Departments in Chicago, Calumet City, Summit, Burbank, Bolingbrook, Round Lake Beach, Hammond (Ind.), Streamwood, and Arlington Heights.
- DAVID JOHNSON, of Chicago, was charged in February after he allegedly carjacked a vehicle in Orland Park and fired a shot at a police officer who was pursuing him. Johnson allegedly drove the stolen vehicle to Chicago, where he crashed into another car and fled on foot before being arrested. ATF, CPD, Oak Forest Police Department, and Orland Park Police Department participated in the probe.
- Carjacking charges were also filed against OMARION FRANKLIN, of Chicago, who allegedly violently took an Infiniti G35 sedan from a victim in Skokie last summer. FBI investigated, with valuable assistance from the Cook County State’s Attorney’s Office, Skokie Police Department, and CPD.
- An Uber Eats driver was the victim of a carjacking last summer allegedly carried out by JAHEIM HENYARD, of Chicago. Henyard was also charged with a carjacking in Cicero and an attempted carjacking in Oak Park. FBI, CPD, Oak Park Police Department, and Cicero Police Department participated in the investigation, with assistance from the Cook County State’s Attorney’s Office.
- Lake County resident ZAYVEON THOMAS was charged in January with attempted carjacking for allegedly trying to violently take a Lexus IS300 sedan from a victim in the parking lot of a north suburban golf course last summer. FBI led the probe, with assistance from the Cook County State’s Attorney’s Office.
- Illegal Possession of Firearms Prosecutions
“If you are a felon and thinking about picking up a gun in Chicago, you should expect to be prosecuted to the fullest extent of the law, and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.
- Earlier this month, RODNEY BURNETT, of Chicago, was sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on the city’s West Side. As a convicted felon, Burnett was prohibited by federal law from possessing a firearm. The case was investigated by FBI and CPD.
- Last month, MARIO PRADO, of South Elgin, Ill., who had previously been convicted of a felony firearm offense, was sentenced to nine years in federal prison for illegally possessing a semi-automatic rifle and numerous semi-automatic handguns. ATF and ISP conducted the probe.
- Convicted felon RAMONE SHAFFERS, of Chicago, was sentenced in January to eleven years in federal prison for illegally possessing a loaded gun and offering to pay witnesses to lie on his behalf. ATF and CPD investigated.
- Eight-time convicted felon LARRY CARADINE, of Chicago, was sentenced in December to more than five years in federal prison for illegally possessing a loaded handgun in the city’s West Garfield Park neighborhood. The case was investigated by ATF and CPD, with assistance from the Cook County State’s Attorney’s Office.
- Opioid Prosecutions
Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone. Public safety is being threatened by unprecedented levels of opioid misuse and overdose. The Department of Justice is committed to using every available tool to enforce federal drug laws and combat the opioid epidemic. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed a strategy of aggressive investigations and prosecutions of those who are most responsible for this epidemic. This includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue healthcare providers, pharmacists, pharmacist technicians, and others who contribute to the misuse of opioids.
“The current opioid epidemic is the deadliest drug crisis in American history,” said U.S. Attorney Lausch. “We are actively attacking this crisis from all investigative and prosecutorial angles.”
- Suburban Chicago resident DENNIS GERMAN was charged in February with allegedly trafficking fentanyl, cocaine, and heroin, and illegally possessing loaded handguns. The indictment also accuses German of conspiring with two others to traffic cocaine and heroin last year. ATF investigated, with assistance from the Midlothian Police Department, Orland Park Police Department, and Dolton Police Department.
- More than 26 individuals were charged with various narcotics trafficking or firearms offenses as part of an investigation into criminal activities on the West Side of Chicago. As part of the probe, law enforcement shut down a telephone drug hotline utilized by the defendants to sell narcotics. DEA, ATF and CPD participated in the investigation, with assistance from the Cook County State’s Attorney’s Office, USMS, Cook County Sheriff’s Office, and IRS-CI.
- Other Significant Drug Trafficking Prosecutions
The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence and threats of violence to protect and promote their illegal businesses. The U.S. Attorney’s Office works directly with the Cook County State’s Attorney’s Office to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.
- This week, a drug trafficking investigation dubbed “Operation Tragic Blow” resulted in federal charges against 17 individuals for allegedly distributing or attempting to distribute heroin and cocaine in Chicago. Law enforcement during the multi-year probe seized multiple kilograms of the narcotics. HSI and CPD led the investigation, which was part of an OCDETF operation.
- Last month, Chinese national XIANBING GAN was sentenced to 14 years in federal prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico. Gan schemed in 2018 to have approximately $534,206 in narcotics proceeds picked up in Chicago and transferred to various bank accounts in China, with the money ultimately intended for drug traffickers in Mexico. The investigation was conducted by HSI and IRS-CI.
- In March, five suspected associates of the Sinaloa Cartel were indicted on drug trafficking charges for allegedly conspiring to distribute cocaine in the Chicago area. One defendant was recently extradited to the United States to face the charges. DEA conducted the probe, with valuable assistance from the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, USMS, and INTERPOL.
- Federal drug and gun charges were filed in February against LARRY DENNIS, of Markham, who allegedly sold suspected crack cocaine on three occasions. Dennis also allegedly illegally possessed a loaded handgun in his residence in January. ATF and the Midlothian Police Department investigated the case, with assistance from the Markham Police Department, Dolton Police Department, and Orland Park Police Department.
Community Partnerships
The PSN program continues to invest resources in violence-prevention initiatives. Members of the U.S. Attorney’s Office have participated in offender notification meetings and youth outreach forums. Even during the current COVID-19 pandemic, these meetings and forums are still being held, including in a virtual environment, to maintain the outreach to former offenders.
Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity. Researchers at Arizona State University found that the forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison. Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.
The quarterly youth forums assist children aged 13-17 to identify a path other than gang membership. The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and the University of Chicago Crime Lab, which tracks the progress of the children to assess results.
Two Men Charged for Arson of Pennsylvania State Police Vehicle During May 2020 Civil UnrestRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ayoub Tabri, 25, of Arlington, VA, and Lester Fulton Smith, 26, of Philadelphia, PA were each charged by Superseding Indictment with two counts of arson and one count of obstruction of law enforcement in connection with the arson of a Pennsylvania State Police (PSP) vehicle.
Smith was arrested earlier this morning and will have his initial appearance in federal court in Boston, Massachusetts today. Tabri was arrested in October 2020 and remains in federal custody.
On May 30, 2020, based on a report of a large gathering of protesters, PSP troopers responded to the intersection of Broad and Vine Streets in Philadelphia at the overpass of Interstate 676 (also known as “I-676” or the “Vine Street Expressway”). PSP placed two SUVs at an on-ramp for I-676 near Broad and Vine Streets. PSP troopers responded to this area to prevent protestors from gaining access to I-676 and endangering themselves or others by demonstrating on the highway and impeding motorists’ travel.
At approximately 3:40 p.m., a group of individuals began attacking the two PSP SUVs, which were designated as PSP Units K1-7 and K1-17. Both PSP SUVs were locked and contained PSP-issued rifles and other police equipment. Eventually, individuals shattered the windows of both PSP SUVs and stole PSP equipment stored inside, including road flares.
PSP troopers assigned to the area reported that individuals then threw lit road flares into K1-17, igniting a fire which engulfed that SUV. As alleged in the Superseding Indictment, Tabri and Smith maliciously damaged and destroyed vehicle K1-17 by means of fire.
One PSP trooper, who was standing near K1-17, was hit by a lit road flare and part of his uniform caught fire. This trooper’s left hand also suffered burn injuries when he reached into K1-17 to retrieve a rifle in order to prevent individuals from stealing it. He was treated for his injuries on the scene by EMS. Due to the fire damage to K1-17 and the physical damage to K1-7, both vehicles were destroyed.
“The U.S. Attorney’s Office and the entire Department of Justice will always support peaceful protest – we are sworn to protect the rights guaranteed by the First Amendment,” said Acting U.S. Attorney Williams. “But that does not cover committing arson and other violent acts. Here, the defendants allegedly destroyed a police vehicle, endangering many lives including police officers and peaceful protestors nearby. This conduct is not free speech and is not protected by our constitution; rather, it is criminal.”
“The public has a right to peacefully protest, but when a peaceful demonstration turns violent and destruction of property ensues, that conduct will not be tolerated by any law enforcement agency,” said Major Richard D’Ambrosio, Pennsylvania State Police Area IV Commander. “Our department thanks all of the assisting local, state, and federal agencies to hold those accountable for their criminal actions.”
“The arson of a Pennsylvania State Police vehicle by these individuals, which the indictment alleges, will always be vigorously investigated by law enforcement,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “ATF remains committed to working with our law enforcement partners to seek justice for those individuals who use protest to conceal their acts of violence.”
“Tabri and Smith allegedly engaged in a deliberate effort to destroy a police vehicle, setting it ablaze in the middle of a crowded public street,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “They used lawful demonstrations as cover to foment chaos, and in doing so, put people's lives at risk. Those who sought to turn peaceful protests into riots must be held accountable for their violent criminal acts.”
If convicted, the defendants face a mandatory minimum sentence of up to seven years in prison, a maximum possible sentence of 65 years in prison, followed by three years of supervised release, and a fine of up to $750,000.
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Pennsylvania State Police, and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Indicted for Murder for Hire of Franklin ManRead the Press Release
BOWLING GREEN, KY. – A federal grand jury returned an indictment against Freddy Manuel Gonzalez and Xavior Caine Posey for the murder of Brian Russell on December 30, 2020, in Franklin, Kentucky, announced Acting United States Attorney Michael A. Bennett.
As alleged in the Criminal Complaint filed in the case, over the course of 2020, Freddy Manuel Gonzalez, and Brian Russell both dated Russell’s ex-wife. She ultimately broke up with Gonzalez in mid-December 2020. Russell had told co-workers that Gonzalez had once threatened him with a gun.
In the early morning on December 30, 2020, Franklin Police responded to a shots-fired complaint at Russell’s home and found that Russell had been shot three times. Russell died later that day.
Gonzalez and Posey were co-workers. The Criminal Complaint alleges that December 29 and December 30 text messages between Gonzalez and Posey discuss the murder, and that Gonzalez offered to pay Posey to commit the murder.
The federal grand jury sitting in Bowling Green returned a one count indictment against both Gonzalez and Posey on May 20, 2021, charging them with a violation of 18 United States Code, Section 1958, Murder for Hire. Gonzalez and Posey are both now in federal custody.
If convicted at trial, the maximum sentence is death and the minimum sentence is life in prison, and there is a maximum $250,000 fine.
The case is being prosecuted by Assistant United States Attorneys Madison Sewell and David Weiser. The investigation has been led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Franklin Police Department. The Warren County Sheriff’s Office, the Logan County Sheriff’s Office, the Muhlenberg County Sheriff’s Office, the South Central Kentucky Drug Task Force, the Warren County Drug Task Force, the Kentucky State Police, the Russellville Police Department, the Bowling Green Police Department and the Simpson County Commonwealth Attorney’s Office also participated in the investigation.
The indictment of a person by a grand jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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Two City Contractors Plead Guilty to Charge of Seven Year Conspiracy to Bribe San Francisco City Hall OfficialRead the Press Release
SAN FRANCISCO – Alan Varela and William Gilmartin III appeared in federal court today and each pleaded guilty to the charge of conspiracy to commit honest services wire fraud, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. Gilmartin further agreed in his plea agreement to cooperate with federal investigators in the San Francisco City Hall corruption investigation.
“Contractors with San Francisco like Alan Varela, William Gilmartin, and their ilk are not off the radar of our San Francisco City Hall corruption investigation just because they are not public officials,” said Acting United States Attorney Stephanie M. Hinds. “If you bribe a public official and our investigation uncovers it, you will face justice. Involved individuals who come to the FBI with what they know about bribes and kickbacks will be treated differently than those who don’t and get caught.”
“The investigation into San Francisco city government continues and we believe there are even more city employees and contractors who may have pertinent first-hand knowledge of the insidious corruption plaguing San Francisco,” said FBI Special Agent in Charge Craig D. Fair. “Instead of waiting for the FBI to knock on your door, we encourage others who have knowledge of this corruption to reach out to us and cooperate with our investigation.”
Today’s developments follow the September 17, 2020, federal complaint charging Varela, 59, of Orinda, and Gilmartin, 60, of San Mateo, with bribery of a public official. According to that complaint affidavit, Varela and Gilmartin, the president and vice-president of a Bay Area civil engineering and construction firm, respectively, provided gifts and benefits to Mohammed Nuru, then Director of San Francisco’s Department of Public Works (DPW), in exchange for inside information about an upcoming lucrative San Francisco public contract. Varela and Gilmartin were the seventh and eighth defendants charged in the federal San Francisco City Hall graft probe that has to this date charged a dozen defendants.
Varela’s plea agreement expounds on those complaint allegations. Varela admitted in his plea agreement that from 2013 until January 28, 2020 (the day of Nuru’s arrest), he conspired with his co-defendant Gilmartin, Balmore Hernandez – a construction company CEO who earlier pled guilty and is cooperating with the FBI – and others to pay bribes and kickbacks to Nuru. Nuru’s position as DPW Director provided him great influence over San Francisco public contracts, permits, and construction projects as well as other City departments and private companies requiring contracts from DPW. The bribes and kickbacks to Nuru were intended to influence his conduct in official actions. The items of value Varela and his co-conspirators provided to Nuru included cash, equipment for Nuru’s ranch, free meals and entertainment, and the prospect of portions of the proceeds from the expected awards of City contracts.
Varela further admitted that he and his co-conspirators focused on winning a DPW contract and a related Port of San Francisco lease to operate an asphalt recycling plant and a concrete plant on the Port of San Francisco’s land. According to Varela’s plea agreement, Nuru agreed in exchange for cash and other valuables to use his official position to get Varela and his co-conspirators’ bid selected. Nuru began sending early drafts of San Francisco’s Request for Proposals for the asphalt recycling plant project as well as other inside information to Varela and his co-conspirators to better position them to have their bid selected. Nuru also regularly met with Gilmartin and Hernandez to discuss the plans over expensive restaurant dinners, always paid for by Gilmartin.
According to Varela’s plea agreement, Gilmartin arranged to compensate Nuru by asking an unnamed company to award a $100,000 contract to Balmore Hernandez. The proceeds of that contract were intended to pay Nuru, and Hernandez used the proceeds to benefit Nuru. Once the co-conspirators’ bid was selected in September 2015, Nuru continued to meet with Varela and the co-conspirators and supply additional inside information, all over meals paid for by Gilmartin that ultimately totaled approximately $20,000. At one point during discussions, Nuru requested a tractor for his ranch. Varela admitted that in February 2019 he coordinated with Gilmartin and Hernandez to deliver the tractor to Nuru.
In January 2020, while the asphalt recycling plant agreements with DPW and the Port of San Francisco were still being finalized, Nuru was arrested.
Gilmartin also pleaded guilty today to the charge of conspiracy to commit honest services wire fraud. The terms of his plea agreement require Gilmartin to cooperate with the ongoing investigation and surrender assets acquired as a result of his illegal conduct. The criminal conduct Gilmartin admits was submitted to the Court in a separate “Exhibit A” that is filed under seal and thus unavailable to the public at this time.
Varela and Gilmartin both entered their guilty pleas before United States District Judge William H. Orrick. Judge Orrick set Varela’s sentencing hearing for September 16, 2021, at 1:30 p.m. Gilmartin’s next hearing date is a status conference set for December 2, 2021, at 1:30 p.m.
Varela and Gilmartin each pleaded guilty to one count of conspiracy to commit honest services wire fraud, in violation of 18 U.S.C. §§ 1343, 1346 and 1349. The charge carries a maximum statutory penalty of 20 years in prison and a fine of $250,000 or not more than the greater of twice the gross gain or twice the gross loss. 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 the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by the Corporate Fraud Strike Force in the Office of the U.S. Attorney for the Northern District of California and is the result of an investigation by the FBI.
Two Arkansas Physicians Sentenced to a Total of 150 Months in Federal Prison for Prescription FraudRead the Press Release
FORT SMITH – Fort Smith physician and Rogers physician were sentenced today on one count each of Distribution of a Controlled Substance without an Effective Prescription. The Honorable Judge P. K. Holmes III presided over the sentencing hearings in the U.S. District Court in Fort Smith.
According to court documents, Cecil W. Gaby, 71, of Fort Smith, a licensed physician in the State of Arkansas, pleaded guilty on December 18, 2019 to acting and intending to act outside the usual course of professional practice without a legitimate medical purpose in dispensing a Schedule II controlled substance namely, oxycodone, to an individual, thereby causing the death of the individual. Between January 2016 and July 2018, Gaby was an owner and operator of the Hinderliter Pain Clinic in Barling, Arkansas and from July 2018 through November 2018, was owner and operator of the Gaby Medical Clinic in Fort Smith, Arkansas. From January 2016 through November 2018, Gaby issued more than 11,000 prescriptions for opioids and/or benzodiazepines. Gaby prescribed approximately 1,156,044 dosage units of Schedule II controlled substances to 347 patients (3,332 pills per patient over the course of 2 years); 98% of Gaby’s patients were prescribed at least one opioid (hydrocodone, oxycodone, methadone, etc.); 94% of Gaby’s patients received either multiple narcotics or a combination of narcotics and sedatives; and 27% of Gaby’s patients were age 40 or younger. Evidence in the case revealed that Gaby issued a large number of prescriptions without a legitimate medical purpose and not in the usual course of professional practice. From 2016 through 2018, several of Gaby’s patients died of drug overdose or related causes. As part of his plea, Gaby admitted that prescriptions he issued directly resulted in the death of one of his patients. Gaby was sentenced to 120 months in federal prison followed by 3 years of supervised release.
Robin Ann Cox, 64, of Rogers, was employed by the Arkansas Medical Clinic (AMC) in Rogers, Arkansas. Cox and the owner of AMC contacted the DEA by telephone to report that prescriptions from Cox's previous employment had been fraudulently written and filled. Cox specifically identified a prescription for a patient written and filled on May 17, 2019, and a prescription for a patient dated May 19, 2019 and filled on May 20, 2019. During the investigation into these prescriptions, the DEA discovered that the prescriptions were for Schedule II opioid medications, and that Cox had written one of the prescriptions while meeting with the patient in the parking lot of a restaurant in Fort Smith, Arkansas, in the Western District of Arkansas, Fort Smith Division. The prescription was not written in conjunction with an appropriate medical examination and therefore was issued outside the course of a legitimate medical practice. Cox was sentenced to 30 months in federal prison followed by 3 years of supervised release
“The abuse of opioids and other pain medications is an epidemic that is destroying the lives of many people across the Western District of Arkansas. We will continue to use all the investigation and prosecution tools available to us to identify and prosecute those who are responsible for the over-prescription of these dangerous drugs. It is my sincere hope that these cases today send a strong message to all of those in our District who would consider operating a “pill mill” or otherwise seeking to profit from the over-prescribing of opioid drugs and other pain-killers,” said Acting U.S. Attorney David Clay Fowlkes.
“The abuse of prescription drugs remains a significant problem in our communities. This abuse often leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our law enforcement partners in Arkansas and beyond will continue to target those who illegally distribute these potentially dangerous drugs. It is particularly disappointing when trusted medical professionals are engaged in the diversion of controlled substances. We hope that the convictions and sentencings of these Physicians will serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause,” said DEA Special Agent in Charge Brad L. Byerley.
The Drug Enforcement Administration (DEA), DEA Diversion Little Rock, Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of Inspector General (HHS), Arkansas State Medical Board, the Fort Smith Police Department, the Springdale Police Department, and the Rogers Police Department investigated the case.
Special Assistant U.S. Attorney Anne Gardner prosecuted the case for the United States.
Cox’s prosecution is part of the Western District of Arkansas’ Operation Pillusional, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
Twenty-Three Gang Members Charged in Crackdown on South Bay Heroin, Methamphetamine and Firearms TraffickersRead the Press Release
Assistant U. S. Attorneys Matthew J. Sutton (619) 546-8941 and Adam Gordon (619) 546-6720
NEWS RELEASE SUMMARY – May 27, 2021
SAN DIEGO – Eleven federal indictments unsealed in San Diego today charge twenty-three documented gang members and associates with heroin, methamphetamine and firearms trafficking. The crackdown announced today is the latest in a series of efforts by the Department of Justice to turn the tide of the opioid epidemic and reduce the inevitable violent crime that accompanies widespread drug trafficking.
As of today at 1 p.m., 17 of the 23 defendants are either in federal or state custody. Twelve were arrested this week, including nine this morning; the rest were already in custody. Authorities are continuing to search for six defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Michael Berg at 2 p.m. today and tomorrow.
This yearlong investigation involved federal wiretaps, dozens of undercover drug and gun buys and extensive surveillance. Many of the defendants are documented members or associates of violent South Bay street gangs operating out of National City, San Ysidro, and elsewhere. Many of these gang have long-standing ties to the Mexican Mafia. In total, authorities seized 2.1 kilograms of methamphetamine, 160 grams of heroin, and nine firearms tied to these defendants during the investigation.
“Gangs, drugs, and illegal firearms are infesting many of our neighborhoods and creating a violent culture that is unsafe for residents,” said Acting U.S. Attorney Randy S. Grossman. “This prosecution underscores that coordinated criminal activity will be met with a coordinated and focused law enforcement response by the U.S. Attorney’s Office and our law enforcement partners at the federal, state, and local level. We are committed to dismantling violent gangs and holding their members accountable for criminal conduct.”
“The FBI is proud to work alongside our local, state, and federal partners on the Violent Crimes Task Force to address the gang problem and rid our streets of the overflow of drugs and guns which continue to plague our communities,” said FBI Special Agent in Charge Suzanne Turner. “Today’s enforcement action is another example of why the Task Force was established – to be a force multiplier and combine short term, street level enforcement activity with long term, sophisticated techniques to root out and prosecute the entire criminal enterprise.”
“I would like to recognize the cooperation between all agencies who took part in this operation,” said San Diego Police Chief David Nisleit. “These collaborative efforts continue to make our communities safe.”
Acting U.S. Attorney Grossman praised the coordinated federal and state team effort in the culmination of this investigation. Agents and officers from the FBI Violent Crimes Task Force-Gang Group, San Diego Police Department, San Diego Sherriff’s Department, National City Police Department, Chula Vista Police Department, the Federal Bureau of Prisons, San Diego County Probation and the San Diego County District Attorney’s Office collaborated on this investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, also provided critical assistance to the investigation. Grossman also praised Assistant U.S. Attorneys Matthew J. Sutton and Adam Gordon for their excellent work on this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Adam Gordon.
DEFENDANTS Case Number: 21CR1404-DMS
Name
Age
Hometown
Jose Garcia (1),
aka “Little Man”
38
San Diego
Hector Esquivel (2),
aka “Kracks”
31
San Diego
Paul Godoy (3),
aka “Loco”
40
San Diego
Laura Mejia (4)
23
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846;
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Secs. 922(g)(1) and 924(a)(2).
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For firearms charges: Ten years in prison and a $250,000 fine.
DEFENDANTS Case Number: 21CR1405-DMS
Name
Age
Hometown
*Alexa Allen (1)
29
San Diego
*Yuliana Guillen (2)
43
San Diego
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANT Case Number: 21CR1406-DMS
Name
Age
Hometown
Fernando Banuelos (1),
aka “Puma”
39
San Diego
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANT Case Number: 21CR1407-DMS
Name
Age
Hometown
Victor Cantero (1),
aka “Scooby”
44
San Diego
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANTS Case Number: 21CR1408-DMS
Name
Age
Hometown
Rodolfo Estrada (1)
27
San Diego
*Alberto Flores (2)
40
San Diego
SUMMARY OF CHARGES
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Secs. 922(g)(1) and 924(a)(2);
Maximum Penalties: For firearms charges: 10 years in prison and a $250,000 fine.
DEFENDANTS Case Number: 21CR1409-DMS
Name
Age
Hometown
Andres Rodriguez (1),
aka “Dragon”
33
San Diego
Omar Solis (2),
aka “Lazy”
26
San Diego
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANT Case Number: 21CR1410-DMS
Name
Age
Hometown
*Daniel Rodriguez (1),
aka “Flea”
36
San Diego
SUMMARY OF CHARGES
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Secs. 922(g)(1) and 924(a)(2);
Maximum Penalties: For firearms charges: Ten years in prison, and a $250,000 fine.
DEFENDANTS Case Number: 21CR1411-DMS
Name
Age
Hometown
Lucy Simmons (1)
47
San Diego
Jesse Gonzales (2)
40
San Diego
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANT Case Number: 21CR1412-DMS
Name
Age
Hometown
Alexander Sotelo (1),
aka “Venom”
30
San Diego
SUMMARY OF CHARGES
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Secs. 922(g)(1) and 924(a)(2);
Maximum Penalties: For firearms charges: Ten years in prison, and a $250,000 fine.
DEFENDANTS Case Number: 21CR1413-DMS
Name
Age
Hometown
Gilberto Tovar (1)
32
San Diego
*Sandra Gonzalez (2)
55
San Diego
SUMMARY OF CHARGES
Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
DEFENDANTS Case Number: 21CR1414-DMS
Name
Age
Hometown
Carlos Teran (1),
aka “Tadow”
42
San Diego
*Andrew Diangelo (2),
aka “Cowboy”
37
San Diego
Luis Quintana (3),
aka “Maniac”
37
San Diego
Sylvia Freeman (4)
60
San Diego
Joe Franco (5)
44
San Diego
*Fugitives
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substance, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 846;
Conspiracy to Import Heroin, in violation of Title 21, U.S.C., Secs. 952, 960 and 963;
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Secs. 922(g)(1) and 924(a)(2);
Possession with Intent to Distribute Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1);
Importation of Heroin, in violation of Title 21, U.S.C., Secs. 952 and 960;
Maximum Penalties: For the drug charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For firearms charges: Ten years in prison, and a $250,000 fine.
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriff’s Department
Internal Revenue Service
Homeland Security Investigations
National City Police Department
Chula Vista Police Department
Federal Bureau of Prisons
California Department of Corrections and Rehabilitation
San Diego County Probation
San Diego County District Attorney’s Office
Tulsa Man Sentenced to 10 Years for Possession with Intent to Distribute Heroin, Fentanyl, and MethamphetamineRead the Press Release
A man was sentenced today in federal court for attempting to have heroin mailed from Mexico to his Tulsa residence and for possession with intent to distribute heroin, fentanyl, and methamphetamine, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Shane McClearan Wright, 44, of Tulsa, to 10 years in federal prison followed by 5 years of supervised release. Wright pleaded guilty on Jan. 7, 2021, to attempted possession of heroin with intent to distribute; possession of heroin with intent to distribute; possession of fentanyl with intent to distribute; possession of methamphetamine with intent to distribute; and maintaining a drug-involved premises.
“Shane Wright attempted to have nearly 2 kilos of heroin shipped to Oklahoma and planned to distribute a trio of deadly drugs- fentanyl, methamphetamine and heroin- onto the streets of Tulsa,” said Acting U.S. Attorney Clint Johnson. “Because of the close working relationships established between U.S. Customs and Border Protection, Homeland Security Investigations, the Tulsa County Sheriff’s Office, Oklahoma Bureau of Narcotics, Tulsa Police Department and Assistant U.S. Attorney Joel-lyn McCormick, this drug dealer is headed to federal prison.”
“Those seeking to profit from the distribution of these dangerous, life-altering drugs will face swift prosecution and accountability for their crimes,” said Ryan L. Spradlin, special agent in charge of HSI Dallas. “While we recognize the users addicted to these illicit substances need help, our most pressing priority as a law enforcement agency is to eradicate the source of this scourge, placing the traffickers that bring these drugs into our communities behind bars.”
On September 10, 2020, a U.S. Customs and Border Protection Officer x-rayed a FedEx package coming from Mexico and noticed some anomalies. A K-9 unit then discovered that the package contained 1.84 kilos of heroin and was en route to an address in Northern Oklahoma. Officers discovered that the package was intended for Shane Wright and that Wright was known to local law enforcement as a narcotics courier. Prior to the delivery arriving at Wright’s residence, law enforcement replaced the 1.84 kilos with 100 grams of heroin as a represented delivery sample. On September 15, 2020, an officer from the Oklahoma Bureau of Narcotics and Dangerous Drugs posed as a FedEx delivery driver and knocked on Wright’s door to have him sign for the package. Once the parcel was received by Wright, law enforcement conducted a search warrant and found $6,975 cash in a lock box, more heroin, fentanyl, methamphetamine, unknown white pills, and a digital scale at the residence.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Tulsa County Sheriff’s Office, Oklahoma Bureau of Narcotics and Dangerous Drugs, Tulsa Police Department, and U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case. AUSA McCormick is the lead attorney for the Organized Crime Drug Enforcement Task Force in the Northern District of Oklahoma.
Three-Cities Nonviolence Program Launched; Job and Resource Fair Held for High School StudentsRead the Press Release
PROVIDENCE, R.I. – As graduation day draws close, Central Falls High School seniors today participated in an employment and resource fair hosted by the Nonviolence Institute, Family Service of Rhode Island, and the United States Attorney’s Office as part of the Institute’s Three-Cities Nonviolence Program. Dozens of agencies and employers made resource information available and met one-on-one with students to discuss career opportunities, training programs, and social service and community support programs.
The Three-Cities Nonviolence Program, supported by a $318,199 grant awarded by the Department of Justice’s Office of Juvenile and Delinquency Prevention, targets youth victims and families of gang-related violence in Central Falls, Pawtucket, and Providence by providing direct support services to prevent re-victimization. The program effectively identifies victims of gang violence and gang-related crime, and uses data driven, evidence-based prevention and intervention strategies to provide an appropriate response, to include Nonviolence Streetworker Outreach, Social Worker-Police Go-Teams, and Hospital-based violence intervention.
Nonviolence Institute Executive Director Cedric Huntley commented, "The Nonviolence Institute is very pleased to work with the United States Attorney’s Office and other organizations in organizing and collaborating to provide youth with a summer opportunities fair in the City of Central Falls. It is this kind of collaboration that addresses issues in providing meaningful outcomes in Central Falls."
Today’s employment and resource fair is a great opportunity to offer these high-school seniors career information and to introduce the Three-Cities Nonviolence Program to the community,” said Acting United States Attorney Richard B. Myrus. “The United States Attorney’s Office is committed to reducing urban violent crime and creating safer communities in Rhode Island through the Department of Justice’s Project Safe Neighborhoods initiative. A cornerstone of violence reduction is the work of community organizations that focus on outreach and furnish resources to young adults. We are proud to provide our support to the Nonviolence Institute’s Three-Cities Nonviolence Program, a comprehensive prevention program to help break the cycle of youth gang violence in Providence, Pawtucket, and Central Falls.”
Key partners of the Nonviolence Institute’s Three-Cities Nonviolence Program include Family Service of Rhode Island, the Central Falls, Pawtucket, and Providence Police and School Departments, the United States Attorney’s Office, the Rhode Island Attorney General’s Office, and Rhode Island Hospital.
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Telemarketing Fraudster Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – An Indian national who admitted to being a key participant in a wide-ranging telemarketing fraud scheme that targeted and defrauded United States residents, primarily senior citizens, was sentenced today in U.S. District Court in Providence to three years in federal prison.
Himanshu Asri, 34, of Delhi, India, admitted that for at least the five years that preceded his arrest in early 2020, he ran a call center in India that engaged in Tech Fraud, a scheme to extract money from computer users by deceiving them into believing that their computers were subject to attack. As part of the scheme, Asri had pop-up advertisements appear on computer users’ screens. The ads falsely asserted that malware had been detected on those computers and urged that a telephone number be called for assistance. Those who called spoke to operators at Asri’s call center and at other call centers based in India. The operators reiterated the lie that malware had been detected on the callers’ computers and offered the callers fictious computer protection services for an exorbitant price. Those who fell prey to this scam paid on average $482, and sometime over $1000, and did not receive any actual computer protection service or assistance.
From call data obtained for a three-month period, it was estimated that over five years Asri’s scheme led approximately 6,500 people to view Asri’s deceptive pop-up ads and encounter call center operators who made the Tech Fraud pitch. It is estimated that 1,950 of those people fell prey to Tech Fraud. Asri and his coconspirators defrauded that group of at least $940,995.74. Had all of the attempts to defraud been successful, victims would have lost an estimated total of $3,133,000.
Asri pleaded guilty on December 3, 2020, to wire fraud. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 36 months in federal prison to be followed by three years of federal supervised release, announced Acting United States Attorney Richard B. Myrus.
Asri faces deportation proceedings upon completion of his term of incarceration.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Federal Bureau of Investigation.
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Suitland Felon Pleads Guilty to Illegal Possession of a Loaded FirearmRead the Press Release
Greenbelt, Maryland – Avante Daquan Lee, age 28, of Suitland, Maryland, pleaded guilty yesterday to being a felon in possession of a firearm.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to Lee’s guilty plea, on March 15, 2020, a Prince George’s County police officer observed Lee in a Temple Hills, Maryland parking lot attempting to restart a dirt bike that did not have a license plate, as required. The uniformed police officer pulled his unmarked vehicle in front of Lee, who then dropped the dirt bike and fled into a wooded area followed by the police officer, who gave Lee several verbal commands to stop.
During the chase, Lee threw a 9x19mm-caliber semi-automatic pistol into underbrush near a chain link fence. Lee stopped running when he reached the chain link fence and began to reach into his waistband. Believing that Lee was attempting to retrieve a weapon, the police officer who was pursuing Lee advised Lee that he was under arrest and ordered him to the ground.
Prince George’s County police officers who arrived on the scene during the chase saw an object fly through the air and land in the underbrush near where Lee was running. They searched the area where the object landed and recovered the pistol, which was loaded with 10 cartridges. The frame of the firearm was orange and the slide was silver. Further investigation revealed the gun had been stolen on April 25, 2016.
Lee was searched incident to his arrest and officers discovered a .40-caliber semi-automatic pistol in Lee’s left pant leg. The firearm was loaded with 10 cartridges and an additional cartridge chambered in the barrel. Two additional magazines—one loaded with 10 cartridges and the other loaded with seven cartridges—were recovered from Lee’s right front pocket.
Lee’s cellphone was also recovered from his right front pants pocket. Law enforcement subsequently obtained a search warrant for Lee’s cellphone and discovered numerous pictures and videos of Lee with firearms, including the stolen handgun Lee threw prior to his arrest, and the pistol recovered from Lee’s left pant leg when he was arrested.
Lee knew that he was prohibited from possessing firearms or ammunition as a result of two previous felony convictions in the Circuit Court for Prince George’s County—a 2011 conviction for robbery with a dangerous weapon and a 2017 conviction for firearm possession.
Lee faces a maximum sentence of 10 years in federal prison for being a felon in possession of a firearm. U.S. District Judge Paula Xinis has scheduled sentencing for September 10, 2021 at 9:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leah B. Grossi who is prosecuting the case.
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Shreveport Man Found Guilty by Federal Jury in ShreveportRead the Press Release
SHREVEPORT, La. – Orentha James Pea, 43, of Shreveport, has been convicted by a federal jury on firearms charges, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge Elizabeth E. Foote presided over the two-day jury trial.
Pea was charged on September 25, 2019 with one count of being a convicted felon in possession of a firearm and one count of possession of a firearm after having been convicted of a misdemeanor crime of domestic violence. Evidence introduced at the trial showed the jury that Pea held a gun to his wife’s head in front of their children and threatened to kill her following an argument between the two of them. Pea was previously convicted of misdemeanor crimes of domestic violence in 2017 and 2018 related to the domestic abuse battery of his daughter and the violation of his wife’s order of protection. Pea also has felony convictions for aggravated battery in 2005, related to shooting his pregnant wife with a firearm, and aggravated battery in 2014, related to striking his wife with a firearm. Testimony at trial revealed that Pea was commonly known to carry a firearm, despite knowing that he was prohibited from doing so as a convicted felon and a person convicted of misdemeanor crimes of domestic violence. After threatening to kill his wife, who is the victim in this case, Pea went to a cousin’s house and returned back home later that evening. He locked himself and the victim in their bedroom, took her cell phone from her, and berated her for most of the night.
The next morning when they awoke, the victim was able to get away from Pea and call the police to report the threat that he made to kill her the day before and that he had a gun in his possession. Officers with the Shreveport Police Department responded to their home and conducted a search and found the loaded firearm hidden in the house. Laboratory analysis conducted by the North Louisiana Criminalistics Laboratory determined that Pea’s DNA was present on the grip and slide portion of the firearm. Members of the jury deliberated and returned a guilty verdict on both counts of the indictment.
Pea faces up to 20 years in prison for both counts and up to a $250,000 fine. Sentencing is set for October 21, 2021 at 9:00 a.m.
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorneys Cadesby B. Cooper and Earl M. Campbell prosecuted the case.
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Rockland County Man Convicted for Running Multimillion-Dollar Ponzi and Embezzlement SchemesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that RULESS PIERRE was convicted in Manhattan federal court today of securities fraud, wire fraud, and structuring charges. PIERRE was convicted after a trial before Judge Sidney Stein.
U.S. Attorney Audrey Strauss said: “Today, Ruless Pierre was brought to justice for callously lying to investors. Pierre told investors their investment returns were excellent, when in fact he failed to invest investor funds as promised, generated losses when he did invest, and diverted much of investor funds to his personal use and to repay investors in a Ponzi-like fashion. We will continue aggressively to pursue frauds like this one in order to protect investors.”
According to the allegations contained in the Complaint, Indictment, and the evidence presented at trial:
Investment Promissory Fraud
From at least November 2016 through October 2019, PIERRE solicited money from investors of Ruless Pierre Consulting Group (“RPCG”) by falsely promising them that he would earn a 20 percent return on their initial investment every 60 days through stock trading (hereinafter, the “Promissory Note Fraud”). The investments were memorialized in documents known as “Investment Promissory Notes.” These investment contracts generally promised that the investor would be paid 20 percent interest every 60 days and that the investor could withdraw all funds from the investment with 30 days’ notice. Based on these documents and the false representations of PIERRE, the investors understood that their principal and interest were guaranteed.
During the course of the investment fraud scheme, PIERRE fraudulently obtained over $2 million from nearly 100 investors. After receiving money from investors, PIERRE deposited the money into one of his personal bank accounts or bank accounts of RPCG. PIERRE then transferred the money to trading accounts, where he engaged in unprofitable day trading. Despite his trading losses, PIERRE repeatedly and falsely represented to investors, including in investment statements containing fictitious balances, that the trading was profitable and that their investments were growing as promised. In addition to losing their money, PIERRE also used investors’ funds to pay for personal expenses, including luxury vehicles. Additionally, PIERRE further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in Ponzi-like fashion.
The Franchise Investment Fraud
Beginning in or about November 2018, PIERRE began to offer investors, including some individuals who invested in his Promissory Note Fraud, the opportunity to purchase partnership interests in a partnership that would run three fast-food franchise locations (hereinafter, the “Franchise Investment Fraud”). At the time, PIERRE did not own any of the fast-food franchises, but he was in discussions regarding purchasing them. Each investment was memorialized in a document entitled “Silent Partnership Agreement.”
The Silent Partnership Agreements promised the investors a 5 percent monthly return on the investment, in addition to a 40 percent pro rata share of the quarterly gross operating profit. The minimum investment was $5,000.
The Silent Partnership Agreements further provided that RULESS PIERRE was the General Partner, and that he was responsible “for the complete management, control, and policies related to the operation and conduct of the business.”
PIERRE received financial statements for the franchise locations, which showed minimal profits. Nonetheless, PIERRE promised investors an unrealistic 5 percent monthly return on their investment.
In or about April 2019, PIERRE purchased one fast food franchise for approximately $50,000. PIERRE did not purchase the other franchises.
PIERRE deposited the fast-food franchise investors’ money in various bank accounts, which commingled the funds from the Franchise Investment Fraud with the Promissory Note Fraud. In Ponzi-like fashion, PIERRE fraudulently misappropriated some of the fast-food franchise investors’ money to pay back investors in the Promissory Note Fraud.
In total, PIERRE raised at least $200,000 by selling the Silent Partnership Agreements to at least 18 investors. Some of the investors were paid their 5 percent monthly distribution, but the vast majority of the investors were not made whole. The fast-food franchise went out of business in December 2019.
The Embezzlement Fraud Scheme
In another scheme, PIERRE embezzled money from his former employers. From approximately 2007 until February 2016, PIERRE was the director of finance for two different hotels, which were owned by the same company (“Company-1”). One hotel was located in the Palisades, New York (“Hotel-1”), while the other was located in Armonk, New York (“Hotel-2”) (collectively, “the Hotels”). As the director of finance, PIERRE was the signatory on several bank accounts held in the name of the management companies that managed the Hotels (“Management Companies”).
After August 2018, PIERRE no longer worked at either Hotel-1 or Hotel-2, but he regularly wrote himself checks payable to cash from the Management Companies’ bank accounts. Specifically, from September 2018 through March 2019, PIERRE wrote over 70 checks to “cash” or “petty cash” from one of the bank accounts for Hotel-1, for over $300,000.
In addition, from March 2017 through 2019, PIERRE deposited large amounts of cash into his personal bank accounts in amounts that were generally less than $10,000. The deposits were conducted at various bank locations and typically took place on the same day, consecutive days, or within a short period of time. For example, in just seven months, from June 2018 through December 2018, PIERRE deposited approximately $225,612, through 138 cash deposits all under $10,000, into a bank account in the name of RPCG.
* * *
PIERRE, 51, of Nanuet, New York, was convicted of two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of structuring, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PIERRE is scheduled to be sentenced on September 9, 2021, at 2:30 p.m.
Ms. Strauss praised the investigative work of Homeland Security Investigations. Ms. Strauss also thanked the United States Postal Inspection Service, the United States Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation. Ms. Strauss also thanked the Securities and Exchange Commission, which has brought and filed a civil enforcement action against the defendant.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Robert L. Boone and Drew Skinner are in charge of the prosecution.
Rockford Man Charged in Federal Court with Robbing Two Banks in Past Two MonthsRead the Press Release
ROCKFORD — A superseding indictment returned Tuesday by a federal grand jury in Rockford adds an additional charge of bank robbery against DEMONTRION DESHAN PHILLIPS, 27, of Rockford.
Phillips was originally charged with one count of bank robbery for allegedly stealing $5,930 in a heist on Apr. 7, 2021, at Midland States Bank, 1700 N. Alpine Rd. in Rockford. The superseding indictment charges Phillips with an additional count of bank robbery for allegedly taking $4,408 from Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021.
Phillips has been ordered detained in federal custody pending trial. His arraignment on the superseding indictment is set for June 21, 2021, at 10:00 a.m., before U.S. District Judge Iain D. Johnston in Rockford.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Randy Berke, Interim Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
The public is reminded that an indictment contains only charges and 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.
Each count of bank robbery carries a maximum sentence of 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Rochester Man, Previously Convicted of Sexually Abusing A Child, Arrested on Child Pornography ChargesRead 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 Daniel Rammacher, 62, of Rochester, NY, was arrested and charged by criminal complaint with receiving and possessing child pornography, following a New York State conviction of Sexual Abuse in the First Degree. The charges carry a minimum penalty of 15 years in prison, a maximum of 40 years prison, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, in 2014 the defendant was arrested by the New York State Police in Warren County, NY, after it was discovered that he sexually abused a four year old female in his care. Rammacher was convicted and sentenced to serve 10 years of sex offender probation. In 2015, defendant moved to Rochester and his probation supervision was transferred to the Monroe County Probation Department. During a routine visit in 2019, Probation Officers discovered that Rammacher possessed a laptop computer, which contained sexually explicit material in violation of his probation conditions.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and is being held pending a detention hearing.
The criminal complaint is the result of an investigation by the Monroe County Probation Department, under the direction of Chief Probation Officer Jennifer Ball, and the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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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Rochester Man Faces up to Life in Prison After Pleading Guilty to Methamphetamine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Richard E. Kinsey Jr., 36, of Jamestown, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo, to conspiracy to possess with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life in prison.
Assistant U.S. Attorneys Joshua A. Violanti and Nicholas T. Cooper, who are handling the case, stated that between September 2019, and February 20, 2020, the defendant conspired with co-defendant Brandi Whitford to sell methamphetamine. On September 6, 2019, investigators executed a search warrant at the residence Kinsey shared with Whitford on Newland Avenue in Jamestown. During the search, three firearms were recovered. A fourth firearm was thrown from the residence during the search. In addition, investigators recovered approximately 159 grams of methamphetamine, approximately $12,045 in US currency, assorted ammunition, and drug paraphernalia. On October 23, 2019, investigators executed another search warrant at the residence and recovered an additional 53 grams of methamphetamine.
On February 20, 2020, investigators assisted the U.S. Marshal’s Service with locating Kinsey, who was wanted on a federal arrest warrant. After learning the defendant might be at a residence on Hedges Avenue in Jamestown, law enforcement made an attempt to contact Kinsey who attempted to flee before being taken into custody. Investigators recovered methamphetamine, a digital scale, drug paraphernalia, brass knuckles, and a loaded handgun from the Hedges Avenue residence.
Terrance McRae was previously convicted and sentenced to serve 36 months in prison. Brandy Whitford was also previously convicted and is awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; and the United States Marshals Service, under the direction of Marshal Charles Salina.
Sentencing is scheduled for October 8, 2021, before Judge Vilardo.
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Rhode Island Woman Charged with Phishing SchemeRead the Press Release
BOSTON – A Rhode Island woman was charged today with sending phishing emails to candidates for political office and others.
Diana Lebeau, 21, of Cranston, R.I., was charged in an Information with attempted unauthorized access to a protected computer. Lebeau will make an initial appearance in federal court in Boston on a later date.
According to the charging document, in or about January 2020, Lebeau sent phishing emails to approximately 22 members of the campaign staff of a candidate for political office. The emails, which purported to be from either the campaign’s managers or one of the campaign’s co-chairs, directed the recipients to put their account credentials into an attached spreadsheet, or to click a link that connected them to a Google Form that solicited the same credentials. Lebeau also allegedly sent several phishing emails to the candidate’s spouse and to others at the spouse’s workplace. The emails, which purported to be either from Microsoft’s “Security Team” or from an employee of the workplace’s technology helpdesk, requested that recipients provide account credentials or other information about their computers by adding it to attached spreadsheets or on a website that mimicked the appearance of the employer’s legitimate website.
In or about March 2020, Lebeau allegedly drafted and sent phishing emails targeting another candidate for political office. The emails, which purported to be from the candidate’s cable and internet provider, contained a false “login link” that the recipient could use to address an issue with his or her account by providing account credentials. Lebeau also impersonated this candidate in online chats with the cable and internet provider, in an attempt to reset and obtain the candidate’s account password.
According to the charging document, Lebeau did not act with financial or political motive or to benefit any foreign government, instrumentality, or agent.
The charge of access without authorization to a protected computer provides for a sentence of up to one year in prison, one year of supervised release, a fine of up to $100,000 and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rhode Island Man Sentenced to 10 Months’ Imprisonment for Automobile Warranty Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 26, 2021, Herman Cabral, age 62, of Cranston, Rhode Island, was sentenced to 10 months’ imprisonment and three years of supervised release by United States District Court Judge Malachy E. Mannion for a wire fraud conspiracy offense.
According to Acting United States Attorney Bruce D. Brandler, Cabral was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile repair shop, A Plus Collision Center. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company. Judge Mannion also ordered Cabral to pay restitution of $211,644.03 to the victim of his crime.
Three of Cabral’s coconspirators were convicted and are awaiting sentencing:
- Brian Larry, age 59, of Clark’s Summit, Pennsylvania, was convicted on May 10, 2021, following a jury trial, of mail fraud, wire fraud, aggravated identity theft, and false statement offenses. Larry was convicted of defrauding his former employer, the Wilkes-Barre based automobile warranty company, from approximately January 2014 through October 2018. Larry also was convicted of stealing the personal information of warranty policy owners and providing it to his coconspirators, who created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company, where Larry approved payment of the invoices. During the course of the scheme, Larry and his coconspirators obtained approximately $400,000 paid out by the warranty company pursuant to the false invoices, including thousands of dollars in repair work for Larry’s personal vehicle that he charged to other policy owners. The evidence at trial showed that Larry then falsified internal warranty company documents in an attempt to conceal his crimes.
- Matthew Gershkoff, age 64, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and to aggravated identity theft, and is awaiting sentencing. Gershkoff was convicted of preparing false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts, and for forging policy owners’ signatures. Gershkoff pleaded guilty on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and has agreed to repay restitution.
- Jason Pannone, age 39, of North Providence, Rhode Island, pleaded guilty to conspiring to commit wire fraud and mail fraud, and to aggravated identity theft, and is awaiting sentencing. Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through a North Attleboro, Massachusetts automobile repair shop, Ultra Auto Services. Pannone pleaded guilty on March 23, 2021, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and he has agreed to repay over $128,000 in restitution.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
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Red Lake Man Arrested, Charged with Aggravated Sexual AbuseRead the Press Release
ST. PAUL, Minn. – A Red Lake man made his initial appearance in federal court today on charges of aggravated sexual abuse occurring on the Red Lake Indian Reservation.
According to court documents, on July 3, 2020, Descart Austin Begay, Jr., 37, knowingly engaged in a sexual act with an individual by using force, threatening, and placing the individual in fear.
Begay, who was arrested yesterday, is charged with one count of aggravated sexual abuse and one count of sexual abuse. Begay made his initial appearance today in U.S. District Court before Magistrate Judge Becky Thorson. Acting U.S. Attorney W. Anders Folk of the District of Minnesota made the announcement.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Queens Pharmacy Owner Sentenced to 36 Months in Prison for Health Care Fraud and Narcotics DistributionRead the Press Release
Earlier today, in federal court in Brooklyn, Harris Hussnain, the owner of a pharmacy in Queens, was sentenced by United States District Court Judge Rachel P. Kovner to 36 months in prison for his participation in a health care fraud conspiracy, distribution of Oxycodone and illegal financial transactions. Hussnain pleaded guilty to the charges in September 2020.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; Scott Lampert, Special Agent-in- Charge, U.S. Department of Health and Human Services - Office of Inspector General, Office of Investigations, New York Regional Office (HHS-OIG); Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); Frank Walsh, Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG); and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Hussnain masqueraded as a health care professional when, in reality, he is a drug-dealing criminal who abused the trust of the Medicare and Medicaid systems, put New Moon Pharmacy’s customers in harm’s way and introduced thousands of Oxycodone pills into the community during an opioid epidemic,” stated Acting United States Attorney Lesko. “With today’s sentence, the defendant has been held accountable for his flagrant falsehoods and fraud.”
“Hussnain brazenly deceived the pharmacy’s customers and threatened their safety in exchange for profit,” stated HHS-OIG Special Agent-in-Charge Lampert. “After inappropriately and dangerously dispensing opioid pills and stealing from Medicare and Medicaid, Hussnain has been brought to justice. OIG continues to work with our law enforcement partners to pursue individuals who endanger beneficiaries and cheat the Federal health care programs on which they depend.”
“The defendant’s past transgressions speak for themselves. What a shame that a pharmacy owner who had the means and the opportunity to serve his community, did quite the opposite all in the name of greed,” stated DEA Special Agent-in-Charge Donovan. “Together with our incredible law enforcement partners, DEA stands committed to protecting our healthcare system from fraud, all while keeping our communities safe. I commend and appreciate all of our partners, as well as our colleagues at the United States Attorney’s Office for their hard work on this investigation.”
“Hussnain has been appropriately punished for his shameful actions and behavior,” stated IRS CI Special Agent-in-Charge Larsen. “His criminal activity not only negatively impacted the finances of our social safety net, but more importantly the lives of those who potentially suffer from addiction.”
“Today’s sentencing is proof positive of the effectiveness of the strong partnerships that exist among city, state, and federal program integrity agencies and law enforcement organizations in combatting those that have fueled the opioid crisis in our communities. The message is abundantly clear to anyone who seeks to line their pockets by exploiting the Medicaid program, particularly at these challenging times: you will be caught and held accountable to the fullest extent of the law,” stated Acting Medicaid Inspector General Walsh.
Between July 2016 and December 2019, Hussnain falsely claimed to be the pharmacist at New Moon Pharmacy in South Richmond Hill. Although Hussnain lawfully owned the business, he was not a licensed pharmacist and was not permitted to dispense prescription medications to patients. Hussnain operated the pharmacy on a daily basis, dispensing prescription medications for years with no medical oversight, including controlled substances and over 10,000 Oxycodone pills, billing Medicare and Medicaid for the medications dispensed. Hussnain paid a co-conspirator, Nisha Diler, a licensed pharmacist, to hold herself out as the full-time pharmacist despite the fact that she visited the pharmacy only sporadically. Hussnain filed, and caused Diler to file, falsified paperwork with government entities in New York State in order to cover up Diler’s absences from New Moon Pharmacy. Between 2016 and 2019, Medicare and Medicaid reimbursed New Moon Pharmacy approximately $3 million for pharmaceutical claims. Hussnain transferred significant amounts of the reimbursed funds to accounts in his and his family’s names. In September 2020, Diler pleaded guilty to conspiring to defraud Medicare and Medicaid and subscribing a false tax return.
The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Department of Justice Criminal Division’s Fraud Section and the United States Attorney’s Office for the Eastern District of New York. The case is being prosecuted by United States Department of Justice Trial Attorney Miriam L. Glaser Dauermann and Assistant U.S. Attorney Tanisha R. Payne of the Office’s Asset Forfeiture Unit.
The Defendant:
HARRIS HUSSNAIN
Age: 41
Queens, New YorkE.D.N.Y. Docket No. 20-CR-280 (RPK)
Project Safe Neighborhoods Grant AnnouncementRead the Press Release
SHREVEPORT/ LAFAYETTE/ ALEXANDRIA/ LAKE CHARLES/ MONROE, La.– Acting United States Attorney Alexander C. Van Hook and the Project Safe Neighborhoods (PSN) Task Force announced the availability of approximately $154,931 in PSN grant funds for the Western District of Louisiana. The Department of Justice, Office of Justice Programs, and Bureau of Justice Assistance is seeking applications for funding of a grant under the Project Safe Neighborhoods (PSN) Program. At least 30% ($41,831) of the grant funds must be designated for grants under the PSN Program to fund new and/or current gang violence reduction strategies in the Western District. In addition, approximately $97,607 can be designated to fund both new and/or current comprehensive gun crime and gang violence reduction strategies within the Western District.
PSN furthers the Department of Justice=s mission to reduce violent crime by providing support to state, local and tribal efforts to create safer neighborhoods through a sustained reduction in violent crime and gang violence committed with firearms utilizing prevention, enforcement and intervention methods.
Various types of single or multi‑grantee grant proposals are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication and supervision programs;
- Prisoner re-entry programs; or
- Other innovative related projects.
Grant proposals must contain the following: (1) Project Abstract, (2) Project Narrative, and (3) Budget Detail Worksheet and Narrative. In addition, the Project Narrative should contain the following subparts: (a) Statement of the Problem, (b) Project Design and Implementation, (c) Gang Task Force Set Aside (if applicable), and (d) Plan for Collecting Data and Determining Performance Measures. To be eligible, grant proposals must be submitted to the U.S. Attorney’s Office, ATTN: PSN Grant Competition, 800 Lafayette Street, Suite 2200, Lafayette, LA 70501, no later than 5 p.m. on Tuesday, June 15, 2021.
The FY 2021 PSN Grant Announcement, Grants.gov Opportunity # O-BJA-2021-94005 can be found on the Western District of Louisiana U.S. Attorney’s Office website at: www.justice.gov/usao-wdla. More information about the program can be located at www.psn.gov or www.bja.gov/programs/psn.
Interested applicants may also contact Assistant U.S. Attorney and PSN Coordinator Jamilla A. Bynog at (337) 262-6618 for additional information.
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Postal Employee Admits Dumping Mail, Including Election Ballots Sent to West Orange ResidentsRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) mail carrier from Hudson County today admitted he discarded mail, including 99 general election ballots sent from the Essex County Board of Elections to West Orange, New Jersey, residents, from his assigned routes in Orange and West Orange, Acting U.S. Attorney Rachael A. Honig announced.
Nicholas Beauchene, 26, of Kearny, New Jersey, pleaded guilty before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court to an information charging him with one count of desertion of mails.
According to documents filed in this case and statements made in court:
Beauchene admitted that on Sept. 28, Oct. 1, and Oct. 2, 2020, he discarded into dumpsters in North Arlington, New Jersey, and West Orange 1,875 pieces of mail that he was assigned to deliver to postal customers in West Orange and Orange, New Jersey. This mail included 627 pieces of first-class mail, 873 pieces of standard class mail, two pieces of certified mail, 99 general election ballots destined for residents in West Orange, and 276 campaign flyers from local candidates for West Orange Town Council and Board of Education. Law enforcement recovered the mail on Oct. 2, 2020, and Oct. 5, 2020, and placed it back into the mail stream for delivery.
The desertion of mail charge is punishable by a maximum penalty of one year in prison and a $100,000 fine. Sentencing has been scheduled for Sept. 21, 2021.
Acting U.S. Attorney Honig credited special agents of the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Pembroke Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
CONCORD - Erik Bjork, 38, of Pembroke, pleaded guilty in federal court to distribution and possession of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May, 2019, officers with the New Hampshire Internet Crimes Against Children Task Force were conducting online investigations into individuals utilizing peer-to-peer networks (P2P) to share known images of child pornography on the internet. On May 10, 2019, a detective with the Portsmouth Police Department was able to download five files from a target IP address. Additional monitoring of the target IP address showed more files, all indicative of child pornography available for download.
The IP address was traced to Bjork’s address in Pembroke. A search warrant was executed and a laptop was seized that contained over 1,600 files of child pornography, many involving infants and toddlers. Bjork admitted to using P2P networks to obtain and share child pornography.
Bjork is scheduled to be sentenced on September 14, 2021.
“Protecting vulnerable children is among the most important duties of law enforcement,” said Acting U.S. Attorney Farley. “We are committed to investigating and prosecuting crimes involving the child pornography and the sexual exploitation of minors. I am grateful to the law enforcement officers whose efforts resulted in this successful prosecution.”
“With today’s guilty plea Bjork, who possessed and distributed more than a thousand deeply disturbing child pornography images, will be held accountable for his depraved, criminal actions,” said Acting Special Agent In Charge William S. Walker, Homeland Security Investigations, Boston. “The online sharing and distribution of child pornography by individuals like Bjork re-victimizes and adds to the original abuse suffered by the victims. We hope today’s guilty plea will bring some measure of justice for the innocent victims and their families in this case. HSI is thankful for the dedicated work of our partners in the New Hampshire Internet Crimes Against Children Task Force (ICAC), the New Hampshire State Police, the Pembroke Police Department, and the U.S. Attorney for New Hampshire, that today’s plea to help in the recovery and healing process.”
“The NH Internet Crimes Against Children Task Force is proud to partner with law enforcement officials from Homeland Security, NHSP, the Pembroke Police Department and the US Attorney’s Office in an effort to keep our children safe.”
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force, Homeland Security Investigations, the New Hampshire State Police, and Pembroke Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Owensboro Man Charged for Pill Press OperationRead the Press Release
OWENSBORO, KY. – An Owensboro, Kentucky, man was charged by a federal grand jury this week for illegally possessing and operating a pill press as part of a drug trafficking operation, announced Acting United States Attorney Michael A. Bennett.
The grand jury returned a multiple count indictment against Sheridan Dowell, also known as Sheridan Green, 32, of Owensboro. According to the indictment, Dowell is charged with possessing a tableting machine designed to manufacture a controlled substance, distributing fentanyl and alprazolam, and maintaining a drug-involved premises for the manufacture and distribution of heroin, fentanyl, and alprazolam, for events occurring between June 24, 2020, and March 3, 2021, in Daviess County, Kentucky.
If convicted at trial, the maximum sentence for Dowell is 20 years in prison, a $1,000,000 fine, and 3 years of supervised release.
The case is being prosecuted by Assistant United States Attorney Frank E. Dahl III. The case is being investigated by the Drug Enforcement Administration Evansville Resident Office, Owensboro Police Department, and Daviess County Sheriff’s Office.
The indictment of a person by a grand jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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