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27 May 2021
Convicted Sex Offender Sentenced to 262 Months for Distributing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Thomas E. Kerl, 39, Redgranite, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 262 months for distributing child pornography. This term of imprisonment is to be followed by 25 years of supervised release. Kerl pleaded guilty to this offense on February 25, 2021.
Starting in approximately 2018, Kerl began using multiple platforms to trade what Judge Conley called “extremely graphic images.” The defendant also engaged in disturbing chats about sexually assaulting children and admitted that if he had access to children, he would assault them.
Prior to this case, Kerl was convicted of repeatedly sexually assaulting two young children in Columbia County Circuit Court in 2001. Based on his prior convictions and the conduct in this case, Judge Conley found Kerl to be a danger to the community and said a long sentence was necessary to protect the public.
The charge against Kerl was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation with assistance from the Columbia County Sheriff’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Convicted Felon Sentenced to 11 Years for Distribution of Methamphetamine and Using a Firearm During a Drug Trafficking OffenseRead the Press Release
Memphis, TN – Bruce Matthews, 28, has been sentenced to 137 months in federal prison for distribution of methamphetamine and using a firearm during a drug trafficking offense. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, between November 2019 and January 2020, undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), began a criminal investigation of Matthews during several controlled purchases of firearms and methamphetamine transactions.
Matthews is a convicted felon, having previously been convicted of aggravated assault and criminal attempt rape of a child. As a result of his prior felony convictions, he is prohibited by federal law from possessing firearms or ammunition.
On February 5, 2021, Matthews pled guilty.
On May 20, 2021, U.S. District Judge Thomas L. Parker sentenced Matthews to 137 months in federal prison to be followed by five years’ supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives (ATF).
Assistant U.S. Attorney Wendy K. Cornejo prosecuted this case on behalf of the government.
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Contracting Company Owner Pleads Guilty to Federal Offense and Another Business Partner Charged for Roles in Bribery SchemeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a former contracting company owner pleaded guilty for his role in a bribery scheme. Kevin Michael Trio, age 58, of Maple Plain, Minnesota, entered his plea of guilty to Making a Materially False Statement to two federal agents with the Department of Justice. U.S. District Judge Charles B. Kornmann presided over the hearing, and his sentencing hearing will be held on August 2, 2021, in the federal courthouse in Aberdeen, South Dakota.
In a separate hearing, another former owner made his appearance in federal court for his role in the same bribery scheme. Michael Nathan Cebulla, age 44, of Buffalo, Minnesota, made his initial appearance on charges of Conspiracy to Commit Bribery Concerning Programs Receiving Federal Funds and of Making a Materially False Statement. He made his appearance on May 20, 2021, before U.S. Magistrate Judge Mark A. Moreno and entered a plea of not guilty. The charges are merely accusations, and Cebulla is presumed innocent until and unless proven guilty. He was released pending trial.
Each offense carries the following maximum penalties: five years of imprisonment; a $250,000 fine; or both fine and imprisonment; 3 years of supervised release following release from custody; $100 special assessment; restitution.
According to court documents, the Dakota Nations Development Corporation (“DNDC”) was an agency of the Sisseton-Wahpeton Oyate Sioux Tribe, a tribal government that received federal assistance in excess of $10,000 during the one-year period between October 1, 2017, and September 30, 2018. At that time, Daniel Thomas White served as the Director of the DNDC. White’s duties included, among other things, overseeing housing and construction projects of the DNDC.
DNDC established an entity called the SWO Elderly Village Limited Partnership. The purpose of the entity was to obtain tax credit financing to build an elderly village complex on tribal land. On April 22, 2016, SWO’s tribal council passed a resolution authorizing DNDC to pursue low-income housing tax credits for the elderly village complex. The tribe also committed nearly $3,000,000 to the project.
Cebulla, Trio, and John German formed a business on December 15, 2016, called Tatanka Contracting. On October 27, 2017, DNDC contracted with Tatanka Contracting to do the earthwork associated with the elderly village project. The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679.
To secure the dirt work contract, German bribed White and White accepted the bribe. Specifically, in November 2017, German corruptly gave, offered, and agreed to give money to Daniel Thomas White, intending to influence and reward White, who was an agent of the DNDC, in connection with a transaction and series of transactions of the DNDC involving $5,000 or more.
White and German pleaded guilty to their roles in the bribery scheme last year. White will be sentenced by Judge Kornmann on September 27, 2021, and German was sentenced in October 2020 to 84 months in federal custody.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Clinton Man Sentenced to 25 Years for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Clinton, Missouri, man who was identified and arrested on the same day he shared live video and images of his sexual assault of a toddler with an undercover officer was sentenced in federal court today for producing child pornography.
Gino Alexander Maiorano, 26, was sentenced by U.S. District Judge Greg Kays to 25 years in federal prison without parole. The court also ordered Maiorano to spend the rest of his life on supervised release following incarceration.
On June 23, 2020, Maiorano pleaded guilty to one count of producing child pornography. Maiorano admitted that he used a 2-year-old victim to produce child pornography on April 12, 2019.
An FBI task force officer in Washington, D.C., acting in an undercover capacity, communicated with Maiorano in an online Kik chat group in April 2019. Maiorano sent two sexually explicit photos and a video of the child victim to the undercover officer on April 12, 2019. The photos and video were shot live during the time Maiorano was chatting with the undercover officer. Investigators immediately began working to identify Maiorano and rescue the child victim.
Emergency disclosure requests were sent to Kik, which led to the identification of a family member of Maiorano. Investigators searching social media accounts found a photograph of a kitchen area that matched the kitchen area depicted in a photograph sent by Maiorano to the undercover agent. Another emergency query to Maiorano’s cell phone provider indicated he had been using his phone at the time he sent the video and images of child pornography to the undercover agent.
Officers arrested Maiorano at his residence on the same day. Officers seized his phone, which contained another video of child pornography involving a different child victim.
This case was prosecuted by Acting U.S. Attorney Teresa A. Moore and Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI, the Springfield, Mo., Police Department, and the Clinton, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
California Man Is Sentenced to 12 Years for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced David Alexander Moralez, Jr., 37, of Fresno, California, to 12 years in prison and five years of supervised release for drug trafficking conspiracy, money laundering conspiracy, and distribution of methamphetamine, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. A federal jury convicted Moralez of the charges in November 2020.
According to evidence presented at trial, other court documents, and statements made in court, Moralez, who worked at a shipping company in Fresno, conspired with other drug traffickers to ship numerous parcels, each filled with multiple pounds of methamphetamine, from Fresno to various locations throughout North Carolina, South Carolina, and Tennessee, via the U.S. Postal Service and FedEx. As trial evidence established, two pounds of the shipped methamphetamine was further distributed and subsequently seized by law enforcement in December 2018, in Newton, N.C. and Hickory, N.C. Court records also show that members of the drug conspiracy used Walmart-to-Walmart transfers and Wells Fargo bank deposits to send proceeds back to California.
Judge Bell previously sentenced to prison three of Moralez’s co-defendants for their involvement in the conspiracy:
- Chha Chham, 43, of Mooresville, N.C., was sentenced to 20 years in prison and five years of supervised release.
- Kong Sayavong, 40, of Visalia, California, was sentenced to 10 years in prison, followed by five years of supervised release
- Hannah Olivia Secrest, 23, of Morganton, N.C., was sentenced to three years in prison and three years of supervised release.
The defendants were convicted as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. According to court documents, since 2015, more than 200 individuals have been prosecuted and law enforcement has seized in excess of 200 kilograms of crystal methamphetamine, $1 million in U.S. currency and other assets, and several dozens of firearms. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts which led to the prosecution of this case: ICE’s Homeland Security Investigations (HSI) in Charlotte; HSI in Greenville and Nashville; the Drug Enforcement Administration’s Charlotte Field Office; the U.S. Postal Inspection Service in Charlotte; the North Carolina State Bureau of Investigation; the Alexander County Sheriff’s Office; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Davie County Sheriff’s Office; the Johnson County, Tennessee Sheriff’s Office; the Lincoln County Sheriff’s Office; the Rutherford County, Tennessee Sheriff’s Office; the Boone Police Department; the Charlotte-Mecklenburg Police Department; the Gaston County Police Department; the Gastonia Police Department; the Hickory Police Department; the Huntersville Police Department; the Longview Police Department; the Morganton Department of Public Safety; the Mooresville Police Department; the Newton Police Department; and the Troutman Police Department.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
California Executive Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California insurance and private equity executive was sentenced today in connection with using fraud and bribery to cheat on the ACT exam on behalf of his daughter.
Mark Hauser, 60, of Los Angeles, Calif., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two months in prison, three years of supervised release, a fine of $250,000 and 300 hours of community service. In September 2020, Hauser pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Hauser agreed with William “Rick” Singer to pay an amount, ultimately totaling $40,000, to facilitate cheating on his daughter’s ACT exam. As part of the scheme, co-conspirator Mark Riddell traveled to Houston, Texas, where Hauser’s daughter took the exam and purported to proctor the test. Instead, Riddell corrected the answers on the exam after she completed it. Two days later, Singer paid an intermediary, Martin Fox, $25,000, with the understanding that Fox would pass part of the payment on to Niki Williams, the test site administrator who allowed the cheating to occur. Singer also paid Riddell $10,000 for his role in the scheme.
Singer and Riddell have previously pleaded guilty and are cooperating with the government’s investigation. In November 2020, Fox was sentenced by U.S. District Court Judge Indira Talwani to three months in prison and in December 2020 Williams was sentenced by Judge Talwani to one year of probation.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Mendell’s Criminal Division prosecuted the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bronx, New York, Man Sentenced to 46 Months in Prison for Conspiring to Distribute Heroin and Fentanyl from a Bronx Drug MillRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 46 months in prison for participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Jose Antonio Vasquez Pena, a/k/a “Tono,” 48, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentence by videoconference today. Dilson Vazquez Genao, 23, Eddie Urena Rodriguez, 35, and Francisco Mercedes Gil, 31, also of the Bronx, New York, pleaded guilty before Judge Salas to the same charges in September 2019. Daury Contreras Ulerio, 34, previously pleaded guilty and was sentenced in March 2020.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge as Pena in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time—including Rodriguez, Ulerio, Rosario, Gil, and Genao—to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, but all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Acting U.S. Attorney Honig credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Acting Chief of the Violent Crimes Unit in Newark.
The charge and allegations against Maldonado and Rosario are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Baton Rouge Woman Charged with Wire Fraud and Aggravated Identity Theft in Connection with Fraudulent Scheme to Obtain Unemployment BenefitsRead the Press Release
A federal grand jury recently returned a seven-count indictment charging Shawnda Rochelle Augustus, age 39, of Baton Rouge, Louisiana, with wire fraud and aggravated identity theft for allegedly obtaining and attempting to obtain unemployment benefits following the floods of 2016 and pandemic unemployment benefits in 2020. Augustus appeared for her arraignment and pled not guilty to the pending charges.
In August 2016, the President issued a major disaster declaration for portions of Louisiana devastated by historic flooding. The declaration authorized the Federal Emergency Management Agency (FEMA) to provide federal funds for disaster relief programs, including disaster unemployment benefits to those who could no longer work as a result of the floods. In March 2020, the President declared a national emergency as a result of the COVID-19 (coronavirus) pandemic, and signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to mitigate the effects of the COVID-19 pandemic by providing emergency assistance for individuals, including new types of unemployment benefits for those individuals who were not longer employed as a result of the pandemic. In Louisiana, both the disaster unemployment assistance (DUA) and pandemic unemployment assistance (PUA) programs were administered by the Louisiana Workforce Commission (LWC). In other states, the PUA program is administered by the state’s unemployment insurance agency.
According to the indictment, following the floods of 2016, Augustus engaged in a scheme to defraud and to obtain money from FEMA by submitting fraudulent applications for DUA benefits to the LWC, both in her own name, and in the names of other victims, without their knowledge or consent. As a result of these submissions, Augustus received or attempted to receive approximately $244,036 in fraudulent DUA benefits.
The indictment further alleges that Augustus engaged in multi-state fraud scheme to obtain PUA benefits to which she was not entitled. Specifically, Augustus submitted fraudulent applications for PUA benefits in Louisiana, and in multiple other states, including Arizona, Georgia, Tennessee, Hawaii, and Nebraska, among others. Augustus also obtained the personal identifying information of victims, including names, dates of birth, and Social Security numbers. Using these stolen identities, Augustus submitted fraudulent applications for PUA benefits in the names of those victims in multiple states. According to the indictment, Augustus received approximately $123,908 in false claims for PUA benefits. Once the funds were transmitted, Augustus allegedly withdrew the funds as cash, or used the funds to pay for hotels, airline tickets, and purchases at restaurants and retail stores.
This matter is being investigated by the Federal Bureau of Investigation and U.S. Department of Labor is being prosecuted by Assistant United States Attorney Kristen L. Craig.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Bank Julius Baer Agrees to Pay More than $79 Million for Laundering Money in FIFA ScandalRead the Press Release
Bank Julius Baer & Co. Ltd. (BJB or the Bank), a Swiss bank with international operations, has admitted today in federal court in Brooklyn that it conspired to launder over $36 million in bribes through the United States to soccer officials with the Fédération Internationale de Football Association (FIFA) and other soccer federations, in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches. The proceeding was held before U.S. District Judge Pamela K. Chen.
The Bank made these admissions and entered into a three-year deferred prosecution agreement with the department in connection with a criminal information filed today in the Eastern District of New York charging the Bank with conspiring to commit money laundering. As part of this agreement, the Bank has agreed to pay more than $79 million in penalties (including a fine of $43,320,000 and forfeiture of $36,368,400) to resolve the investigation into its involvement in a money laundering conspiracy that fueled this international soccer bribery scheme.
Jorge Luis Arzuaga, a former BJB relationship manager who worked in the Bank’s Montevideo, Uruguay, and Zurich, Switzerland, offices pleaded guilty in June 2017 for his role in this conspiracy and was sentenced in November 2020. That case was assigned to U.S. District Judge Pamela K. Chen of the Eastern District of New York, as is this case.
“Today’s resolution sends a strong message to all banks and other financial institutions that if they knowingly misuse our financial system to hide their clients’ criminal proceeds or to promote a corrupt scheme, they will be held to account,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “From the time of the first FIFA-related indictment, the department has promised to hold accountable the financial institutions involved in this global criminal scheme. We are delivering on that promise.”
“BJB and its employees facilitated bribes and its compliance department turned a blind eye to glaring red flags of money laundering,” said Acting U.S. Attorney Mark J. Lesko for the Eastern District of New York. “This office will hold accountable those corporations or individuals that use the American banking system for corrupt ends. As today’s resolution makes clear, financial institutions that become complicit in their clients’ efforts to launder illicit funds face significant penalties.”
“Bank Julius Baer pursued the profit it could make laundering corrupt funds derived from a criminal scheme run by powerful FIFA officials,” said Assistant Director-in-Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “Their behavior has earned them the equivalent of a red card, and the money the bank now owes the U.S. government is more than double what it admits to laundering. The FBI operates globally with our international partners, and our message to those who may be looking to profit from similar schemes – the penalties for this type of play are steep. Stay within the rules.”
“Bank Julius Baer aided corrupt FIFA officials in laundering over $36 million,” said Special Agent in Charge Ryan L. Korner of the IRS-Criminal Investigation. “Banking officials that are a conduit for criminal activity undermine their own profession and the health of our financial system. The Bank's admissions show that IRS-Criminal Investigation will relentlessly pursue corruption across borders, including financial institutions that facilitate or conceal criminal activity. This should put other banks on notice that aiding in corruption will cost you millions.”
According to admissions in the publicly-filed statement of facts, from approximately February 2013 to May 2015, BJB, through Arzuaga, conspired with sports marketing executives — including Alejandro Burzaco, the controlling executive of Torneos y Competencias S.A. (Torneos), a sports media and marketing company headquartered in Argentina — to launder through the United States at least $36 million in bribes to soccer officials in exchange for broadcasting rights to soccer matches. BJB conspired to execute these illegal transactions through accounts at the Bank to conceal the true nature of the payments and promote the fraud. Burzaco pleaded guilty to racketeering conspiracy and other offenses in November 2015 in connection with his involvement in paying bribes to soccer officials.
For example, Burzaco and co-conspirators agreed to pay approximately $30 million to the senior vice president of FIFA, who was also the president of the Asociación del Fútbol Argentina, for his support in the award of regional broadcasting rights to the 2018, 2022, 2026 and 2030 editions of the World Cup. As part of the conspiracy, BJB, through Arzuaga, transferred approximately $25 million of this money into a sub-account at the Bank and held it there for this senior FIFA official.
Torneos and its co-conspirators also agreed to pay tens of millions of dollars in bribes to several officials of the Confederación Sudamericana de Fútbol (CONMEBOL) — all of whom were also FIFA officials — for the rights to the Copa América tournament (including the 2015, 2019 and 2023 editions of the tournament and the 2016 Copa América Centenario, a commemorative centennial edition of the tournament played at stadiums across the United States). The officials who were to receive bribes included, among others, Eugenio Figueredo, a member of FIFA’s executive committee and former president of both CONMEBOL and the Asociación Uruguaya de Fútbol, the Uruguayan soccer federation; Marco Polo Del Nero, another member of FIFA’s executive committee and a former president of the Confederação Brasileira de Futebol (CBF), the Brazilian soccer federation; and José Maria Marin, a member of multiple FIFA standing committees and another former president of the CBF.
Burzaco and Torneos also paid bribes through BJB to numerous CONMEBOL officials in furtherance of a scheme to obtain the broadcasting rights to the Copa Libertadores tournament. In addition to the aforementioned soccer officials, bribes were also paid to, among others, Juan Ángel Napout, who served as a FIFA Vice President, a member of FIFA’s Executive Committee, and president of CONMEBOL and Romer Osuna, a member of the FIFA audit and compliance committee and former treasurer of CONMEBOL.
At the time of the conduct, BJB’s Anti-Money Laundering (AML) controls failed to detect or prevent money laundering transactions related to the bribery schemes. Had Arzuaga’s supervisors or compliance personnel meaningfully reviewed Arzuaga’s due diligence on Torneos and his responses to transaction alerts, they would have known there were multiple, significant red flags, including facially false contracts, payments to third parties at the direction of a FIFA official, and services purportedly rendered by shell corporations — all of which would have alerted the Bank to the bribery, money laundering or other illegal activity.
According to BJB’s admissions, the Bank knew that Arzuaga’s clients’ accounts were associated with international soccer, which was generally understood to involve high corruption risks. Nevertheless, a BJB executive directed the opening of these accounts be fast tracked in the hope that these clients would provide lucrative business.
As outlined in the deferred prosecution agreement, the department reached this resolution with BJB based on a number of factors, including BJB’s failure to voluntarily disclose the conduct to the department; the nature and seriousness of the conduct including that the Bank played an essential role in this scheme for over two years; and the bank’s prior criminal history. BJB did not receive any cooperation credit because it made misleading representations about relevant facts in the case, which had the effect of hindering the department’s investigation, and it did not come forward with all evidence pertaining to the involvement of senior management. However, the Bank received some credit for its significant effort to remediate its compliance program. Accordingly, the total criminal penalty reflects a five percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range.
The agreement announced today is part of an investigation led by the FBI’s New York Field Office and the IRS-Criminal Investigation’s Los Angeles Field Office.
Trial Attorney Christian J. Nauvel of the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Lauren Howard Elbert, Samuel P. Nitze and Brian D. Morris of the U.S. Attorney’s Office for the Eastern District of New York prosecuted the case. Former MLARS Trial Attorney Michael P. Grady of the U.S. Attorney’s Office for the District of Columbia, the Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, and the Swiss Office of the Attorney General provided significant assistance in this matter.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Bank Julius Baer Admits Laundering over $36 Million in Bribes in FIFA CaseRead the Press Release
BROOKLYN, NY – Bank Julius Baer & Co. Ltd. (“BJB” or “the Bank”), a Swiss bank with international operations, admitted today in federal court in Brooklyn that it conspired to launder over $36 million in bribes through the United States to soccer officials with the Fédération Internationale de Football Association (FIFA) and other soccer federations. These bribes were in furtherance of a scheme in which sports marketing companies bribed soccer officials in exchange for broadcasting rights to soccer matches. The proceeding was held before United States District Judge Pamela K. Chen.
The Bank has entered into a three-year deferred prosecution agreement with the government in connection with a criminal information filed today in the Eastern District of New York charging the Bank with conspiring to commit money laundering. As part of this agreement, the Bank has agreed to pay more than $79 million in penalties (including a fine of $43,320,000 and forfeiture of $36,368,400) to resolve the investigation into its involvement in a money laundering conspiracy that fueled this international soccer bribery scheme.
Jorge Luis Arzuaga, a former BJB relationship manager who worked in the Bank’s Montevideo, Uruguay and Zurich, Switzerland offices, pleaded guilty in June 2017 for his role in this conspiracy and was sentenced by Judge Chen to three years’ probation in November 2020.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS CI), announced the agreement.
“BJB and its employees facilitated bribes and its compliance department turned a blind eye to glaring red flags of money laundering,” stated Acting U.S. Attorney Lesko. “This Office will hold accountable those corporations or individuals that use the American banking system for corrupt ends. As today’s resolution makes clear, financial institutions that become complicit in their clients’ efforts to launder illicit funds face significant penalties.”
“Today’s resolution sends a strong message to all banks and other financial institutions that if they knowingly misuse our financial system to hide their clients’ criminal proceeds or to promote a corrupt scheme, they will be held to account,” stated Acting Assistant Attorney General McQuaid. “From the time of the first FIFA-related indictment, the Department has promised to hold accountable the financial institutions involved in this global criminal scheme. We are delivering on that promise.”
"Bank Julius Baer pursued the profit it could make laundering corrupt funds derived from a criminal scheme run by powerful FIFA officials,” stated FBI Assistant Director-in-Charge Sweeney. “Their behavior has earned them the equivalent of a red card, and the money the bank now owes the U.S. government is more than double what it admits to laundering. The FBI operates globally with our international partners, and our message to those who may be looking to profit from similar schemes is simple – the penalties for this type of play are steep. Stay within the rules.”
“Bank Julius Baer aided corrupt FIFA officials in laundering over $36 million. Banking officials that are a conduit for criminal activity undermine their own profession and the health of our financial system,” stated IRS CI Special Agent-in-Charge Korner. “The Bank's admissions show that IRS Criminal Investigation will relentlessly pursue corruption across borders, including financial institutions that facilitate or conceal criminal activity. This should put other banks on notice that aiding in corruption will cost you millions.”
According to admissions in the statement of facts, from approximately February 2013 to May 2015, BJB, through Arzuaga, conspired with sports marketing executives—including Alejandro Burzaco, the controlling executive of Torneos y Competencias, S.A. (Torneos), a sports media and marketing company headquartered in Argentina—and others, to launder through the United States at least $36,368,400 in bribes paid to soccer officials in exchange for broadcasting rights to soccer matches. BJB conspired to execute these illegal transactions through accounts at the Bank to conceal the true nature of the payments and promote the fraud. Burzaco pleaded guilty in November 2015 to racketeering conspiracy and other offenses in connection with his involvement in paying bribes to soccer officials.
For example, Burzaco and co-conspirators agreed to pay approximately $30 million to the senior vice president of FIFA, who was also the president of the Asociación del Fútbol Argentina, for his support in the award of regional broadcasting rights to the 2018, 2022, 2026 and 2030 editions of the World Cup. As part of the money laundering conspiracy, BJB, through Arzuaga, transferred approximately $25 million of this money into a sub-account at the Bank and held it there for this senior FIFA official.
Torneos and its co-conspirators also agreed to pay tens of millions of dollars in bribes to several officials of the Confederación Sudamericana de Fútbol (CONMEBOL)—all of whom were also FIFA officials—for the rights to the Copa América tournament (including the 2015, 2019, and 2023 editions of the tournament, and the 2016 Copa América Centenario, a commemorative centennial edition of the tournament played at stadiums across the United States). The officials who were to receive bribes included, among others: Eugenio Figueredo, a member of FIFA’s executive committee and former president of both CONMEBOL and the Asociación Uruguaya de Fútbol, the Uruguayan soccer federation; Marco Polo Del Nero, another member of FIFA’s executive committee and a former president of the Confederação Brasileira de Futebol (“CBF”), the Brazilian soccer federation; and José Maria Marin, a member of multiple FIFA standing committees, and another former president of the CBF.
Burzaco and Torneos also paid bribes through BJB to numerous CONMEBOL officials in furtherance of a scheme to obtain the broadcasting rights to the Copa Libertadores tournament. In addition to the aforementioned soccer officials, bribes were also paid to, among others: Juan Ángel Napout, who served as a FIFA Vice President, a member of FIFA’s Executive Committee, and president of CONMEBOL, and Romer Osuna, a member of the FIFA audit and compliance committee and former treasurer of CONMEBOL.
At the time of the conduct, BJB’s Anti-Money Laundering (“AML”) controls failed to detect or prevent money laundering transactions related to the soccer bribery schemes. Had Arzuaga’s supervisors or compliance personnel meaningfully reviewed Arzuaga’s due diligence on Torneos and his responses to transaction alerts, they would have known there were multiple, significant red flags, including facially false contracts, payments to third parties at the direction of a FIFA official, and services purportedly rendered by shell corporations—all of which would have alerted the Bank to the bribery, money laundering, or other illegal activity.
According to BJB’s admissions, the Bank knew that Arzuaga’s clients’ accounts were associated with international soccer, which was generally understood to involve high corruption risks. Nevertheless, a BJB executive directed the opening of these accounts be fast-tracked in the hope that these clients would provide lucrative business.
As outlined in the agreement, the Department reached this resolution with BJB based on a number of factors, including BJB’s failure to voluntarily disclose the conduct to the Department; the nature and seriousness of the conduct, including that the bank played an essential role in this scheme for over two years; and the bank’s prior criminal history. BJB did not receive any cooperation credit because it made misleading representations about relevant facts in the case, which had the effect of hindering the Department’s investigation, and it did not come forward with all evidence pertaining to the involvement of senior management. However, the Bank received some credit for its significant efforts to remediate its compliance program. Accordingly, the total criminal penalty reflects a five percent reduction off the bottom of the applicable U.S. sentencing guidelines fine range.
The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI’s New York Field Office and the IRS-CI’s Los Angeles Field Office. Assistant U.S. Attorneys Lauren Howard Elbert, Samuel P. Nitze and Brian D. Morris of the U.S. Attorney’s Office and Trial Attorney Christian J. Nauvel of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case. Assistant United States Attorney Michael P. Grady of the U.S. Attorney’s Office for the District of Columbia (former MLARS attorney), the Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice, and the Swiss Office of the Attorney General provided significant assistance in this matter.
The Defendant: BANK JULIUS BAER & CO. LTD.
Zurich, Switzerland
E.D.N.Y. Docket No. 21-CR-273 (PKC)Arkansas Woman Pleads Guilty to Unemployment Benefits FraudRead the Press Release
SACRAMENTO, Calif. — Deborah Shannell Hollimon, 44, of West Memphis, Arkansas, pleaded guilty today to committing mail fraud in connection with California state unemployment insurance benefits, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from September 2012 through September 2015, Hollimon and others filed over 100 fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking approximately $882,991 using fictitious businesses. Hollimon created fictitious employers with EDD and then submitted information to EDD reporting fake employees for the businesses. Almost all, of the individuals reported as employees of the companies were actually victims of identity theft. Hollimon subsequently filed unemployment claims in her own name and in the names of the fake employees in order to collect the benefits. Approximately $569,168 in fraudulent benefits was paid out by EDD.
This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
Hollimon is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 19. Hollimon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Anchorage Man Sentenced to 10 Years in Prison for Attempted Child Sexual ExploitationRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by Federal District Court Judge Sharon L. Gleason to 10 years in federal prison followed by a lifetime of supervised release for the attempted sexual exploitation, coercion and enticement of a minor.
According to evidence presented at trial, detectives assigned to the Anchorage Police Department (APD) Crimes Against Children Unit (CACU) received a report that Eric Larsen, 51, solicited a 13-year-old girl for oral sex and had exposed himself to her.
APD detectives assumed the identity of the girl and continued to communicate with him. Larsen used text messages and phone calls to negotiate a time and place to meet with the girl, for the purpose of engaging in sexual intercourse. On February 14, 2019, Larsen arrived at a prearranged location. Instead of meeting the girl, Larsen was met by APD officers and arrested. At the time of his arrest, Larsen was found to be in possession of condoms, personal lubricant, a vibrator, methamphetamine, a glass pipe and a loaded handgun.
“Child sexual exploitation is a serious problem in our community, but thanks to the dedication of skilled investigators and coordination between local, state and federal law enforcement partners offenders like Mr. Larsen should know that they will be brought to justice,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska.
The Anchorage Police Department conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorneys Adam Alexander and James Klugman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Alaska Defendant Pleads Guilty for Threatening Los Angeles SynagogueRead the Press Release
An Alaska defendant pleaded guilty today to making threats to a synagogue and attempting to obstruct the free exercise of religious beliefs in Los Angeles, California.
On May 5, William Alexander, 50, of Anchorage, Alaska, entered a guilty plea before U.S. District Court Judge Matthew McCrary Scoble to an indictment charging them with one count of making threatening interstate communications and one count of intentionally obstructing and attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs through the threatened use of force.
According to information presented at the guilty plea hearing, on Nov. 1, 2019, while in Anchorage, Alexander used their cellular phone to call a Los Angeles area synagogue. Alexander left a voice message stating that they were going to kill the synagogue’s congregants, while repeatedly using slurs referring to people of Jewish faith. Alexander intended the voice message to be viewed as a threat. At the plea hearing, Alexander admitted committing this act with the intent to obstruct the synagogue’s congregants from enjoying the free exercise of their religious beliefs. Alexander’s sentencing hearing is scheduled for August 23.
“One of the greatest truths about our nations is that everyone has the right to be free from threats of violence because of their religious beliefs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Those individuals who are driven by hate to violate that right will be brought to justice. The defendant’s conviction in this case sends a strong message that hate crimes will not be tolerated in our free society.”
“For centuries, religious freedom has been a pillar of American society and a beacon for those persecuted for their faith,” said Acting U.S. Attorney Bryan Wilson for the District of Alaska. “We are committed to protecting this freedom and individuals or groups who threaten it will be held accountable for their actions. Violence and intimidation are abhorrent and have no place in this country.”
The case is being investigated by the FBI’s Anchorage Field Office and is being prosecuted by Assistant U.S. Attorney Jonas Walker of the District of Alaska and Civil Rights Division Trial Attorney Sanjay Patel.
17 Defendants Charged in Drug Trafficking Probe Targeting Heroin and Cocaine Sales in ChicagoRead the Press Release
CHICAGO — A joint federal and local drug trafficking investigation has resulted in federal charges against 17 individuals for distributing or attempting to distribute heroin and cocaine in Chicago.
During the multi-year probe, dubbed “Operation Tragic Blow,” law enforcement seized multiple kilograms of heroin and cocaine, including a 14-kilogram cocaine seizure in Chicago’s Belmont Cragin neighborhood and a two-kilogram heroin seizure in a high-rise apartment building in Chicago’s Buena Park neighborhood. The joint federal and local investigation, led by U.S. Homeland Security Investigations and the Chicago Police Department, utilized extensive undercover and covert surveillance operations to shut down the defendants’ drug trafficking activities.
Many of the 17 federal defendants were arrested Wednesday and have begun making initial appearances in U.S. District Court in Chicago. In addition to the 17 federal defendants, two other individuals were charged in state court as part of this investigation.
The federal charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of the Chicago office of HSI; and David Brown, Superintendent of CPD. Substantial assistance was provided by the IRS Criminal Investigation Division in Chicago and the Cook County State’s Attorney’s Office. Assistant U.S. Attorneys Aaron Bond, Erin Kelly, and Brian Kerwin represent the government.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Charged with a federal drug offense are: YARNELL ALLEN, 41, of Dolton, Ill.; ULISES AVINA, 32, of Chicago; OSCAR BALDERAMA, 42, of Chicago; CELESTINO BARAHONA-SERRANO, 38, of Chicago; DIEGO GALEANA-GONZAGA, 35, of Mexico; MARGARITO GALEANA-GOMEZ, 36, of Mexico; JOSE GONZAGA, 58, of Chicago; RAFAEL MEDELLIN, JR., 32, of Chicago; RICHARD C. RINCON, 39, of Oak Lawn, Ill.; JUAN ROSAS-CABRERA, 31, of Mexico; SERGIO SANCHEZ-CHAVEZ, 36, of Mexico; FRANCISCO SANCHEZ-YANEZ, 32, of Chicago; ANTONIO SEGURA, 39, of Oak Lawn, Ill.; JORGE A. VALDEZ, 40, of Chicago; VIRGINIA VAZQUEZ-PEREZ, 37, of Cicero, Ill.; DELVIN WILLIAMS, 42, of Chicago; and RAFAEL ZARCO-PICAZO, 33, of Chicago.
According to criminal complaints unsealed in U.S. District Court in Chicago, Zarco-Picazo sold distribution levels of cocaine to Jorge Valdez, who in turn re-sold it in smaller quantities to customers in Chicago. Law enforcement on Jan. 30, 2021, seized 14 kilograms of cocaine from Zarco-Picazo’s Nissan Z sedan, which was parked at a residence in the 2300 block of North Menard Avenue in Chicago, the charges allege. The cocaine was packed into several bricks and hidden behind a speaker console, the complaint states.
The complaint also describes the heroin seizure in the high-rise apartment building in the 4200 block of North Marine Drive in Chicago. Galeana-Gomez and Gonzaga had allegedly conspired to sell nearly two kilograms of heroin to an undercover law enforcement officer and an individual who was surreptitiously cooperating with law enforcement. On the afternoon of Sept. 17, 2020, Gonzaga attempted to sell the heroin, which was wrapped in two vacuum-sealed bricks, to the undercover officer and the cooperating individual in the building’s underground parking garage. Law enforcement arrested Gonzaga and then searched two apartments on the 27th-floor of the building, where they discovered supplies used to package narcotics, including a heat sealer, vacuum sealer rolls, and a digital scale, the complaint states.
Other alleged illicit transactions cited in the charges include a two-kilogram cocaine deal on April 30, 2020, involving Segura and Allen behind a residence in the 6100 block of South Talman Avenue in Chicago’s Chicago Lawn neighborhood, and a kilogram of heroin distributed by Galeana-Gonzaga in two separate deliveries – 720 grams to Williams at an apartment building in the Chicago suburb of Brookfield, and 280 grams to Vazquez-Perez in a vehicle in the 2900 block of North Cicero Avenue in Chicago’s Belmont Cragin neighborhood.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
26 May 2021
Zachary Man Sentenced to 200 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Eddie Darnell Jones, Sr., age 47, of Zachary, Louisiana, to 200 months in federal prison following his convictions for possession of a firearm by a convicted felon, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. The Court further sentenced Jones to serve four years of supervised release following his term of imprisonment and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, on March 8, 2019, deputies with the East Baton Rouge Sheriff’s Office initiated a traffic stop of a Mercedes-Benz C240, in the Banks Town area of Baton Rouge. At the time of the stop, Jones was the driver and registered owner of the vehicle. As the deputies made contact with the vehicle’s occupants, they smelled marijuana emanating from the vehicle and observed a digital scale and clear plastic baggie containing what appeared to be four Xanax pills, in plain view on top of the center console. Jones was immediately advised of his Miranda rights and detained.
During a subsequent search of Jones’ vehicle, the deputies recovered a loaded, SCCY CPX-2, 9mm handgun, found on the driver’s floorboard; more than $20,000 in small denominations of cash in various locations throughout the vehicle; and distribution quantities of methamphetamine and marijuana. The deputies also found numerous clear plastic sandwich bags throughout the vehicle. Following the search, Jones admitted that everything found in the vehicle, including the aforementioned firearm, belonged to him.
Prior to possessing the firearm, Jones was convicted in East Baton Rouge Parish in 2016 of possession with intent to distribute marijuana, MDMA, cocaine, and alprazolam, and one count of attempted possession of a firearm by a convicted felon. Additionally, Jones had several other prior felony convictions in the 19th and 20th Judicial District Courts for the State of Louisiana.
Acting U.S. Attorney Ellison Travis stated, “This conviction and sentence of a repeat offender reaffirms our commitment to fight violence by investigating, arresting, and prosecuting convicted criminals who decide to illegally possess firearms and sell drugs. Great credit goes to our partnership with local authorities for this result. I want to thank our prosecutor, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”
“The sentence imposed today sends a message to repeat offenders, like Eddie Darnell Jones, Sr., who are prohibited from possessing firearms that they will be held accountable for their actions,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The collaborative effort of federal and local law enforcement in Baton Rouge, including the U.S. Attorney’s Office, has ultimately made our community safer.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Sheriff’s Office. It was prosecuted by Assistant United States Attorney Caroline Gardner.
West Virginia and Detroit residents indicted for drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Doriawn Eduane-Draphel Rogers, of Detroit, Michigan, appeared in federal court today after being charged with 10 others in a drug conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Eleven people were indicted in April 2021 and charged with an alleged drug conspiracy that distributed methamphetamine, heroin, and fentanyl from December 2019 to August 2020 in Marion County and elsewhere. Those charged are:
• Kevin Lawrence Jarrett, also known as “Six,” 30, of Detroit, Michigan
• Lamarr Devaughn Charleston, 43, of Detroit, Michigan
• Derek David Henderson, 41, of Detroit, Michigan
• Mariah Yaray Barber, 33, of Detroit, Michigan
• Justin Paul Thompson, 37, of Fairmont, West Virginia
• Shawn Harper Warren, also known as “S.J.,” 23, of Detroit, Michigan
• Leroy Raymund Charleston, 38, of Detroit, Michigan
• Kaemon Bernard-Donyell King, also known as “Twin,” 19, of Detroit, Michigan
• William D. Charleston, also known as “Jay,” 41, of Detroit, Michigan
• Doriawn Eduane-Draphel Rogers, 20, of Detroit, Michigan
• Nathaniel Lee Williams, also known as “Sticks,” 63, of Fairmont, West VirginiaThey are accused of distributing the controlled substances, sometimes near public housing, schools, and parks.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney’s Office and State and Local Partners Announce Expansion of Firearms Prosecution Initiative Targeting Gun Violence in BaltimoreRead the Press Release
Baltimore, Maryland – Today, Acting United States Attorney for the District of Maryland Jonathan F. Lenzner announced a significant expansion of the U.S. Attorney’s Office’s collaborative initiative with state and local law enforcement to prosecute the illegal possession of firearms in Baltimore. The expansion of the initiative, known as Project EXILE, includes state funding to hire additional prosecutors to bring firearms-related offenses in federal court and for a media campaign supporting outreach efforts into Baltimore neighborhoods. This collaborative firearms prosecution initiative brings prosecutors from the Maryland Office of the Attorney General and Baltimore City State’s Attorney’s Office into the U.S. Attorney’s Office to focus on individuals illegally possessing firearms in Baltimore.
At a press conference today with federal, state and local partners, Acting U.S. Attorney Lenzner also announced that, despite the pandemic which resulted in the Grand Jury being cancelled for several months, the U.S. Attorney’s Office charged 73 federal gun possession cases in Baltimore during the 2020 calendar year, and 11 additional firearms cases as of April 30, 2021.
One of the reasons for the success of the program in Baltimore is the use of Special Assistant U.S. Attorneys (SAUSAs) provided by the Maryland Attorney General’s Office and the Office of the State’s Attorney for Baltimore City and funded through grants from the Governor’s Office of Crime Prevention, Youth & Victim Services. These SAUSAs, who almost exclusively handle federal gun and violent crime cases, are force multipliers in the fight against violent crime. In addition to taking the lead in prosecuting violations of federal firearms law arising in Baltimore City, the SAUSAs have also assisted the Baltimore Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in 31 separate homicide and non-fatal shooting investigations in Baltimore City.
As a result of the number of firearms cases brought in the past year by the unit of SAUSAs, the Governor’s Office of Crime Prevention, Youth, & Victim Services has agreed to fund in Fiscal Year 2022 a total seven Special Assistant U.S. Attorneys to focus on Baltimore gun cases—an increase from FY 2021 of three additional SAUAs.
“Reducing violent crime in Maryland is our number one priority, and we take personally every homicide and non-fatal shooting that occurs in our district,” said Acting U.S. Attorney Jonathan F. Lenzner. “While we are proud of the work we have done, despite the challenges posed by the pandemic, we recognize that we have a long way to go to reduce the gun violence in our communities. In Baltimore, our relentless focus on reducing the gun crime that plagues the City has resulted in more federal gun possession cases charged in 2020 than during the entirety of 2019—and we are continuing to move forward. We are grateful to the Governor for funding the prosecutors that have been an integral part of our violent crime strategy, and to Attorney General Frosh and State’s Attorney Mosby for their partnership in prosecuting gun crimes. We are committed to working with Commissioner Harrison, ATF Special Agent in Charge Jones and their teams to focus on prosecuting the violent offenders who wreak havoc in our communities.”
“Our partnership with the U.S. Attorney’s Office has enabled us to tap into additional resources to investigate and prosecute violent crime,” said Maryland Attorney General Brian E. Frosh. “It has helped provide justice for victims and a greater measure of safety for communities in our state.”
“Reducing violent crime in the city is a multi-pronged effort that requires strong partnerships,” said Baltimore City State’s Attorney Marilyn Mosby. “We are grateful for the collaboration with the US Attorney on gun violence and applaud the office’s commitment to improving public safety for the citizens in Baltimore City.”
“Reducing gun violence in Maryland, especially Baltimore City, is critical for citizens and neighborhoods to be able to grow and thrive. Every day ATF focuses our efforts on identifying criminals who threaten the safety of these communities and each successful prosecution of a felon who violates federal law is one step further in this mission,” said ATF Baltimore Special Agent in Charge Tim Jones. “The additional resources and SAUSAs assigned to the EXILE program will work hand in hand with the cases ATF investigates, expand the success of this partnership, and have a positive impact on the community.”
“The Baltimore Police Department is thankful for the ongoing partnership with our local, state and federal partners in tackling gun violence and reducing violent crime in Baltimore,” said Commissioner Michael Harrison. “Our department will continue to work collaboratively in pursuing those illegally carrying guns in our city and to strengthen cases to ensure that felons who are arrested for gun crimes are held accountable. I look forward to this continued partnership as we work together to create a safer city.”
While the use of federal resources and statutes, which carry significant terms of imprisonment—with no suspended sentences, and no parole—is especially helpful in prosecuting repeat violent offenders with guns, who pose the greatest threat to public safety, we must also reach out to the community to prevent violent crime.
A coalition of federal, state, and local government officials, including the U.S. Attorney’s Office, the Office of the State’s Attorney for Baltimore City, and the Baltimore Police Department, are participating in a violence reduction program, I Care Baltimore. I Care Baltimore is a multi-faceted program designed to reduce violent crime by empowering community members, by highlighting programs that are making a difference in the City of Baltimore by offering alternatives to violence, and by increasing awareness of the consequences of federal prosecution for violent repeat offenders. The initiative, funded by a grant to the Mayor’s Office of Criminal Justice (MOCJ) from the Governor’s Office of Crime Prevention, Youth, and Victim Services, builds on our collaborative efforts to remove guns from the hands of criminals.
In addition, the U.S. Attorney’s Office will work with our state and local community partners to coordinate municipal services in communities where enforcement efforts have taken place. To help returning citizens transition back into the community, the United States Attorney’s Office has a comprehensive directory of reentry services across Maryland, which is now standard-issue to federal and state probation and parole agencies. The U.S. Attorney’s Office plans to continue to sponsor job and resource fairs, which bring together a host of social services in one location so that returning citizens can learn about reentry services, obtain IDs, learn about GED and job training opportunities, and access other social services.
The United States Attorney’s Office and our law enforcement partners are continuing our efforts to address gun violence by using federal statutes prohibiting felons from possessing firearms. These types of reactive gun cases are one component of Maryland’s Project Safe Neighborhoods (“PSN”), our violent-crime reduction strategy. The United States Attorney’s Office, through the use of Project Safe Neighborhoods, will continue to pursue felons with guns who constitute a clear and present danger to the safety and welfare of the citizens of Maryland.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/priorities and https://www.justice.gov/usao-md/community-outreach.
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U.S. Attorney’s Office Secures Asset for Victims of Four Winds FraudRead the Press Release
SAN ANTONIO – Yesterday U.S. District Judge David A. Ezra granted a motion by the U.S. Attorney’s Office for the Western District of Texas (USAO) to disburse $171,448.24 plus all accrued interest to the victims of the Four Winds fraud scheme. The proceeds will be applied to defendant Gary Cain’s restitution judgment, concluding three years of litigation over Cain’s only significant asset that was at one time valued at over $1.2 million.
In 2018, the USAO obtained a restraining order to prevent the sale of Cain’s house in Bentley Manor based on its belief that Cain used a sham company to hold title and avoid paying restitution. The USAO alleged that for over a decade Cain had resided in and made all payments for the house while utilizing a series of nominees, trusts, and companies to conceal his ownership interest. Just three weeks prior to Cain’s sentencing in 2018, which would include $6.3 million in restitution owed to eight victims, the home was transferred to a newly created company purportedly managed by Cain’s brother with his two youngest daughters as the beneficial owners. Although several parties contested the order, the Court found that the company was the nominee of Gary Cain earlier this year.
“Our congressional mandate is to pursue restitution orders aggressively, recognizing the impact of crime on victims,” said U.S. Attorney Ashley C. Hoff. “The tenacity in this case demonstrates our commitment to recovering victim losses and should signal to defendants that cooperation, not concealment, is the preferred approach.”
During the enforcement action, the USAO joined nine other parties, five of which asserted some type of interest in the Bentley Manor house. The parties reached a settlement earlier this month, recognizing only two interests in the property in addition to the U.S.
In February 2018, a jury found Cain and former state senator Carlos Uresti guilty on all charges for their roles in a Ponzi scheme that defrauded investors out of millions of dollars after they made false representations in soliciting and later misleading investors concerning their investment into a company called Four Winds Logistics. Prior to trial, co-conspirator and former Four Winds Logistics Chief Executive Officer Stanley P. Bates pleaded guilty to eight separate federal charges including securities fraud and money laundering. The defendants accepted investor funds but used them to pay earlier investors and personal expenses including gifts, travel, luxury automobiles, controlled substances, and to hire prostitutes.
Through its Financial Litigation Unit (FLU), the USAO exercises several remedies to ensure that criminal defendants prioritize compensating their victims. The FLU also litigates against those defendants who hide their assets or refuse to pay.
The USAO and the Department of Justice Tax Division worked together to reach this resolution, culminating with the Court agreeing with the government's motion for summary judgment establishing that the company selling the home was Cain's nominee.
Assistant U.S. Attorneys Steven Seward, Todd Keagle and Mark Tindall along with DOJ Tax Attorney Herb Linder handled the post-judgment enforcement proceedings.
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Turlock Man Charged with Possessing Fentanyl and Methamphetamine with Intent to DistributeRead the Press Release
FRESNO, Calif. — On April 1, a federal grand jury returned a two-count indictment against Salvador Vega Rendon Jr., 28, of Turlock, charging him with possession with intent to distribute fentanyl and methamphetamine, as well as possessing a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today.
According to court documents, on Nov. 29, 2020, in Stanislaus County, Rendon possessed over 500 grams of a substance containing methamphetamine and over 400 grams of a substance containing fentanyl with the intent to distribute it. Rendon also possessed four firearms, three of which were outfitted with devices that enabled them to function as fully automatic weapons, in furtherance of a drug trafficking crime.
This case is the product of an investigation by the Drug Enforcement Administration, the Stanislaus County Sheriff’s Office, and the California Highway Patrol. Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, Rendon faces a mandatory minimum of 15 years in prison maximum statutory penalty of life in prison, a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three defendants admit participating in dog-fighting operation dismantled in Dodge CountyRead the Press Release
DUBLIN, GA: Three of seven defendants have admitted in court to participation in a dog-fighting operation broken up in 2018 in Dodge County.
Benjamin Shinhoster III, 41, of Augusta; Deveon Hood, 34, of Tennille, Ga.; and Andre Archer, 23, of Sandersville, Ga., entered guilty pleas today [Wednesday, May 26] before U.S. District Court Judge Dudley H. Bowen Jr., said Acting U.S. Attorney David H. Estes. Shinhoster pled guilty to Sponsoring and Exhibiting a Dog in an Animal Fighting Venture, while Hood and Archer each pled guilty to Conspiracy. Each of the charges carries a statutory penalty of up to five years in prison, with substantial financial penalties and up to three years of supervised release after completion of any prison term. There is no parole in the federal system.
“Along with our law enforcement partners, our office is committed to eradicating these animal fighting operations that are nothing more than organized contests of cruelty,” said Acting U.S. Attorney Estes. “Such barbaric activities will continue to find an intensely unwelcoming environment in the Southern District of Georgia.”
Sentencing dates for Shinhoster, Hood and Archer have not yet been set.
The lead defendant in the investigation, James Lampkin, a/k/a “Pookie,” 46, of Eastman, Ga., awaits trial on charges of Conspiracy to Violate the Animal Welfare Act; and 63 counts of Possessing and Training a Dog for Purposes of an Animal Fighting Venture, related to the 63 dogs seized March 17, 2018, on his property where a federal indictment alleges dog fights were taking place. The charges all are felonies, each carrying a statutory penalty upon conviction of up to five years in prison. Lampkin also is charged with Attending an Animal Fighting Venture, a misdemeanor punishable by up to one year in prison. Also charged and awaiting further legal proceedings are:
- Xavier Simmons, 34, of Sandersville, Ga., charged with Conspiracy to Violate the Animal Welfare Act, and Attending an Animal Fighting Venture;
- Joe Ford, 33, of Elgin, S.C., charged with Conspiracy to Violate the Animal Welfare Act, and Attending an Animal Fighting Venture; and,
- Dwight McDuffie, 44, of Eastman, Ga., charged with Attending an Animal Fighting Venture.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The investigation began in response to reports of a dogfighting operation when Georgia State Patrol troopers and Georgia Department of Natural Resources game wardens conducted traffic stops in Eastman, discovering a dog in one of the vehicles that appeared to have been injured while fighting. The 63 dogs later were seized at Lampkin’s residence after investigators serving a search warrant found the animals chained in the back yard.
While the Asset Forfeiture Unit of the Southern District of Georgia U.S. Attorney’s Office initiated a civil forfeiture action, an animal rescue operation took custody of the dogs.
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who traffic in inflicting pain and suffering on animals,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “We appreciate the commitment of our federal partners in pursuing these purveyors of death who operate and find entertainment in animal fighting ventures.”
The case is being investigated by the U.S. Department of Agriculture Office of the Inspector General, and prosecuted for the United States by Special Assistant U.S. Attorney Jessica Rock.
Three charged in nationwide scheme to sell hundreds of thousands of fraudulent Texas paper tagsRead the Press Release
HOUSTON – Authorities are searching for two men indicted for using fictitious car dealerships to issue nearly 600,000 automobile paper tags and selling them on the internet without selling any cars, announced Acting U.S. Attorney Jennifer Lowery.
The charges allege the illegal tags pose a danger to the public and law enforcement because purchasers use them to avoid obtaining registration, safety inspections and liability insurance. They can also allegedly be used to hide their identities from law enforcement.
Houston resident Leidy Areli Hernandez Lopez, 39, is also charged in the scheme. She is in custody and expected to make her initial appearance before U.S. Magistrate Judge Sam Sheldon at 2 p.m.
Octavian Ocasio, 49, New York, and Emmanuel Padilla Reyes aka Christian Hernandez Bonilla, 31, city unknown, are considered fugitives and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 713-693-5000.
A federal grand jury in Houston returned the 15-count indictment May 20 charging all of them with conspiracy and various counts of wire fraud.
According to the charges, the scheme involved the use of fictitious car dealerships to issue and sell hundreds of thousands of Texas temporary buyer tags without selling cars. The three also allegedly used email accounts to communicate with each other and to deliver the fraudulent tags to purchasers throughout the United States.
In Texas, used car dealers must have an independent GDN license to buy, sell or exchange used vehicles, according to the charges. To obtain such a license, applicants must access the Texas Department of Motor Vehicles’ (TxDMV) online eLicensing application portal to apply. Once an applicant obtains a GDN license, they can buy, sell or exchange used cars and create temporary buyer tags for the transaction through the TxDMV’s online eTag portal. The portal is web-based and password protected, and only licensed GDN holders can access it, according to the indictment. However, the GDN holder can create other users on their account to allow access to the portal to create and issue buyer tags.
There is no restriction on the vehicle, buyer or vehicle identification number inputted into the portal, according to the indictment.
According to the charges, these three knowingly participated in the scheme to issue and sell more than 580,000 fraudulent tags to buyers across the United States. They allegedly provided false information such as fraudulent identities, drivers’ licenses, lease agreements and business signs in the online application portal to obtain GDN licenses for fictitious car dealerships. The indictment further alleges they advertised the sale of Texas buyer tags on social media platforms like Facebook and Instagram and used email to communicate and deliver fraudulently-obtained tags. They also received and shared proceeds from the fraudulent sale of Texas buyer tags via electronic payment services like Cash App and Zelle, according to the charges.
If convicted each faces up to 20 years in prison and a potential $250,000 maximum fine.
The FBI conducted the investigation with assistance from Travis County Constable Precinct 3, Houston Police Department, Texas Department of Public Safety, Harris County Sheriff’s Office, New York State Police and New York Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Three Defendants Sentenced for Child Pornography CrimesRead the Press Release
Three men have been sentenced in U.S. District Court for child pornography crimes, announced Acting U.S. Attorney Clint Johnson.
“I want to thank the Tulsa Police Department and Homeland Security Investigations for their diligence that led to the prosecution of three defendants who received and distributed child sexual abuse material,” said Acting U.S. Attorney Clint Johnson. “The men and women who investigate these crimes are exposed to unspeakable acts committed against children. Their work is difficult but essential to finding justice for victims who suffered horrific abuse during the production of child pornography.”
Clayton Jacob Waldon, 51, of Tulsa, was sentenced 108 months in federal prison followed by 25 years of supervised release for distribution and possession of child pornography. Waldon was further ordered to pay $6,000 in restitution to identified victims abused in the making of the child pornography. In his plea agreement, Waldon admitted that he received, distributed, possessed and accessed child sexual abuse material from Oct 9, 2019, to July 25, 2020. He also admitted that he knowingly accessed with intent to view more than 1,000 images of children being sexually abused. Assistant U.S. Attorney Matilda Villalobos prosecuted the case.
Travis Pryce, 50, of Copan, was sentenced to 121 months in federal prison followed by 10 years supervised release. In a blind plea, Pryce admitted to the distribution and receipt of child pornography from April 16, 2019, to Sept. 30, 2020. Assistant U.S. Attorney Christopher Nassar prosecuted the case.
Andrew Glen Perrine, 31, of Tulsa, was sentenced to 64 months in federal prison followed by 15 years of supervised release. Perrine pleaded guilty to distribution, receipt, and to possession of child pornography from June 28, 2019, to July 14, 2020. In July 2020, Investigators from the Tulsa Police Cyber Crimes Unit and agents with the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations received information that someone using the internet at Perrine’s residence had been distributing child pornography using a social media messaging app. A forensic examination discovered more than 50 sexually explicit photos of children on Perrine’s electronic devices. Perrine, a former pre-school teacher at B’nai Emunah Preschool in Tulsa and former teacher at Bartlesville Middle School, confessed to downloading child pornography for more than 15 years and to possessing photos of children as young as 10 years old. Assistant U.S. Attorney Christopher Nassar prosecuted the case.
These cases were prosecuted 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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Third Philadelphia Man Sentenced to 10+ Years for Gunpoint Robbery of East Mount Airy Corner StoreRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Maurice Quinn, 42, of Philadelphia, PA, was sentenced to 10 years in prison, and five years of supervised release by United States District Judge Jan E. DuBois for Hobbs Act robbery, and carrying and using a firearm during the commission of a violent crime.
The charges stemmed from an armed robbery of a corner grocery store in the East Mount Airy section of Philadelphia in March 2019. In February 2020, the defendant and his two co-defendants, Abid Stevens and Donnie Smith, both 41 and also of Philadelphia, PA, were convicted on all charges after trial. Stevens and Smith have already been sentenced by Judge DuBois for this crime to 10 years and 12 years in prison, respectively.
During the incident, Quinn entered RD Grocery and complained to a store employee that the store’s ATM had given him fake money. Quinn then attempted to grab both money from the register and a firearm kept by the owner behind the counter. Unable to grab the money or firearm, Quinn left and returned with Smith and Stevens, both of whom were armed with black semi-automatic handguns. Smith and Stevens brandished their firearms in the store employee’s face and Smith took the firearm from behind the counter. Quinn then again attempted to take cash from the register but failed. He demanded that the store employee open the register for him; the employee then opened the register, withdrew $100 in cash, and gave it to the Quinn.
“The defendant was so determined to rob this store that when his first attempt didn’t work, Quinn brazenly returned with armed back-up,” said Acting U.S. Attorney Williams. “His complete disregard for others and for the law is appalling. Hopefully others will learn from the example set by these three -- if you rob a store in Philadelphia with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”
“Maurice Quinn and his co-defendants committed a brazen armed robbery that endangered innocent lives and left a store employee traumatized,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “ATF and our partners from the Philadelphia Police Department remain committed to protecting the public from individuals like Stevens, who spread fear and perpetuate violence within the community. I would like to thank the United States Attorney’s Office for their proactive support throughout this investigation.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney Ashley N. Martin.
St. Louis Man Sentenced for Attempting to Purchase CocaineRead the Press Release
East St. Louis, Ill. – A St. Louis man is heading to prison after arranging to purchase a kilogram of cocaine. Ifiok J. Equere, 54, appeared in federal district court today and was sentenced to 70 months in prison for attempting to possess with the intent to distribute 500 grams or more of cocaine. Equere pled guilty to the charge last November.
The offense occurred on March 15, 2019. According to court documents, Equere arranged to purchase cocaine from a confidential source working at the direction of law enforcement. Equere was operating as a middleman for a third-party distributor and agreed to meet the source at a predetermined location in Madison County, Illinois. Equere agreed to pay $27,800 for a kilogram of cocaine.While in route to make the purchase, Equere and the distributor were pulled over on I-270 in
Madison County. Officers searched the car and found $27,800 in the glove compartment. Equere was set to receive $500 as payment for setting up the transaction.As part of his sentence, Equere was ordered to forfeit his interest in the $27,800 seized from his car and pay a $200 fine. Upon his release from prison, Equere will serve a 4-year term of supervised release.
This cas was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Daniel T.
Kapsak.
South Carolina Inmate Sentenced to Federal Prison for Role in Military Sextortion SchemeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Wendell Wilkins, 32, of Spartanburg, was sentenced to 66 months in federal prison after pleading guilty to money laundering, for his role in a scheme to extort and defraud military members that was operated out of the South Carolina Department of Corrections (SCDC).
Evidence presented to the court showed that, while serving a 12-year sentence in SCDC for attempted armed robbery and using smartphones smuggled into prison, Wilkins joined internet dating sites, posed as young women thereon, and began communicating with military members. Posing as young women and targeting military members, Wilkins sent nude photographs of young females to the military members and solicited nude photographs and other personal information in exchange. Wilkins, and others acting at his direction, then posed as the father of the young woman, claiming that the young woman was underage and that the military member was in possession of child pornography. Wilkins and others then threatened to have the military members arrested or dishonorably discharged unless they paid money.
Due to this extortion, service members transferred funds via Western Union and MoneyGram to Wilkins’ associates at Wilkins’ direction. From February 2016 through January 2018, Wilkins received at least $74,000.00 in extorted funds, which investigators traced to at least 25 military victims.
Wilkins was one of numerous inmates at SCDC prosecuted by the U.S. Attorney’s Office in South Carolina for participating in this scheme to extort military members. In total, more than 300 military members throughout the United States were victims of the scheme, and the amount of loss exceeded $350,000. Several military members committed suicide after falling victim to this extortion scheme.
United States District Judge David C. Norton sentenced Wilkins to 66 months in federal prison and 36 months of supervised release to be served after Wilkins completes his 12-year state prison sentence. There is no parole in the federal system.
This case was investigated by the Naval Criminal Investigative Service (NCIS), Internal Revenue Service (IRS) Criminal Investigation, Defense Criminal Investigative Service (DCIS), Air Force Office of Special Investigations, U.S. Army Criminal Investigations Command (CID), United States Marshals Service, South Carolina Department of Corrections, and South Carolina Law Enforcement Division.
Acting U.S. Attorney DeHart prosecuted the case.
“Nothing good comes from smartphones in prison,” said Acting U.S. Attorney DeHart. “Inmates use them to commit even more crimes while behind bars. We hope this prosecution helps state officials eliminate and disable contraband phones in prison.”
“Mr. Wilkins deserves to be held fully accountable for his role in this reprehensible scheme to deceive and defraud our nation’s service members,” said NCIS Carolinas Field Office Special Agent in Charge Sean Devinny. “This sentencing should serve as a warning that NCIS and our law enforcement partners will use every resource available to ensure these criminal networks are destroyed. I would like to sincerely thank our partners for their continued dedication and assistance in keeping our service members safe.”
“Mr. Wilkins knowingly used deceit and trickery to prey on those who serve our nation. It’s unconscionable to think that the defendant perpetuated this years-long financial scam against servicemembers while already in prison for other criminal activity,” said Mona Passmore, Acting Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “We will continue to work with our law enforcement partners to unravel this and other complex financial and money laundering schemes where individuals attempt to conceal the true source of their income and use the internet to mask their true identity. This additional federal felony conviction and federal prison term should have a strong deterrent effect against any other criminal activity Mr. Wilkins and others might consider pursuing.”
“The Defense Criminal Investigative Service stands committed to aggressively pursue and investigate organized criminals who target our service members and undermine their combat readiness and well-being,” said Special Agent in Charge Christopher Dillard, DCIS Mid-Atlantic Field Office. “We hope this case demonstrates the resolve of DCIS and our law enforcement partners to uphold the integrity of the Department of Defense and protect our Warfighters.”
“The Office of Special Investigations (OSI) is committed to being a vital investigative agency aimed at finding the truth, thwarting all threats, and promoting unfailing justice for the Department of the Air Force, Department of Defense, and nation," said Special Agent in Charge Craig Hotaling, OSI Detachment 310, Joint Base Charleston, SC. "We will continue to work with our law enforcement partners to protect the personnel of the United States Air Force and Space Force."
"This case highlights the outstanding partnerships of OSI with our fellow law enforcement agencies to protect Department of Defense personnel," said Colonel Tamara Henderson, Commander, OSI Region 3, Scott AFB, IL. "OSI will continue to identify, exploit and neutralize criminal threats targeting the Department of the Air Force, Space Force, and the Department of Defense."
“Unfortunately, these scams are common,” said Edward LaBarge, director of the Major Cybercrime Unit, U.S. Army Criminal Investigation Command (CID). “CID special agents will continue to aggressively pursue criminals who target our warfighters and their families in these types of schemes regardless of where they are in the world.”
“This is another example of how dangerous it is for inmates to have illegal cell phones,” said Bryan Stirling, Director of the S.C. Department of Corrections. “States need the ability to jam cell phone signals inside prisons so we can keep inmates from continuing their illegal activities.”
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Six Former Railroad Employees Charged with Fraudulently Obtaining Federal Disability BenefitsRead the Press Release
CHICAGO – Six former railroad employees have been indicted on criminal charges for allegedly fraudulently obtaining federal disability benefits.
The indictments accuse the defendants of working other jobs while providing false information to the U.S. Railroad Retirement Board’s Disability Benefits Division. The defendants were charged as part of an ongoing, nationwide investigation into alleged fraud perpetrated against benefits programs administered by the RRB to rail workers and their families. The investigation is being jointly conducted by the RRB Office of Inspector General, FBI, and U.S. Department of Health and Human Services Office of Inspector General.
Charged in indictments returned in the Northern District of Illinois are SCOTT CARLBERG, 50, of Menomonie, Wisc., a former engineer at Soo Line Railroad; RONALD LEE CRIBBS, 49, of Hastings, Fla., a former employee of Chessie Seaboard Consolidated; ROBIE VONDERHAAR, 58, of Guttenberg, Iowa, a former foreman for Dakota, Minnesota & Eastern Railroad Corp.; RICHARD W. BROWNER, JR., 65, of Toms River, N.J., a former assistant line engineer at the New Jersey Transit Corp.; JAMES BONNER, 52, of Shalimar, Fla., a former engineer for Burlington North Santa Fe; and KING BRADLEY, JR., 48, of Medina, Tenn., a former conductor for Illinois Central Railroad.
The indictments were ordered unsealed this week. The defendants will be arraigned in federal court in Chicago on a date to be set by the Court.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Martin J. Dickman, Inspector General of the RRB; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Lamont Pugh, Special Agent-in-Charge of the Chicago Division of the HHS-OIG. Valuable assistance was provided by Brian Jeanfreau, Special Agent-in-Charge of the Coast Guard Investigative Service Gulf Region. The government is represented by Assistant U.S. Attorneys Richard Rothblatt and Terry Kinney.
“Disability payments from the Railroad Retirement Board are a critical benefit for those who truly need them,” said U.S. Attorney Lausch. “Individuals who seek to fraudulently obtain these benefits jeopardize the viability of the program and must be held accountable.”
“The fraud alleged in these indictments is appalling,” said RRB IG Dickman. “My office will continue to pursue individuals who attempt to defraud the USRRB and the actors who may help perpetuate the fraud, whether they be medical professionals, contractors, private employers, or government employees. I would also like to acknowledge the hardworking prosecutors and agents assigned to this ongoing, national investigation.”
“Disability benefits are a critical lifeline for injured workers,” said FBI SAC Buie. “Defrauding the U.S. Railroad Retirement Board means stealing resources from hardworking citizens, and we will continue to work with our partners to prevent future abuses.”
“Making false statements and concealing material facts in order to obtain benefits from federally funded programs is wrong and illegal,” said HHS-OIG SAC Pugh. “Those who receive disability benefits may be deemed eligible for other federal benefits such as Medicare before attaining age 65. Therefore, falsifying information to receive benefits that individuals are not entitled to wastes valuable taxpayer dollars across multiple federally funded programs. HHS-OIG will continue to work with our federal partners to identify instances where benefit programs are being defrauded and protect vital taxpayer dollars.”
According to the indictments, Carlberg operated and managed a tanning salon in Wisconsin for six years while simultaneously receiving occupational disability benefits; Cribbs worked in the construction and landscaping trades for various companies in Florida for six years while simultaneously receiving occupational disability benefits; Vonderhaar managed a construction company in Iowa for three years while simultaneously receiving occupational disability benefits; Browner co-owned and managed a donut shop in New Jersey for six years while simultaneously receiving occupational disability benefits; Bonner captained a chartered fishing boat in Florida for three years while simultaneously receiving occupational disability benefits; and Bradley worked for a construction company for six years while simultaneously receiving total and permanent disability benefits.
The charges seek cash forfeiture from the defendants in the following amounts: Carlberg $273,974; Cribbs $145,000; Vonderhaar $110,732; Browner $226,443; Bonner $10,180; and Bradley $211,650.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Carlberg, Cribbs, Vonderhaar, and Browner face multiple counts of wire fraud, each of which is punishable by up to 20 years in federal prison. Bonner and Bradley are charged with making materially false statements to the FBI and RRB, which is punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe someone you know is receiving fraudulent disability benefits from the U.S. Railroad Retirement Board, you can anonymously contact the USRRB OIG by calling 1-800-772-4528 or by sending an email to [email protected].
Scott Township Man Charged with Possessing MethRead the Press Release
PITTSBURGH– A suburban Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman, announced today.
The one-count Indictment named James France, 58, formerly of Scott Township, Pennsylvania, as the sole defendant.
According to the Indictment, on or about June 29, 2016, the defendant possessed with intent to distribute and distributed 50 grams or more of methamphetamine.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal histories, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Scott Township Police Department and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
School board leader sentenced in corruption schemeRead the Press Release
BROWNSVILLE, Texas – The former vice president of the Brownsville Independent School District (BISD) Board of Trustees has been ordered to federal prison following her convictions of conspiracy and corruption, announced Acting U.S. Attorney Jennifer B. Lowery.
A Brownsville federal jury returned guilty verdicts Nov. 4, 2020, against Sylvia P. Atkinson, 49, Brownsville, following an eight-day trial. She was convicted of one count of conspiracy, one count of bribery concerning programs receiving federal funds and six counts of Travel Act violations.
Today, U.S. District Judge Fernando Rodriguez Jr., who presided over the trial, ordered Atkinson to serve a total 80-month sentence to be followed by three years of supervised release. The Judge also imposed a $35,000 fine to be paid immediately.
In handing down the sentence, Judge Rodriguez noted how Atkinson’s crime took on great significance because of the abuse of the public trust and the need for a sentence that will deter others from engaging in similar conduct. The court specifically found Atkinson had lied extensively in her testimony at trial and assessed an obstruction of justice enhancement at sentencing. Judge Rodriguez further commented that Atkinson’s story on the stand unbelievable and clearly a lie.
Atkinson was elected to the BISD Board of Trustees Nov. 4, 2016, and appointed vice president in 2018. During her career in education, she has served as the superintendent of Socorro, Santa Rosa and Los Fresnos school districts, assistant superintendent of BISD and Rio Hondo ISD (RHISD) and the executive director of High School Programs and Community Outreach at Texas Southmost College.
During trial, the jury heard from several witnesses including BISD Board of Trustees members and its attorney as well as officials of Texas Education Agency and Texas Association of School Boards. They detailed how Atkinson orchestrated a long-running criminal scheme to solicit bribes from vendors seeking to obtain contracts with BISD and RHISD.
From December 2018 through February 2019, Atkinson solicited and received a $10,000 bribe related to a film crew’s potential use of BISD facilities for filming a purported Hollywood movie. She also received illegal campaign contributions in 2014 and 2016 for her and another person.
The jury also heard how she had set up a shadow company with sales employees from potential educational and telehealth vendors who desired to do business with BISD and RHISD. Atkinson arranged both school meetings although she knew there was a conflict of interest in doing so. She also set up the company to hide her involvement and potential profit from any business those vendors obtained with BISD and RHISD.
The defense attempted to convince the jury that she had been acting as a “consultant” when she accepted payment. The jury, however, found the payments were bribes and found her guilty as charged.
Atkinson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Cameron County District Attorney’s Office and Brownsville Police Department. Assistant U.S. Attorneys Jody Young and Robert S. Johnson prosecuted the case.
Santa Rosa man faces methamphetamine and fentanyl trafficking chargesRead the Press Release
ALBUQUERQUE, N.M. – Paul James Jaramillo, III, 31, of Santa Rosa, New Mexico, was arraigned in federal court on May 24 on an indictment charging him with possession with intent to distribute methamphetamine and fentanyl. Jaramillo will remain in custody pending trial.
According to the indictment filed on May 12, 2021, Jaramillo allegedly committed this offense in Bernalillo County, New Mexico, on March 11 by being in possession of methamphetamine and fentanyl with the intent to distribute it.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. Jaramillo faces up to 20 years in prison on each count if convicted as charged in the indictment.
The Albuquerque Field Office of the FBI investigated this case with assistance from the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney David Cowen is prosecuting the case.
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Salem County Man Sentenced to 57 Months in Prison for Illegally Possessing FirearmRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man was sentenced today to 57 months in prison for illegally possessing a handgun, Acting U.S. Attorney Rachael A. Honig announced.
Rahim Seals, 28, previously pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of possession of a firearm by a previously convicted felon. Judge Hillman imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On Dec. 27, 2019, while Seals was walking in Salem City, detectives from the Salem City Prosecutor’s Office attempted to arrest Seals on an outstanding warrant. Seals fled and dropped a Sig Sauer P238 .380 caliber handgun loaded with seven hollow point rounds of ammunition. Seals has three prior felony convictions, including a controlled substance offense and two resisting arrest offenses.
In addition to the prison term, Judge Hillman sentenced Seals to three years of supervised release.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai, with the investigation leading to today’s sentencing. He also thanked the Salem City Police Department, under the direction of Chief John A. Pelura, III, and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Richmond Man Convicted of Methamphetamine Trafficking and Firearms ChargesRead the Press Release
LEXINGTON, Ky. - A Richmond, Kentucky man was convicted on Tuesday, by a federal jury sitting in Covington, of distribution of more than 500 grams of methamphetamine, distribution of heroin, possession of a firearm in furtherance of drug trafficking, and possession of firearms by a convicted felon.
After 45 minutes of deliberations, following a 2-day trial, the jury convicted 57-year-old John William Lawson of the offenses.
According to testimony at trial, Lawson was arrested after a traffic stop during which officers located a loaded handgun, drug paraphernalia, and more than $23,000 in United States currency. Subsequent search warrants at Lawson’s residence in Madison County revealed more than one pound of methamphetamine, which was determined to be 100% pure. The search also resulted in the seizure of an additional $57,000 in United States currency, thousands of Xanax pills, and several firearms.
Lawson was indicted in June 2020.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Field Division; Chief James Ebert, Richmond Police Department, and Sheriff Mike Coyle, Madison County Sheriff’s Office, jointly announced the verdict.
The investigation was conducted by the DEA, the Madison County AHIDTA Task Force, the Richmond Police Department, and the Madison County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and David Kiebler.
Lawson will appear for sentencing on September 16, 2021. He faces a mandatory minimum sentence of 20 years and a maximum of life imprisonment. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. t involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Rhode Island Woman Sentenced for $1 Million Embezzlement and Tax Fraud SchemeRead the Press Release
BOSTON – A Rhode Island woman was sentenced yesterday for embezzling more than $1 million from her employer and failing to pay more than $260,000 in taxes on those funds.
Barbara Levy, 50, of Portsmouth, R.I., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 32 months in prison and two years of supervised release. Levy was also ordered to pay $1,319,849 in restitution, which includes $260,982 in restitution to the Internal Revenue Service (IRS). On Jan. 27, 2021, Levy pleaded guilty to one count of bank fraud and one count of filing a false tax return.
Levy worked as an office manager at a New Bedford-based company. Between December 2012 and October 2019, Levy forged 1,134 checks to herself from her employer’s bank accounts, totaling $1,058,867, and deposited the funds into her own account or cashed them. Levy hid her scheme by altering monthly bank statements, substituting the names of legitimate purported payees in place of her own name to make it appear as though the checks had been written for a valid purpose. Levy also failed to report the funds she embezzled on her federal income tax returns.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Kristen A. Kearney of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Reno Man Pleads Guilty to Selling Hundreds of Counterfeit Oxycodone Pills Laced with FentanylRead the Press Release
RENO, Nev. – A Reno man pleaded guilty today to selling hundreds of counterfeit oxycodone pills containing fentanyl, a powerful synthetic opioid.
According to court documents and admissions made in court, from June 12 to September 2, 2020, Octavio Mendoza Jr., 24, sold counterfeit oxycodone pills stamped with “M30” that contained fentanyl. On September 6, law enforcement arrested Mendoza after observing him using drugs in a vehicle in downtown Reno. During a search of the vehicle, law enforcement found approximately 374 counterfeit oxycodone pills containing fentanyl.
Mendoza pleaded guilty to seven counts of distribution of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Judge Howard D. McKibben scheduled sentencing for August 24, 2021.
The statutory maximum penalty for distribution of fentanyl is 20 years in prison, and the minimum penalty is five years in prison. The statutory maximum penalty for possession with intent to distribute 40 grams or more of fentanyl is 40 years in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI made the announcement.
This case was investigated by the FBI, the Northern Nevada Safe Streets Task Force, Reno Police Department, Sparks Police Department, Washoe County Sheriff’s Office, Nevada Highway Patrol, Carson City Sheriff’s Office, Nevada Gaming Control Board, and the Douglas County Sheriff’s Office. Assistant U.S. Attorney Andolyn Johnson is prosecuting the case.
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Raytown Man Sentenced to 15 Years for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Raytown, Missouri, man was sentenced in federal court today for drug trafficking and illegally possessing firearms.
Victor Rodriguez Kessel, 65, a Cuban national, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Kessel to forfeit to the government $82,213 that was seized by law enforcement and his residential property, which he maintained for the purpose of manufacturing or distributing illegal drugs.
On Dec. 5, 2019, Kessel was found guilty at trial of conspiracy to distribute cocaine and crack cocaine, attempting to manufacture crack cocaine, possessing crack cocaine with the intent to distribute, possessing cocaine with the intent to distribute, possessing marijuana with the intent to distribute, and being a felon in possession of a firearm.
At the time of his arrest, Kessel possessed three firearms, 62.21 grams of crack cocaine, 404.44 grams of cocaine, 456.8 grams of marijuana, and $82,213 (an additional $10,000 had been interdicted by postal inspectors and seized prior to his arrest).
On July 18, 2017, a federal postal inspector identified a suspicious parcel at the Kansas City, Missouri, Postal Processing and Distribution Center. The 15-ounce parcel was addressed to Kessel’s address, but under a different name. The return address in Tucson, Arizona, also did not correctly identify the sender of the parcel. A police canine alerted to the presence of illegal drugs inside the parcel.
Later the same day, law enforcement officers delivered the parcel to Kessel’s residence. Kessel, who had a loaded Glock 10mm pistol in his waistband, told officers he didn’t recognize the name on the parcel. Kessel gave consent to open the parcel, which contained approximately 274.23 grams of powder cocaine. After Kessel gave consent to search his residence, officers found a Smith & Wesson .38-caliber revolver in the bedroom. Officers also found a purse that contained approximately 156.89 grams of powder cocaine. Officers found approximately 5.36 grams of crack cocaine in the living room and kitchen area, and approximately 304.74 grams of marijuana.
After Kessel withdrew his consent, officers obtained a search warrant for Kessel’s residence and additionally found approximately 3.4 grams of powder cocaine, 74 grams of crack cocaine, and 157.6 grams of marijuana. Officers found a Ruger 9mm semi-automatic handgun under the couch in the living room area. Approximately $5,000 was found in a black bag hidden behind the headboard in the master bedroom.
Officers also found approximately $75,000 in a locked shed in the backyard, which was designed to be a marijuana grow house.
In the course of the investigation, the inspector learned that a parcel containing $10,000 associated with Kessel’s address recently had been mailed to Tucson.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kessel has nine prior felony convictions, including a prior federal conviction for distributing crack cocaine, for which he served 14 years and 10 months in federal prison. That offense involved the sale of crack cocaine on six separate occasions and the recovery of four firearms and approximately 848.91 grams of crack cocaine following a search of his home. Kessel also has three prior felony convictions for burglary, three prior felony convictions for grand theft, and two prior felony convictions for carrying a concealed firearm.
This case was prosecuted by Assistant U.S. Attorneys Brad K. Kavanaugh and Sean T. Foley. It was investigated by the U.S. Postal Inspection Service, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Jackson County Sheriff’s Department.
Project Safe Neighborhoods
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Postal Worker Fined for Failing to Deliver over 1,300 Pieces of MailRead 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 Sean Barrett, 30, of Sanborn, NY, who was convicted of delay or destruction of mail, was fined $600.00 by U.S. Magistrate Judge Jeremiah J. McCarthy.
Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that the defendant was employed as a U.S. Postal Service mail carrier assigned to the Lewiston Post Office and responsible for mail deliveries in Lewiston and Youngstown, NY. On October 13, 2020, Barrett was to deliver 1,314 mail pieces, including 502 first class mailings, two certified mailings, and 794 standard mailings, for delivery in the Youngstown area. Instead of delivering those mail pieces, the defendant placed them in a wooded area off Pletcher Road in Youngstown. They were recovered later that day by law enforcement officers. Six days later, on October 19, 2020, fourteen bundles of banded Western New York Value newspapers, dated between August 29 and October 10, 2020, were discovered by USPS agents discarded in a wooded area just west of where the mail pieces were discovered. Barrett was interviewed by USPS agents on October 20, 2020 and admitted to dumping the mail and newspapers instead of delivering them.
The sentencing is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and the Lewiston Police Department, under the direction of Chief Frank Previte.
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Passaic County Man Sentenced to 27 Months in Prison for Role in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 27 months in prison for his role in a conspiracy to distribute 400 grams or more of fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Felix Acevedo, 29, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to one count of possession with intent to distribute 400 grams or more of fentanyl. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2018 through March 2019, Acevedo conspired with others to distribute 400 grams or more of fentanyl. On Feb. 20, 2019, he took possession of a parcel that had been shipped to him at an address in Clifton, New Jersey. Acevedo believed the parcel contained narcotics, which he planned to deliver to a conspirator. Unbeknownst to Acevedo, law enforcement had interdicted the parcel prior to its delivery and removed the 997 grams of fentanyl it contained.
In addition to the prison term, Judge Hayden sentenced Acevedo to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and the inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s sentencing.
This case is being conducted under the auspices the Organized Crime Drug Enforcement Task Forces. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Organized Crime Drug Enforcement Task Force/Narcotics Unit in Newark.
Owensboro Man Indicted in Fentanyl Overdose DeathRead the Press Release
OWENSBORO, KY. – An Owensboro, Kentucky, man was charged by a federal grand jury this week for the distribution of Fentanyl resulting in the death of another, announced Acting United States Attorney Michael A. Bennett.
The grand jury returned a two-count indictment against two men, Jonathan Brown, 19, of Owensboro and Jonathan Stallings, 20, of Owensboro. Both Brown and Stallings are charged in Count 1 of the indictment with Conspiracy to Possess with Intent to Distribute a Controlled Substance between June 2020 and October 2020 in Daviess County, Kentucky and elsewhere. Brown is charged in Count 2 of the indictment with Distribution of Controlled Substances resulting in the death and serious bodily injury of another person, A.H., for events occurring on or about October 8, 2020, in Daviess County, Kentucky.
If convicted at trial, the maximum sentence for Brown is no less than 20 years and no more than life in prison, a $1,000,000 fine, and 3 years of supervised release. The maximum sentence for Stallings is no more than 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, Central City Police Department, and Owensboro Police Department.
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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Omaha Man Sentenced to 360 Months for Drug and Money Laundering ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Keevan Craig Dean, 56, of Omaha, Nebraska, was sentenced today by United States District Judge Brian C. Buescher for conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and for conspiracy to launder the proceeds from the drug conspiracy. Dean received a sentence of 360 months with a five-year term of supervised release to follow. There is no parole in the federal system.
In mid-2017, a Drug Enforcement Administration taskforce initiated Operation Dog Pound, which was a drug interdiction effort focused on an Omaha drug trafficking organization headed by Dean. In September 2018, task force members were authorized to intercept and monitor Dean’s phone calls and text messages. As the scope of the organization was revealed, task force members were able to determine who was involved and how methamphetamine was being brought to Nebraska for distribution. Numerous multi-pound packages containing methamphetamine that were being sent via the United States Postal Service were seized, as well as the interdiction of a car traveling from California to Nebraska with 10 pounds of methamphetamine. Operation Dog Pound ended on November 16, 2018, when numerous federal arrest warrants were executed in Nebraska, Iowa, and California. During the November takedown, $55,000, 9 firearms, 2.75 pounds of methamphetamine, a Mercedes Benz, and $30,000 in jewelry and valuables were seized.
Some of the notable members of the conspiracy that were convicted in federal court included Autumn Vanosdol, Katina Martinez, Timothy Agee, Travis Harvey, and Francis Peebles. Vanosdol was sentenced to 96 months in prison for money laundering and mailing packages of methamphetamine from California to Dean. Martinez was sentenced to 84 months in prison for assisting Dean distribute methamphetamine in Nebraska and Iowa and for money laundering. Timothy Agee was sentenced to 280 months in prison for money laundering, possessing a stolen firearm, and receiving packages of methamphetamine for Dean. Peebles was sentenced to 120 months and Harvey to 240 months in prison. Both were multi-pound methamphetamine distributors that received methamphetamine from Dean.
“The investigation into the Keevan Dean Drug Trafficking Organization (DTO) proved once again that drugs and violence go hand-in-hand,” DEA Omaha Division Special Agent in Charge Justin C. King said. “During the course of the investigation, investigators uncovered more than 25 pounds of methamphetamine and 10 firearms. These items alone are dangerous, but when combined, exemplify an extreme threat to our communities. With Dean off of the streets for 30 years, and members of the DTO serving time for their involvement, our families and our streets are safer.”
Operation Dog Pound was 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.
This case was investigated by the Drug Enforcement Administration, Nebraska State Patrol, U.S. Customs and Border Protection, Omaha Police Department, Bellevue Police Department, U.S. Postal Inspection Service, and the U.S. Attorney’s Office.
Nurse Practitioner Sentenced to 20 Years, Ordered to Pay More Than $52 Million in RestitutionRead the Press Release
A Waxahachie nurse practitioner was sentenced yesterday to 20 years in federal prison and ordered to repay more than $52 million in restitution for his role in a health care fraud conspiracy, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Trivikram Reddy, 39, pleaded guilty to conspiracy to commit wire fraud in October 2020. He was sentenced on Tuesday by U.S. District Judge Ada Brown.
“Mr. Reddy engaged in a scheme that defrauded Medicare and private insurance providers out of millions of dollars,” said Acting U.S. Attorney Shah. “The Justice Department will continue to aggressively prosecute all types of health care fraud to protect the integrity of our health care system and ensure that criminals are held accountable.”
“Health care fraud affects everyone, it causes billions of dollars in losses each year and erodes trust in our health care system,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “Mr. Reddy’s scheme defrauded multiple companies and put the professional reputation of six doctors in jeopardy all to line his own pockets. Along with our law enforcement partners, the FBI will continue to root out fraud in the health care industry and protect the public from illegal schemes.”
“When nurse practitioner Trivikram Reddy stole the identities of physicians to defraud Medicare and other insurers to enrich himself, he violated the basic trust that the public extends to healthcare professionals,” said Special Agent in Charge Miranda L. Bennett of the HHS-OIG Dallas Regional Office. “Today’s sentence sends a message to corrupt medical professionals that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
According to court documents, Mr. Reddy, a licensed nurse practitioner, devised a scheme to defraud Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna.
Mr. Reddy and co-conspirators created false patient bills using the provider numbers of six doctors as the treating physicians on the claims. All the claims were false and at no time did the six doctors provide billable services to any of Mr. Reddy’s medical clinics.
On June 3, 2019, federal agents served a civil investigative demand at one of Mr. Reddy’s medical clinics. When law enforcement arrived at the site, agents found Mr. Reddy’s staff manufacturing medical records. Following the encounter, on June 8, Mr. Reddy closed the clinic and terminated his business entity with the Texas Secretary of State.
On June 13, 2019, Mr. Reddy made the first of multiple wire transfers which, in sum, totaled more than $55 million. A forensic financial analysis directly tied the money to fraudulent health care claims submitted by Mr. Reddy.
Federal agents requested medical records to justify millions of dollars of paid Medicare claims paid between January 2014 and June 2019. Mr. Reddy and his staff spent the next four months manufacturing fake medical records to turn over to authorities.
This case was investigated by the FBI Dallas Field office and Health and Human Services-Office of the Inspector General (HHS-OIG). Assistant U.S. Attorney Donna Strittmatter Max and Special Assistant U.S. Attorney Matt Smid prosecuted the case.
North Versailles Felon Indicted for Illegally Possessing AmmunitionRead the Press Release
PITTSBURGH – A resident of suburban Pittsburgh has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Raheem Kirk, 27, of North Versailles, PA 15137, as the sole defendant.
According to the Indictment, on or about May 4, 2021, Kirk was found in possession of a ammunition. His prior felony convictions make it unlawful for him to possess ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant. The defendant is currently on house arrest.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nigerian national indicted for conspiracy, wire fraud and aggravated identity theft for fraud on Employment Security benefitsRead the Press Release
Seattle – A Nigerian citizen arrested May 14, 2021 at JFK Airport in New York, is now indicted for conspiracy, wire fraud and aggravated identity theft for his scheme to steal over $350,000 in unemployment benefits from the Washington State Employment Security Department, announced Acting U.S. Attorney Tessa M. Gorman. Abidemi Rufai, aka Sandy Tang, 42, of Lekki, Nigeria, remains detained at the Metropolitan Detention Center in Brooklyn, New York. Prosecutors have asked U.S. District Judge Benjamin Settle to order Rufai detained and transported to the Western District of Washington for arraignment on the indictment.
Rufai is now charged with conspiracy to commit wire fraud, nine counts of wire fraud and five counts of aggravated identity theft.
The indictment alleges that Rufai used the stolen identities of more than 100 Washington residents to file fraudulent claims with ESD for pandemic-related unemployment benefits. Rufai also filed fraudulent unemployment claims with Hawaii, Wyoming, Massachusetts, Montana, New York, and Pennsylvania. Rufai used variations of a single e-mail address in a manner intended to evade automatic detection by fraud systems. By using this practice, Rufai made it appear that each claim was connected with a different email account.
Rufai caused the fraud proceeds to be paid out to online payment accounts such as ‘Green Dot’ accounts, or wired to bank accounts controlled by “money mules.” Some of the proceeds were then mailed to the Jamaica, New York address of Rufai’s brother. Rufai was residing at his brother’s home during part of the period of the fraud. Law enforcement determined more than $288,000 was deposited into an American bank account controlled by Rufai between March and August 2020.
Conspiracy to commit wire fraud and wire fraud are punishable by up to thirty years in prison when the offense relates to benefits paid in connection with a presidentially-declared disaster or emergency, such as the COVID-19 pandemic. Aggravated identity theft is punishable by a mandatory minimum two year sentence to run consecutive to any sentence imposed on the other counts of conviction.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, with assistance from the Department of Labor Office of Inspector General (DOL-OIG). The fraud on ESD is being investigated cooperatively by the FBI, DOL-OIG, Social Security Office of Inspector General, U.S. Secret Service, the United States Postal Inspection Service, and the Internal Revenue Service Criminal Investigations. The Washington Employment Security Department is cooperating in the investigation.
The cases are being prosecuted by Assistant United States Attorneys Seth Wilkinson, Cindy Chang, and Benjamin Diggs of the Western District of Washington, and Trial Attorney Jane Lee of DOJ’s Computer Crime and Intellectual Property Section (CCIPS).
rufai_indictment.pdfNigerian National Charged for Role in Unemployment and Money Laundering SchemesRead the Press Release
BOSTON – A Nigerian national was charged yesterday in connection with his alleged involvement in multiple criminal schemes, including romance scams targeting the elderly, the submission of fraudulent pandemic-related assistance claims using stolen personally identifiable information and money laundering.
Damilola Adepoju, 29, of Brooklyn, N.Y., was charged in a criminal complaint with wire fraud, conspiracy to commit wire fraud, money laundering and aggravated identity theft. Adepoju made an initial appearance in federal court in Brooklyn and was detained pending a hearing on Thursday, May 27, 2021. Adepoju will make an initial appearance in federal court in Boston at a later date.
According to the charging documents, Adepoju and his co-conspirators submitted fraudulent pandemic-related unemployment claims and applied for disaster-assistance loans to the Small Business Administration using stolen personally identifiable information. In some instances, Adepoju and his co-conspirators allegedly targeted elderly victims through romance scams, taking their personal information and using them to launder the proceeds of the fraudulent schemes. Adepoju also allegedly used a shoe retail business he operated to launder funds, funneling the money to other financial accounts inside and outside the United States. The investigation has identified more than $600,000 in actual or attempted losses to date.
The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Nikitas Splagounias, Acting Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the announcement. The Massachusetts Department of Unemployment Assistance provided valuable assistance with the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Charges Filed Against Medical Technology Company President and Two Others in Alleged Fraudulent Covid-19 Testing SchemeRead the Press Release
SAN FRANCISCO –A federal grand jury handed down a superseding indictment against the president of California-based medical technology company Arrayit Corporation, Mark Schena, in connection with the submission of over $70 million in false and fraudulent claims for allergy and COVID-19 testing. Additionally, a criminal information was filed against each of Paul Haje, Arrayit’s Vice President of Marketing, and Marc Jablonski, president of an Arizona-based marketing organization, in related schemes. The new charges are part of coordinated law enforcement actions filed in seven federal districts throughout the United States in response to alleged health care fraud schemes that are said to have exploited the COVID-19 pandemic. The U.S. Department of Justice estimates that over $143 million in false billings were generated in connection with these cases. A press release issued by the U.S. Department of Justice summarizing the nationwide coordinated law enforcement actions can be found here.
The charges in the superseding indictment and informations filed in the Northern District of California were announced by Acting United States Attorney Stephanie M. Hinds; FBI Special agent in Charge Craig D. Fair; Acting Assistant Attorney General Nicholas L. McQuaid of the Department of Justice’s Criminal Division; Special Agent in Charge Steven J. Ryan for the Office of Inspector General of the U.S. Department of Health and Human Services; Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS) – Criminal Investigations Group; Special Agent in Charge Kim R. Lampkins of the Veterans Affairs Office of Inspector General (VA OIG); and Special Agent in Charge Bryan D. Denny, Defense Criminal Investigative Service, Western Field Office.
According to the superseding indictment and additional documents previously filed in the case, beginning 2015 and continuing to February 2020, Schena, 58, of Los Altos, Calif., engaged in a scheme to defraud Arrayit’s investors and the public by, among other things, overstating Arrayit’s status and influence and by artificially increasing and maintaining the share price of Arrayit securities. Schena and others allegedly paid kickbacks and bribes to recruiters and doctors to run an allergy screening test for 120 allergens (including things ranging from stinging insects to food allergens) on every patient regardless of medical necessity, and then made numerous misrepresentations to potential investors about Arrayit’s allergy test sales, financial condition, and its future prospects. Documents filed in the case allege Schena touted Arrayit as the “only laboratory in the world that offers” revolutionary “microarray technology” allowing Arrayit to test for allergy and COVID-19 based on a drop of blood that is 250,000 times smaller than the technology touted by Theranos. Schena stated that it was simple to develop a test for COVID-19 because the switch from testing for allergies to testing for COVID-19 was “like a pastry chef” who switches from selling “strawberry pies” to selling “rhubarb and strawberry pies.” Schena and others issued press releases and tweeted about partnerships with Fortune 500 companies, government agencies and public institutions, without disclosing that such partnerships either did not exist or were of de minimis value.
The superseding indictment bolsters previous charges filed against Schena by adding new counts of health care fraud and conspiracy allegations. Specifically, the superseding indictment alleges Schena conspired with others to pay kickbacks, administer fraudulent and unnecessary testing, and to make false and fraudulent statements about the existence, regulatory status, and accuracy of an Arrayit COVID-19 test. According to the superseding indictment, the conspiracy allegedly sought to induce the ordering of the Arrayit COVID-19 test and to bundle, i.e., require combination with, the COVID-19 test and Arrayit’s medically unnecessary allergy test. The COVID-19 test results were not provided in a timely fashion and were not reliable in detecting COVID-19.
The information filed against Haje alleges he conspired with Schena to solicit and pay kickbacks and bribes in return for services such as ordering allergy testing for beneficiaries and inducing the referral of members. In addition, the information alleges Haje caused the submission of fraudulent claims to insurers including Medicare, Medicaid, TRICARE, and commercial insurers as well as diverted the proceeds of the illegal kickback scheme for his personal use and benefit as well as to further the illegal kickback conspiracy.
Similarly, the information filed against Jablonski, the president of an Arizona-based marketing organization, alleges he conspired to defraud the United States and agreed to pay and receive illegal health care kickbacks. Specifically, the information alleges Jablonski solicited and received kickbacks and bribes from Schena in exchange for arranging for medical practitioners to collect blood samples and order allergy testing for beneficiaries and members to be conducted by Arrayit. The information also alleges Jablonski paid illegal kickbacks and bribes to other marketers and that he illegally maximized the amount of claims for reimbursement Arrayit would send to insurers by causing medical practitioners to order unnecessary and otherwise improper allergy testing by Arrayit.
Superseding indictments and criminal informations contain allegations only and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The superseding indictment charges Schena with conspiracy to commit health care fraud and wire fraud, in violation of 18 U.S.C. § 1349; health care fraud, in violation of 18 U.S.C. § 1347; conspiracy to pay illegal kickback, in violation of 18 U.S.C. § 371; payment of illegal kickbacks, in violation of 18 U.S.C. § 220; and securities fraud, in violation of 15 U.S.C. §§ 78j & 78ff and 17 C.F.R. 240.10b-5. Haje and Jablonski are both charged with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. Haje also is charged with conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349. If convicted, the defendants face the following statutory maximum sentences:
Defendant
Charge
Maximum Penalty (per count)
Schena
Conspiracy to Commit Health Care Fraud and Wire Fraud
(18 U.S.C. § 1349)
20 years imprisonment,
$250,000 fine
Health Care Fraud
(18 U.S.C. § 1347)
(two counts)
10 years imprisonment,
$5,000,000 fine
Conspiracy to Pay Illegal Kickbacks
(18 U.S.C. § 371)
5 years imprisonment,
$250,000 fine
Payment of Illegal Kickbacks
(18 U.S.C. § 220)
(two counts)
10 years imprisonment,
$200,000 fine
Securities Fraud
(15 U.S.C. §§ 78j & 78ff
and 17 C.F.R. 240.10b-5)
(three counts)
20 years imprisonment,
$5,000,000 fine
Haje
Conspiracy to Defraud the United States and Pay and Receive Kickbacks
(18 U.S.C. § 371)
5 years imprisonment,
$250,000 fine
Conspiracy to Commit Health Care Fraud
(18 U.S.C. § 1349)
20 years imprisonment,
$250,000 fine
Jablonski
Conspiracy to Defraud the United States
(18 U.S.C. § 371)
5 years imprisonment,
$250,000 fine
The court also may order additional terms of supervised release, fines, forfeitures, and restitution, 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.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Assistant U.S. Attorney William Frentzen of the Northern District of California, Acting Principal Assistant Chief Justin Weitz of the Market Integrity and Major Fraud Unit of the Fraud Section, and Assistant Chief Jacob Foster of the National Rapid Response Strike Force are prosecuting the case. This case was investigated by HHS-OIG’s San Francisco Regional Office and Detroit Regional Office, USPIS, the FBI, VA-OIG and DCIS. The department appreciates the assistance of the Securities and Exchange Commission.
Midway Man Sentenced for Possession of AmmunitionRead the Press Release
Greeneville, Tenn. – On May 24. 2021, Justin Robert Feagins, 29, currently of Midway, Tennessee, was sentenced to 120 months by the Honorable Judge J. Ronnie Greer, Senior United States Judge for the Eastern District of Tennessee at Greeneville.
A Grand Jury issued an indictment for Feagins in July of 2019 for the offense of being a felon in possession of ammunition. Feagins entered a guilty plea in September of 2020 to the single-count indictment.
On September 25, 2018, Rogersville Police responded to local hotel for a report of a person wounded by a gunshot. They arrived to find the victim suffering from a gunshot wound to the abdomen. During the course of the investigation, Rogersville Police located security footage of the shooting. The video showed Feagins shooting the victim and leaving the scene with the firearm. A spent .380 caliber cartridge case, which was consistent with the bullet recovered from the victim, was located at the scene.
Acting U.S. Attorney Trey Hamilton of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Rogersville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This investigation was led by ATF Special Agent Cameron Miller.
Assistant United States Attorney B. Todd Martin represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
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Members of Identity Theft Ring Operating in Three States Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Four members of an identity theft ring operating in at least three states have been sentenced to prison, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
On Tuesday, May 25, 2021, U.S. District Judge Frank D. Whitney sentenced Dayton Louis Kolczak, 29, and Heather Westerfield, 37, both of Charlotte, to 71 months and 57 months in prison, respectively, and ordered each to serve three years under court supervision. Both Kolczak and Westerfield previously pleaded guilty to bank and wire fraud conspiracy and aggravated identity theft charges. Two other co-defendants, Kenneth D. Bennett-Rosario, 45, of Charlotte, and Jessica Bailey Sowell, 28, also of Charlotte, previously pleaded guilty to aggravated identity theft. Bennett-Rosario was sentenced to 39 months in prison, and Sowell was ordered to serve 24 months for their role in the scheme.
According to documents filed in this case and statements made in court, the ring operated in North Carolina, South Carolina, Georgia, and elsewhere, between October 2018 and September 2019. Court records show that Sowell and others in the ring obtained personal identification information (PII) of actual persons by various means, including stealing mail, over the internet, through real estate listings, and other public records. Kolczak made counterfeit North Carolina and South Carolina driver’s licenses in the victims’ names and PII but with photographs of the members of the ring.
According to court records, the co-conspirators used the counterfeit identification cards and stolen identities to obtain over $450,000 in fraudulent credit card accounts at retail store chains, such Lowe’s, Belk Department Stores, Kohl’s, and Target, to purchase or rent luxury vehicles, pay for rooms at various hotel chains, and to rent storage units, among other things. According to court records, in this manner, the co-conspirators used the stolen identities of at least 40 individuals. Over the course of the investigation, law enforcement seized printers, laptop computers, an embossing machine, a laminator, and other devices used to manufacture the fraudulent identification cards.
This case was the result of the investigative efforts of CMPD and the Secret Service. The CMPD and the Secret Service have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorney Michael E. Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Massachusetts Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
CONCORD - Russell Graham, 41, of Lowell, Massachusetts, pleaded guilty in federal court to distribution of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on or about May 1, 2020, a Nashua police officer acting in an undercover capacity (UC) began investigating a website that allows users to upload and share videos. The UC identified a user whose profile indicated he enjoyed “teen porn” and the UC began communicating with the user, later identified as Graham. Between May 4, 2020, and May 11, 2020, Graham sent the UC numerous images and videos that depicted a minor engaging in sexually explicit conduct. Eventually, the UC offered to help Graham get a job at a construction company and asked for his resume. Graham sent the resume to the UC which identified him. On May 22, 2020, the UC and Graham planned to meet in Nashua. Graham was arrested when he arrived. At the time of his arrest, Graham was carrying a cell phone which contained additional images of child pornography.
Graham is scheduled to be sentenced on September 1, 2021.
“Distributing child pornography is a serious federal offense,” said Acting U.S. Attorney Farley. “In order to protect young people from exploitation and seek justice for victims, we work closely with our law enforcement partners to identify and prosecute the criminals who distribute child pornography.”
“The distribution of images of child exploitation is a serious and disturbing crime that feeds a vicious cycle of re-victimization each time the illicit images are shared and traded on-line,” said William S. Walker, Acting Special Agent In Charge, Homeland Security Investigations, Boston. “Today’s guilty plea is yet another step toward preventing child predators from continually exploiting minor victims and the results of this case could only have been achieved through the tireless efforts and continued commitment of our great partners in the Nashua Police Department and the U.S. Attorney’s Office for New Hampshire.”
This matter was investigated by the Nashua Police Department and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald and 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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Manchester Man Pleads Guilty to Making False Statements to Get Social Security BenefitsRead the Press Release
CONCORD - David Johnson, 35, of Manchester, pleaded guilty in federal court to making false statements to obtain Social Security benefits, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in December of 2013, Johnson applied for Supplemental Security Income (SSI) through the Social Security Administration (SSA). Because SSI is need-based, the SSA considers various factors such as marital status when determining eligibility and calculating the benefit amount. When he applied for SSI benefits, Johnson agreed to report certain changes, including a change in marital status.
Johnson married his spouse in April of 2014 and was required to notify the SSA of his marriage by May 10, 2014. However, Johnson did not disclose his marriage to the SSA. During subsequent SSI redeterminations in 2015 and 2016, Johnson falsely represented to the SSA that he was unmarried. Due to his concealment of his marriage, Johnson received over $32,000 in SSI benefits that he was not entitled to receive.
Johnson is scheduled to be sentenced on September 13, 2021.
“Supplemental Security Income benefits provide important financial support for needy individuals,” said Acting U.S. Attorney Farley. “Unfortunately, there are those who lie or cheat to obtain benefits that they are not entitled to receive. In order to protect the integrity of this important federal program, we work with the Inspector General of the Social Security Administration to investigate and prosecute those who commit fraud to obtain SSI benefits.”
This matter was investigated by the Social Security Administration’s Office of the Inspector General. The case is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen and Assistant U.S. Attorney Matthew T. Hunter.
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Man Sentenced to 27 Months After Pleading Guilty to EscapeRead the Press Release
MADISON, WIS. - Larry Dollar, 49, Duluth, Georgia, pleaded guilty and was sentenced today by U.S. District Judge William M. Conley to 27 months in federal prison for escape from federal custody, announced Timothy M. O’Shea, Acting U.S. Attorney for the Western District of Wisconsin.
Dollar escaped from the Rock Valley Community Program in Janesville, Wisconsin in December 2020, where he was completing a sentence for an earlier conviction for escape. In October 2017, Dollar was convicted of bank robbery in the Northern District of Illinois. In January 2019, Dollar escaped from Rock Valley Community Program, where he was completing his sentence for the bank robbery. He was convicted of the escape and was sentenced by Judge Conley to 24 months in federal prison.
In December 2020, Dollar was once again at Rock Valley Community Program in Janesville, completing his sentence for the 2019 escape. On December 14, 2020, he requested Rock Valley staff take him to the hospital for medical care. After arrived at the hospital, Dollar stole a truck, drank alcohol, and fled to Illinois where he caused a traffic accident and left the scene in the stolen vehicle. He was arrested by local law enforcement officials.
Judge Conley noted that Dollar’s mental health issues, coupled with his addiction to alcohol and extensive criminal history, made him a danger to himself and others.
The charge against Dollar is the result of an investigation by the U.S. Marshals Service. The prosecution of this case is being handled by Assistant U.S. Attorney Julie Pfluger.
Mahoning County Man Pleads Guilty to Using a Firearm to Threaten a Jewish Community Center in YoungstownRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that James P. Reardon, 22, of New Middletown, Ohio, pleaded guilty in federal court today to a two-count indictment charging him with transmitting a threatening communication and possession of a firearm in furtherance of a crime of violence.
According to the court documents, on August 16, 2019, New Middletown police contacted the FBI after being made aware of a video uploaded to Instagram by a user later identified as Reardon. In the video, Reardon is seen holding an assault rifle in multiple firing positions with audio of gunshots, sirens and people screaming added into the background.
The video also had a caption that stated: “Police identified the Youngstown Jewish Family Community shooter as local white nationalist Seamus O'Rearedon." The video is shown to be tagged at the Jewish Community Center of Youngstown.
On August 16, 2019, New Middletown police officers and members of the FBI Mahoning Violent Crimes Task Force gather to prepare to execute a search warrant at Reardon’s residence. During this time, federal agents reviewed other videos involving Reardon, including a National Geographic documentary in which Reardon attended the "Unite the Right" rally in Charlottesville, Virginia, in August of 2017.
Later that day, law enforcement executed the search warrant at Reardon’s residence and, upon entering the basement, investigators observed several firearms and clothing articles that were observed in Reardon’s Instagram video postings, including an MP-40 submachine gun like the one depicted in the video; an AR-15 assault rifle; numerous Nazi World War II propaganda posters; a rifle bayonet and vintage U.S. military equipment.
While officers were executing the search warrant, Reardon arrived at the residence and was arrested without incident.
Reardon is scheduled to be sentenced on September 22, 2021. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation, the Mahoning Valley Violent Crimes Task Force and the New Middletown Police Department. This case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
Leader of Chadwick Avenue Drug Trafficking Organization Admits Narcotics and Firearm OffensesRead the Press Release
NEWARK, N.J. – A Newark man today admitted to narcotics distribution and firearm offenses in connection with a drug trafficking organization, Acting U.S. Attorney Rachael A. Honig announced.
Ibraaheem Islam, a/k/a “Ish,” 33, of Newark, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a four-count information charging him with: possession of a firearm by a convicted felon (Count One); possession with intent to distribute cocaine base (Count Two); possession with intent to distribute heroin and fentanyl (Count Three); and possession of a firearm in furtherance of a drug trafficking crime (Count Four).
According to documents filed in this case and statements made in court:
In May 2020, as the result of an investigation into narcotics distribution activity occurring in the area of Chadwick Avenue in Newark, law enforcement obtained a warrant for Islam’s arrest, as well as warrants to search two vehicles and one residence associated with Islam. On May 30, 2020, law enforcement executed those warrants and recovered, among other things, a 5.7x28 millimeter FN Herstal model “FN Five-SeveN” pistol, loaded with 17 rounds of ammunition, 194 vials containing cocaine base, and 64 glassine envelopes containing heroin and fentanyl.
Islam admitted that on May 30, 2020, he illegally possessed the FN Herstal pistol, the cocaine base, and the heroin and fentanyl law enforcement seized during the execution of the search warrants. Islam further admitted that he possessed the firearm in furtherance of his distribution of the heroin and fentanyl.
Count One carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Counts Two and Three each carry a maximum penalty of 20 years in prison and a fine of up to $1 million. Count Four carries a mandatory minimum sentence of five years in prison, a maximum sentence of life in prison, and a fine of up to $250,000. Sentencing is scheduled for Sept. 28, 2021.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai; the Newark Police Department, under the direction of Acting Director Brian O’Hara; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to today’s guilty plea.
Islam was a target of the Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.
The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello, Cassye Cole, and Desiree L. Grace of the U.S. Attorney’s Office in Newark.